VbV password requirements which are part of Visa Europe are going to be phased out according to a recent announcement by the company. It is expected that the Verified by Visa services going to no longer require users to enter their special password which verifies their Visa payments.
In order to increase security and make the checkout process easier users are going to be taken through a process which is called ‘password free authentication.’ This is going to mean that for various low risk transactions, customers are not going to have to enter their password, although they are still going to have to if the transaction is regarded as high risk.
The problem with having to enter a password when you are shopping online is that it encourages many consumers to drop out before they complete the purchase, which is obviously upsetting to retailers, especially as by this point they’ve already got a customer to a late stage of the buying process. It is thought that by eliminating the need to enter a password for low risk transactions, the retailers are going to benefit as it will push through more sales.
Since its launch, the Verified by Visa service has become very well known for protecting people from fraud, however it is something that is an obstacle to people completing their sales, which is a problem for retailers. The company stated that they imagine the move is going to be welcomed by retailers and consumers alike, as fraud protection will still be available if the risk is deemed to be high.