For Merchants

How the Process Works - Click here to play the video

Interested in Signing Up with Virtual Piggy?

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Virtual Piggy provides merchants a secure and compliant mechanism for selling to the youth market (ages 18 and under) online. With an estimated influence over $50 billion in annual spending, this largely untapped market segment offers significant opportunity, but transacting with children online also presents its challenges. Penalties are costly for website operators who are not diligent about complying with the rules stipulated by COPPA (Children’s Online Privacy Protection Act). In addition, many transactions never even take place because a parent is unavailable when a child is ready to make an online purchase and the child has no way to fulfill the transaction.

Virtual Piggy addresses all of these issues and more. Through this system, parents establish a Virtual Piggy account, providing their personal and payment (e.g. credit card) information. They then set up a spending profile for each child providing a user ID and password for them. They also provide Virtual Piggy their consent to release address, payment and other information to approved online merchants to fulfill purchase requests initiated by their child that are within the previously established spending parameters. Merchants remain COPPA compliant because they do not collect any information from the child except their Virtual Piggy ID. The parent does not need to be present to effect a payment. Virtual Piggy fulfills the payment on behalf of the parent for the child, reducing the possibility of friendly fraud associated with these transactions.

How It Works:

  • A merchant integrates the Virtual Piggy checkout button onto its e-commerce shopping cart or its product pages.
  • Kids who have accounts that have been registered by their parents can opt to utilize the Virtual Piggy button to checkout.
  • When a child selects Virtual Piggy on the merchant’s site, they are prompted to enter only their user name and password that have been established by the parent. The user id and password, along with selected information about the purchase, are routed to Virtual Piggy.
  • Virtual Piggy compares the purchase request against the child’s profile and “permissions” that have been established by the parent in the child’s profile. (Parents also have the option of electronically receiving selected transactions for final approval before processing.) If all parental controls are met, Virtual Piggy sends the parents’ payment information and other data required to fulfill the transaction to the merchant’s payment processor for authorization and settlement. If required, Virtual Piggy also sends shipping instructions to the merchant.
  • All transactions initiated by the child are completed in a manner compliant with US COPPA laws and within the parameters established by the parents.