Seeking to give its cardholders greater peace of mind while shopping online, American Express Thursday said it will allow consumers to use a one-shot credit card to make more secure Web purchases.
The new initiative, called Private Payments, allows cardholders to get a unique card number each time they shop so they don't give out their actual credit card number online, said Alfred F. Kelly Jr., American Express Group President, U.S. Consumer and Small Business Services. Once the card number is used, it is no longer active and becomes invalid.
Kelly said the technology is designed to boost consumer confidence in shopping online.
"All of our proprietary research ... indicates that anywhere from as low as 60% to 75% of consumers have a fear of having their credit card number stolen," Kelly said. "A lot of consumers browse online but don't buy."
Private Payments will be available in the next month and will be available free to cardholders and merchants, Kelly said. The technology was developed by American Express; cardholders will be able to register for the service at the company's Web site. Each time a Private Payments card number is used, the purchase is billed to the cardholder's actual American Express card.
Later this year, Kelly says American Express will announce technology developed by Privada that will allow cardholders to determine how much information they release on the Internet while they browse. The browsing technology will allow customers to select from settings that range from sharing their full identity to anonymity.
Private Payments and the browsing technology are part of a suite of American Express online privacy and security products. Kelly did not provide details on the other parts of the suite.
American Express last September introduced its blue card that has an embedded computer chip and comes with a card reader. The card allows its holders to transfer credit card information directly to online retailers.
American Express, in N.Y., can be reached at www.americanexpress.com/.
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