In this day and age of high rates of fraudulent credit card transaction, especially online, you would think that banks would be doing everything they can to help prevent fraud... We there is two systems that have the potential to cut online credit card fraud, yet they are rarely promoted by card issuers and even more rarely used by vendors. Most people have never heard of them such is the lack of promotion of the schemes.
Basically what they are is passwords to use your credit card online. With both schemes, before your payment can recieve verification, you have to enter a password first. With the MasterCard SecureCode at least, you know whether its your bank asking you for the code or a scammer, because it displays a personal message chosen by you that only you and your card issuer knows.
Now I have been registered with the MasterCard SecureCode for around 3 years now, but have used it only a couple of times. Major 3PPP's dont make use of it like PayPal, Nochex, 2checkout, WorldPay, and almost all online vendors dont make use of it. I think the Barclays ePDU uses it and thats about it.
I want to know why the hell they seem to have no interest in promoting this scheme to either users or vendors. Payment processors continue to moan about the increase in fraudulent transactions, yet refuse to make use of the only system available to help cut down on them.
I noticed recently via a message in my online banking, that my card issuer, the HSBC Bank, have now made the service available on MasterCard Debit Cards (Solo and Maestro) which means that there is even more flexibility for the service and even more protection for more cardholders, yet I bet its is still very rarely used.
Its very sad to see such a potentially great way to cut online card fraud almost killed off by vendors just simply refusing to use it.