Visa Tackles Online Fraud With New Credit Card
Visa Europe are testing a new credit card aimed at tackling the ever growing problem of online and other Card Not Present (CNP) fraud.
The major innovation is a keypad and display on the back of the card. When you use the card you enter your PIN and it generates a one-time security code which replaces the standard fixed code currently found on credit cards.
Visa Europe say that this will help fight fraud in two ways. Firstly, as the one-time code generated is for a specific transaction, once used it cannot be used again by anyone. Secondly a fraudster would need to be able to get hold of a card and know the persons PIN in order to commit fraud.
The card can also be used to establish whether someone who claims to be calling from your bank or credit card company is really who they say they are.
The new card is no thicker than a standard credit card and contains a battery that will last up to three years.
One-time codes are nothing new, but they have always relied on remembering to carry an extra device around. This is a neat solution to that problem.
The card will be tested in the next few months by four banks: MBNA in the UK, Cornèr Bank in Switzerland, Cal in Israel and IW Bank in Italy
There are a couple of short videos showing the cards in action here and here.
