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So they are happy to benefit from all the innovation and the spend uptick that is enabled by the card schemes and yet unwilling to pay for it. Without online card payments, Amazon cannot exist and without adequate revenue, card schemes cannot exist. Mr. Bezos needs to be careful while flexing his muscles.

That's because Apple Pay is a fully authenticated transaction by virtue of the user having to unlock the phone through biometrics. Same with Google Pay though most merchant terminals are not correctly programmed for this variation.

The use of Payment Account Reference being introduced by the major card schemes will enable virtual card numbers to be linked to a single account and enable refunds.

Agree, unless the customer sees some tangible benefits, I don't see this scaling up. Thay said,  I can see why MasterCard would want to do this.  They are after some of the debit card transactions that are urrentlyy almost completely Visa in the UK.That is a play not jus for processing revenues but also customer behaviour data that they will use to generate insights they can sell. After all, 'data is the new petroleum'.

Unfortunately, http://eprint.ncl.ac.uk/pub_details2.aspx?pub_id=230123 requires logging into the University system. Are you able to publish this on LinkedIn?

On a separate note, you will find that where the card issuer supports 3D-Secure/2-Factor authentication and the cardholder is enrolled for the service, then any merchant not supporting this is liable for the fraud as per card scheme rules. So, consumers will be protected.

'However, it is likely that the difference between Mastercard and Visa here is rather a difference between two banks -- one with a better fraud detection system than the other' .... so how do you come to the conclusion that is the headline of your report? How irresponsible!

Also, you forget that most web sites now support 3D-Secure or some other form of 2-Factor authentication. So, getting hold of the card details alone is not going to get you very far.

What you need to do is publish details of the study like sample selection methodology, sample size, test methodology and observations based on which you draw your conclusions. Otherwise, it is just 'statistics, damn-lies and statistics'

Shows naivety and ignorance on part of the academics. The most basic Issuer Fraud Detection systems will spot this kind of attempts very quickly and block the card. 

One wonders how this could get past the fraud management algorithms on the host - sudden increase in the volume of fallback mag-stripe transactions, unusuallly high velocity of cash withdrawal transactions and potentially the unusual location of these withdrawals should have all sent alarm bells ringing very loudly. May be, with TESCO being a new bank, the limited volume of customer behaviour history data available to these algorithms limited their effectiveness.

@Ketharam Swamimathan: that is where the complementary business model is key. MasterCard could for instance package and licence the technology and make a killing on licence fees. After all, the technology has already been deployed in Singapore. Remittance is another area where MasterCard could have a significant play with this technology. As you say, time and shareholders will tell.

Time will tell Ketharaman but I feel that is unlikely. I expect MasterCard to leverage Vocalink to develop a complementary business model and a parallel revenue stream.