Visa Launches Secure E-Commerce Initiative

Visa International launched a new global
e-commerce initiative that it says “will make Internet shopping better and
safer for both buyers and sellers on the Web.”


The initiative is expected to reduce Internet transaction disputes by up to
50 percent, Visa said.


The global Visa Secure e-Commerce Initiative includes two major components:

The Payment Authentication Program is designed to reduce the risk of
unauthorized use of a cardholder account and to improve customer service for
buyers and sellers
on the Web.


The Global Data Security Program is aimed at establishing standards and
best practices for e-commerce merchants allowing them to better ensure the
security of cardholder data on their sites


“As the global leader in online payments, Visa is absolutely committed to
helping the Web reach its full potential as a new channel for commerce,” said
Visa International President and Chief Executive Officer Malcolm Williamson. “We believe this new
initiative will help do that by combining state-of-the art technology, global
standards and best practices, and the promise of the Visa brand.”


The Payment Authentication Program is based on a new “3-Domain” model, which
uses a globally interoperable approach to authentication. The model provides
participants with
confidence that an Internet transaction has been conducted by legitimate
parties, thus reducing the potential for disputes.


Visa’s European region deployed the 3-Domain model for implementation of
server-based SET (Secure Electronic Transactions) today in the European Union
marketplace, with full implementation scheduled for 2001. The Visa Latin
America and Caribbean region has also recently endorsed the 3-Domain model
for server-based SET. And, Visa U.S.A. will pilot a new 3-Domain SSL-based
(Secure Socket Layer) authentication protocol beginning this summer.


The 3-Domain model provides options to authenticate the payment online,
protect the privacy of transmissions, and ensure that data in transmission
remains unchanged. Visa said the model would also work with new payment
products and channels, including chip cards, mobile phones, personal digital
assistants and set-top boxes.


The Global Data Security Program, to be rolled out later this year, will
include a series of standards and guidelines for e-commerce transactions that
both buyers and sellers should follow, Visa said. Additionally, a
self-certification tool will be available to help merchants evaluate and
improve the security of their sites.

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