Cardholders Prefer Dynamic Security Codes for Online Purchases
CVV codes are used for verification purposes. They are typically 3-4 digits long and printed on the back of most credit and debit cards.
The “dynamic” security features referenced in the study are known as Motion Codes. The static number on the back of a card is replaced by a screen that changes numbers every hour. This is designed to protect the card if the information is stolen online because the verification code is no longer valid after an hour.
A large portion of online retailers now require CVVs as part of their checkout process to prevent against “card not present” fraud. Motion Code takes that security protocol to the next level.
Though the survey only consisted of 231 respondents, the concept of a Motion Code was widely accepted. 88% of participants said the feature was “easy to use” and the same percentage said it was an “efficient answer to online fraud issues.”
With online fraud now representing 65% of credit card fraud, the demand for enhanced card security is on the rise, and both retailers and consumers want to make these transactions safer. 61% of the survey respondents who have been victims of online fraud said they have become more cautious when shopping online or have started shopping online less frequently. 60% of these consumers said they would be willing to pay more for a Motion Code-enabled card.
According to a February 2016 report from the U.S. Commerce Department, e-commerce sales were estimated at $341.7 billion, which is a 14.6% increase from 2014. E-commerce sales account for 7.3% of all sales.