MasterCard International has launched a new security scheme that checks a cardholder's authentication information when making payments online.

Secure Payment Application (SPA) services is MasterCard's latest effort to protect Internet payments from fraud or mistakes. It uses a multipurpose data transport system implemented by merchants for collecting authentication information generated by issuers and cardholders.

Once collected, this information is communicated to the issuer in the payment authorization request and provides explicit evidence that the transaction was originated by a legitimate cardholder. SPA has no impact on the amount of time required to buy online or to process a payment authorization.

"Confirming a cardholder's identity is essential to the success of making secure payment transactions in card-not-present environments," said Art Kranzley, senior vice president for global e-business. "With SPA, MasterCard is delivering a mechanism that will reduce chargebacks by authenticating the cardholder's identity, thus increasing overall confidence in online payments."