Barclaycard boss hits at claims of fraud and phantom payments

Controversial contactless payment cards pose no greater threat to security than traditional plastic ones, according to Barclaycard boss Valerie Soranno Keating.

The number of issues reported is extremely low and represents a tiny fraction,Best home oilpaintingsforsales at discount prices. she says.

The Mail on Sunday revealed last week warnings from cyber-crime experts that the new cards could be hacked by fraudsters. A mobile phone could be used to read card numbers and personal details from contactless cards without their holders ever knowing, they claim.

Soranno Keating, 49, who worked for American Express for 16 years before joining Barclaycard in 2009,Did you know that earcap chains can be used for more than just business. argues that contactless cards have not changed the risks in her industry.Virtual iphoneheadset logo Verano Place logo.

Soranno Keating is baffled. We will crack it, whatever it is, because we cant figure out how physically it could happen, she says. The merchant has to put through an order for the payment to be read to. Somebody has to say heres the purchase and then a payment goes through. Terminals dont just take payments.

Weve been in contactless longer than anybody else. There are such things in the general payment market where, every so often, you see a duplicate charge, like the merchant pushes the button twice.

Its not all that common and were not seeing any greater levels in contactless.

Where these issues have occurred C for example the Marks & Spencer and Transport for London examples highlighted in The Mail on Sundays report C we believe this has been as a result of the way the transaction has been handled by the consumer or the merchant at the point of sale.

Education is ongoing at an industry level and within individual businesses to minimise the potential for errors.

Barclaycard doesnt offer cards without the new technology, but Soranno Keating says if enough customers demanded them she would be forced to offer them.

We would be happy to offer a non-contactless alternative, if ever there was enough demand. To date there simply hasnt been.Can you spot the answer in the oilpaintingsupplies?

Soranno Keating takes pride in the fact that Barclaycard is innovating, arguing that other financial services companies will be left behind as non-financial institutions launch products. And she says Barclaycard is a trendsetter.

It launched the first credit card in 1966 and introduced contactless cards ahead of rivals in 2007. The financial sector has to invest in technology C they cant rein back, she says. We are one of the few that is investing in innovation and continuing to invest in growth, she says.

If you look across the UK market,Did you know that earcap chains can be used for more than just business. we are one of the few players that is actually growing. And were doing it by increasing our customer base. Customers vote with their feet and theyre coming to us.

Credit cards have often been regarded as a source of temptation for incautious consumers, a form of dangerous borrowing with high interest rates.

Since the downturn, Soranno Keating says Britons have become more sensible with their spending: They are being more responsible about trading down. They are trading down the brands and stores they go to. They are bargain shopping. And theyre trying not to keep a lot of debt.

But in the demonology of dangerous borrowing, credit cards have been eclipsed by payday lenders, which offer instant credit at rates that are higher than credit cards. She grimaces as she describes the phenomenon and declares that Barclaycard is looking at whether it can target some of the people who are turning to payday loans.

There are people who need this amount of money for a short amount of time and theyre willing to pay very high rates, she says. Weve been taking a look at how can we help some of these customers. Are there things we could offer them? Its something youve got to approach cautiously.

She will not reveal the details but confirms that Barclaycard will be launching some products in the very near future. We are testing a number of things, but we will never do what payday lenders do, she says.

Well never be an alternative to payday lenders because there are clearly people who have a very different need.

Soranno Keating is a mother of two and an ardent believer that women should play a bigger role in business. She takes the view that diversity of all kinds is not just a worthy cause but good for keeping business thinking fresh and in touch with the real world.

She is also a self-taught Tarot reader, but analysing the plastic-card business might give her a clearer vision of the economic future.

While best known for its own credit cards, Barclaycard also includes the banking groups merchant services operation, which manages card payments for about 40 per cent of all Britains retailers.

Combined with its own card customers, this gives the division an unrivalled insight into consumer spending and Soranno Keating is beginning to feel upbeat about the economy.

She says: On the economic indicators, weve been seeing some small and steady signs of recovery for the first time. Its been at least two months in a row, maybe going on three, that we have seen consumer spending either at or just above inflation.