Meredien Research: Visa's Online Authentication - Take Two

Meredien Research is out with a new report on Visa's 3D Secure.

Visa‚s 3D Secure is the latest protocol for online cardholder authentication, and it is one that has a great chance of success. Marketed globally under the Verified by Visa brand, this protocol and concurrent rule changes by both Visa and MasterCard are the right approach to battle online card fraud. If successful, 3D Secure will effectively bar the introduction of alternative payment mechanisms to settle traditional online shopping transactions. This report examines the genesis of 3D Secure, how success will be measured, the impact on participants, how adoption patterns will differ globally, and how online shopping will be impacted. Predictions of future chargeback rates and online shopping growth are included.

The Executive Summary notes that with card issuers and merchants largely on board, the big remaining question is consumer adoption.