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  1. #1

    Lightbulb Credit Card Authentication

    Elance.com is an example of a web site that authenticates a user's credit card by charging any new credit card two separate amounts under $2.00. The user can later call their bank to find out the charges that have been made, and enter those two numeric amounts into Elance.com's authentication page. This will confirm that a credit card belongs to the user who is using it. My question does Elance do such a thing without being billed a 2-3% rate for each of those authentication transactions? If so, any idea how I could do the same with my site?

  2. #2
    Join Date
    Mar 2005
    Location
    New Jersey
    Posts
    113
    No, they get billed for those transaction as they are no different then any other kind of transaction.
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  3. #3
    Join Date
    May 2003
    Posts
    267
    Quote Originally Posted by peopledeal
    Elance.com is an example of a web site that authenticates a user's credit card by charging any new credit card two separate amounts under $2.00. The user can later call their bank to find out the charges that have been made, and enter those two numeric amounts into Elance.com's authentication page. This will confirm that a credit card belongs to the user who is using it. My question does Elance do such a thing without being billed a 2-3% rate for each of those authentication transactions? If so, any idea how I could do the same with my site?
    Elance's way of user authentication is old, expensive, and time consuming. There is another way to authenticate a user called Verified by Visa/Mastercard SecureCode which will allow you not only to authenticate cardholder but also sell/deliver your product/service right on without waiting 2-3 days for confirmation.

  4. #4
    Join Date
    Aug 2003
    Location
    Chesapeake, VA
    Posts
    3,379
    I'd definitely agree with Leksus that VBV/MSC is a much better way to handle that.

    Regarding ELance, it is possible to do an auth-only sale which would then never be settled and hypothetically, the user could contact their bank to see what the temp auth amounts were for.

    However, this process is cumbersome, subject to a lot of problems and I believe also technically in violation of VISA/MC regs in terms of authoring a card without any intent to ever settle it.
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