Credit card payment gateway outfit, eMatters, is confident that a new online security feature introduced by Visa will help it to achieve a 50 per cent increase in transactions during the next year.
Managing director of the Sydney-based e-commerce enabler, Chris Dwyer, said the introduction of security passwords for online purchases under the Verified by Visa (VBV) scheme would build confidence among merchants.
The system requires cardholders to use a password issued by the relevant bank when buying over the Internet. If the password is not used the transaction is flagged as potentially fraudulent.
“Retailers can now sell goods without the concern of being hit by fraud,” Dwyer said. “Banks will now take responsibility if the transaction is disputed and merchants are protected in a way not seen before.”
eMatters claimed to have processed Australia’s first VBV transaction and has now phased the system in for all of its 550 registered merchants.
Although Visa made the system mandatory on April 1, Dwyer said only ANZ First cards had so far been allocated pin numbers.
“[The other] banks have a massive task in front of them to educate cardholders but will follow suit in the next few months because they will be browbeaten by their merchants,” he said.
“This is good news for us because we can process more transactions for higher risk products such as mobile phones. We also have jewellery companies that want to start selling online but have been too scared of fraud in the past.”
Dwyer said MasterCard was expected to launch a similar scheme.