If you frequently use your credit/debit card to make online payments and are worried about the security of the transactions, relax. Another safety net is coming.
From August 1, a new authentication system will be in place to provide extra safety to your online card transactions. The Reserve Bank of India has made it mandatory for all online card transactions to have an extra level of authentication.
For Visa Card users, for example, the new rule would mean they will have to register under the ‘Verified by Visa’ service being offered by their banks.
“ ‘Verified by Visa’ is a new way to add safety when you buy online. Adding a password to your Visa card, ‘Verified by Visa’ ensures that only you can use your Visa card online,” says a note on the portal of Visa.
The card-holders need to set up their ‘Verified by Visa’ password and activate their cards through the issuer.
The extra level of authentication works in the form of a pop-up message during an online transaction that asks for the password.
“Currently, the safety parameters adopted by the banks include the card number, date of birth and the Card Verification Value (CVV) number printed on the back of the card. In some cases, the date of birth is not mandatory, making the transaction insecure,” explained an official of HDFC Bank.
The new systemwould make unauthorised transactions nearly impossible. “Many customers are not even aware that the CVV number on the cards should be erased to prevent misuse,” explained a senior official of Andhra Bank.
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