Visa introduced its Verified by Visa (VbV) service in SA yesterday, at an event in Melrose, Johannesburg.
According to the company, VbV allows Visa credit cardholders to authenticate their identity, during online credit card transactions, by being directed to the card issuer's (bank) Web site, and entering certain personal details kept by the bank, or a user-chosen password.
Globally, over 150 000 merchants participate in the programme, including British Airways, Emirates, Tesco, Wal-Mart and Dell Computers.
With e-commerce being one of the fastest growing online business sectors, Visa recognises the heightened security concerns, says Tribh Grewal, head of the "card-not-present" channel for Visa CEMEA.
There is a huge need for secure identification with regard to online trading, he adds.
"The benefit of VbV is not only security. By addressing the concerns and perceptions of online shopping, we have been able to increase online retail traffic and reduce the number of incidents of fraud."
Grewal says Internet traffic is growing steadily, but consumers are still security-conscious when it comes to making online payments.
VbV addresses those concerns by creating a safe shopping environment, resulting in increased sales and shopping opportunities for cardholders, he notes.
The South African Forum For E-tailers (Safe) supports VbV. "We are confident VbV will reduce two major concerns, namely online fraud and related costs, for South African businesses wanting to trade online," says Chris Savides, Safe chairman.
South African banks are also in favour of VbV, with the larger Visa card issuers - Absa, First National Bank, Investec, Standard Bank and Nedbank - offering VbV to Visa cardholders.
Cardholders can register and create a profile for VbV, which includes selecting a personal message that will only be shared with the issuing bank. This phrase or personal message ensures the accountholder is communicating with their bank.
Banks may also register the cardholders during the checkout process at participating merchants.
Local companies like Look & Listen and Digital Planet already use VbV to verify the identity of shoppers. Other local online retailers rolling-out VbV shortly include Kalahari.net, 1Time Airlines and Net Florist.
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