The Clearing House announces pilot project to improve payment safety
The Clearing House (TCH), one of the oldest payment companies in the US, has announced that together with major banks, a credentialing payments initiative is underway to evolve the security technology of digital payments.
TCH and 22 member banks are working together on this project and will be initiating a pilot programme in order to nurture an open standard solution for reduced storage of customer card numbers and the resultant enhancement of payment safety.
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During the pilot, the card holder’s issuing bank will replace his account number with a randomly generated and impermanent number (dynamic credential) for the payment transaction. The customer’s information is thus protected behind bank firewalls, decreasing the risk of fraud. According to TCH, the customer will not notice a change as the focus is on “behind the scenes” digital payment transactions.
This way the system can be tested for implementation later, and the question of fraud in digital payments may become slightly more promising.
“The development of an innovative, safe and sound solution for digital payments is a natural evolution for The Clearing House,” says The Clearing House President and CEO James Aramanda.