You may have seen mentions of Secure Code around, on TV, and elsewhere. After all, when Hugh Jackman (aka Wolverine) stands on a scenic rooftop and asks if we know that Secure Code is a more secure way to pay, it’s hard to ignore. But what the heck is Secure Code?
Simple! Mastercard’s Secure Code is a private code known only to the account holder that provides an additional layer of security for online purchases. The program is free for consumers as well as merchants.
Mastercard Secure Code ostensibly comes with these benefits:
With online payment security an ever-present concerns for both online shoppers and merchants alike, these Mastercard Secure Code claims deserve a closer look. Keep in mind that both the merchant and the cardholder need to opt into the program for either party to benefit from it.
Whether you are a cardholder who is thinking about setting up a Secure Code yourself, or you are a curious business owner who wants to know how you can improve security for online purchases, read on for an explanation of how Secure Card works and whether it’s right for you!
The basic concept of Mastercard SecureCode is very similar to using a PIN to process a debit payment at the checkout. Just like during a debit transaction, where the PIN is kept private, the SecureCode should always remain private to the account holder.
When your customer fills their cart with your wares and begins the checkout process, they will also enter their Mastercard SecureCode to verify their identity as the cardholder. But there is one major caveat. Instead of sharing their SecureCode directly with you, the merchant, an issuer-provided inline window appears with a personal greeting that is only known by the cardholder. If the customer recognizes their personal greeting, they enter their SecureCode. In just a few seconds, the issuer verifies that the true cardholder is making the transaction and the checkout process continues.
Mastercard customers who have cards issued from participating financial institutions can enroll in SecureCard and register any of their debit or credit cards. To find out if you can enroll, can contact your institution or view the list of participating financial institutions updated by Mastercard.
If you are a merchant wondering why you should bother offering SecureCode, it makes sense to take the time to understand more about it. From a merchant standpoint, Mastercard SecureCode can give your current and future customers greater confidence and security while shopping online with you. This extra layer of authentication and security also protects you from fraudulent use and some types of chargebacks (more on that below).
It is important to note that if you decide to go with SecureCode, it’s not mandatory for all of your customers to enter in a code to finish the sale with you. Authentication with a personal code is only required for customers who have already signed up for SecureCode. Whenever a customer connects a card with SecureCode and the merchant is also signed up, the SecureCode is required, however. But if you decide to offer SecureCode and your customer isn’t signed up, they’ll enter their credit card information just like they would with any other sale, and it is processed as usual.
For SecureCode transactions, merchants can gain protection from unauthorized cardholder chargebacks, and customers who have activated SecureCode get more protection, too.