Validsoft is going ahead with its plans of developing new software that promises solution to the problem of unnecessary credit card blocking. This problem can be particularly frustrating for people on overseas travel who are dependent on their credit card for the daily needs in the foreign country.
John Peterson, who globally heads the business development wing, said that Valid-POS, which is the name given to this new software, can track if the person's mobile phone is in the same country in which the credit card transaction is being performed.
The aim of this software is to minimize the chances of blocking credit cards from carrying out either ATM or POS transactions. Currently, risk engines are used by banks to track suspicious activities using the credit cards. The card is automatically blocked by the bank if a person who normally shops in the UK with his card uses it for shopping in Russia. Almost all out of country transactions are looked upon by the banks with suspicion.
Petersen went on to say that most often than not, banks end up blocking the wrong credit cards and this causes a lot of inconvenience to people who then have to call the customer service wing of the bank in order to get their cards unblocked.
Visa, Europay and Mastercard and the three major types of credit cards being used in the European counties. These cards come equipped with microchips that have the ability to confirm the personal identification number. The presence of this chip makes it difficult to clone these cards.
However, the most important details pertaining to the card are present on the magnetic strip. Skimming devices are used by criminals who then use the information gathered from the strip of the card to clone another card without the microchip present in it. The cloned cards are then used in the ATMs of countries that do not have the facility to check the presence of the microchips on the credit cards.
This is where the software from Validsoft can play a crucial role. When the card is being operated in another country, the software traces the presence of the person's cell phone to that country. This information gathered by the software is then passed on to the bank which then takes the call on blocking that particular credit card.
Valid-POS is capable to collating this data in a matter of seconds. ElephantTalk is a telecommunication company that currently owns Validsoft. The company is in talks with network providers from various countries to provide the relevant data.