Virtual payment cards being tested in Europe and the United States could help mitigate the risk of merchant fraud, says EAST Development Director Rui Carvalho in an interview with Suparna Goswami of FraudToday.io. Rui, who also chairs the EAST Payments Task Force (EPTF), is an industry expert on secure transactions and new approaches to payment security.
A virtual card, also known as electronic card, is a unique 16-digit card number that’s created online solely for a single use between a payer and a payee. It can help stop merchant fraud, such as when a merchant applies for a merchant account without any intention of actually operating a legitimate business and then processes fraudulent transactions.
‘Virtual cards provide a lot of security because you create your virtual card based on your normal card and the number that is used for a specific merchant is no longer valid’ Rui said in the interview that also covered:
- Merchant fraud trends;
- The technologies, including virtual cards, that can mitigate risks;
- The countries with the highest risks of merchant fraud.
The full interview can be seen on the FraudToday website.