May 15 ,2009
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Visa Testing New Card Technology, Pt.1
Is it, or Isn’t it?Visa is testing a new credit card to combat online fraudulent activity. Emue Technologies, a small Australian technology firm, developed the card that looks like a simple credit card from the front, but when you flip it over it soon becomes apparent it is no ordinary card. The backside displays a keypad and LCD display. The card is embedded with a microprocessor, a 12 button keypad, an 8 digit alphanumeric display, and a long life battery. Emue says that the new card is aimed to reduce online credit card fraud that is reported to account for 50% of fraudulent activities. New chip and pin technology has contributed to the reduction of face to face point-of-sale purchases; however, phone, online, and mail order transactions do not have these same protections.
Phone, online, and mail order transactions are known as “Card Not Present” (CNP) where the consumer is not required to show identification or have possession of the credit card. With a CNP transaction, it is possible for virtually anyone who has gained access to the card number to charge. The new Emue card would make it necessary for the user to be in possession of the card. The card requires the user to enter a personal identification number (PIN) into the keypad when making any transaction. The credit card then spits out a one-time unique code on the display. To complete the transaction, the user would need to enter the unique code for final approval.
Emue says the new technology would give greater security and could easily replace the merchant’s use of the CVV code on the back of cards. Additionally the card would work well with consumers who utilize the “Verified by Visa” solution. Visa offers the “Verified by Visa” free to all Visa card consumers. The system uses an extra password to confirm the consumer’s identity when making online transactions. The new Emue card could be used for ATM transactions, as well as a debit or credit card.