PSD Circular No. 02 : Risk mitigation measures related to card not present transactions

Card issuing banks must establish a two-factor authentication system based on information not visible on the card for all online card-not-present transactions. Banks are also required to implement online alerts, such as SMS notifications, for cardholders for all card-not-present transactions valued at Tk. 5,000.00 or above. All scheduled banks in Bangladesh must comply with these instructions on or before April 01, 2014.

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Payment Systems Department
Bangladesh Bank
Head Office, Dhaka-1000
Website: http://www.bb.org.bd
PSD Circular No. – 02/2013 Date:
18 Bhadra, 1420
----------------------- 2 September, 2013 Managing Directors/CEOs All Scheduled Banks in Bangladesh Dear Sir, Risk mitigation measures related to ‘card not present’ transactions With the increasing use of credit/debit cards and online transactions it is imperative to enhance the security of online card based transactions and with a view to protecting the interest of all concerned, it has been decided as under:
I. The card issuing banks will establish a system of providing additional
authentication/validation (2-factor authentication) based on information not visible on the cards for all online ‘card not present’ transactions.
II. Introduce a system of ‘online alerts’ (e.g. SMS alert) to the cardholders for all
‘card not present’ transactions of the value of Tk. 5,000.00 and above. It would be mandatory to comply the instructions on or before April 01, 2014. Please acknowledge receipt. Sincerely yours, (Md. Humayun Kabir) General Manager Phone: +88-02-9530174

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Source: Bangladesh Bank — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works