Bringing online credit card purchase security up to date

By | January 15, 2014
Credit cards are one of the most ancient and insecure payment methods available. Almost every other online financial transaction has moved on – knowing a pair of numbers that are the same for every purchase isn't enough to send a wire transfer here; you need a one-time, transaction-specific number (e.g. a mobile transaction number, or a generated one based on some hardware security device).  Logging on to an account can require two-step authentication, at least for some providers. But credit cards? All the information you need for an online transaction is right there, on one single piece of plastic. Or on one single database.

The solution – of one-time-use credit cards – is a big step towards making credit card online purchases more secure and less traceable. But at the same time: this system is limited to a finite number of transactions; it is not a long-term scalable solution as credit card numbers have a limited length and online transactions are on the rise. Or numbers are re-used at will of the service provider. Perhaps we need another innovation in credit card transactions? 

/via +Alex Schleber 

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8 thoughts on “Bringing online credit card purchase security up to date

  1. Nelson Cruz

    The banking system here in Portugal has had a similar system for many years now. It's called MBNet (http://www.mbnet.pt). You login, enter a monetary limit, and you get a card number that you can use anywhere. Besides the limit the "card" also expires the following month. Recently they added the option of it lasting one year, which is useful for stuff like Google Play or the App Store.

    I have only used them on online stores, but they say it can be used offline too.

    Reply

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