Mastercard has a similar system called Mastercard SecureCode, and American Express has a solution known as SafeKey.
When an online merchant identifies the cardholder through one of these authentication methods, liability for fraud generally shifts from the merchant to the card issuer. This means that the merchant is no longer subject to chargebacks if the cardholder later claims someone else has been using the card.
Address Verification Service
Bank card payment processors also conduct a check called Address Verification Service (AVS). This is one of the most common ways to reduce credit card fraud online in the United States. In Europe, AVS is currently limited to the UK.
The service is usually carried out by the card issuer through telephone authorisation during the card not present transaction, helping you determine if the transaction is valid by checking parts of the cardholder’s billing address and validating it.
Card security code
A card security code refers to a three- or four-digit security code printed on credit and debit cards. The code helps validate that the cardholder is making a transaction with a genuine card linked to a bank account. This number is not a part of the magnetic stripe and is in most cases on the back of the card.
Card issuers have different names for this code, including: