Internet bank Egg is to implement credit card company Visa's e-commerce security programme, which, it says, makes it the first UK bank to offer "real security" for cardholders shopping on the Internet.
By submitting your personal information, you agree that TechTarget and its partners may contact you regarding relevant content, products and special offers.
The security programme, known as 3 Domain SET, is based on securing the three informationflows(or domains) required in a card paymenttransaction; between the cardholder and their issuing bank; between the retailer and their acquiring bank; and between the issuing and acquiring banks themselves.
Cardholders are provided with an electronic wallet that contains their card payment and contact details. When they are about to make a purchase online, they will receive a message from their bank asking them to confirm their identity - probably through a password.
The bank will then contact the retailer's bank and advise them that the payment is authorised. The retailer will only need to be provided with the cardholder's shipping details, not their payment card details.
"Egg has a provisional agreement for 500,000 Visa SET-enabled wallets. The way the Visa e-commerce security programme works means that SET is now very easy to use as all the checking and encryption work is carried out centrally making it very customer-friendly," said Andy Thompson, director of Transaction Business, speaking on behalf of Egg.
Visa's European banks hope to implement 3 Domain SET across Europe by October 2001.
From June 2001, any Visa retailer with authentication services that comply with the 3D programme will no longer be liable for disputed transactions, with the shift in liability moving to the card-issuing bank.