MasterCard International announced
today a modification to its presentment process for merchants aimed at
promoting the use of the Secure Electronic Transaction (SET) protocol.
Taking effect April 1, 1998, the policy change provides an extra level of
security during the verification process. The change aims to reduce the
number of claims in which customers report they did not order the goods or
services being charged to their accounts.
For example, during a SET-enabled transaction, a customer’s credit card
information will be transmitted to the merchant accompanied by an assigned
digital certificate that authenticates the account information is valid
prior to the vendor charging the customer’s account for goods or services
purchased.
The digital certificate provides the online vendor with proof that the
customer has presented accurate credit card data and that the transaction
is valid, thus arming the vendor with additional proof if a customer
refutes the charge.
“This rule change offers the best balance of protection against credit card
abuse for consumers, merchants, and member financial institutions in the
Internet marketplace,” said Steve Mott, MasterCard International’s senior
vice president of Electronic Commerce/New Ventures.
“We fully anticipate that chargebacks for merchants in the emerging
electronic commerce market will decrease as a result of the rule change and
the broader adoption of SET,” said Mott. “MasterCard members that have
adopted SET have requested this rule change to ensure that their electronic
commerce businesses can be developed in a robust, end-to-end acceptance
environment.”