Using geolocation data, the credit card company proposes a plan that will only allow card transactions when a users’ smartphone is within close proximity.
With hacks, stolen credit card data, and identify fraud constantly on the rise, some credit card companies are looking into how to better beef up security.
MasterCard announced Tuesday that it has partnered with mobile technology company Syniverse to make it more difficult for unauthorized users to buy goods with nabbed credit cards. While working to heighten credit card security is nothing new, MasterCard’s most recent plan is a bit different because it involves users’ smartphone geolocation while they’re traveling abroad.
The idea is that a users’ credit card cannot be used unless it is within close range of their cell phone. For instance, if someone is traveling in Mexico, but their card is supposedly swiped in Canada, the transaction will be declined.
Lots of times credit cards are declined when people use them in foreign countries without notifying their banks they are traveling. MasterCard’s smartphone geolocation feature would also avoid this issue.
Along with the amped up security, MasterCard will also offer travelers prepaid data packages in order to ensure their smartphone’s GPS is turned on without incurring expensive roaming fees.