'Verified by Visa' was first introduced in 2001 but surprisingly many credit card users still haven't heard of it considering that 1 in 4 online transactions throughout the UK and Europe are now verified through this security system. Essentially, it is an extra level of security now offered by Visa to customers using cards with their payment transfer system. It was designed from a technology called 3-D Secure, developed by Visa, and is now widely used by online merchants. MasterCard have also introduced an extra level of authentication called MasterCard SecureCode that works using the same technology.



Signing up is simple and it is likely that you have done so already. You can sign up in one of two ways. The first is that you visit your card provider's website and register a password and a personal message. Once you have done this your Verified by Visa account is activated. Even though it is possible to sign up at your card provider's website this is the most uncommon method. The normal method of being signed up is when you make an online purchase, through a vendor using Visa's authentication system. The system will recognise that you are not registered and ask for the same details as above: a password and a personal message.

Once you have signed up you can take advantage of the service and be safe in the knowledge that your online card transactions are now more secure. Although not all online merchants use 'Verified by Visa' it is becoming more and more commonplace. It is estimated that 1 in 4 transactions in UK and throughout Europe are now 'Verified by Visa'. When you make an online purchase you will be asked for your personal password and your card's Security Code; this code is found on the back of your card.

'Verified by Visa' helps to protect you by making it more difficult for criminals to use your card details online. The most common type of card fraud is known as Card Not Present theft, or CNP. This means that a criminal attains your card details and then uses them online. The most common way for a criminal to get hold of your card details is by looking over your shoulder in a shop. Another method is by tricking you into giving your card details online perhaps by sending you a scam email. With this new security mechanism in place criminals will not be able to make purchases with your card because they will not know the Security Code or your personal password. Nowadays even if they physically steal your card the password will stop fraudulent card use.

Verified by Visa is a highly effective security system and may help avoid many cases of fraud. It is also free and doesn't require any software download to use it. One area of concern for many people is that they have to change their cards in order to use the service but this isn't the case. As the service is offered online you can use your existing card with no problems. If you forget your password then you needn't worry: there is a failsafe mechanism that allows you to answer questions, such as your date of birth, so that you can select a new one during the transaction process.

As the popularity of Internet shopping increase so does the possibility of online credit card fraud. Between 2003 and 2007 Internet card payments increase four-fold. Systems like Verified by Visa are important in helping curb card crime. A similar system, also based on Visa 3-D Secure, is offer by MasterCard as 'MasterCard SecureCode'. This system is based on the same technology and works in practically the same way as Visa's.