Lloyds TSB is to introduce password-based verification services for cardholders transacting over the Internet.
Following a successful six-month Verified by Visa pilot, the UK bank has selected Cyota to add MasterCard SecureCode to the service and roll it out in a phased basis to Lloyds TSB's 15 million credit, debit and chargecard holders.
MasterCard SecureCode and Verified by Visa are designed to provide Internet shoppers with a virtual receipt to sign at the point of purchase, thus reducing online fraud.
David Cooper, head of risk management and compliance, Lloyds TSB consumer lending and current accounts, says: "Based on our pilot results and analysis as well as the traction that Verified by Visa and MasterCard SecureCode have gained in the UK over the past few months, we have decided to provide all of our cardholders with the opportunity to use this extra security while shopping online."
He says that under the deal, the bank will be able to move its multiple card programmes for credit, debit and co-branded cards from several data centres over to a single managed service.
Cyota says it will operate the service from its London data centre.