New Technology Offers Card Security for Online Payments

October 16, 2014, Written By Lynn Oldshue
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EMV chip technology has been fairly effective in cutting down card fraud with transactions that take place at store level. Most of the card breaches in the United States during the past year have taken place within retail stores. As a result, America is shifting to chip and PIN technology to combat this.

But in Europe, where they have had widespread chip and PIN technology for several years, thieves are beginning to switch their efforts to online transactions. According to a study by the ECB1, 60% of the value of total card fraud in Europe in 2012 resulted from card-not-present payments.

But a new digital payment solution from Oberthur Technologies may put a halt to online credit card theft. The product is called the dynamic Card Verification Value/Code (dCVV/dCVC).

The Card Verification Value or Code is often referred to as a card’s security code. It is a 3 or 4-digit code usually printed on the back of a card, and is used as an additional security element to protect an online transaction.

Oberthur developed a mini-screen that goes on the back of a credit card and changes the Card Verification Code that most online stores use for verification. Instead of having a static number printed on the card, the card will feature this screen that changes the number regularly. This will prevent thieves from getting a credit card’s CVC and using it to make card-not-present purchases.

The dCVC screen is fully transparent, and it does not require any major modifications for web browsers or online merchants to uphold. The code is read as a standard CVC on a payment page, even if it changes with each transaction.

Card issuers and processors will need to have a specific server that synchronizes with the algorithm used in the dCVC. Pilot versions of the system will be available late this year.

“Our dCVV display card is an excellent and convenient shield cardholders can have to securely access e-commerce websites and fight online fraud,” Eric Duforest, Oberthur’s Managing Director of the Payment Business Unit, said in a statement. “The solution is compliant with every existing online payment infrastructure; it brings customers reassurance together with an unchanged user experience and no need for an enrollment process, guaranteeing excellent customer acceptance and fast deployment.”



The information contained within this article was accurate as of October 16, 2014. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.