The Commonwealth Bank of Australia has become the country's first intstitution to sign up to MasterCard's online authentication initiative SecureCode.
MasterCard SecureCode requires cardholders to enter codes in a pop-up window or box before online transactions can be completed.
The programme uses MasterCard's universal cardholder authentication field (UCAF) to provide an enhanced payment guarantee to online merchants by presenting, collecting and passing cardholder authentication information.
Online merchants in the Asia Pacific, South Asia and Middle East Africa regions that support MasterCard SecureCode will benefit from a rules change that shifts liability away from the merchants and acquirer for chargebacks due to cardholder non-authorisation, which currently account for more 70% of all chargebacks.