MasterCard is credited for being the first card to enter the market with inherent security features. Way back in 1969, MasterCard introduced the centralized fraud detecting system to keep track of card usage and catch any fraudulent activity. This monitoring system is still used by most of the credit cards currently. Over the years, MasterCard has been a pioneer in engineering card security features that will make the usage of cards safer and prevent card frauds, thus helping card users to breathe a sigh of relief.
The latest features in card security at MasterCard include chip technology. As many as 1.5 billion MasterCard EMV standard cards with installed chips also called smart cards are being used for transactions at more than 3 million terminals all over the world. The processing and security offered by the chip is amazing and hence it finds itself as the key to fraud detection strategy used by MasterCard. Each card has a chip which is a small computer in itself. This has helped to eliminate magnetic stripe technology used traditionally. The transactions are safer with the chip. The chip technology in the cards also makes it very difficult for the cards to be counterfeited thus reducing fraud.
Remote shopping has been made more secure through One SMART technology adopted by MasterCard. In this onetime random passwords are generated by the car reader, which help make online shopping highly secure. The same technology also helps prevent fraud during online bill payments using MasterCard. The PIN is another way that MasterCard holders can make safe transactions. The chip in the card stays in the terminal during the transaction while the PIN number known only to the customer provides an additional line of security.
The liability of card fraud can be eliminated completely as businesses can now use the chip technology and the PIN terminals simultaneously to make the transaction most secure. The increased use of highly secure, chip installed MasterCard is helping to reduce the importance and usage of cash. This also helps to lower the storage of cash currency thus eliminating the risk or threat of losing money.
Apart from these, MasterCard is the center of knowledge sharing with card members in symposiums for risk management and in forums organized worldwide to effectively tackle frauds happening online. MasterCard unlike most other companies is also closely involved in the process of investigation and prosecution when card frauds do occur.