This is an all trident in cybercrime that is coming up with mobile computing – mobile commerce (m-commerce) and mobile banking (m-banking). Credit card related frauds are now becoming commonplace given the ever-increasing power and the ever- reducing prices of the mobile handheld devices, factor that results in the easy availability of these gadgets to almost anyone. Mobile credit card transaction is now very common; new technologies combine low-cost mobile phone technologies with the capabilities of a point-of-sale (POS) terminal. Credit Card Fraud.
Today belongs to ‘mobile computing’, that is anywhere anytime computing. The developments are wireless technology have fuelled this new mode of working for white-collar workers. This is true for credit card processing too; wireless credits card processing is a relatively new service that will allow a person to process credits cards electronically virtually anywhere. Wireless credit card processing is a very desirable system because it allows businesses to process transactions from mobile locations quickly efficiently and professionally. It is most often used by businesses that operate mainly in a mobile environment. Credit Card Fraud.
These businesses include mobile utility repair service businesses, locksmiths, mobile windshield repair and others. Some upscale restaurants are using wireless processing equipment for the security of their credit card paying customers.A basic flow of transactions involved in purchases done using a credit card. Credits card companies, normally, fo a good job of helping consumers resolve identity (ID) theft problems once they occur. But they could reduce ID fraud even more if they gave consumers better tools to monitor their accounts and limit high- risk transactions.
Potential Wireless Users- Beware!
While wireless processing is a very good system for many companies, it is not for all mobile businesses. These are some drawbacks to wireless processing that many potential wireless users should be aware of before they venture into wireless processing:
- Wireless processing equipment is expensive. There is no way to get around this. Wireless credit card machines are the most advanced processing terminals available. You get what you pay for! For a wireless terminal with a printer, expect pay at least $USD 800 for a new terminal, and $ 700 for a refurbished terminal. If you find yourself about to purchase a terminal that is much cheaper than any other you find, it is most likely outdated equipment that uses outdated cellular networks. I other words, it is a scam, and you are about to buy a really expensive paperweight. Credit Card Fraud.
- WIreless processing comes with extra frees. Just like a cell phone, wireless credit card machines operate on cellular networks. You have to pay this cellular service in addition to the high cost of equipment. Luckily wireless fees for processing are nowhere near what they are for cell phones. Expect to pay $ 20-25 per month for a wireless service fee. Credit Card Fraud.
- Wireless credit card machines are subject to cellular coverage blackouts. Typical thinking – ‘My cell phone works almost everywhere, so my wireless credit card machine will too’. sadly, this is not the case. Wireless credit card processing uses a business cellular network called the Motient or Mobitex network. Your cell phone may be using a network called code division multiple access (CDMA) or time division multiple access (TDMA) [global system for mobile communications (GSM) or some other technology-based network. The coverage that your cell phone gets in much greater than the wireless processing network. There can be some states in your country with no coverage for wireless processing at all. Credit Card Fraud.
- You cannot process check of debit transaction over a wireless network. Currently owing to federal regulations, it is impossible to process a debit transaction or electronic check over the wireless network. This is something that will probably end up being allowed in the future, but as of now, there is not sufficient security or encryption to process these transaction wireless. Credit Card Fraud.
There is a system available from an Australian company ‘Alacrity’; it is called CLEW – an acronym for a closed-loop environment for wireless. The flow of tenets with CLEW which is a registered trademark of Alacrity used here only to demonstrate the flow in this environment. Credit Card Fraud.
The basic flow is a follows:
- The merchant sends a transaction to the bank.
- The bank transmits to cardholder authorization request [not short message service(SMS)].
- The cardholder approves or rejects (password protected).
- The bank/merchant is notified.
- The credit card transaction is completed.