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Second Approval

Secure shopping on the internet
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For secure internet shopping need to create second approval. Need to to create a new field "email" for credit card holder at the bank. While processing credit card purchase an internet store gets user email from the bank. Than sends email message asking to aprove card processing and details about the order.(That may be another link to the internet store). If user aproves, he will send request back to the store. Otherwise the credit card number will be useless without second approval.
alexbl, Jul 04 2002

Verified by Visa http://usa.visa.com...d/how_it_works.html
Password protected credit card. [waugsqueke, Jul 06 2002]

[link]






       While it does nothing for falsly creatd accounts, this would reduce identity fraud. The problem is, how much would it cost?
phoenix, Jul 05 2002
  

       This is sort of baked, when you get your statement.
bookworm, Jul 05 2002
  

       I like this. It's a kind of two stage transaction. You give your credit card details then log into your credit card website and approve the transaction. Only when you do this id the transaction approved.   

       Quite a few systems would need to change as current credit card systems are based on a two state 'approved' or 'rejected' system. To add a 'pending' across the board would probably be easiest by creating a new type of credit card. It would be one that I'd go for, though. With a lower fraud rate the card suppliers have an incentive to go for it to.   

       [admin: changed spelling in title: Aproval -> Approval]
st3f, Jul 05 2002
  

       [GeorgeTheRobin] No, you're missing my point. Do you think it's impossible for me to open a credit card account in your name with my e-mail address? As for your message to [st3f], you simply restated what he said.
phoenix, Jul 05 2002
  

       I don't want many online merchants to have my email address. Why not have the bank contact you instead? (I still contend that your credit card statement is sufficient.)
bookworm, Jul 05 2002
  

       As far as I know, the bank is not allowed to hold you responsible for fraudulent charges on your card. While this system would allow the bank to stop (some) fraudulent uses before they occur, it wouldn't benefit the cardholder any more then checking you monthly statement and letting the bank know of any discrepancies.
mighty_cheese, Jul 05 2002
  

       Most cards can nail you for the first $50 of fraudulent charges (in the US/Canada at least) - however, some cards, like Capitol One Visa, won't charge the user for any fraudulent charges, and even advertise this as a selling point.   

       See link for info on the "Verified by Visa" password system, which accomplishes this same idea in a much simpler and more effective manner, I think.
waugsqueke, Jul 06 2002
  

       European credit cards are moving towards a four-point security system: The card has the conventional number and magnetic strip. It also has a smart chip to match the card number (chip is impossible to copy, unlike mag strip) and a hologram (just part of the design I suppose). Users will eventually always have to input their PIN into the card reader, and will be checked against their signature (ok, dupicatable) and their photo on the back (ok, photos are not entirely unique). This will all take a total time of about two or three minutes, depending on how busy the phone lines are between the card company and the retailers.

So, please tell me why the combination of smart chip, signature, PIN and photo ID is less secure than having to start the transaction, retreive and reply to an email, and complete the transaction; and whether the added time and faffing is worth it.
sappho, Jul 06 2002
  

       Hi Everybody. Thanks for responses. The main idea was to make easier to process credit cards online. To [waugsqueke] That is nice to have a protected credit card and use password every time. But you can’t give your card number and password to other guy. For example, you are not expert in some field so, you call your friend to ask him to buy something online for you. It’s easier to solve this problem if you have response back in your email. To [bookworm] That is a nice idea to call directly and get a card approval. But how many people needed for this service at online store if store processing thousands requests a day. To [mighty_cheese] Good for us again that many cards have "first $50 of fraudulent charges". The question is, How much money bank is losing every day. Second approval reduces that amount. To [sappho ] I'm very glad that "European credit cards are moving towards a four-point security system". Maybe it is easier to use this security in Europe. But online processing still using 1. Credit cart holders name 2. Credit card number 3. Credit card expiration date. Plus ssl of course. If some one publishes this info online it is easy to use for everyone. How to protect it? Again, Second Approval. Second Approval makes people happy! Fill free! You’ll wait for email to approve. You don’t care if someone publishes your credit card info. If some one wants to process your card you'll see this in your email and decline it. Best Alexbl
alexbl, Jul 06 2002
  

       Alex, thank you for posting this, it's a pleasure to read a decent idea once in a while. Don't let the fact that others are picking holes in it deter you, that's what this site is about. Keep posting interesting and well-meaning ideas, and welcome to the halfbakery.
mighty_cheese, Jul 06 2002
  

       A problem with this is that certain systems can take several minutes, or even hours, to send or deliver an email message (looks suspiciously at AOL). This process of exchanging emails would slow down transactions significantly, especially compared to things like Amazon's one-click buying. It's considered by many sites a strong selling point to make purchases as quick and easy as possible, and the second approval idea would go against this goal.   

       Although, having said that, many stores routinely check transactions, particularly for large purchases, and may perform additional checks if you are wanting it delivered to other than the billing address.
pottedstu, Jul 06 2002
  

       Hi All. Thanks again. This is a real problem the spid of transaction. Waiting for approval may take minutes maybe hours. Email just a simple thing that we can give to the bank. In the future one can use Palm or PocketPC with wireless technology to get approval in seconds. The main Idea is to keep a Credit Card Owner in the Approval Loop. [Alexbl]
alexbl, Jul 06 2002
  
      
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