SecureBuy, a global leader in payment fraud prevention and security solutions, has announced today that they will begin to provide their 3D-Secure MPI, free of charge to all online merchants. The SecureBuy 2.0, 3-D Secure® MPI will be made available with a 10 year royalty-free license.
According to a press release published earlier today by SecureBuy, the new offering is to counteract the expected rise in US-based online fraud when EMV technology is implemented. SecureBuy states that if and when EMV transaction is made available to US cardholders, there will be an expected increase of 30%-60% in fraudulent online transactions.
3D-Secure technology does not only help with enhancing security by verifying cardholder data, but also shifts liability to the issuing bank if the transaction is ever disputed or charged back. Note that the liability shift, which is a very good thing, only applies to the so called “friendly fraud”, when the end-user pretends he did not do the transaction. The other reason codes like “product not as described” are not covered under the liability shift provided by the 3D-secure technology. With the expected increase in fraud that the EMV transactions could bring, we can see that SecureBuy is offering something they believe should not be optional for online merchants, but compulsory for all gateways and processors who process payments online.
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“Merchants spend millions of dollars every year for the right to use the 3-D Secure MPI in an effort to reduce card not present (CNP) fraud. SecureBuy is stepping up to the plate and offering its SecureBuy 2.0, 3-D Secure technology free of charge in an effort to reduce global payment fraud and stabilize online and mobile commerce for the benefit of the entire ecosystem. I hope other major players in the industry follow our lead, as we all have a responsibility to do what we can to minimize the risks associated with payment fraud,” stated Greg Wooten, CEO of SecureBuy.
With SecureBuy’s new offering, it will be interesting to see which other companies will also be offering their MPIs free of charge, or at a reduced price. SecureBuy is showing us that online security and fraud protection should not be an optional add-on, or a security feature to consider, but something that should be made available to all online merchants in order to bring down fraud on a global scale, and not on a corporate one.