New way for safe online shopping
Feb 26 2008 by Sue Scott, Evening Gazette
AS INTERNET shopping soared to record levels in January, hitting £4.5bn as bargain hunters jostled in cyberspace, Teesside e-tailers were being advised to review their secure payment systems.
Recent figures suggest as many as two-fifths of consumers are put off buying on line because they fear their details will be stolen. But a new pay-as-you-go Visa-linked card could give them peace of mind without burdening e-tailers with any further costs.
The new 3V voucher acts like a normal debit or credit card but works by shoppers topping up their flexible friend in much the same way they would a pay-as-you-go mobile phone.
Crucially, says 3V’s Nick Tuckwood, the payment system keeps all of a customer’s security details separate.
“You’re not putting any of your personal financial or banking details on the internet and your card is less vulnerable to fraud because, up until the point of payment, your security details are kept separate on your pay-as-you-go voucher and on your mobile phone or email.”
The 3V cards, which are only available by applying on line, can be topped up at any one of 25,000 outlets displaying the Payzone sign, including post offices and corner stores.
Once an account has been created, the customer is issued with a security code and card expiry date. Any unused funds can be transferred on-line to the next card.
“The other advantage of these cards is that it helps control spending,” says Mr Tuckwood.
The cards, which can carry up to £350, can be used by anyone over 16, but restrictions are imposed on e-sales of products to underage users.
Dean Benson of specialist retail web designers, Stockton based Visualsoft, said consumers needed reassurance.
“Every retail site should have a good security guarantee, not store credit card details and go through a secure payment gateway ... all these things not only keep them on the right side of the law, but give people confidence. The design of the site also makes a huge difference.”
But he was less convinced that the 3V vouchers would be widely used. “It sounds like a good idea, but, like Betamax, it may never take off.”
According to the Interactive Media in Retail Group (IMRG), spending on electrical goods over the internet last month was up 38% compared to January 2007 while clothing increased by 32%.
The beers, wines and spirits sector saw lower year-on-year growth of 9.8% last month while health and beauty products rose 18% over the same period.
