Finance commission gives go-ahead for phones to clear credit card transactions
The China Post news staffTAIPEI, Taiwan -- Mobile phones can now be used as a platform for processing credit card transactions, said the Financial Supervisory Commission (FSB, 金管會), yesterday.
January 16, 2013, 12:00 am TWN
The FSB announced the passage of the “Mobile Phone Credit Card Transaction Processing Practice Statement” act. Card-issuing financial institutions may now offer this service as soon as the required applications to the FSB are completed.
Card-issuing institutions may not store sensitive credit card data. The FSB said this policy was in the interests of consumers and to ensure the feasibility of related new technologies and the protection of information privacy and security.
The most important elements of mobile phone credit card processing are a secure storage medium, the mobile phone, and the Trusted Service Manager service platform for wireless transmissions, according to the FSB,
The FSB explained that in the current trial phase, credit card transactions are operating on the basis of secured sleeves, which entails that those services will be interrupted in the event that the mobile phone device or the mobile phone number is changed. In the future, wireless transaction services using secure storage media and live updating of settings will not experience interruption when the mobile phone or its phone number is changed.
Mobile phone credit card processing has proliferated in Singapore and Japan. In Taiwan, a number of banks including Chinatrust (中國信託), Fubon (富邦), Union (聯邦), Taishin (台新) and Cathay (國泰) are participating in an initial trial of the service, the FSB said.
The FSB concluded that cellphone credit card processing services utilizing password protection will not be subjected to the usual cap of NT$3,000 per transaction, and that people who wish to try this service may inquire at their banks.