on 25-05-2018 09:39
Now acquiring banking licences and building appropriate systems to be able to access the incredibly arcane and complicated processes that are involved in becoming a bank acquirer or issuer or or a bank at all, are beyond the reach of even the largest organisations. The only reliable way of obtaining them is to buy a bank. Which is why most banks in existence are fairly old. However this hasn't stopped organisations like PayPal and Google and Apple from launching and providing their own quasi-payment systems, let's call them to QPs. usually linked to a card account but easily to a bank account. This is because the more payments that you generate the more you can argue that you deserve a proportion of the transaction fees. The banks especially the issuing bank, and the account holders bank are all over this, in terms of the authentication that they require the, the platforms they allow, and much much more. Which in the current climate of Bank Fraud account hacking and other dodgy dealings makes these payment quasi payment systems fairly secure.
Now O2 and the other operators are watching all this with an evil gleam in their eyes, 'if Google Apple and PayPal can do it so can we' they cry, however instead of going the traditional route and linking cards and bank account directly to the quasi payment systems they want to provide, they decide to cut out the certainty and security of organisations that have been tackling Bank Fraud for generations ie the banks, Have instead linked up with frankly dodgy third party organisations like 'payforit' whose sole aim in life is to facilitate 'direct to bill' payments. Or Taptronic whose soul aim in life is to acquire direct to bill payment customers. '
Or like O2 have launched their own direct to bill payment services, 'that way' they think, 'we get to keep most of the transaction fees' because the banks are only involved tangentially' It's literally a licence to print money.
Now I say tangentially because there has to be a source of funds for these payments, this is the payers credit balance with the operator or in the case of pay as you go, the account balance. And instead of building systems and processes, to ensure direct to bill transactions are authorised, the operators have left that frankly much more difficult and expensive side to the merchants to manage. And being as many of the merchants are not exactly ethical when it comes to acquiring payment transactions and because all that is needed is a SIM transmission of the payers number, payments are taken willy-nilly and and often without the bill payer having a clue that they are being taken.
It's outrageous and a massive financial scandal waiting to happen.
Now I except that if the Merchant in question is Google or Apple then they have better systems in place to ensure the security of the transactions, but only to the extent but they also rely on the banks systems to check and balance. None of which are available in direct to bill payments as currently being operated.
Meaning these are the most insecure, ramshackle, egregious and frankly dangerous payment systems I have ever come across, in my professional life, and 02 should be ashamed of itself for wanting to be involved.
25-05-2018 10:35 - edited 25-05-2018 10:36
Course you are correct @adamtemp64 that these have little to do with premium text, mobile short code services, only to the extent that such services might lead to an additional charge to bill element. But franklly premium sevice scams are minnows when compared to the havoc that could potentially be wreaked if the charge to mobile systems were subject to large scale and systemic 'bank fraud' type attacks.
Something that O2 head of head of loss prevention might want to consider over his bowl of morning cornflakes!
25-05-2018 11:01 - edited 25-05-2018 11:03
Thanks for the information @Chris_K but I'll not be using Charge to Mobile. I prefer to keep my O2 charges and my shopping charges separate.
I rarely go into a shop now, all my shopping is done on line. And I can always check my bank balance through my bank app on my phone, which also provides details of the retailers from whom I made purchases and the respective amounts paid. I find it very easy to manage my money this way.