Getting a new global online payment standard adopted is a tall order, but the involvement of the big three - Visa, Mastercard and American Express - in the latest effort must give it a fighting chance of success.
Their idea is to replace with a token the need to input your credit card details when ordering online and on your mobile device. And not giving your credit card number to a site could help eliminate all those embarrassing and potentially costly hacks of customer data suffered by merchants.
With a token, consumers will no longer be required to enter an actual account number when shopping online or on a smart device. Tokens provide an additional layer of security and eliminate the need for merchants, digital wallet operators or others to store account numbers.
Key elements of the proposed standard include:
New data fields to provide richer information about the transaction, which can help improve fraud detection and expedite the approval process
Consistent methods to identify and verify a consumer before replacing the traditional card account number with a token
A common standard designed to simplify the process for merchants for contactless, online or other transactions
Ed McLaughlin, Chief Emerging Payments Officer, MasterCard, said:
What we're introducing today is comparable to how the industry came together to develop and use the magnetic stripe, EMV and NFC on a global scale.
This is just the start of the pitch to various industry players for the new standard to be adopted, so don't expect implementation anytime soon...but it does sound like an improvement over existing technology and security methods.