Home chip and PIN readers 'make shoppers feel secure'

Personal chip and PIN readers would make the majority of consumers feel more comfortable about buying over the phone using their credit and debit cards.

According to MasterCard-commissioned research, one in four (28 per cent) of consumers still worry about fraud when buying over the phone - and nearly a third (31 per cent) said that fear of fraud deters them completely.

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But three-quarters think a personal chip and PIN reader would help to reduce fraud and would make them feel more secure when making payments over the telephone by generating a one-time-only PIN for each telephone transaction.

According to a 1,000-person survey, 55 per cent of the credit and debit cardholders in the UK, Belgium and the Netherlands have made a telephone order transaction, making an average of seven payments per person.

Nearly four out of five (79 per cent) of UK credit and debit cardholders buy over the phone - compared to just one in five in the Netherlands. Most (82 per cent) of telephone ordering is done at home.

Cardholders in the UK use it most to pay bills (17 per cent) but it is also used to order tickets, clothing, holidays and travel.

MasterCard said the importance of the telephone orders in the overall sales mix will grow if consumers feel more secure.