Visa yesterday announced a new service that adds an extra level of on-line security to credit and debit card payments. The service enables participating card issuing banks to validate a cardholders identity through the use of a password during the on-line checkout process, although at present it only works for US cardholders.

Password protection gives consumers an extra level of control over when and where their card is used, further reducing the potential for unauthorised card use on the internet. According to a survey conducted by the US division of Visa during November 2001, 70% of consumers said they would feel safer making purchases on the web if they had a password verifying their identity.

The service also requires e-tailers to make changes to their checkout systems. After hitting the “buy” button, cardholders will be prompted for their passwords to confirm their identities with their card issuing banks.

Visa cards are used in annual transactions valued at over $810 billion, including more than half of all internet payments. The company currently claims the title of “the most trusted payment brand on-line.”

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