Tuesday 22 March 2005

Cheque me out

I had a thought the other day about limiting online credit card fraud: digital cheques. Imagine that I go to my bank's website and instruct them to set aside a certain amount from one of my accounts. This reserved amount is assigned a code, and that code can be given out to vendors instead of my credit card details.
Advantages: I'm guaranteed, in the worst case scenario, to lose only the amount of that one cheque. Keep credit card details safe. Don't even need a credit card, in theory. Can give cheques to others (family members, for example) to spend on your behalf.
Disadvantages: Some usability loss, still no guarantee on receipt of goods.

Mokalus of Borg

PS - I'd be interested to know if any banks are already offering a service like this.
PPS - I don't think anyone is, though.

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