Is Verified by Visa Toast?

January 30th, 2008 • Related • Filed Under

Is Verified by Visa Toast?Visa spent over $100MM in marketing and developing the service. In 2007, they fired the person in charge of the Verified by Visa Program and in 2008, they are going to push back on the program even further. While at one point over 100 service providers supported it, today fewer than 5 of them actively market it. With the IPO coming up this year, where does that leave Verified by Visa?

Well, in talking to several gateways and larger merchants this month, I’ve found that more than a handful are able and ready to drop the service altogether. Additionally, some upcoming policy changes to the program at the verification level are going to make it even harder to get approvals through the process.

Ultimately, with the banks fitting the bill for this failed program, we expect that in 2008 the vBv program will be done. While I have all the confidence in the world that Visa will find a solution, let’s hope that the next isn’t some failed attempt to make a good PR Statement, but rather a real solution that has merit.

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There Are 6 Responses So Far. »

  1. Comment by zauha4 on 31 January 2008:

    Pour Visa…for my experienced used a visa card..there is a lot of use full card compare to mastercard ..right now visa already more security than master card because of verified system..anyway i hope visa will get solution on that..

  2. Comment by fareast on 1 February 2008:

    Lets hope that Visa can encountered the problem ASAP, well I love to use their sevice though.

  3. Comment by sagar123 on 5 February 2008:

    i just wish that , visa people come out with more secured transaction than Mastercard, cause i don’t like mastercards services.

  4. Comment by larrybyrd on 11 February 2008:

    Visa toast? Sounds like something i’d cook up and put on a plate with butter and serve for breakfast. Get real guys.

  5. Comment by chiz on 1 April 2008:

    Good post. You make some great points that most people do not fully understand.

    “Ultimately, with the banks fitting the bill for this failed program, we expect that in 2008 the vBv program will be done. While I have all the confidence in the world that Visa will find a solution, let’s hope that the next isn’t some failed attempt to make a good PR Statement, but rather a real solution that has merit.”

    I like how you explained that. Very helpful. Thanks.

  6. Comment by jbradle02 on 14 April 2008:

    This is a rather unique perspective..one that I’d like to see become reality (because VBV and SecureCode from MC are truly dismal offerings), but can’t see that happening this year. The PR from this admission of abject failure would sting too much and unless there’s something else in the Visa product pipeline “to protect the cardholder’s security” that can be touted as “new and improved” over a $100M failure, don’t bet on putting this thing out to pasture in the near term. However, go long on this opinion, because the market can’t support something that no one — barring a few merchants who grasp at the measly interchange benefits — wants. Merchants hate it, cardholders are indifferent, if not turned off, and of course issuers hate it. So one way or another, it will cease to exist in its current form. Just so you know, merchants, you are still tracked on chargebacks that come through this service — you’re not technically liable for the amount, but you are for the count!

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