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Mobile payment security, regulations remain questionable

August 4, 2012

Mobile credit card processing continues to become a more popular payment method for merchants and consumers.

Mobile credit card processing continues to become a more popular payment method for merchants and consumers. As with any new technology that handles personal information and bank data, mobile payment security has created worry among consumers, forcing regulators to adjust compliance requirements at a rapid rate.

Mobile Payments Today recently reported that regulators have had significant troubles defining effective regulatory compliance statutes for mobile payment processors and merchants. These struggles, as well as a notable lag between the introduction of new devices and the speed with which policymakers can establish new rules, could hinder the mobile payment landscape in the coming years.

According to the source, there is a distinct need for such regulations, as mobile processing of consumer data can lead to fraud and identity theft. However, merchants and consumers need to be vigilant when using related technology, as compliance requirements have often failed to fully protect payment data.

Last year, ThreatMetrix recommended an interesting method to deter mobile payment processing fraud – location sharing on behalf of consumers through their mobile devices at the point of sale. Respondent to the firm’s survey largely voted in favor of location sharing at the time of transactions to provide a safeguard against fraud.

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