Aleppo
01-23-2004, 02:23 PM
I'm posting this thread because I have been constantly encountering people talking about Verified by Visa and MasterCard SecureCode on the merchant forum level. I looked into these programs almost a year ago when I first heard about it, and then it seemed to fade away, and so did my interest.
The point is that I have a very successful associate involved in one of the largest online consumer electronics companies in the country. While at an out-of-town social event, I asked him his opinion on it. He specefically said that these programs, and their vendor who supplies it to them, are "saving them piles of money"
His company,($10M in sales monthly) have reduced their chargebacks by greater than 50% and that they have likewise reduced their fraud related internal overhead by over 50%, as well. They have projected that they will save between 1/2 million and 3/4 million dollars this year on fraud related chargebacks. They have a staff of 33 people who deal with fraud (investigate problems before they ship) and they will redeploy 50 - 75% of those people before year's end. They also will reduce their chargeback response team of 12 by one half, down to 6. And, they experienced the lowest amount of fraud in the third month of doing authentication than they have had in the past 3 years.
After he explained this to me, I asked him if this program could work for me and my sites. He said that their particular vendor would fit perfectly for me and other mid to large scale online merchants because of its effectiveness and reasonable pricing. He told me that what scares merchants the most right now is that VISA and MasterCard haven't fully divulged the fine print about these programs and their upcoming plans for the next few years. He told me the only real way to get some solid answer would be to contact a vendor and start asking questions, and I did. What I found out was very profound, and it almost left me skeptical because even if chargeacks aren't a problem for me I will stand to start saving money instantly because of all the risidual benefits.
I encountered a similar thread like this on another forum, so I guess this is becoming somewhat of an issue right now. I'm starting this thread in order to start some discussion in and around these programs. I really want to know what people have heard and what they know already because after contacting this vendor I was sold instantly.
The point is that I have a very successful associate involved in one of the largest online consumer electronics companies in the country. While at an out-of-town social event, I asked him his opinion on it. He specefically said that these programs, and their vendor who supplies it to them, are "saving them piles of money"
His company,($10M in sales monthly) have reduced their chargebacks by greater than 50% and that they have likewise reduced their fraud related internal overhead by over 50%, as well. They have projected that they will save between 1/2 million and 3/4 million dollars this year on fraud related chargebacks. They have a staff of 33 people who deal with fraud (investigate problems before they ship) and they will redeploy 50 - 75% of those people before year's end. They also will reduce their chargeback response team of 12 by one half, down to 6. And, they experienced the lowest amount of fraud in the third month of doing authentication than they have had in the past 3 years.
After he explained this to me, I asked him if this program could work for me and my sites. He said that their particular vendor would fit perfectly for me and other mid to large scale online merchants because of its effectiveness and reasonable pricing. He told me that what scares merchants the most right now is that VISA and MasterCard haven't fully divulged the fine print about these programs and their upcoming plans for the next few years. He told me the only real way to get some solid answer would be to contact a vendor and start asking questions, and I did. What I found out was very profound, and it almost left me skeptical because even if chargeacks aren't a problem for me I will stand to start saving money instantly because of all the risidual benefits.
I encountered a similar thread like this on another forum, so I guess this is becoming somewhat of an issue right now. I'm starting this thread in order to start some discussion in and around these programs. I really want to know what people have heard and what they know already because after contacting this vendor I was sold instantly.