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NetChoice supports Reserve Bank concerns that credit card fraud risks undermining e-commerce

NetChoice, the e-commerce advocacy group, applauds the Reserve Bank of Australia (RBA) for voicing its concerns about the potential for credit card fraud to undermine e-commerce.
  • 25 March, 2009 15:46

<p>Sydney, 25 March 2009 – NetChoice, the e-commerce advocacy group, applauds the Reserve Bank of Australia (RBA) for voicing its concerns about the potential for credit card fraud to undermine e-commerce.</p>
<p>Philip Lowe, Assistant Governor (Financial System) at the RBA, made the following comments at Cards &amp; Payments Australasia 2009 in Sydney on 24 March 2009:</p>
<p>“…fraud rates on online transactions appear to be steadily increasing. Almost half the fraud on credit cards occurs in situations where the merchant does not physically see the card, with the fraud rate increasing by around 50 per cent over the past year. If this trend were to continue, it could undermine consumer confidence in transacting online which would have obvious costs.”</p>
<p>“Mr Lowe has named the elephant in the room that few e-commerce firms are willing to address,” said NetChoice executive director Steve DelBianco. “Credit cards are fundamentally more vulnerable to fraud and identity theft. Yet credit cards are the dominant online payment method, so I’m concerned that the Assistant Governor’s warning could cause some to hesitate to buy online.”</p>
<p>NetChoice called on the Australian Government to educate consumers about safer payment methods. “When customers in Australia pay by PayPal, POLi, or Paymate, their credit card number is not shared with the merchant. That’s one reason these payment systems are safer than using credit cards or bank transfers to do e-commerce. The government’s education programs about safe online behaviour ought to tell consumers that there are better ways to buy online.” said DelBianco.</p>
<p>About NetChoice
NetChoice is a coalition of trade associations and e-Commerce businesses who share the goal of promoting convenience, choice and commerce on the Net. NetChoice members include AOL, eBay, NewsCorp, Paymate, VeriSign, and Yahoo. www.netchoice.org.au</p>
<p>Media Contact:
Kevin Fitzsimons The De Wintern Group – 0407 318 396 or kevin@dewintern.com</p>

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