Irish firm’s new internet shopping password system to make on-line business more secure

THE country’s leading payment processing firm says customers should prepare for the imminent introduction of a new password-based layer of security for all online transactions.

Realex Payments, which has more than 1,500 clients including major airlines, Government agencies and telecom companies, says that the introduction of a new security feature by the major banks and credit card companies will eliminate the most obvious danger in accepting payments online.

In the near future a significant amount of online payments will include a password window where people must verify that they are the legitimate cardholder, according to Realex chief executive Colm Lyon.

He said: “There is a major gap in electronic commerce and that is the lack of authentication of who is the card holder, which is what you get in a face-to-face transaction where somebody either signs or enters their pin in front of the vendor.

“In on-line payments the customer is not present so you never know who is entering the details.”

Realex has developed its own software around the new security feature and plans to roll this out to its clients among whom are Aer lingus, Quinn Direct, Vodafone, Eircom, Bord Gáis, Motor Tax Online and BT.

The new 3-D Secure technology will see all cardholders issued with a special password by their bank or credit card company which will act like a unique pin for online payments.

Whenever a person enters card details they will be redirected to their bank through a separate internet window and will have to type in their password before the transaction can proceed.

Mr Lyon said: “The merchants will not see this password itself, it will be between the bank and the cardholder. All they (merchants) will get is a clearance from the bank that the person making the payment is who they say they are.”

As it stands all payments that are made with stolen or unauthorised credit cards have to be reimbursed by the vendors to the banks and then the money is put back into a person’s credit card.

Mr Lyon, who is also chair of the Irish Internet Association, says the new technology will particularly benefit small to medium sized business who are left exposed to significant liabilities when offering services and products on-line.

Five years established Realex currently handles €2 billion in online transactions from Irish companies annually and has become a leading player in Europe’s payment processing industry.

Mr Lyon says that the growing popularity of internet purchasing has finally prompted the sector to take security more seriously.

He said: “In the past I was critical of way in which Irish companies approached this because I think people didn’t appreciate the need, but that process is accelerating. I think up to now the market didn’t seem to warrant this investment”.

Mr Lyon anticipates the 3-D Secure passwords will be issued by all of the Irish and British banks when the system will become common place for internet purchases.