Visa cards with a built in one-time code generator are to be trialled by four European banks. The technology is designed to tackle the growing problem of online credit card fraud.
MBNA, a Bank of America company in the UK, Corner Bank in Switzerland, Cal in Israel and IW Bank in Italy are to take part in limited trials of Visa's new one-time code card.
The next-generation cards feature a numeric keypad on the back of a plastic card. Customers enter their PIN code to generate a one-time password. This code, displayed on a cardís display panel, is then used to authenticate online purchases.
The approach is an alternative to using a password when authenticating online purchases through the much-criticised Verified by Visa scheme. As previously reported, VbyV passwords can often be easily reset knowing only card details and a user's birthday.
The new cards, developed in conjunction with Australian firm Emue Technologies, are far more secure - though not infallible. Some banks have already introduced two-factor authentication technologies, which grew up in the corporate remote access market, to provide extra protection to online banking transactions.