CVV2 Discover requirement and conversions

[Bashton]

I'm about to set up my payment processor, First Data. I was looking over the interface in shopsite and saw the CVV2 options. I got to wondering if I should implement it and started doing websearches.

One of my searches took me to a shopsite page where they say that Discover "REQUIRES" that take CVV2. You can't just make it optional, you *have* to get it.

So, I got to looking at other websites that take Discover. And the majority of them do not even mention CVV2.

I don't want to either. People are just leery about it. I operated for 5 years without it and had no problem. But, there was a time I asked about it on a phone order, (back when I first started taking phone orders), and the person just got really suspicious of me.

My competition does not even mention CVV2 numbers and I'm afraid it will cut into my conversions.

If Discover requires it, why do so many sites not have it?

[loren_d_c]

What is the exact URL to the ShopSite page you found that says Discover REQUIRES cvv2?

It may be on a merchant-by-merchant basis, for example if you do over a certain volume, or are in a high-risk industry, or there has been a history of fraud through your account, whatever. There may be some cases where credit card companies REQUIRE a merchant to get the cvv2, but I think in most cases they may just charge the merchant more per transaction if they don't collect it. Again, that may be for some merchants, not all merchants.

-Loren

[Bashton]

Hello Loren. Here is the page:

http://shopsite.com/help/current/en-US/ ... point.html

Down at the verification section, it says:

Require CVV2 Entry: Check this box to make the CVV2 field a required field on the order form. If you accept Discover cards in your store, you must check this box.

It sounds like it's unconditional.

As far as charging a merchant more per transaction if they don't collect it, that sounds as though you're saying a merchant gets a discount if they do.

But, this page nixes that idea as a myth:

http://forums.modularmerchant.com/viewt ... ping-Carts

He says:

"Myth 1: Including the CVV2 number in e-commerce transactions reduces the transaction's discount rate.
Originally, I assumed this too. However, discussions with several industry professionals contradicted my assumption. Authorize.net technical support, our own payment gateway's Chief Compliance Officer and Visa's own Payment System Risk manager all confirmed the same thing: the presence of the CVV2 number for "MO/TO E" (Mail Order, Telephone Order, E-Commerce) transactions has zero affect on the discount rate charged to the merchant."

Thanks for your response. I'd like to know more about this. I guess I'll have to call ShopSite tomorrow. But, I'm debating just accepting Discover without CVV2. Since it doesn't really sound as though any thing is being enforced. But, it does make me wonder if it's a backdoor to liability in the instance of fraud?

[loren_d_c]

Don't call ShopSite, call your Discover account rep. They are the only ones that can really tell you if it is required or not, and what the consequences would be for your account if you do or do not collect it. It may be mentioned in the ShopSite doc because at one time some Discover rep or merchant said it was required, but that may be outdated. By going to Discover you will be getting your info directly from the "horse's mouth".

-Loren

[Bashton]

Don't call ShopSite, call your Discover account rep. They are the only ones that can really tell you if it is required or not, and what the consequences would be for your account if you do or do not collect it. It may be mentioned in the ShopSite doc because at one time some Discover rep or merchant said it was required, but that may be outdated. By going to Discover you will be getting your info directly from the "horse's mouth".

-Loren

Good thinking.

Thanks.