October 7, 2013

Visa, MasterCard and AmEx propose global security standard for online, mobile shopping

WORLD--Visa, MasterCard and American Express have introduced a proposed framework for a global standard to enhance the security of digital payments and the purchasing experience when shopping on a mobile phone, tablet, personal computer or other smart device.

The proposed standard is set to allow the traditional account number to be replaced with a digital payment ‘token’ for online and mobile transactions. With a token, consumers will no longer be required to enter an account number when shopping online or on a smart device.

Once a standard is agreed to and implemented, issuers, merchants or digital wallet providers would be able to request a token so that when an account holder initiates an online or mobile transaction, the token – and not the traditional card account number – would be used to process, authorize, clear and settle the transaction in the same way traditional card payments are processed today. Tokens can be restricted in how they are used with a specific merchant, device, transaction or category of transactions.

 

 

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