RBA issues credit card security warning

More thought needs to be lent towards credit card security.

Speaking at a conference in Sydney, Dr Philip Lowe - assistant governor at the Reserve Bank of Australia (RBA) - states that card providers must do more to improve their online payment systems.

With internet fraud rates rising by more than 50 per cent during the last 12 months, he claims that if something is not done to tackle credit card fraud, people could be put off from carrying out transactions online.

"Almost half the fraud on credit cards occurs in situations where the merchant does not physically see the card," he states, in comments that could interest be of interest to Aussie credit card holders.

He adds that the RBA will continue to press banks into allowing their customers to be able to use internet banking to pay merchants from their deposit accounts.

It was recently revealed that Melbourne police are searching for two men in connection with a card skimming opinion at an ATM in the city which is though to have defrauded people by as much as $500,000.