I’ve read a news report about a guy who lost over HK$1,000 because his credit card information was stolen and used to link up with an AlipayHK e-wallet, which then was used for online shopping.
After reading the report, I tried to do this to see if it was possible. I found out that if one wants to tie their credit card issued by Bank of China to an AlipayHK e-wallet, they have to confirm their mobile phone number and then the bank will send a message to the card owner for a two-step authentication.
If you use other credit cards, Alipay HK first deducts 10 HK cents from the credit card, and then the transaction will be canceled after authentication. That’s called the Penny Test.
Banks also typically sends a message to the card owner when their card is used for an online transaction.
You may ask why AlipayHK doesn’t adopt the two-step authentication for all credit cards.
Well, it depends on the relationship between mobile payment company and the bank. For example, Bank of China has close ties with AlipayHK, which is why the bank has adopted such a procedure.
But the Penny Test is actually in line with the basic requirements outlined by the Hong Kong Monetary Authority.
Anyone who has lost a credit card or accidentally leaked out the credit card information should notify the issuing bank and police immediately to have the card suspended.
Likewise, if one gets a message from the bank that their credit card has been used for online transactions by someone else, they should report the matter to the issuing bank and police as soon as possible.
This article appeared in the Hong Kong Economic Journal on Aug 2
Translation by Julie Zhu
[Chinese version 中文版]
– Contact us at [email protected]