Without it, you will probably have a hard time reserving a hotel room, renting a car, paying for the concert ticket you ordered online, or even download music from the online music store. Yes, I’m speaking of the good old credit card and despite companies like PayPal gaining market share, it’s probably still the most common payment method for online transactions.
Looking at how credit cards are used in everyday life, it’s amazing that such an inherently insecure system survived as it is violating almost every rule there is in terms of security. Even though it provides all three security relevant details (the number, expiry date and ccv code) on the same physical plastic card, you hand it over to the waiter in the restaurant, hoping he or she will not copy the data down whilst processing your bill.
Oh, and you might as well sign the receipt with „Mickey Mouse“ rather than your real name, as nobody bothers checking your signature anyway. Technically the transaction has already been processed and the signature merely gets checked – if at all – in case of a dispute.
It seems that the credit card companies realized that this is becoming expensive for them. Sick of covering up the fraud and reimbursing customers, they have started to fight back: When used online, instead of only entering the already known three components, one now has to provide a fourth – at least sometimes.
THIS IS A PREVIEW. DOWNLOAD APRIL 2013’S ISSUE TO READ THE FULL ARTICLE.