Jul 14, 2009

RBI::Verified by Visa::MasterCard SecureCode from August 2009

UPDATE: VISA/MASTERCARD Credit cards has issues with international sites like paypal.com  after the RBI's move.

Himanshu says "My Mastercard has stopped working on almost all the International sites. I contacted Paypal and they told me that the problem lies with my bank and I should sort the problem out at my end. All my international transactions are stuck. I can not even purchase a renewal license for my Anti Virus. The whole thing sucks.
If RBI had to make it mandatory, they should have first made sure that this system works with international sites and then Enforce it. Trust me, almost no international site accepts this system. And it feels like I am living on an Island. No Global Citizen anymore but an Islander."


Robert Frost says "This is a dead technology, how can RBI include this without doing proper research. None of our cards will ever work on international sites like paypal and amazon."

The Reserve Bank of India (RBI) has mandated that from 1st Aug 2009 all online credit card transactions require an extra level of verification. Your credit card issuing banks are therefore, implementing a "Verified by VISA" or "MasterCard SecureCode" password.

August-1-2009 RBI:VISA
You will need this password to continue transacting online from 1st Aug 2009.


What is the "Verified by VISA"/"MasterCard SecureCode" password?

This is the password that your credit card issuing Bank provides. For example - ICICI Bank, HDFC Bank, Citibank, HSBC Bank, Axis Bank, SBI etc. This password is the additional layer of security for all your online transactions.


Register for your "Verified by VISA" or "MasterCard SecureCode" password with your credit card issuing bank before 1st Aug 2009


How it works?

Benefits of "Verified by VISA"/"MasterCard SecureCode" password

Even if you lose / misplace your credit card it cannot be misused online as the password is not present on the card.

7 comments:

paris apartment said...

RBI put out a directive that mandates additional verification of cardholder but nowhere in this directive does it specifically sponsor specific systems such as Verified by VISA or Mastercard's UCAF/SPA.

Anonymous said...

Before, the entire banking industry in India goes on this bandwagon, it is best to simply learn about the experience of cardholders and online merchants as it concerns these two systems. Just google ” verified by visa 2009 ” or go to this link : http://www.boingboing.net/2009/03/28/verified-by-visa-bri.html.

VBV or UCAF/SPA static passwords can be easily phished. Once phished and used by fraudsters, it then makes it very difficult (not impossible) for the legitimate cardholder to dispute a fraudulent online payment made with his VBV or UCAF/SPA credentials.

On the other hand, fraudsters can easily collaborate and share each other’s VBV or UCAF/SPA credentials and then dispute the charges with the issuing banks. The issuing Banks can never prove that the cardholder’s static VBV or UCAF/SPA’s credentials were not phished or compromised.

It surprises me that India, the world’s technical resource, would copy the errors made by the Banks elsewhere in the world that tried introducing VBV or UCAF/SPA. It is relatively simple for anyone to do a google search on Verified by VISA and realize that it has not been successful in other parts of the world. At least banks in other parts of the world and online merchants were not mandated to implement these systems. Be wary of mandated systems. A good security system never needs to be mandated.

Robert frost said...

This is a dead technology, how can RBI include this without doing proper research. None of our cards will ever work on international sites like paypal and amazon.

Might as well shut our business and go home, thank you RBI.

Himanshu said...

My Mastercard has stopped working on almost all the International sites. I contacted Paypal and they told me that the problem lies with my bank and I should sort the problem out at my end. All my international transactions are stuck. I can not even purchase a renewal license for my Anti Virus. The whole thing sucks.
If RBI had to make it mandatory, they should have first made sure that this system works with international sites and then Enforce it. Trust me, almost no international site accepts this system. And it feels like I am living on an Island. No Global Citizen anymore but an Islander.

Anonymous said...

Same problem with me, my master card credit card has stopped working with paypal, moneybookers, alertpay, solid trust pay and all the money transfer services online, WTF stupid RBI people not knowing the basics of Global transactions, i hope the blindfolded Morons sitting in RBI get to know this problem and rectify it soon

vivek said...

Same problem with me, my master card credit card has stopped working with paypal, moneybookers, alertpay, solid trust pay and all the money transfer services online, WTF stupid RBI people not knowing the basics of Global transactions, i hope the blindfolded Morons sitting in RBI get to know this problem and rectify it soon

Anonymous said...

maybe the RBI doesnt want us to do international transactions with credit card, so that they could control foreign exchange.