Disabling One’s card via Mobile
- With the help of an unnamed bank, Diebold is currently testing a new device designed to secure card payments through the use of mobile phones.
- This tool, called “card lock” could allow the cardholder to enable and disable his means of payment at will, using a dedicated mobile website or via SMS. It is integrated in Diebold’s MobiTransact m-banking platform. The card is only functional if its holder has activated it: this may lower the risk of fraud in case of loss or theft.
- Nevertheless, Diebold insists on the necessity to teach the customers to use these features so that they can enable their card without difficulty. Also, the solution can be affected by external factors such as the lack of network coverage.
- The commercial launch of this solution should take place this year.
- This initiative would make the cardholders feel more responsible as they can better manage their account access. In case of loss or theft, stopping procedures could be easier.
- In Europe, in January 2011, the Febelfin (Belgian federation for the banking sector) announced that 23 Belgian banks had opted for default locking of Maestro debit cards for transactions initiated outside of Europe. In Germany, the BKA recommends that the cards be locked in non EMV compliant countries.
See May 2011 Payments Insight