Ovs Agreement

OVS Agreement: An Overview

If you`re in the e-commerce business, you may have heard of the OVS agreement. But what does this acronym stand for? And why is it important for online retailers and their customers?

OVS stands for Online Verification System. It is a verification system developed by Visa, one of the world`s largest payment processing networks. The OVS agreement is a contract that merchants sign with Visa to comply with its verification standards and prevent fraudulent transactions.

The OVS agreement requires online retailers to verify their customers` identity before processing a payment. This is typically done by requesting additional information, such as the customer`s billing address or card security code, that only the legitimate cardholder should know. By verifying the customer`s identity, retailers can reduce their exposure to fraudulent transactions and chargebacks.

Why is the OVS Agreement Important?

The OVS agreement is important for both merchants and customers. For merchants, it helps protect them from financial losses due to fraud. Fraudulent transactions can result in chargebacks, which occur when a customer disputes a charge on their credit card and requests a refund from their bank. Chargebacks can be costly for merchants, as they may be required to reimburse the bank for the disputed amount and pay additional fees.

For customers, the OVS agreement provides an extra layer of security when making online purchases. By verifying their identity, retailers can ensure that the customer`s credit card information is not being used fraudulently. Customers can have peace of mind knowing that their financial information is being protected and that they are not liable for fraudulent transactions.

How to Comply with the OVS Agreement

To comply with the OVS agreement, online merchants must implement a verification system that meets Visa`s standards for fraud prevention. This may include requiring customers to enter additional information during the checkout process, such as their billing address, card security code, or a one-time password sent to their mobile device.

Merchants must also maintain accurate records of each transaction and provide Visa with any requested documentation in the event of a chargeback. Failure to comply with the OVS agreement can result in fines, penalties, and even termination of a merchant`s account.


The OVS agreement is a crucial component of fraud prevention in the e-commerce industry. By requiring online merchants to verify their customers` identity, it helps protect both merchants and customers from financial losses due to fraud. If you`re an online retailer, it`s important to comply with the OVS agreement to ensure that your business is protected and that your customers have a safe and secure shopping experience.

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