Money

How Mastercard is protecting your banking information

Written by The ReReport
As seen in the Source link, written by dailytelegraph.com.au on 2019-02-15 12:36:28

CUSTOMERS with recurring payments set up for expenses such as ride-sharing, food delivery and streaming services will soon be able to do away with updating their card details.

Payment giant Mastercard is working on a trial to make it easier for consumers to have seamless transactions.

This means customers won’t have to worry about updating their card details if their plastic is comprised or expires, and their sensitive information will be protected.

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Using tokenisation capabilities, the system protects a customer’s data and replaces it with an algorithmically-generated number called a token. This helps prevent credit card fraud.

Mastercard’s vice president of digital and business development, Surin Fernando, said once the functionality was rolled out customers would not have to manually update their card details.

“As you save your card details to websites, apps will automatically get upgraded with our new tokenisation capability,” Mr Fernando said.

media_cameraCustomers can find it frustrating when making purchases if their card is compromised or stolen.

“The cardholder will have a very safe, secure transaction online.”

Any Mastercard customer will be able to have their details automatically updated to various sites where their card information is already stored.

Mr Fernando said this process could be frustrating for customers when their card had been stolen, lost or compromised and they needed to quickly update it or face having payments declined.

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Strategic relations firm RFi’s payments expert, Alex Boorman, said the use of tokenisation would be a huge win for consumers and take away the hassles involved in updating payment information.

“We know consumers are saving their cards with more of these types of services,” he said.

“We also know it’s a painpoint for consumers when their card has expired or been stolen. It’s annoying to go around to these services and update your details.”

The move is also expected to help prevent card information and account details from being stolen.

Tokenisation can stop fraudsters from duplicating a customer’s bank information and using it elsewhere.

Chip and PIN cards are used to protect customers when they are paying at a bricks and mortar store while tokenisation is designed to prevent online or digital breaches.

Mr Boorman said it would also help customers who “have forgotten where they have saved their card details”.

“It’s a friction point for consumers, no-one wants to be in a situation where they think a payment goes through and it doesn’t because the card has expired,” he said.

sophie.elsworth@news.com.au

@sophieelsworth

Originally published as Mastercard’s change to making banking easier