The 3D Secure credit card authentication service is now mandatory for online credit card transactions.
The deadline for 3D Secure implementation was set for February 28 2014.
"Over the last year, Pasa has been working closely with South African banks and e-commerce merchants to assist them in implementing 3D Secure to help protect cardholders against unauthorised use of their cards when shopping online," says Walter Volker, chief executive of the Payments Association of South Africa (Pasa).
3D Secure, also known as Verified by Visa, MasterCard SecureCode or Amex Safekey, is an authentication service that allows only the cardholder to use the card when shopping online. With 3D Secure, the online credit or debit card payment is redirected to the bank’s 3D Secure service to facilitate an authentication process.
If shoppers have already registered or have been registered by their bank, they will be prompted with an additional screen requesting a one time PIN (OTP), which is sent to their cell phone, or a PIN/password they chose beforehand. When first-time e-commerce users or new cardholders have not been registered, they will be prompted with a screen asking them to register for 3D Secure by following the on-screen prompts.
There has been a surge in online shopping in South Africa over the last few years and, while the growth rate has been slower in comparison to some other nations, growth in broadband capabilities and access devices has made e-commerce increasingly more accessible. According to World Wide Worx research, online retail is growing at more than 30% a year in South Africa.
"Pasa is committed to enabling and facilitating processes that enhance the safety of e-commerce transactions, and with 3D Secure it allows customers to authenticate themselves while making an online payment, thereby minimising the risk of someone else using their card fraudulently," says Volker.
"We have made significant efforts with the banks and e-commerce merchants to ensure implementation of 3D Secure and 91% of South African merchants have already implemented the solution. We will be working with the remaining merchants to ensure that they also move over to the safer system as soon as possible – as not only is it in the best interest of the consumer, but the merchants themselves."
3D Secure will ensure a more uniform approach to e-commerce security.
"We encourage cardholders to embrace the process and see this as an additional security measure to look out for when shopping online," says Volker. – Gadget.co.za
Follow Gadget on Twitter on @GadgetZA