Real-Time “Card” Security a Step Nearer

Visa has launched its CodeSure system to make online transactions more secure. Cards have a display and generate one-time codes to authenticate online transactions.

Once in issue, Visa cards will feature an alpha-numeric display and a 12-button keypad built into the back of a conventional credit, debit or prepaid card. The cards will have a three-year battery life, overcoming a potential stumbling block to such schemes in the past.

To validate a transaction when shopping on the Web or logging in to an online banking service, the cardholder activates the authentication process by pressing the “Verified by Visa” option button on the card’s keypad.

When prompted, holders then enter their PIN into the keypad embedded in the card which prompts a unique one-time-passcode to appears on the display, this is then used to authenticate the transaction.

Since 2009 eight banks in countries throughout Europe, including the UK, Italy, and Germany, have piloted the system, with 86% of participants reassured about security. Most cardholders – 70% – also say they would use their cards for card-not-present transactions more often.

This system is currently exclusive to Visa and they see it as a way to bring a similar level of security to payments online as we now see on the high street with chip and pin.
Expense Reduction Analysts have long reviewed the use of 3D Secure (the generic name for both Visa and MasterCards’ e-commerce password security function) as a driver of cost-savings. We argue that as issuers are less prone to fraud, our clients should share the benefit. Whilst it is only compulsory for the diminishing Maestro Card currently, the day may now not be far off when Visa mandate it for all e-commerce transactions across their brands.