As online fraud continues to evolve, so do the tools used to combat it. One such tool is Verified by Visa (VBV), a security protocol designed to protect cardholders and merchant services companies during online transactions. Despite being widely implemented, VBV is often misunderstood—particularly by businesses navigating high risk merchant services and payment environments. Knowing how VBV works, what it protects against, and how fraudsters attempt to bypass it is essential to maintaining a secure checkout process. Whether you’re concerned about chargebacks, unauthorized purchases, or non VBV activity, this guide will explain why VBV still plays a central role in modern fraud prevention.
Understanding Verified by Visa (VBV)
VBV is a 3D Secure protocol introduced by Visa to add an extra layer of authentication during online credit card transactions. When a customer makes a purchase, VBV may require them to complete an additional verification step—such as entering a password, receiving an SMS code, or using biometric confirmation[1]. This process ensures that the person making the purchase is the actual cardholder. VBV is especially effective for card-not-present transactions, where stolen card numbers can otherwise be used without much friction. Merchants who implement VBV benefit from added protection against fraud-related chargebacks and often receive favorable risk assessments from their payment processors.
Why VBV Is Crucial in High-Risk Industries
For businesses operating in high-risk sectors—such as gaming, digital goods, and eCommerce—chargebacks and fraud are constant concerns. VBV acts as a critical line of defense by shifting liability from the merchant to the issuing bank in the event of a disputed transaction. That means if a transaction is authenticated through VBV and later reported as fraud, the merchant is generally not held responsible[2]. This liability shift reduces financial exposure and improves processing stability. For high risk merchant accounts trying to maintain their MID (Merchant Identification Number) or avoid rolling reserves, VBV can mean the difference between sustainability and sudden account termination.
VBV vs. Non-VBV: Key Differences That Matter
Authentication Process
VBV requires cardholders to complete a verification step during checkout, while non VBV cards skip this process. Without VBV, transactions are more vulnerable to unauthorized use and do not trigger fraud alerts as effectively.
Fraud Liability
Transactions using VBV shift liability to the issuing bank, reducing merchant chargeback exposure. Non VBV purchases leave merchants fully liable for any fraud-related disputes or unauthorized charges.
Approval Rates
While VBV can reduce fraud, it may slightly lower approval rates due to added friction at checkout. Non VBV transactions typically process faster but carry much higher risk.
Usage Among Fraudsters
Many fraudsters specifically look for sites without VBV protections or use non VBV cards to bypass authentication. This makes non-VBV-enabled merchants more attractive to cybercriminals and bots.
How Fraudsters Target Non-VBV Systems
Hackers and fraud rings often seek out non VBV transactions because they lack the extra authentication layer. These transactions are easier to exploit using stolen credit card numbers, particularly through automated bots or phishing scams. Fraudsters also distribute lists of non vbv cards on the dark web, selling them to others who want to bypass secure credit card processing[3]. Similarly, they share directories of sites without VBV, giving others a roadmap to vulnerable checkout systems. If your business doesn’t use VBV or a similar protocol, you may unknowingly be on these lists. Over time, this exposure can result in high chargeback rates, merchant account reviews, or even blacklisting from payment processors.
Strengthening Checkout Security with VBV and 3D Secure
Implement 3D Secure 2.0 Protocols
The newer 3D Secure 2.0 protocol offers smoother, more mobile-friendly authentication flows and supports biometric verification. It reduces cart abandonment while still maintaining the fraud protections of earlier VBV implementations.
Educate Customers on the VBV Experience
Let customers know during checkout that an extra security step protects them. This helps reduce confusion and lowers the likelihood of abandonment when they see the VBV prompt.
Work with Fraud-Savvy Merchant Account Providers
Partnering with a processor that supports VBV and monitors vbv vs. non vbv traffic gives your business a stronger fraud posture. These providers also offer tools to segment and analyze risky behavior.
Use AI-Based Fraud Detection in Parallel
VBV is a powerful tool, but it should be part of a layered fraud strategy. AI-driven systems can monitor IP addresses, device fingerprints, and transaction behavior to flag unusual activity in real time.
Force VBV for High-Risk Transactions
For larger purchases or transactions from high-risk regions, require VBV authentication as a condition of checkout. Many systems allow you to configure these rules based on order size or user behavior.
Avoid Advertising That You Don’t Use VBV
Some merchants openly promote their lack of VBV to attract certain buyers. This is not only risky but also puts you on the radar of fraud forums and dark web channels. Stay discreet and protected.
Conclusion
VBV remains one of the most effective tools in preventing online credit card fraud—particularly in high-risk, card-not-present environments[4]. As fraud tactics become more advanced, businesses that rely on non VBV transactions or operate sites without VBV expose themselves to unnecessary risk[5]. At Payment Nerds, we help merchants implement secure, scalable payment systems that include VBV and 3D Secure authentication. Whether you’re managing high risk ecommerce merchant account services at scale or navigating a high-risk vertical, VBV is a crucial line of defense that protects both your revenue and your reputation.
Sources
- Visa. “Verified by Visa and 3D Secure Explained.” Accessed April 2025.
- Mastercard. “3D Secure 2.0: Enhancing Authentication.” Accessed April 2025.
- Forbes. “How to Protect Your Business from Credit Card Fraud.” Accessed April 2025.
- Norton. “What Is Verified by Visa and How Does It Work?” Accessed April 2025.
- PCI Security Standards Council. “Best Practices for Card-Not-Present Transactions.” Accessed April 2025.
