These services help to prove that the person placing an order on your Web site is really the owner of that card.Similar to the ATM process,a cardholder signs up for a PIN number or password with their credit card issuer.If your online store has the Verified by Visa or MasterCard SecureCode option integrated, the PIN number is requested when the card is used for online purchases. When the card is forwarded for authorization, the issuer of the card confirms the cardholder is the owner of the card and produces a virtual signature.The benefits of these services are clear chargeback protection for the merchant and fraud protection for the consumer.

How does it work?

1. At the point of sale,the consumer is prompted for the password.
   
2. The password is confirmed by the Issuing bank.
   
3. If successful information is submitted with the transaction. If not successful, the transaction cannot be submitted for authorization.
   

Features and Advantages

Feature	Advantage
Provides simplified implementation	Very little merchant effort is required to enable the service
Requires no additional software or hardware	Keeps cost of implementation low
Keeps cost of implementation low	Helps reduce chargeback volume due to fraud
Complete protection against Visa fraud-related e-commerce chargebacks	Helps decrease cost of doing business due to potentially reduced total cost of fraud
Guaranteed fraud protection for all MasterCard e-commerce transactions when the card is successfully authenticated	Potentially reduces occurrence of fraudulent credit card use
Transactions failing cardholder authentication are rejected	Helps decrease cost of doing business due to potentially reduced total cost of fraud
Merchants can display the two logos on their Web site	Helps increase consumer confidence in e-commerce transactions