Insurance

Online Cardholder Protection Service

You may have noticed the national television commercials and print advertisements for Verified by VISA that began in December 2001. Verified by VISA, marketed directly to the consumer, is an Internet payment authentication system that gives merchants and cardholders additional online fraud protection.

Background

Although the Internet’s popularity as a purchasing and payment channel among consumers is slowly growing, it has a long way to go. With more than 90 percent of online transactions being made with payment cards, it’s future success hinges on all participants, including consumers, merchants and credit unions, being assured of a secure environment -- unlike today where consumers site security fears as the number one barrier to increased online usage.

The Plan

To help combat these fears, reduce online fraud and increase transactions, VISA has institutied a two-part plan that will change the way issuers and merchants approach the Internet.

Step 1. VISA has changed the operating regulations to put more liability on issuers for purchases made over the Internet. In addition, as of April 2003, VISA issuers will lose the chargeback right for "did not make purchase" claims for cardholders.

Step 2. To offset this added liability, VISA has introduced a VISA Payer Authentication Service based on the 3-Domain Secure protocol. Operating under the consumer brand name, Verified by VISA, the service protects against fraud and limits dispute costs. Just as important, the service enhances consumer perceptions of online security.

How It Works

Because it closely replicates a "card present" environment, Verified by VISA iwill substantially reduce fraud and chargeback costs -- with minimal impact to the current transaction processes.

While VISA cardholders are already protected by VISA's $0 liability policy, this new service has created a solid foundation for secure Internet transactions by instilling consumer confidence, increasing card usage, and creating a safe e-commerce environment for all parties involved in VISA online transactions.

Verified by Visa works with existing plastics to confirm your members' identities in realtime during online transactions at participating merchant Web sites. It requires no significant change to the existing payments infrastructure, working with both magnetic stripe and smart cards. It’s device independent, so it can be used over any PC, Web-enabled mobile phone or palm device.

And unlike other services, shoppers don't have to load special software or open a digital wallet. So Verified by VISA maintains a simple shopping experience for your customers.

VISA nowl supports Verified by VISA through an integrated national marketing, advertising, and public relations campaign. These ads  prompt cardholders to go on to the Web site and register to participate in this service. Cardholders must register to use Verified by VISA.

The End Result

Verified by VISA has reduced cardholder disputes and chargebacks associated with fraudulent Internet transactions. This service has help shift customer perception about security and drive online traffic volume and overall adoption of the e-commerce channel.

Credit Life Insurance

Protect your family with this member-paid life insurance policy that guards the member’s family/co-signer in the event of the insured’s untimely death. It makes a payment to the credit union to reduce or pay off a loan in the event of the member's death.

Credit Disability Insurance

You will  sleep better with this optional, member paid disability insurance protection program. This insurance makes payments to the credit union to reduce or pay off a loan if you are disabled by a covered sickness or accident. To qualify you must be:

  • actively employed 25 hours per week
  • eligible for a loan
  • under 70 years of age

 

 Guaranteed Asset Protection

Vehicles often depreciate rapidly and vehicle terms are increasing in duration. Gap Plus will help cancel the difference between the primary insurance settlements and what you may still owe on the vehicle loan. In addition, if your vehicle is stolen or totaled in an accident it will cancel $1000 of you next loan with the credt union when you purchase a replacement within 60 days of your primary insurance settlement.