Credit Card Use For Online Transactions
BB to ask banks to launch 2-step authentication process
The Bangladesh Bank is going to make mandatory for the scheduled banks to introduce two-step authentication process for the use of credit cards for online transaction in a bid to tackle fraudulence.
The BB will issue a circular next week to the banks asking them to introduce by eight to nine months the new method ‘additional factor of authentication’ for Card Not Present (CNP) transactions of e-commerce.
A BB official told New Age on Wednesday that the CNP is referred to a transaction a consumer carries out without presenting his/her credit or debit card physically.
‘For example, a consumer can make online payment for any purchase of product by using his/her credit card number and password, without swiping the card through any machine,’ he said.
CNP transactions are considered very convenient for consumers as it allow them to make purchases using a personal computer or mobile phone device, he said.
Clients of the banks now use a fixed password in transaction through the CNP.
‘In the current system, fraud risk is high as such type of fixed password is easily accessed by hackers,’ he said.
In order to check fraudulent case in the CNP, the banks will issue a one-time password for every transaction to their clients so that their transaction process could remain safe and secured, he said.
The banks will send the one-time password to the clients through their mobile numbers and emails, he said.
The transaction will be executed when the clients 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 will make mandatory for banks to adopt policy required to tackle online fraudulence to protect consumers and financial institutions,’ he said.
The BB will initially ask the scheduled banks to introduce the additional factor of authentication system for the e-commerce transactions under the CNP, he said.
The central bank will gradually introduce the additional factor of authentication system for transactions through point-on-sale, automated teller machine and mobile bank, he said.
Another BB official said that the leaders of Bangladesh Association of Software and Information Services had recently requested the BB governor to introduce the additional factor of authentication in the e-commerce transaction against the backdrop of increasing trend in the credit card flatulence case.
Under the circumstances, the BB governor asked the central bank officials to take measures in this regard, he said.
India and the developed countries have already introduced the authentication system in a bid to secure their electronic payment system from fraudulent incidents, he said.
He hoped that the credit card fraudulent cases would decrease when the additional factor of authentication system would be fully operational.
BB executive director Dasgupta Asim Kumar told New Age on Wednesday that the central bank was now reviewing the additional factor of authentication system.
The BB will issue a circular to the banks to this end as early as possible, he said.
-With New Age input
