Better Security for Credit Cards

Technology news website efytimes.com reported that Grafix Softech CEO Tej Kohli has announced a new product developed to protect online casinos against chargebacks. The CNP (card not present) term is often used to describe online credit card transactions because in case of online transactions the card is not being physically presented to the vendor.

When the owner of the credit card cancels the transaction (such as depositing money at the online casino) credit card charge back occurs. Sometimes that happens because the player decides to trick the casino and not pay for the deposit. As this takes place and the players is still able to withdraw money from the casino he gets hold of funds at the cost of the casino. Anyway, the main reason why chargebacks happen is because third parties gain access to the player's credit cards details and try to use the misuse.

While developing new product Grafix Softech were mainly focused on the second type of chargebacks. According to efytimes.com report 3-D Secure protocol will be used by Grafix Softech  to strengthen the security to ensure that it's the owner of the card who is initiating the online transaction. This technology is currently used by MasterCard's Secure Code system and Visa's Verified by Visa system. Independent experts that with 3-D Secure protocols the amount of fraud is reduced by up to 80 percent.

In his interview about his system to efytimes.com Tej Kohli said, "Both consumers and merchants in this [online gambling] industry, where sums either spent or paid out can be large and occur with frequency, need utmost confidence that online transactions will be processed safely and efficiently. That sense of security will bring in new sales, keep existing customers coming back and, on a concrete level, lower the chargeback fees casinos pay out." He added that the integration of this system with existing processing systems utilized by online casinos can be done easily. According to his words the online gambling industry grow rapidly and with the industry grows the risk of fraud.

The "D" in protocol's name means Domain. There are three domains which are the merchant who receives the payments is called the Acquirer Domain, the bank that issues the credit cards is called the Issuer Domain and the infrastructure provided by the credit card scheme to support the 3-D Secure protocol called the Interoperability Domain. This protocol ties the online authentication with the process of financial authorization.