First Irish website to offer chip & PIN security

23 Jun 2005

Web hosting player Novara has become the first Irish company to offer chip & PIN security to credit card-paying customers, heralding a new era whereby Irish online merchants will in time witness a major reduction in charge-backs and credit card fraud.

Payments processing player EuroConex implemented its 3D Secure technology on Novara’s internet site.

3D Secure is an authentication method that allows merchants, issuers, acquirers and card holders identify and authenticate themselves in the internet world for online, card-not-present payments.

3D Secure is the architecture that allows a merchant to authenticate the card holder with the issuer and association. After enabling the banks and merchants with 3D Secure, the consumer will have the same shopping experience as chip & PIN except that there will be a pop-up screen from the card holder’s bank to identify the card holder’s ownership.

Dublin-based Novara provides web hosting and managed services to Irish corporates and organisations, including ESB, Jurys Doyle Hotel Group, the Department of Agriculture, 98FM, Moneymate and The Courts Service.

Eoin Costello, managing director of Novara explained: “In the past the retailer took all the risk, you shipped goods to people who ordered the product by credit card. The difference this time is that it’s completely authenticated during the transaction resulting in lowering the likelihood of credit card fraud online.

“It effectively transfers the responsibility to the credit card holder instead of putting the responsibility on the merchant who is acting in utmost good faith. This is good news for online retailers in Ireland as it guarantees less risk when accepting payments from customers.

“As one of Ireland’s largest hosting companies the bulk of our sales are web based. As a result the attempted use of stolen cards to pay for services is an everyday issue. The 3D Secure solution offers us the prospect of diminishing fraudulent activity considerably,” Costello said.

By John Kennedy