Yes, credit cards are the best way to pay today.
The Visa Verified Pin based program is a simple solution that should help to eliminate fraud.
By the end of the decade, however, there will be a convergence of several security systems all tied to authentication of the user. MSN Passport, The Liberty Alliance, Paypal, Ecount and C2it all offer good services. The final picture for secure payments will be a convergence of most of the above, and will still be centered upon a credit/debit card number. A Purchase/Payment account may be set up though to avoid exorbitant loss due to fraud. It's better to have an insured/secured account with just a few hundred to a few thousand set aside, rather than a $5-$100,000 credit line or checking account attached to the card number.
By the end of this year or next, PCs will be sold with a Chip/Mag Stripe Card Reader. The card readers are much like the ones used in retail stores. Users will be authenticated via smart chip and PIN.
So, in the future, giving away your credit card to every site will be a thing of the past. Online Wallet/Payment Security companies will partner with retailers whereas consumers will register their card with the service provider at time of purchase and thus will be registered for purchasing without sharing card info at all the other sites. Payment Processing companies will partner with the Security Service providers to offer retailers a combination of shopping cart/rewards/payment processing/online wallet service.
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