BizReport

RSS feed Get our RSS feed

News by Topic

BizReport : Ecommerce archives : February 14, 2007


British banks trial online credit card fraud prevention device

There could be good news ahead for British online shoppers. U.K. banks are piloting a scheme to issue customers with personal credit card readers.

by Helen Leggatt

Remote, or "card not present", are transactions that take place online and over the telephone. APACS, the U.K. payments association, forecast that 2006 will see a decrease in the cost of overall credit card fraud, and this is reflected in the 5 percent drop during the first six months of 2006. Full year figures are due out next month.

Despite this, "card not present" fraud increased by 5 percent in the same six month period and online banking fraud rose 55 percent.

The handheld device that APACS will trial, generates a unique transaction verification code after the user has inserted their card and pin. The code is communicated to the retailer, who then uses it to verify the transaction. The process minimizes the need to reveal account and card information, with the retailer requiring just the code and delivery information.

"These developments are still in initial trials and it will be interesting to see who will be the first to come on board," said Robert Kenley, head of credit cards at price comparison service moneysupermarket.com. "If it comes to fruition, this innovation will not only protect consumers, but also revolutionise the payment card market."






Tags: credit cards, e-commerce, fraud, online transactions, security, UK








Subscribe to BizReport






https://www.bizreport.com/2007/02/british_banks_trial_online_credit_card_fraud_prevention_devi.html

 

 

Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.