Constantly-Changing CVV Code Could Boost Card Security

Constantly-Changing CVV Code Could Boost Card Security

April 1, 2015         Written By Bill Hardekopf

In an effort to boost security and reduce the risk of credit card fraud, a tech company in France has come up with a CVV code for credit cards that changes every 40-60 minutes.

According to CNN, Oberthur Technologies found a way to insert a mini ink screen and a tiny lithium battery into a standard credit card, so the security code on the back of the card is constantly randomized. If successful, this chip could help change the face of credit and debit card security.

Dynamic CVV codes act as temporary passwords for a credit card, which can be used for making purchases online or over the phone. If someone else manages to get hold of the code, it will not do the thief any good after a few minutes.

Martin Ferenczi from Oberthur North America said, “The hope here is that the dynamic CVV will severely cut down on fraud.”

As long as criminals are not able to decode the number-changing algorithm in the chip, cardholders can be protected with this new technology. However, Oberthur’s designs cost 50 times more to produce than magnetic strip cards and 10 times more to produce than the most expensive chip-and-PIN cards on the market. Banks and other financial institutions would have to determine if the cost was worth the protection to customers.

There is no guarantee banks will adapt this new dynamic security technology in their cards, but if they do, you may see them in your wallet as early as 2017.

The information contained within this article was accurate as of April 1, 2015. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About Bill Hardekopf

Bill Hardekopf is the CEO of 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.
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