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BBC News Online: Sci/Tech


Wednesday, 20 September, 2000, 14:25 GMT 15:25 UK

Putting payments online


cash in hand
By BBC News Online internet reporter Mark Ward

Net users worried about using a credit card online now have one more way to spend money securely and anonymously.

On Tuesday another pre-paid net spending card was launched - barely two weeks after two others were unveiled.

The cards are aimed at people without credit cards or bank accounts who still want to shop online.

But the card may soon face competition from a group of Yorkshire teenagers planning to launch their own debit card for people their own age.

Fraud fears

Earlier this month a survey by credit rating agency Experian found that fraud on the web was going largely undetected and unpunished.

Over the last year surveys have revealed that many consumers fear their credit card numbers will be stolen if they use the card online.

In July a survey of surfing habits by The Consumers Association found that 58% of respondents were worried about fraud on the net.

Now net payments company Global Internet Billing is hoping to take some of the fear out of net shopping by issuing pre-paid cards. On Tuesday it unveiled the InteractivCash card that can be used instead of a credit card to buy goods online.

Shopping portal Britishinformation.com is one of the first to sign up with the card.

The cards will be available through 20,000 corner shops and petrol stations around the UK. They will be available in denominations of £10, £20, £50 and £100.

Teen power

The card faces competition from WorldOnline, which launched its Jalda card in early September, and the SplashPlastic card that debuted soon after.

But a group of teenagers behind the Dubit.co.uk portal say teenagers don't want pre-paid cards instead they want to be treated responsibly and trusted to look after their own money.

"We just want to make sure that teenagers have control of the money they have earned rather than having 'Big Mother' looking over their shoulder," said Ian Douthwaite, spokesman for the Dubit group.

He said few young people were likely to use the payment cards because they imply that teenagers cannot manage their own money. He added that this was a view shared by many other financial institutions.

Mr Douthwaite said that although people under 18 cannot have credit cards, it is up to the discretion of banks as to whether they offer teenage customers debit cards. Currently, he said, few do.

In a bid to fill the gap Dubit is now talking to venture capitalists and financial organisations to set up its own scheme that will be a bank for teenagers offering a card that can be used in the high street and on the web.


Related to this story:
Paying before you shop (05 Sep 00 | Business) Pre-pay latest weapon in digital war (07 Oct 99 | The Company File) Web fraud made easy (14 Sep 00 | Business) UK set for internet growth (08 Sep 00 | Business) Credit card firms in fraud crackdown (22 Aug 00 | Business) Online banking gets poll boost (21 Aug 00 | Business) Web gets wise to who you are (15 Aug 00 | Sci/Tech) Security fears hit e-commerce (02 Aug 00 | Business)


Internet links: British Information.com | Global Internet Billing | Dubit | Rools | Splash Plastic | Jalda | World Online |
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