The internet banks are working on different methods of achieving this but it is hoped that both will successfully prevent instances of fraud.
Egg’s system works by removing a sum of money from the consumer’s account and placing it in an electronic wallet from which the consumer can make on-line purchases. The wallet can only be accessed by using a login name and password.
The system will be available on PCs connected to the internet and WAP phones and consumers are not required to have a credit card to use the facility. The service is due to be launched in October.
The approach adopted by Marbles, the on-line bank of HFC Bank Plc., involves a virtual credit card which produces a new identification number every time an on-line transaction is completed. This enables both the vendor and purchaser to be readily identified and connected with a particular transaction.