Online payment authorisation

bobblebob

Having recently been a victim of fraud on my credit card, and also know friends who have had similar experiences, why dont banks mandate all websites that take payment have to authenticate the transaction?

This happens on some sites where when you press buy, you have to confirm the transaction in the banking app/text message/phone call to prove it was you making it. This pretty much eliminates alot of fraud as providing you have your phone and its not lost or stolen, only you can authenticate a transaction.

Its a very small inconvenience to keep your account secure. However very few sites i use actually have this extra level of authentication, and im not sure why?

DullGreyGuy

bobblebob said:

Having recently been a victim of fraud on my credit card, and also know friends who have had similar experiences, why dont banks mandate all websites that take payment have to authenticate the transaction?

This happens on some sites where when you press buy, you have to confirm the transaction in the banking app/text message/phone call to prove it was you making it. This pretty much eliminates alot of fraud as providing you have your phone and its not lost or stolen, only you can authenticate a transaction.

Its a very small inconvenience to keep your account secure. However very few sites i use actually have this extra level of authentication, and im not sure why?

A long time ago we implemented 3D Secure on our websites and AVS in the call centres, cost circa £5m in implementation costs. Are you willing to pay that bill for us?

You also have to remember that your bank has no say in the mater what so ever, they issue Visa/Mastercard cards who are the ones that design the processes and set the rules. The merchant services bank can choose to layer on additional rules and restrictions but their own systems need to be able to support them. 

Then you get companies like Amazon, £27bn of revenue and a decent proportion of that will be via cards. If you are a merchant services bank and Amazon comes to you and say they'll come to you and pay your 0.2% fee but they arent willing to implement security, are you going to say no?

Many small, and even medium to large,  companies dont develop their own software, they buy something off the shelf and so either they have to wait for Shopify, Lightspeed, BigCommerce to develop the extra features or switch which can mean hundreds or thousands of man day effort moving to the new platform, transferring accounts, adding the catalogue and inventory, integrating it with your in store PoS, your warehouse, your finance system etc. 

In most companies you need to develop a positive business case... wether you are paying thousands, millions or tens of millions to change your software, train your staff etc etc, where does the extra revenue come from to offset the cost? If you have the choice of that or spend the money on developing a new product or running a new marketing campaign which is going to have the biggest impact to the bottom line?


In exchange for our £5m investment, I cannot remember what the extra cost was in the call centre on an annual basis, but our bank offered us a 0.008% reduction in fees.

Eyeful

1. Pay for something on a credit card that costs between £100 – £30,000 and Section 75 will automatically apply to your purchase. (As long as the thing you’ve purchased is for you).

2. Pay just £1 on a credit card, and your whole purchase is protected. Up to £30,000.

3. You got your money back did you not?

4. Today many people put convenience over security, until they lose some money. Then they complain there should be better security.

5.When fraud hits banks bottom line & they are preventing from recovering the lost profit from charging their customers more, you will find they will suddenly find better ways of reducing fraud. Only then might your suggestion come to pass.

eskbanker

Eyeful said:

1. Pay for something on a credit card that costs between £100 – £30,000 and Section 75 will automatically apply to your purchase. (As long as the thing you’ve purchased is for you).

That looks like an unattributed copy/paste from Monevator but isn't strictly true - there are nuances to s75 eligibility, where even transactions within that value range don't qualify if there's involvement of fourth parties such as agents or other intermediaries, as well as secondary cardholder purchases also not being eligible.

bobblebob

Eyeful said:

1. Pay for something on a credit card that costs between £100 – £30,000 and Section 75 will automatically apply to your purchase. (As long as the thing you’ve purchased is for you).

2. Pay just £1 on a credit card, and your whole purchase is protected. Up to £30,000.

3. You got your money back did you not?

4. Today many people put convenience over security, until they lose some money. Then they complain there should be better security.

5.When fraud hits banks bottom line & they are preventing from recovering the lost profit from charging their customers more, you will find they will suddenly find better ways of reducing fraud. Only then might your suggestion come to pass.

I did but ive always felt more authentication is needed online