Ensuring trust in electronic payment media

Abstract

The currently dominant payment instruments do not meet the requirements of new technolo­gical environments such as the internet or mobile. Recognising the importance of efficient and safe electronic payments such as card payments, internet payments or e-banking, it is important that public trust in these payment instruments is retained. There is a lack of consistent data on electronic payments fraud, but already the reported losses are huge. This paper highlights the difference between the direct, indirect and social costs of payment fraud and calls for a more holistic approach to security in payment instrument design. The payment industry has done a lot, but it should do even better and make use of customer-specific parameters and take a stronger role in the whole payment processing chain.