Credit card security in the hands of the consumer
I can't help but look at this solution and have two things...
- First, better in the hands of the user who knows when they are using their own card than in the hands of companies who are relying on imperfect algorithms.
- What an absolute pain in the ass.
Ondot Systems, a stealthy company that has raised $18 million in funding, has developed a white-label solution called CardControl that gives consumers control over when, where and how their payment cards are used.
Anyone who has traveled internationally--possibly even domestically--and has had their credit card disabled due to "potentially fraudulent activity", especially when the card company lists only a 1-800 number on the back of the card--which is useless outside the US--knows how bad it sucks because now you're stuck with no way to contact your bank and no money. Not that I've ever had that happen to me, of course.
I know that regular card security rules still apply in these situations, but I do appreciate someone trying to solve the problem of not having control in the user's hands. I don't think this is a great solution because it puts a relatively large amount of friction in the payment process. Still, good ideas can be reformed while not thinking is hopeless. Lets hope this leads somewhere good.