Many online merchants have implemented secure payment technologies such as MasterCard SecureCode and Verified by Visa. Such technologies require the purchaser’s identity to be verified by an OTP, which is usually sent to the cardholder’s mobile phone by his or her cardissuing bank, before the completion of a purchase. In such circumstances, the risk of unauthorised transactions is mitigated as the cardholder would have to verify his or her identity before the purchase can be processed.
The card-issuing bank will reserve the right to withhold the temporary credit, if such transactions are reported as unauthorised, until the investigations are fully complete. The card-issuing bank may also impose the liability for the disputed transaction to the cardholder, if negligence has been a contributing factor.