Enhanced verification
Enhanced verification – protecting yourself when using credit or debit cards
Each time you use your credit card to pay by phone or over the Internet, you provide your credit card details. What protects you from the misuse of these details by other people?
Enhanced verification is a technological process that is executed when you pay, and ensures that the person making the payment is the real owner of the card. From the consumer’s standpoint, this process ensures that no other person will be able to debit your card, or your account directly, without your knowledge.
When you receive an SMS on your cellphone with a one-time password (OTP) that you are asked to use before making a credit card transaction, that is one of the enhanced verification tools.
The law obligates merchants to utilize enhanced verification for transactions that include a request to issue an authorized debit order. For instance, when registering for a parking application, you will need to provide enhanced verification in order to allow the application to automatically charge your account each time you park your car in a paid parking spot.
It is important to know that the law enables (and the Bank of Israel encourages) business owners to utilize enhanced verification for transactions where this is not required by law. In such cases, the enhanced verification also protects business owners from transaction denials.
The rules are the result of joint efforts by the various participants in the payment card market as part of the payment cards committee. The Bank of Israel, as the agency entrusted with regulating the payment systems field, heads the committee, and is leading the effort to draft the rules, with a view that attributes supreme importance to ensuring the reliability of the various means of payment in the economy.
All of the information on the enhanced verification rules, useful tips, and other topics that are important for you, as consumers, to know, can be found below.
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What is the purpose of enhanced verification?
Enhanced verification ensures the reliability and security of using means of payment such as credit cards and debit cards. The enhanced verification mechanism makes it possible to ensure that when making a transaction by phone or over the Internet, the person making the payment is actually the owner of the account or card.
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How does it work?
- At the time of payment, the merchant sends an enhanced verification request to the credit card company
- The company carries out a number of examinations, and if necessary, involves the customer.
- If necessary, the customer is asked to send identifying details.
- And that’s it. The merchant receives confirmation that this is the card owner and not an imposter, and the transaction can go through.
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Obligation to utilize enhanced verification
The law requires businesses to utilize enhanced verification for transactions in which the customer is required to provide a debit authorization – where the customer must give the business prior authorization to charge his account.
For other transactions, the law enables a business to utilize enhanced verification for all remote transactions (meaning those by phone or Internet) in which a credit or debit card is used.
What personal details are recognized for the purpose of enhanced verification?
Business owners – To integrate enhanced verification, contact the settlement
Questions and Answers
A technological process that combines standards, mechanisms, and clear principles that make it possible to ascertain at a high level of certainty that the payer is the owner of the card.
In general, it is very important to protect your information and means of identification and not to share them with anyone else. In particular, do not share your identifying details that enable another person to impersonate you or to execute enhanced verification in place of you. These include passwords, PIN codes, one-time passwords (OTP), or access patterns (such as those used to access your cellphone).
No. ID numbers and credit card numbers are not recognized as identifying details for the purpose of enhanced verification. If someone else uses them, that person will not be able to make a transaction in your place. In contrast, a PIN code or password are recognized as identifying details, as part of the “Somethings that is you” category. You must therefore be careful not to give them to anyone else whom you do not trust.
The law requires enhanced verification for transactions in which an authorized debit is created (for instance, when registering for a parking application). For other types of transaction, enhanced verification is allowed, and subject to the considerations of the business owner.
In recent years, there has been significant development in the field of payments in Israel, which has led to the development of a variety of innovative means of payment. The enhanced verification mechanism prevents the falsification and misuse of your credit card. The mechanism protects you as customers, as well as businesses, from fraud and loss.
In recent years, there has been significant development in the field of payments in Israel, which has led to the development of a variety of innovative means of payment. The enhanced verification mechanism prevents the falsification and misuse of your credit card. The mechanism protects you as customers, as well as businesses, from fraud and loss.
The payment card committee was established to serve as a platform for advancing professional and technological matters regarding modes of operation and rules for carrying out transactions in the payment card system. The committee serves as a consulting body for the Supervisor of Payment Systems at the Bank of Israel in its function to ascertain the efficiency and stability of the payment systems in the economy. The committee is comprised of representatives of the various participants in the payment card market—SHVA, the banking corporations, distributors, manufacturers, merchant acquirers, and issuers.