Addl Verification for Online Purchases from Aug 1
The Reserve Bank of India s diktat to banks to make additional authentication mandatory for credit/debit card online transactions comes into effect from tomorrow. This move is meant to effectively check card-related frauds.
As per the RBI guidelines, customers will have to register their cards from tomorrow onwards with their merchants - Visa or MasterCard - and create a security password. While making purchases, the cardholder will have to use this second verification apart from the Card Verification Value Number (CVV).
With the rising usage of cards for online transactions, and the corresponding increase in number of card-related frauds, RBI s move to enhance the security level has been generally welcomed by the banking industry.
However, the implementation of the new method will necessitate installing a new software by banks.
"There may be some challenges in the initial stage as banks have to be ready with the software required to identify the second authentication or password while making transactions," an official from a leading bank said. But the move will enhance the customer confidence to go for online purchases, he added.
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