Improving Security for Online Credit Transactions

Technology appears to be stepping in, at least for online merchants.


AMEX follows suit - to me the surprising thing about this story is that enough people use them online to make it worthwhile doing :wink:


This probably touches a few categories, but of course if they had better (some) security, this would be less of an issue …


I wonder how much fraud is from hacking of retailer servers or from consumers using their credit cards on dubious (sham/scam) websites or letting their credit card out of their sight when making purchases (such as at a restaurant).

While this is a great idea and a very easy fix to implement, it would be interesting to know the real impact of the measure.

I am surprised that it has not been done earlier as a model already exists, such as POLi for online direct debit transfers. The credit card industry could have easily adopted a similar model where one selects the credit card to be used during the payment process (master card, visa etc) and the payment is then transferred to say the credit company website for processing and finalisation.


Indeed! A number of ‘our companies’ as well as others do that with paypal whereby one is transferred to paypal to complete payment and authorisation, and then back to the merchant’s site.

I suspect one of the inhibitors is that the banks receive a fee for processing cards. Take the bank totally out of the processing and how would they justify fees that would pass a pub test? Lobbyists are in pollies faces privately as well as publicly.


Our New Years 'gift" this morning was a call from Westpac to check on some sus itunes transaction. Itunes? Not us! The card had not been used recently excepting for auto debits for a mobile plan (details stored with the mobile company) and save for that and one online transaction back in September, only in person.

It reinforces that smart thieves don’t use stolen card details immediately, they wait long enough so one cannot be sure where or when the theft occurred.

It is a good time, and all times are good times, to pay attention to statements, online is better, paper if one must.