Close

Choose a country

United KingdomEnglish
South AfricaEnglish
IndiaEnglish
InternationalEnglish

Helping customers beat card fraud with biometric security

Blog
16th May 2017

webhelp-ecomm-hero

Mastercard recently announced a new version of their cards that features a built-in fingerprint recognition system. This is an important development for the card sector as fraud in the UK alone is running at almost £1bn – something needs to be done. But is this the right way to approach the problem?

 

Both banks and customers want to prevent card fraud. At present most banks take the loss when cards are used fraudulently. Even when the customer has their lost money returned, it is still a lot of trouble to manage the refund – time must be spent reviewing all purchases to let the bank know which were genuine and which were not.

 

Building the fingerprint recognition into the card itself, as Mastercard is testing, does fix one major problem. If retailers need biometric security systems, it may take time to roll out the fingerprint readers to every possible location. However, building this into the card itself might also be seen as a temporary solution.

 

Take a look at the cash machines (ATMs) used in markets such as Japan and Brazil. Customers register biometric details, such as a print of their hand, and then they can access their account and get cash without any card at all. If the bank recognises a customer based on biometrics then why would you need a card?

 

Services like Apple Pay have popularised the use of mobile phones for payment. Modern smartphones (iPhone 6 onwards) are equipped with a chip that can be used like a contactless card – just tap your phone on a register to make a purchase.

 

It seems that ultimately the best future for retailers, banks, and customers will be when payments can be easily made just by allowing a biometric test. The only difficulty will be modifying retail systems to support a card-free environment. The retailer will need to have a list of all your possible payment accounts so that scanning your hand or eye, then presents the option ‘which account would you like to use?’ The retailer also needs the scanning equipment.

 

The Mastercard idea might well be the best step towards this future without cards. USA only introduced a chip and pin card security two years ago, when the same system has been in use in Europe since 1990s. It can take time to harmonise standards globally. It would not be possible for UK to abolish cards if they are still required in other markets, but I think the fingerprint system shows that biometric security is the future for customers.

 

Will biometric security really prevent the card fraud? If you have any suggestions, please leave a comment here or connect with me on LinkedIn.


Helen Murray
Article by: Helen Murray

News & Insights

Webhelp Payment Services
Solution Designer
Service Provider
Technology Enabler
News
Business Director, Jodie Smith interviewed by Insider Media

Webhelp UK Group Business Director, Jodie Smith was featured by Insider Media in their Northern Powerhouse series - where she outlined what the initiative means to her, how to make the North an attractive place to work and build a business, and the importance of investment to ensure all regions can contribute to the UK's Covid-19 recovery. The Northern Powerhouse has the goal of boosting...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
Blog
Meet our Advisors – Cédric from Madagascar (ep.4)

​During the COVID-19 situation, a client was looking for a direct flight to Africa, desperate to leave before the borders closed. Unfortunately, her flight got cancelled three times in a row. So I had to search a lot of internal flights to help her. Finally, after an extensive search I...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
News
78% of directors believe customers are paying more attention to responsible business practices since pandemic

New research from Gobeyond Partners, the consulting firm focused on customer journey transformation, and Webhelp, Europe’s leading provider of outsourced customer engagement services, has today revealed that responsibility, transparency and trust are now perceived to be more important than they...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
Whitepaper
Whitepaper: Reimagining service for the new world

A framework for tomorrow’s successful customer-focused operating models As the urgency for change and transformation intensifies in the post COVID landscape, some pivotal questions will be raised: How different will service look and feel in the future? How will businesses and their operations...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
Case Studies
Flexible customer service in fashion

...

Read 212CAAF2-CC0E-4D90-9134-028C45BDF837 Created with sketchtool.
×

Webhelp Cookies Preference Centre

Strictly Necessary Cookies
The website requires the use of cookies for essential functional requirements and these are outlined in the cookies policy.

Enhanced Functional Cookies
Some features of this website use services provided by third parties websites. These features use cookies to implement their services on this website and may collect data about your visit to help them optimize their functionality. The Webhelp cookies policy outlines the cookies used by these services.

We have links to social networking such as Twitter, Facebook and LinkedIn.
These websites are third party sites. We do not place cookies on their behalf, and do not have control over the way they collect or use your data.
We encourage you to read more about their policies:
Twitter
LinkedIn
Facebook