Credit Card Security Database Reduces Declined Transactions for Travelers
Business travelers and vacationers experience a frequent dilemma: interrupting their trips to contest a declined credit card transaction with a bank's fraud prevention team. With credit card skimming and cloning teams zapping stolen account numbers across the globe, lenders and merchants have exercised increased caution at the checkout terminal. A startup company hopes to solve the security challenge by looking for the other item most travelers won't leave home without: their mobile phones.

Researchers at ValidSoft have developed a method to report the locations of subscribers' mobile phones to a database shared by credit card issuers. Fraud departments can use VALid-POS data to track a traveler in real time, or to confirm that an account number has broken free from its owner's wallet.

ValidSoft has conducted trials of VALid-POS with three banks in Europe, its home continent. According to a recent PCWorld report, the company earned a seal of approval from a European Union organization that verifies data security against strict E.U. standards. Though they provided no information about an eventual U.S. trial of the service, company officials expressed hope that VALid-POS would complement Europe's widespread "chip and PIN" technology.

About the Author

joe

Joe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a Bachelor of Science in Communications from Ithaca College.