There has been a phenomenal growth in spending over these remote sales channels.
When merchants start trading over the internet they take orders from their own website that is in effect a ‘virtual’ or electronic shop that displays a brochure of the goods they have for sale. To receive payment, the merchant requires a virtual terminal or ‘till’ which their customer sees as a payment page, often provided by the merchant’s payment service provider, when they go to the checkout on the merchant’s website.
A merchant’s acquirer may be able to provide information on what a merchant will need to do when setting up a website, and the information which needs to be displayed to accept card payments, as well as how to comply with card scheme rules.
The card payment cycle for an internet transaction is similar to that for other card transactions. The exception is the part played by a payment service provider to securely pass card details between the banks (acquirer and issuing) and card schemes and ensure the cardholder is presented with the American Express SafeKey, MasterCard SecureCode or Verified by Visa authentication page where a merchant has enabled this facility.
All card transactions accepted over the internet are classed as card-not-present and carry similar fraud risks to other types of CNP transaction. To help reduce this risk, there are a range of fraud prevention tools available to merchants including AVS and CSC, American Express SafeKey, MasterCard SecureCode and Verified by Visa, and services provided by third party solution providers.