Visa Canada announced that it will join
forces with Canadian financial institutions in a national pilot of its new
online Authenticated Payment Program providing the next level of security for
Internet consumer payment transactions. Participants in the pilot include
CIBC, La ConfÃ©dÃ©ration des caisses populaires et d’Ã©conomie Desjardins du
QuÃ©bec, Royal Bank of Canada, Scotiabank, TD Bank Financial Group, Vancouver
City Savings Credit Union and a number of Canadian e-merchants including Dell
Canada, DVD Box Office, Grocery Gateway, RadioShack Canada, and Sony of Canada
The Visa Authenticated Payment Program will reduce disputes related to
online consumer payment transactions. It will increase online business volume
and profit margins for merchants by providing a fully reliable means of
verifying the identity of online customers no matter where they are located.
Building on existing security measures, the Authenticated Payment Program
pilots will be rolled out in stages over the next year. Each financial
institution is determining the scope of the pilot and will target select
merchants and customers during the pilot phase.
“Canadian merchants and consumers want additional security and protection
for online shopping transactions,” said Derek Fry, President, Visa Canada.
“Once fully implemented, consumers can feel more confident with enhanced
security while merchants will know they are doing business with cardholders
who have been verified.”
The technology behind the Visa Authenticated Payment Program allows the
cardholder’s financial institution to authenticate cardholders online, while
protecting the privacy of transmissions and ensuring that data in transmission
remains unchanged. Merchants and financial institutions in the U.S. and in
other markets around the world are piloting the program.
“The Visa Authenticated Payment Program was designed to be safe and
simple. To verify the authenticity of the cardholder, online shoppers simply
input their password or other form of identification while making an online
transaction,” explained Susan MacKeown, Director, e-Visa Canada. “Cardholders
can feel as confident using a password online as they do using a signature or
Personal Identification Number (PIN) in the physical world.”
Over the last few years, Visa and its members have introduced a variety
of measures to enhance the security of e-commerce transactions and build
consumer confidence. The new Authenticated Payment Program complements these
initiatives and builds on the 2000 Visa Canada launch of Zero Cardholder
Liability, a policy eliminating cardholder liability for fraudulent use of
their credit card both in the physical and virtual world.
“E-merchants are looking for ways to verify the authenticity of
cardholders during online transactions,” said Michael Eubanks, Vice President,
Information Technology and E-commerce, Retail Council of Canada. “We are
committed to working with Visa Canada to introduce this program to Canadian e-
Visa has worked with more than 50 leading Internet solution providers to
facilitate the deployment of Visa Authenticated Payment. To ensure successful
implementation of vendors’ authentication products, Visa is providing
certification testing at its Interoperability Validation Facilities.
Visa Authenticated Payment and the Account Information Security Program
are complementary programs within Visa’s Global Secure E-Commerce Initiative.
The Account Information Security Program was recently introduced to establish
global standards and Best Business Practices for e-commerce merchants helping
them better protect the privacy and integrity of cardholder data on their Web
sites. Visa’s Best Business Practices and standards are accessible to
merchants on the Visa Web site at www.visa.com/secured.
As the “World’s Best Way To Pay”, Visa is the leading credit card payment
brand in Canada with more than 23.6 million Visa cards accepted at more than
574,000 merchant locations across the country. Visa Canada plays a pivotal
role in advancing new payment products and technologies to benefit its 26
Member financial institutions and their cardholders. Canadians will put $100
billion of volume on their Visa cards in 2001 and Visa-branded cards are
accepted at over 16,800 ATMs in Canada.