MTN Business Solutions and Creditpipe, an e-commerce organisation, have introduced Mobile Credit, a credit card processing and cheque guarantee service that allows a merchant`s cellphone to act as a point of sale terminal.
Servicemen like plumbers or electricians can now input their customers` cheque or credit card details into their cellphones, and have the required amount transferred electronically into their accounts. The transaction will be immediately confirmed and a log will be available on the Internet.
Security concerns
Customers will be protected from fraud by the Mail Order Telephone Order (MOTO) rule, which gives them the right to query a transaction that takes place in the absence of a credit card. Because of this, merchants will be encouraged to get users to sign a carbon paper rubbing of the credit card.
"The transaction will take place either over a wireless Internet gateway, which is a completely secure method for conducting transactions, or an interactive voice system. All the transferred information is encrypted and it is not stored on public servers," says Brian Seligmann, senior marketing manager of business products and solutions at MTN South Africa.
"The entire process, the flow of information, where it is stored and how it is stored and encrypted, have all been audited by PricewaterhouseCoopers, which has verified that the transactions are both valid and secure."
The service will be available to MTN subscribers at a monthly fee of R160, while non-MTN subscribers will pay R200 per month.
There are specific minimum requirements for merchants applying for the service, including the possession of a merchant bank account. The Mobile Credit system doesn`t, however, require a minimum turnover, as stipulated by most banks prior to the provision of a point-of-sale terminal.
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