Chip-and-Pin for cyberspace

Chip-and-Pin technology is being considered as a possibility for credit card companies to improve security online and reduce fraud.

The technology has already had success worldwide and on the UK high street, reducing the levels of credit card fraud caused by faked signatures.

The Association for Payment and Clearing Services (Apacs), which is overseeing the distribution of chip-and-pin cards throughout the UK, is looking into ways to make the chip-and-pin technology available to online users at home.

MasterCard has already developed a worldwide standard for cards but Apacs wants to develop a system for the UK specifically, which can be used on all cards.

An Apacs spokesman said: “What we are doing in the UK is working on a UK-specific standard. We want one device that you could use for any card.”

Apacs is researching a card reader for the home which the consumers would use with their credit card to be issued with a password, which could then be used to make secure purchases online.

Barclays has already begun testing a similar system whereby 5,000 customers were issued with standalone card readers. A spokesman for Barclays called the initial results “encouraging”, and confirmed that trials were still in progress.

© Adfero Ltd

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