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I've always thought fraud would be much more preventable if credit card companies would simply send you a text or verification code each time your card was char

I've always thought fraud would be much more preventable if credit card companies would simply send you a text or verification code each time your card was charged, or require a PIN. It seems this is difficult for the big credit card companies and banks (which is why it hasn't happened), but I wonder if it might be easier for Stripe to incorporate something like this into their Issuing product.

rossdavidh 8y ago
I think it is/was difficult when the product was just a plastic card. I agree that, as the "card" is increasingly becoming a smartphone, something better should be possible.
markdown 8y ago
My bank, Westpac, calls me up every time I make an online payment with my VISA card or when my card is used at point of sale or at an ATM in a country I haven't notified them that I'm visiting.
- jjeaff 8y ago
  My bank will let through thousands of dollars in ATM withdrawals in a country I've never been too. Then lock my card up when I'm trying to buy $12 of groceries in my hometown and force me to call and wait on hold to get it unlocked.
  - mgkimsal 8y ago
    similar here - from US, had a few trips to russia and china over a few years. never told the bank. went over there, used my cards, no issues, ever. came back home. no issues. bought $12 from a merchant in sweden - a merchant I'd purchased the exact service from multiple times before - entire account locked for 'fraudulent activity'. Checks bounced, payments blocked, etc. Annoying as shit. Took a couple days to sort out (happened on a friday afternoon, of course). They refunded all charges, but... damn. I think things are better now (this was... 2014 IIRC).
madeofpalk 8y ago
This is already a thing, for merchants that want it. It's called https://en.wikipedia.org/wiki/3-D_Secure https://en.wikipedia.org/wiki/3-D_Secure By bank implements it as approving from my phone's mobile app via push notification. It's really slick. Here's what happened when I bought something from PSN https://imgur.com/a/iZgY74b https://imgur.com/a/iZgY74b
saryant 8y ago
It exists. Conversion rates on sites that use 3D-Secure in the US went through the floor, which is why merchants focusing on that market have largely abandoned it.
ljm 8y ago
Seems this was downvoted a lot but in Europe it's practically the expected behaviour. Modern banks (N26, Revolut, Monzo, etc.) will send you a notification through their app and then you use the fingerprint sensor on your phone or a passcode to approve the transaction. With ATMs they will check your location and block any ATM transaction that is not near to you, or in a different country. The limits are very customisable and you can do it on the fly. Most of the time you just have to open your bank app on your phone and hit confirm. You can lock the card when you're not using it and unlock it when you do, so no need to wait for a replacement or call support; meaning that if you lost your card you can go into the app and lock it straight away, just in case you find it again or it's returned. It integrates with 3D Secure in a lot of places so you can still press your finger on your phone to approve. It's a much more pro-active approach to bank fraud than what you get when you can't let go of the legacy system.

rossdavidh 8y ago

I think it is/was difficult when the product was just a plastic card. I agree that, as the "card" is increasingly becoming a smartphone, something better should be possible.

markdown 8y ago

My bank, Westpac, calls me up every time I make an online payment with my VISA card or when my card is used at point of sale or at an ATM in a country I haven't notified them that I'm visiting.

jjeaff 8y ago
My bank will let through thousands of dollars in ATM withdrawals in a country I've never been too. Then lock my card up when I'm trying to buy $12 of groceries in my hometown and force me to call and wait on hold to get it unlocked.
- mgkimsal 8y ago
  similar here - from US, had a few trips to russia and china over a few years. never told the bank. went over there, used my cards, no issues, ever. came back home. no issues. bought $12 from a merchant in sweden - a merchant I'd purchased the exact service from multiple times before - entire account locked for 'fraudulent activity'. Checks bounced, payments blocked, etc. Annoying as shit. Took a couple days to sort out (happened on a friday afternoon, of course). They refunded all charges, but... damn. I think things are better now (this was... 2014 IIRC).

madeofpalk 8y ago

This is already a thing, for merchants that want it. It's called https://en.wikipedia.org/wiki/3-D_Secure https://en.wikipedia.org/wiki/3-D_Secure By bank implements it as approving from my phone's mobile app via push notification. It's really slick. Here's what happened when I bought something from PSN https://imgur.com/a/iZgY74b https://imgur.com/a/iZgY74b

saryant 8y ago

It exists. Conversion rates on sites that use 3D-Secure in the US went through the floor, which is why merchants focusing on that market have largely abandoned it.

ljm 8y ago

Seems this was downvoted a lot but in Europe it's practically the expected behaviour. Modern banks (N26, Revolut, Monzo, etc.) will send you a notification through their app and then you use the fingerprint sensor on your phone or a passcode to approve the transaction. With ATMs they will check your location and block any ATM transaction that is not near to you, or in a different country. The limits are very customisable and you can do it on the fly. Most of the time you just have to open your bank app on your phone and hit confirm. You can lock the card when you're not using it and unlock it when you do, so no need to wait for a replacement or call support; meaning that if you lost your card you can go into the app and lock it straight away, just in case you find it again or it's returned. It integrates with 3D Secure in a lot of places so you can still press your finger on your phone to approve. It's a much more pro-active approach to bank fraud than what you get when you can't let go of the legacy system.