Cardholders Prefer Dynamic Security Codes for Online Purchases

Cardholders Prefer Dynamic Security Codes for Online Purchases

March 21, 2016         Written By Bill Hardekopf

Four out of five consumers would prefer using dynamic security codes over static CVV codes when making online purchases with debit and credit cards, according to a study by Oberthur Technologies.

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 This is designed to protect the card if the information is stolen online because the verification code is no longer valid after an hour.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.



The information contained within this article was accurate as of March 21, 2016. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


bill-hardekopf

About Bill Hardekopf

Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.
View all posts by Bill Hardekopf
Featured Low Interest Card
Top Features : 1.25X miles on every purchase; no annual fee; bonus of 20,000 miles once $1,000 is spent in first 3 months
Featured Cash Back Card
Top Features : No Annual Fee, Bonus Offer, Cash Back
Featured No Annual Fee Card
Top Features : Earn cash back twice. 1% when you buy plus 1% as you pay; 0% APR for 18 months on balance transfers
Featured Bad Credit Card
Top Features : No Annual Fee; Cash Back match at the end of your first year; Social Security Alerts
Featured Fair Credit Card
Top Features : No annual fee; access to higher credit line after making first 5 monthly payments on time
Featured Limited/No Credit
Top Features : No annual fee; reports to major credit bureaus; access to higher credit line after making first 5 monthly payments on time