A Quick Look at Debit Card Verification

No surprise: online transaction fraud remains a significant threat in the U.S. and worldwide. TransUnion’s latest research shows that businesses now lose an average of 7.7% of annual revenue to fraud—more than US $534 billion globally. In the U.S., losses reach 9.8% of revenue, reflecting a sharp rise in digital and mobile fraud attempts. Meanwhile, the LexisNexis True Cost of Fraud 2025 study reports that eCommerce merchants now lose $4.61 for every $1 of fraud, with online and mobile channels driving the majority of incidents. Fraud remains responsible for well over a third of card-related losses—and shows no signs of slowing down.

Given these statistics, it’s important for merchants to be aware of debit card verification.

Debit Card Verification Explained

The European Union (EU) has already enacted legislation aimed at putting debit card verification and other measures in place to guard against the unauthorized use of debit (and credit) cards and shore up the security of these card payments. Known as PDS2, this legislation mandates strong customer authentication (SCA) that encompasses security measures businesses and banks must implement for purposes that include debit card verification. SCA indicates that two-factor authentication of almost all online payments must be completed to confirm that the individual attempting to use a card for such a transaction is its rightful owner.

Features of data verification under the debit card verification “umbrella” include, but are not limited to:

1. Acceptance of electronic online payments verified via PIN or PIN password.
2. Acceptance of electronic online payments from physical debit cards or mobile phone SMS to verify payments.
3. Acceptance of electronic online payments verified through fingerprints or voice identification.

Benefits of Debit Card Verification

While debit card verification is not a requirement in the U.S., nearly all payment solution providers can provide it, and merchants that accept debit card payments online should be aware of its benefits. These benefits include the following.

1. A higher degree of security leads to fewer headaches. A strong security requirement for online electronic payments here, in the form of debit card verification prevents customers from falling victim to fraud or unauthorized transactions. The fewer fraudulent debit card transactions merchants process, the better their reputation for safeguarding the security of all types of payments and the lesser the likelihood of losing business overpayment problems.
2. Reduced liability on merchants’ part. When consumers avoid unauthorized payments that result from debit card verification, merchants are naturally liable for fewer fraudulent transactions.
3. A wider array of consumer rights leads to happier customers. When online debit verification is in place, consumers have access to enhanced payment transparency, currency conversion, and a range of options for handling complaints. This paves the way for a higher degree of customer satisfaction.
4. Comprehensive monitoring. Debit card verification provides monitoring of devices and transactions for unusual payments again decreasing the likelihood of online debit card fraud.

Schedule a consultation to learn more about payment security and how E-Complish can help.