Both Visa and Mastercard have credit card fraud protection under new programs.. the Visa one is called Verified by Visa. Basically, you are required to log into a Verified By Visa server to confirm your identity through the use of an additonal password in an encrypted connection. The advantage to Sellers is that if they offer it they get additional chargeback protection on fraudulent numbers. The encrypted connection actually passes the password to the issuing bank, so the responsibility of fraud falls on the bank instead of on Visa.

The advantage to the buyer is the additional password, making it more difficult for criminals to buy numbers, which are used to make bogus purchases.

The Mastercard product works in about the same way.

-- Best, John