new security for credit card payments

VERIFIED BY VISA MASTER SECURE CODE NEW SECURITY FOR CREDIT CARD PAYMENTS

To make online shopping safer, the RBI has made it mandatory, from 1st August onwards, for all online transactions to have an extra level of authentication. The ‘extra’ level, is a password that you will have to enter after entering your credit/debit card details while making online payments. You will require this ‘extra password’ for transacting on any website in India, including Rediff. This new technology is called VBV – Verified by Visa or MSC – MasterCard SecureCode.
Please visit your Credit/Debit Card issuing bank’s website to get verified by Visa / Master Card secure code. Click to select your bank and register now:
•HDFC Bank •ICICI Bank •Citibank •HSBC Bank •Standard Chartered
•State Bank of India •Axis Bank •ABN Amro •Deutsche Bank •Karur Vysya Bank

Date: Feb 18, 2009
Credit/Debit Card transactions-Security Issues and Risk mitigation measures

RBI/2008-2009/387

RBI / DPSS No. 1501 / 02.14.003 / 2008-2009February 18, 2009

The Chairman and Managing Director / Chief Executive Officers
All Scheduled Commercial Banks including RRBs /
Urban Co-operative Banks / State Co-operative Banks /.
District Central Co-operative Banks

Madam / Dear Sir

Credit/Debit Card transactions-
Security Issues and Risk mitigation measures

The use of Credit/Debit Cards has been increasing in the country. We have been reviewing various options to enhance the security of online card transactions. After extensive consultations with banks/card companies, it has been decided as under:

2. It would be mandatory to put in place with effect from August 01, 2009:

i) A system of providing for additional authentication/validation based on information not visible on the cards for all on-line card not present transactions except IVR transactions (for which separate instructions will follow).

ii) A system of "Online Alerts" to the cardholder for all 'card not present' transactions of the value of Rs. 5,000/ and above.

3. Banks are advised to strictly adhere to the instructions and time discipline indicated in this circular. Non-adherence to the directives shall attract penalties prescribed under the Payment and Settlement Systems Act 2007 (Act 51 of 2007).

4. This directive is issued under section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007).

5. Please acknowledge receipt.

Yours faithfully

(G. Padmanabhan)
Chief General Manager