3 days ago
Commonwealth Bank reveals major payment change for 7 million customers
Commonwealth Bank will roll out a new payment option for seven million customers next month. Mastercard's Click To Pay allows you to pay online without having to manually type in all your payment details and is designed to stamp out card-related fraud, which costs Aussies more than $2 billion a year.
When shopping online, you normally have to input your name, 16-digit card number, expiry date and 3-digit CVC. This can open you up to potential fraud if the retailer is hacked and those card details are stolen, plus it can be time-consuming for those needing to make quick purchases.
CBA Executive General Manager of Everyday Banking, Monica Wegner, told Yahoo Finance the bank would be automatically enrolling customers into the new Click to Pay option from August. With the payment method, your details won't be shared with the online store at all.
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'It's effectively, one click, select authenticate and done,' Wegner said.
Once CBA customers with debit and credit cards are enrolled into the system, the bank will authenticate transactions within the CBA app. In the interim, customers will be able to authenticate transactions through a one-time code via SMS or email to complete the purchase.
Under the system, your card is 'tokenised', meaning it will produce a unique token each time you pay.
Wegner said 90 per cent of customers used their CommBank cards for online shopping and the move will help protect customers from fraud threats.'Our transaction data shows that card fraud rates are six times less when transactions use authenticated tokens like Click to Pay, rather than entering those details manually,' she said.
'This is something we think is both easier for our customers as well as something that will keep them a lot safer online, and protect them from fraud.'
Wegner said the other benefit was cutting down the time it takes to complete transactions, something customer Magdalena Zajac said would be beneficial for her.
The 42-year-old is passionate about going to concerts but has missed out on in-demand tickets in the past because it's taken her too long to input her payment and other details.
'A lot of international acts that come to Australia, they are in high demand and getting tickets is quite tricky and obviously we don't want to miss out,' she told Yahoo Finance.
Wegner also confirmed the bank was looking to move to numberless debit and credit cards in the future, something Mastercard has argued would help reduce fraud.
AMP became one of the first to introduce numberless cards in February for its small business and everyday banking customers.
Richard Wormald, Mastercard's Australasia division president, told Yahoo Finance numberless cards meant customers would no longer need to get their card out and put their number in, but would instead go to their banking app.
'In their banking app, they can create a new card number that's actually a token behind the scenes,' he said.
'The consumer can then set it up with controls so they could say that it's only allowed to be used at this retailer, or only for the next two weeks, or only for my holiday in Japan when I'm snowboarding… then it gets deleted.
'So if the retailer gets hacked with that single-use card, it's useless. The bad actors that steal card data, they're like businesses, so they look for a return, and if they're stealing data and it's not useful, there's no value to it, they'll stop doing it.'
Wormwald has said he expects Commonwealth Bank and Westpac could issue cards without numbers in the next year or two. However, a Westpac spokesperson said the bank was "yet to make a decision" on the move.
Visa, which works with NAB and ANZ, also has the technology to issue numberless cards. NAB has said it is still working with the card company to see how it could roll out the development as seamlessly as possible, while ANZ said it was always looking for opportunities to protect customers against scams and fraud.
More than two million Australians experienced card fraud in the 2023-24 financial year, the latest Australian Bureau of Statistics data found. The total amount lost was $2.1 billion.
Click to Pay will be rolled out to all CBA debit and credit card customers from August, but customers can still pay by inputting their details as usual if they lors de la récupération des données
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