Credit giants team up with online retailers

Visa and MasterCard have announced strategic alliances with US online retailers in a bid to encourage their members to conduct credit card transactions over the Net.

MasterCard has struck a deal with a travel company, Preview Travel, in which the company displays its logo on the Web site and will offer discounts and benefits to card users who buy services on the Net. Visa is building a similar alliance with a music retailer, N2K.

The deals are intended to kick-start online purchasing, and both companies are keen to assure their customers that transactions are secure.
MasterCard spokesman said: "We anticipate some revenue stream. Sure, people are concerned about security and we are encouraging customers to use retailers they can trust and use only the best security.

"We still think the credit card is the best available method of payment over the Net. We are now at the stage where we can roll out the SET (secure electronic transactions) protocol. That is the safest method out there."

Neither company has any plans to build similar alliances in Europe, but they are anticipating more deals as soon as trials have been completed.

"Europe has become a lot more receptive to online retailing in the recent past," said the MasterCard spokesman. "Especially after the announcement by major European banks to go with the chipcard."