Software designed to reduce banks 'mistakenly blocking credit cards'

The amount of times banks block credit cards could be reduced after new software was developed.

A company has designed software to reduce the amount of times banks block people's credit cards.

According to ValidSoft, banks will be able to use the product to ensure they are not stopping someone from purchasing something on their credit card when they are abroad, Australian TechWorld reported.

The VALid-POS software is used to track a person's mobile phone to see whether it is in the same country as where the Aussie credit card is being used.

However, if the handset is not in the same country as the card there is a callback option and the user is phoned to approve or decline the transaction. This can be done through an automated system or the individual can speak to a real person if they suspect fraudulency.

Earlier this week, Choice spokeswoman Elise Davidson advised people to make sure they do some research on a company before handing over credit card details online, News Limited Newspapers reported.

By Mark Hornby