Matt White - Finextra - Toronto 02 August, 2011, 11:36 0 likes

Link to the PR

A Finextra member 03 August, 2011, 07:12 0 likes

I fail to see "the most secure form of online payment" here. This is just your webcam and a software used to read the card number from the photo. Same as inputting the the card number by hand, only made for dummies so that they can not type their card number wrong.

Also, the scanned pictures are VERY dangerous if left anywhere on your computer, and malware wil pick up this form of payment very quickly if this becomes popular.

I think the US market needs to move forward with EMV instead of these kind of "scotch tape & bubble gum" type of "security fixes". 

Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 03 August, 2011, 18:44 0 likes

This is a solution for Card Not Present credit card transactions where EMV is irrelevant. 

A Finextra member 05 August, 2011, 14:43 0 likes

Actually I tend to disagree - there is no reason why a reasonably priced USB EMV Card Reader Couldn't be used for e-commerce or failing that - 3D Secure using a CAP device.  So the EMV arguement would be relevant in these cases.  The whole "customer not present so no EMV" is a bit of a curveball, think outside the box...

Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 05 August, 2011, 15:49 0 likes

Talking of EMV and CNP, leading analysts like TowerGroup to whom banks tend to listen, have stated that EMV provides no fraud mitigation for online transactions. US merchants seem to be finding it difficult to justify the business case for EMV itself in the first place. I can't name a single leading US e-commerce website (e.g. Amazon, GoDaddy, eBay) that uses VbV / SecureCode / 3DS despite their being around for years and having reached mandatory status in some countries (e.g. India). I'm not sure how many of them would think adequately out-of-the-box to even dream of implementing USB EMV Card Reader / CAP / equivalent at this point. End of the day, it's possible to keep adding technologies to keep reducing fraud, but merchants have to weigh their costs and incremental friction with increased security - and that's an equation that is very specific to local business cultures and consumer attitudes in different countries. As an online shopper, I find the US online shopping experience to be the best in the world, which tells me that US online merchants have struck the right balance between convenience and security. If fraud rates go up to unmanageable levels, I'm sure they'll implement the required security measures, EMV / CAP being only one of them. 

A Finextra member 05 August, 2011, 16:04 0 likes

Bank executives also listen to Gartner… and who ever will buy them a few beers at the end of a game of Golf - should we rely heavily on their sage-like wisdom also.  We should stop living in a academic theoretical world of make-believe and try things out - see if they work and learn from it - rather  than hypothesize on whether anything is a good idea or not.

Ketharaman Swaminathan - GTM360 Marketing Solutions - Pune 05 August, 2011, 16:54 0 likes

Since merchants / banks are the ones who have to bear the loss arising from fraud from current non-EMV technology, I'm sure they'll eventually get around to trying EMV / CAP and other technologies once they've sorted out other real-world issues like cost, potential benefit, ROI, conflicting investment priorities, and so on.