In an attempt to boost consumer confidence in online shopping, Visa Canada is promising zero liability for victims of Internet credit card fraud.

The policy, which is effective immediately, is intended to ease worry over the security of transactions made over the Internet. Visa says that concern is the most significant barrier to e-commerce growth in the country.

Previously, most financial institutions dealing in Visa cards left consumers liable for up to $50 if credit card fraud wasn't reported within two days of the unauthorized activity being billed. The new policy will be standardized across financial institutions issuing Visa cards.

"The reality is that shopping online is no more or less risky to the consumer than any other type of commerce and our members want to reinforce this point through the new zero cardholder liability policy," Rick Pyves, senior vice-president of marketing for Visa Canada, said in a statement Wednesday.

"Electronic commerce is a made-for-cards environment that can significantly improve the convenience of shopping, and we expect that the policy will allow Visa cardholders to feel more confident when shopping online."

Visa said online shopping in Canada is expected to be worth $8.4 billion by 2002, but industry studies indicate two-thirds of Canadian still regard the Internet as insecure.