| Will the internet die under the strain of the ecommerce | | | | the online store operator. In fact, if too many charge |
| boom? The huge increase in internet usage over the | | | | backs occur in a short period of time, the card |
| last few years has not only revolved around social | | | | companies increase the length of time that they hold |
| networking but also around online commerce. The | | | | on to the clients money. |
| volume of people using Google was surpassed by the | | | | What does all this mean to the online hotel booking |
| number of people using Facebook during the run up to | | | | industry? It has huge implications, because if the online |
| Christmas in 2009/10. So what does this tell us for the | | | | companies cannot guarantee that they will be in |
| future of building a business on the internet? | | | | receipt of payment long after the customer has |
| Let's take an example: The online hotel booking | | | | purchased and utilised a night's accommodation then |
| business is huge. It naturally lends itself to an internet | | | | the whole system will begin to collapse. |
| based platform and many of us will have noted the | | | | Does this mean we will see the return of the local |
| demise of the local travel agent in our local market | | | | travel agent? I don't think so because they will still |
| town. | | | | suffer the same issues, and most probably would be |
| It is the fact that late hotel rooms can be booked from | | | | using the same booking systems anyway. What it |
| anywhere at any time using a minimum of fuss. The | | | | does mean is that customers will face ever more |
| hotels can be assessed, viewed and booked all in a | | | | stringent security tests as they go through the online |
| couple of minutes. But it is the increasing dependence | | | | booking process. |
| on these online booking systems that is beginning to | | | | Already the MasterCard system will often produce a |
| cause problems for the industry as a whole. | | | | pop up window demanding extra information relating to |
| As users of the internet become more used to using | | | | secure passwords over and above the usual request |
| these late hotel room search facilities they also | | | | for the csv number from the back of the card. This |
| become more impatient. As we know, the risks of | | | | puts extra strain on late hotel room booking websites |
| using credit cards online have always existed and to | | | | as they have to be built in such a way as to receive all |
| be honest have not really diminished despite the best | | | | this data securely. It is a mad world of security that is |
| efforts of the credit card industry. This puts a huge | | | | still so easily corrupted by fraudulent use. |
| amount of pressure on these late hotel room booking | | | | Ultimately the online ecommerce industry will have to |
| websites to accept credit card payments, pre-check | | | | find a way of accepting payment that cannot be used |
| them against fraudulent use, accept them and take a | | | | fraudulently. Is this possible? I don't know, but what I do |
| payment all in a couple of seconds. As all online | | | | know is that I am now getting on a flight to London |
| merchants know, a proportion of all online sales are | | | | and I haven't booked my flight! Anyone know a good |
| fraudulent and result in charge backs; charge backs | | | | site to get a late hotel room deal? |
| result in penalties both to the credit card issuer and to | | | | |