Online Transaction With Cards
2-step verification system by Apr 1, ’14
The Bangladesh Bank on Monday asked scheduled banks to introduce two-step authentication and online alert systems for the use of credit and debit cards for online transactions by April 1 next year. The BB issued a circular to managing directors and chief executive officers of the banks asking them to implement the new method ‘additional authentication’ or two factor authentication for Card Not Present transactions.
A BB official told New Age on Monday that the CNP is referred to a transaction a consumer carries out without presenting his/her credit or debit card.
‘For example, a consumer can make online payment for any purchase of product by using his/her credit or debit card’s number and password, without swiping the card through any machine,’ he said.
This type of transaction is usually used in the e-commerce, he said.
The BB has taken the move in a bid to tackle credit card fraudulence in the CNP transaction, he said.
The BB circular said that the banks would introduce an ‘online alert’ system for the cardholders for CNP transactions of value of Tk 5,000 and above.
The CNP transactions are considered very convenient for consumers as these allow them to make purchases using a personal computer or mobile phone device, the BB official said.
Now clients of the banks use a fixed password in CNP transaction.
‘In the current system, fraud risk is high as such type of fixed password can be easily accessed by hackers,’ he said.
In order to check fraudulence in the CNP transaction, the banks will issue a one-time password for every transaction to
their clients so that their transaction process would remain safe and secured, he said.
Banks will send the one-time password to their clients through mobile numbers and emails, he said.
The transaction will be executed when a client will insert the one-time security code in the process, he said.
‘The incidents of credit card fraudulence have recently increased in the country. So, the BB has made mandatory for banks to adopt policy required to tackle online fraudulence to protect consumers and financial institutions,’ he said.
Besides, the banks will have to provide online alert to clients when they make the CNP transaction amounting to Tk 5,000 and above, he said.
Banks will provide the online alert to their clients through emails and mobile numbers, he said.
-With New Age input
