Thursday, September 09, 2010:
Casino operators weary of fighting the chargeback fees and losing their customer's confidence due to the widespread online payment fraud, can now heave a sigh of relief, thanks to Tej Kohli, the CEO of Grafix Softech, who is developing a new product to bring a solution to the online gaming business.
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The strategy will center on use of 3-D Secure™ protocol – the technology used in Verified by Visa™ and Mastercard’s SecureCode™ – which adds a layer of security in a CNP (card not present) transaction, ensuring that the real cardholder is the person making the transaction. This, Kohli says, will be key to reducing the risk of fraud for online casinos.
“Both consumers and merchants in this 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.”
Chargeback fees are a scourge for online merchants. Not only must companies reimburse the cost of the credit card charges in a fraudulent transaction, but they must pay a small fee to the bank for the trouble endured. Estimates claim that 3-D Secure protocols can reduce the amount of fraud by up to 80 percent.
“The fact that this solution will be so easy to integrate into an existing payment processing system is a major plus.” says Kohli. “Online gaming has grown so rapidly and, along with it, so has the risk of fraud,” he continues. “We don’t just need to keep pace in this business, we need to stay ahead.”
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