New handheld credit card readers set to be a success

February 23, 2007

A new credit card reader is set to be launched within the UK in the hope that it will cut down credit card fraud. The amount of online fraud has rocketed over the past few years and people who regularly purchase things online have now started to become concerned over their privacy whilst they pay through supposedly secure systems.

In order to use these new readers, customers will have to put their card into the reader and then type in their pin number. That will then give an eight digit number for that one transaction and that can then be entered online. So no potential hacker will be able to get hold of your details and your details will remain completely safe with you. You can also give that eight digit number to a phone operator instead of telling them your details. So that will also cut down over the phone fraud too.

Sometimes when trying to give details out to a phone operator, other people may be present and they then have the opportunity to remember your details. So if it is an 8 digit number which is only valid for that transaction, it is definitely going to stop some credit card fraud.

These readers are set to be tried out by various banks later in the year, though the banks have not yet been agreed upon. It is thought that TSB have been trying out a new key fob which is supposed to help keep customer transactions more secure, but they are considering using the readers also.

Overall these readers should make customers feel a lot more secure when paying for anything online or over the phone. They are bound to cut down credit card fraud and they are definitely one of the most awaited banking products of 2007.