Visa cardholders in Taiwan and mainland China are the payment brand's first customers globally to be able to use SMS-based one-time passwords to authenticate themselves when using their Visa credit cards for purchases over the Internet.
Launched in partnership with Chinatrust Commercial Bank in Taiwan and China Everbright Bank in China, the service utilizes Verified by Visa, an authentication tool that verifies a cardholder's identity while shopping online, Visa said in a media statement Monday. Verified by Visa requires cardholders to provide a personal password when paying for goods online, just as they would provide a PIN or signature in person.
Under the enhanced service, cardholders who have enrolled their cards for Verified by Visa and registered a designated mobile phone number with their bank will be asked for a password during payment at an e-commerce site. The one-time password the user receives via a text message, rather than the previously-used fixed password, will then be used to authenticate and complete the transaction.
Dai Bin, head of China Everbright Bank's credit card center, said in the statement: "We launched our online authentication service based on the Verified by Visa program in December 2007. Since then, we have seen an increase in the number of cardholders using the service to make overseas purchases securely and conveniently."
"With the introduction of a dynamic one-time password sent directly to mobile phones, our Visa cardholders will enjoy an additional level of security and convenience when they shop online," he added.
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I think this is a good feature. But in India, some banks use this SMS text password transmission as authentication, when we create a beneficiary or do a money transfer. Banks like HDFC, ICICI, Citibank has already introduced this in India. ICICI is way ahead with a randomly selected Grid for authenticaion and HDFC has the HOVERING KEYBOARD.
Posted by Lakshman balaji on Friday, December 19 2008 05:58 PM