Why MasterCard, Visa Want to Track Your Smartphone

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June 26 (Bloomberg) -- Banks and card networks like Visa and MasterCard are working with wireless carriers to cut down on fraudulent transactions by tying purchases to the location of a shopper’s smartphone. Bloomberg’s Crayton Harrison reports on “In The Loop.” (Source: Bloomberg)

But i think pretty much who -- i think everyone who has a credit card has had it stolen at some point.

It's a big pain to have it reissued.

And you could be on vacation somewhere and your transaction gets blocked.

What this would do would have a way when the card transaction goes through, the credit card network would check with your wireless provider and say, is this person in the country or city that they say they are?

Once that is confirmed, the transaction goes through, no problem.

But it is not full proof, right?

You could have a set where the burglar is in the same city as you.

Absolutely, it will not cover every case.

But it could cut down on a lot of transactions that are either false positives were they stated stolen and it isn't, or transactions that should be rejected because somebody is making a transaction in the wrong place.

Anyone -- any time someone is going to know where i am, there are privacy concerns.

What about that?

This is in the testing phase.

This is going on with at&t, mastercard companies that we gave a lot of information to already.

But you will not be tracked unless you want to be.

It is an opt in program.

Would you pay for this kind of service?

How does the money flow?

They are still figuring that out and a lot of the costs are passed onto to consumers anyway.

We just cannot see them itemized.

The wireless fees may be charged through the banks, $.10 per transaction, something like that.

That could add up quickly for them, but the banks might be interested in doing that because every call that comes into my return there is a fraud alert that is a false positive, that cost them five dollars to $10. to verify and dig into that.

Interesting.

Thank you very much.

Coming up, regarding today's contest between the u.s. and germany in the world cup, we take a look at world cup beer sales.

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This text has been automatically generated. It may not be 100% accurate.

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