Banks Consider Numberless Credit Cards to Fight Fraud

Commonwealth Bank and Westpac are exploring the idea of removing visible card numbers from their credit and debit cards, aiming to curb fraud but risking complications for online shoppers and retailers. Mastercard believes this shift could better protect consumers, but payment experts warn it may introduce new hurdles to everyday transactions.

Australian banks are among the first in the world to weigh a full deployment of this security-first approach. Mastercard recently unveiled a 5 year plan promoting numberless cards paired with biometric checkout systems. These would rely on facial recognition or fingerprints, rather than typing in card digits, for online purchases. CBA and Westpac appear likely to adopt this within the next couple of years, though they haven’t committed to a rollout timeline.

For consumers, this means using apps to generate one-time-use numbers when needed or confirming transactions using a combination of biometrics and email. Experts caution that this change brings complexity, especially with online payments where people still often rely on their physical cards. Retailers may face infrastructure upgrades, and some mobile wallets might struggle to support the technology.

The appeal is clear: card-not-present fraud costs Australians around $1 billion annually. Cards from Australia are particular targets because they often have higher spending limits and fetch a premium on black market sites. By eliminating card numbers, banks aim to shield both consumers and retailers from widespread data breaches.

Some rival networks, such as Visa, have similar capabilities, but they are not yet pushing their partners in the same direction. Implementation logistics remain uncertain, but Australia could become the first country to adopt numberless cards across its banking sector, assuming the balance between heightened security and user simplicity can be found.

Source: Australian Financial Review, Mastercard, EMS Corporate