Online credit card payments via webcam? Here's Jumio
July 29, 2011
By: Melissa Rudy
Yesterday's science fiction is today's science fact with the all-new Jumio online payment processing, which turns an everyday webcam into a credit card reader. With "Netswiping," the new webcam credit card system unveiled on July 26, Jumio launches a new payment processing model that may soon eclipse the flawed security of tried-and-true data entry systems.
Netswiping turns every webcam into a credit card reader
How does Netswiping work? To make payments with Jumio, users only need to hold their card up to a webcam. Netswiping not only reads the number, it also scans cards to authenticate them, bypassing steps in payment processing and speeding up credit card deals. Where the security code on the back of a credit card is required, it will be entered using a keypad that appears on-screen rather than typing it on the computer's keyboard, preventing hackers with keystroke-recording malware from accessing crucial digits.
This technology can be used to swipe a traditional credit card of almost any kind including a prepaid credit card, but not a debit card.
Security and practicality with Netswiping
Although there is concern about the security implications of scanning a credit card with a webcam, Jumio claims that Netswiping is safer and more secure than other online processing methods. Rather than storing or photographing the card, the Washington Post reports, Jumio uses video streaming technology to scan and process credit cards without storing any information--a safe way to protect consumers and to offer swift, effortless service.
Assuming consumers can be convinced of the security features, merchants are sure to jump on this technology because it streamlines the steps involved in making an online purchase, lowering cart abandonment rates and boosting sales. It's also being promoted as a way to prevent credit card fraud.
- MasterCard planning two-pronged attack on PayPal, with digital wallet and transaction fees due this year
- Visa and MasterCard announce smartphone payments alliances at Mobile World Congress
- Visa adding extra credit card security for retailers in 2013
- Study finds thieves using credit card chargeback policies against online merchants
- FTC closes fake platinum credit card operation
- Skimming threatens debit card users, while fraud strikes 1 percent of credit card transactions