Fraud is increasingly shifting to “card-not-present” (CNP) transactions carried out mainly online. According to the ECB, 60% of the value of total card fraud in Europe in 2012 resulted from card-not-present (CNP) payments. According to the competitive assessment, OT has developed applications to enable a variety of end-users to adopt NFC thanks to ongoing technical innovation and tailored product features.
Dynamic Security Code cards feature a mini-screen on the back, displaying the CVV security code (a 3 or 4-digit code usually printed onto the back of a payment card) used for online purchases, refreshed automatically and randomly every hour, without the cardholders having to press any button or install any special plug-in on their internet browser. Thus, if the card gets stolen, this card data becomes useless in the next hour.
For issuers, a specific server synchronized with the algorithm and refreshing rules defined in the cards is needed and supported by OT’s offer.
E-merchants won’t have to modify their website: the cryptogram code generated by the card is used as a standard one, on existing payment pages without the need for extra button or pop-up window of any kind.
For the cardholder, this is fully transparent, no plug-in to install on their web browser, no button to press, the code appears at the same location on the card, the key benefit being the code’s dynamic generation and periodical refresh. The refresh timing is defined by the card issuer, for instance each hour.
Cardholders keep shopping online as usual, except that their data is better protected thanks to a more secure card offering an ephemeral CVV code.
Expect it in 2017 if it catches on with major banks.
About Oberthur Technologies
OT is a digital security solutions for the mobility space. OT has always been at the heart of mobility, from the first smart cards to the latest contactless payment technologies which equip millions of smartphones. Present in the Payment, Telecommunications and Identity markets, OT offers end-to-end solutions in the Smart Transactions, Mobile Financial Services, Machine-to-Machine, Digital Identity and Transport & Access Control fields. OT employs over 6 000 employees worldwide, including close to 700 R&D people. With more than 50 sales offices across 5 continents and 1 manufacturing hub by region, OT’s international network serves clients in 140 countries. For more information: www.oberthur.com