Oct 2, 2013 (Wed): Visa, MasterCard and American Express yesterday introduced a propose framework for a new global standard to enhance the security of digital payments and simplify the purchasing experience when shopping on mobile devices as the number of digital transactions has increased nearly 200 per cent since 2004.
The proposed framework will be presented to card issuers, merchants and independent industry bodies such as The Clearing House, PCI Security Standards Council and EMVCo, to align and further advance the standard.
The 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
Token provides an additional layer of security and eliminate the need for merchants, digital wallet operators to store account numbers. With a token, consumers will no longer be required to enter an actual account number when shopping online or on a smart device.