WWW: Beyond the Basics

Chapter 8. Commerce

8.2.7. Against Secure Payment Systems

In the April 10, 1995 issue of PC Week, Ben Rotheke argues that using a credit card over the Internet is as safe as using a credit card at a retail store(Rotheke). In retail stores, shoppers are typically not concerned about the security of their credit card information. They write their credit card numbers on checks, allow the carbon copies to be thrown in the trash where they could later be retrieved, and give their cards to waitstaff when charging a meal. Any of these habits allow credit card information to be intercepted. Even if the consumer is vigilant, a dishonest clerk or accountant could photocopy the store's copy of a credit card slip.

Additionally, credit card agreements limit a consumer's liability for misuse of their credit card if the misuse is reported within a reasonable amount of time. Credit card companies also go to tremendous lengths to detect dramatic changes in a card's usage. If a card is stolen and a thief goes on a shopping spree, or if a card is used in two geographically distant locations within a short period of time, the credit card company may detect the misuse and suspend the card number.

These factors lead to the conclusion that secure payment systems may be overkill, and in the end, unnecessary. However, the mere existence of companies competing to create the first accepted payment systems indicates the above reasons are not sufficient to comfortably perform credit card transactions on the Internet.

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Copyright © 1996 Patrick N. Brooks All Rights Reserved

Patrick N. Brooks <pbrooks@vt.edu>