Netcom PaySystem

Visa Is Finally Getting Rid of a Static Password


Roswell, GA -- (SBWIRE) -- 10/03/2016 -- Say goodbye to the problematic static password. Visa is announcing some drastic changes concerning the static password used with its Verified by Visa e-commerce fraud-control service. More specifically, the company plans to phase it out. Certainly, some big news that will affect their whole customer base. But Visa's intentions are a turn for the good. With the new system they are currently developing, they are sure to eliminate unwanted problems that the static password might bring to their customers, such as vulnerability towards a hacker's attack, chances of forgetting a password, and thus preventing from completing a transaction, and so on. Furthermore, in some Verified by Visa implementations, the enrollment process "can give thieves a way to register a password on a cardholder's behalf," a post issued by Visa itself says. Creating a Verified by Visa static password during the enrollment process also "can introduce friction and divert cardholders from the merchant's Web site," they add.

Keeping this in mind, the payment company is improving its own technology called Three-Domain Secure, now called 3-D Secure 2.0. This new version of the previous system is scheduled to be available by year's end.

The thing about the earlier version (3-Domain Secure) is that, while it proved effective in avoiding or detecting online fraud, it gained only limited acceptance by card issuers and merchants because of the so-called friction it generated, especially in its early integrations, when a pop-up window would force the cardholder to temporarily leave the merchant's checkout page during a purchase. Many would-be buyers simply abandoned the transaction.

Visa has also made sure that eliminating the static password will not facilitate the work to imposters. The advances made in risk modeling and predictive analysis can compensate for the lack of a static password. Many individual issuers already have moved on to risk-based and so-called dynamic authentication that includes one-time passcodes, according to Visa.

It seems to be the norm nowadays between Issuers and merchants to rely on contextual data, that is, the transactions history of the same cardholder at an e-commerce site, for example; geo-location; and device checks to verify if the electronic device has a transaction record, and if so, to test if there are any fraud risks.

In other words, the new technology will be far more effective while at the same time reducing its complexity by eliminating unnecessary sources of problems such as a static password.

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Company Name: Netcom PaySystem
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