The Big Three Credit Card Cos. Aim to Revamp Security

Consumers’ security will be better protected as Visa, MasterCard and American Express proposed new global standards to replace traditional account numbers with a digital payment “token” for online and mobile transactions. In addition to boosting security, the tokens would eliminate the need for merchants to store consumers’ sensitive payment data. “Digital commerce is a very attractive target for fraudsters, and [fraud] will continue as long as the card-not-present channels rely upon static data,” Julie Conroy, a research director for Aite Group, told PaymentsSource. “Replacement of the 16-digit card number with a token could also make the mobile experience easier,” Conroy said, since consumers would need to make fewer keystrokes. Once standards are issued, card issuers and digital wallet providers could request a token in place of a shopper’s account number. Still, we are not talking about an overnight shift to digital tokens here. Standards must be agreed upon by all the payment industry stakeholders. Then, the guidelines would need to be implemented. It is unclear how long the entire process will take. For more, see: This PaymentsSource article Related articles: Visa, Mastercard Slash Interchange in France Citi Pays $55,000 for $2.7 Million 2011 Breach