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ECT News Community   »   E-Commerce Times Talkback   »   Re: Credit Cards Still Best Option for Online Buying

Re: Credit Cards Still Best Option for Online Buying
Posted by: Elaine X. Grant 2002-01-28 17:21:00
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I have seen the studies. I know that fraud is more prevalent online and that many people
are wary of giving their credit card information to Internet merchants, but credit cards
still seem like the best and most convenient option. With online payment systems, you must
not only register and open an account, but also pay a fee for some types of transactions.
Use a credit card and let the merchant pay the fee, that's my motto.

Re: Credit Cards Still Best Option for Online Buying
Posted by: send2nicky 2002-02-07 21:19:44 In reply to: Elaine X. Grant
The benefit I perceive in using an electronic transfer service such as PayPal is that you are only providing your credit card or banking information to one business instead of every business that you purchase from. The ETS then remits payment on your behalf and the supplier does not receive your financial info. If you trust the ETS's security measures and use such a service you are not at the mercy of each individual member's security systems or potential lapses.

Obviously this only works with merchants who are using PayPal. PayPal is claiming 12,000,000 registered users in 37 countries, including 2.2 million businesses and growth of 18,000 new accounts per day. (I've been researching the topic for an ecomm class.)

Is this type of service the wave of the future or will biometric scanners and the like be the rage?

Re: Credit Cards Still Best Option for Online Buying
Posted by: freeagent 2002-01-29 12:03:01 In reply to: Elaine X. Grant
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.

Want to know more? Email me.

Randy Smith

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