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Purchasing on net through credit card

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CIOL Bureau
Updated On
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Even though

e-commerce is the norm of the day, yet when it comes to personal transactions,

skepticism over online payments are yet to be overcome. With one of our members,

PK Jain of Birla Copper raising this issue in the forum, w present here some of

the CIO recommendations which offer an insight on this matter.

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Even though

e-commerce is the norm of the day, yet when it comes to personal transactions,

skepticism over online payments are yet to be overcome. At least in the in the

Indian context, people are


concerned about giving their credit card details over the

Internet. And they ought to be. Around 14% of all credit card fraud occurs

online. At around 4%, the fraud rate for online transactions is 24 times higher

than it is offline.






Even though in most of the cases, it's the merchants and credit card companies
who pick up the tab and customers rarely find themselves liable for Internet

fraud, nevertheless there are as many people who favour online payments as there

are who advise cautious approach to this mode of payment.

 

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One of our CIO

members PK Jain of Birla Copper, who has initiated a discussion on this,

questions the security aspect of this kind of payment. He queries that, “Today a

number of products are available through various sites, which requires one to

enter only credit card and CVV No, to purchase the same. As these two

information can easily be known to any one whenever we swipe the card for

payment transaction, how secure is the transaction on web for purchasing through

credit card.?”

 

As told earlier,

the subject matter offers a debatable point of view with varying individual

experiences. A discussion of similar nature was initiated sometime back on our

board with various members discussing their viewpoints and experiences. We

present here some CIO recommendations which offer an insight on this matter.

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Arun O Gupta, CIO,

Pfizer

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When you go to a

restaurant and pay using the credit card, the person disappears with the card

and during that period to until he returns with the card back which is only

after you have signed the charge slip in most cases, s/he can do whatever they

want with the card, including duplicating the magnetic strip on the card, which

is not very difficult.






 

When you do decide

to shop, go to sites that offer some degree of comfort with a digital

certificate that specifies that the site has been certified by someone, e.g.

Verisign. Check for the validity of the certificate by clicking on it.






You don't stop carrying cash in your wallet because pickpockets are around!


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S Sumil of

OSN Teachnologies  

 

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When you do

transact on web remember to see for encryption level it should be 128 bit and

the web site should have security certificates , reason for this is that when

you transact on these web site the data goes to payment gateways and only the

card no and other details are gone to the company database , that also for there

records , and always keep the ID which is generated whenever you transact . Or

you can use special cards for internet shopping which provides limit on credit ,

major banks have them .

 



Wilfred Prakash
, Novo Nordisk

India Pvt

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On a payment

gateway the component which resides in the merchant website, shall not/should

not transfer the Credit Card, Card expiry (and in most cases the last three

characters, which is found in the back side of the card) etc.. to the merchant

database, but instead sends only whether authenticated for the purchase or not.

Hence there is no sharing of common information between the merchant webstite

and the bank. Bank validates and gives authentication only based on the Credit

card validity and the merchant gets only the Buyer name, Shipping address,

Amount to be paid, etc. Banks ensure that these processes are carried as per the

strict guidelines laid out.

 

 



G.Muthuvalavandan,

Vellore Institute of Technology

 

First of all we do

not sign on charge slip paper for foreign transactions, except we accept after

giving all relevant information regarding our cards. Many companies use this for

fraudulent purposes even later. Or they get these details from some source who

sells them.






 

For any transaction

you have not made but charged you can take up the matter with your credit card

issuing bank, but there is no proof to ask from them, in the case of foreign

transactions, unlike Indian transactions. Even in Indian transactions, sometimes

you don't sign any charge slips if they are on line.






Be careful on, online transactions. If you get cheated more than once, change
your card.






 




K.A.Shah — GIPCl,

Baroda



 

Even though it has

convenience of buying, credit card payments over the web is risky. But then do

you buy just with the description of an item on internet? It is very much

similar to the mail order trading which still occurs via news paper where there

are 100% chances of fraud in India.






 

Credit Cards

however can be used to some limited purpose between B2B or customer to

organization with some arrangement like DD. If credit card bank agrees, a fixed

amount of transaction with payee / payer and amount can be generated and sent to

payee with little encrypted form. This will prohibit hackers to use credit card

number as there is no CC number and transaction is valid only for a single

transaction. This can be used between two traders or by students to pay fee for

getting admission forms.



 



RR Alluri,

VisualSoft Technologies




 

A good rule of

thumb is to go by the reputation of the organization you are dealing with - with

most reputable and well known companies; you should not have any problems. After

all, their reputation is at stake. On the other hand, beware of dealing with

unknown individuals or organizations - use extreme caution in such cases.

 

 

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