Canadian Imperial Bank of Commerce is to offer cardholders a one-time dispobable Visa number instead of their actual card number for shopping on the Internet.
CIBC says its will offer more than four million of its Visa credit card customers the secure shopping technology, which has been developed by New York-based, Israeli-funded Internet payments outfit Aplettix. The service is expected to be available in the new year.
CIBC is the first North American customer for Aplettix's patent-pending Nexus-1 authentication technology. In addition to protecting bank and cardholders against fraudulent purchases, the system also offers users the opportunity to manage their spending by securely monitoring and tracking their purchases online.
The disposable number system will be the first of its kind in Canada, although MBNA and American Express are understood to be working on similar programmes for customers.
Brenda Clark, vice president Internet channel management, CIBC card products division, says: "Aplettix's superior technology provides the enhanced security, reduction in back-office costs and real-time fraud detection CIBC needs in order to grow and profit from our e-commerce business endeavours."