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A new credit card has been developed in the battle against credit card fraud

Credit card companies use a variety of methods to help battle credit card fraud. Some have implemented the placement of an owner’s photo on their individual card, and others offer hotlines, along with “tips for protection” guidance. Now, Visa is testing another security measure: the Emue Card.   

Aside from the usual security code that credit cards show, the new Emue Card generates an additional four-digit code which is changed each time the card is used. Card owners would need a pin in order to view these four numbers, which would be required to complete a transaction.

The card will be on trial until the end of the year, before which it will be tested by 500 Deloitte employees. If the trial goes well, and the card is certified by Visa, it will be up to both banks and credit card companies whether they will choose to take on the product.

Employees at Deloitte, along with anyone else who has access to the card, can expect to see a rise in safety when it comes to phone, internet, and mail order fraud. According to the BBC, thefts occurring through these mediums, known as card-not-present or CNP fraud, are continuously increasing and make up over 50 percent of all credit card fraud. An Emue Card could help to bring down this percentage because it demands more information than what can be seen on the card - those attempting to use it would have to know the pin needed to generate its additional security code. This security measure would be especially important with transactions occurring without a salesperson present to check signatures or look at photos on the cards that offer them.

The Emue Card has brought about certain obstacles in its development. One example included finding a way to help card owners avoid the accidental pressing of buttons. Developers tackled this by creating buttons which need to be “pinched” to work rather than simply pushed down.  

Sandra Alzetta, head of innovation at Visa, explained another problem-prevention system underway: "One of the things we're testing is how long the battery lasts - the plan is for it to work for more than three years, which means your card should expire before it runs out of power."

Alzetta also discussed the challenge and need of global compatibility features, including “embossed characters for mechanical swipes, a magnetic strip for systems that require a signature, the fixed three digit security code and now the unique four- figure code.”

"You have to remember that our cards work across the world, and not every country or retailer has access to the level of technology we might be used to," she said.
 



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The real problem
By Spivonious on 5/14/2009 9:29:28 AM , Rating: 2
is that most stores nowadays don't even take the card from you or bother to compare signatures, if a signature is required at all.

Case in point: McDonalds lets you use a credit card. You swipe it in the machine and that's it. No signature, no employee taking the card and seeing that it says "Susan Jones" when the customer is a man wearing overalls that say "Jim Smith".

The only thing this extra code will do is cause more steps for the consumer.




RE: The real problem
By FITCamaro on 5/14/09, Rating: 0
RE: The real problem
By QueBert on 5/14/2009 12:07:19 PM , Rating: 2
A store cannot legally ask for ID, even if it says "check ID" on the back, it's still sort of a gray area. As Visa does not allow it, so if I stole your card. Even if you wrote Check ID on the back, technically I could refuse to show the store my ID and they couldn't do anything about it. And would have to approve the transaction.


RE: The real problem
By FITCamaro on 5/14/09, Rating: -1
RE: The real problem
By ClownPuncher on 5/14/2009 1:17:13 PM , Rating: 5
Link it to Obama, then FDR, then eco nutjobs. It has something to do with the GM bailout too, it just has to.


RE: The real problem
By Samus on 5/16/2009 8:00:21 PM , Rating: 2
I've worked in retail and im unaware it was illegal to check id for purchases. I mean, we were required to check id for check payments. We even wrote down the id # on the checks. How is that and different from a debit or credit card?


RE: The real problem
By postar on 5/14/2009 4:03:54 PM , Rating: 2
quote:
Yes and that is the stupidest thing in the world. To make it illegal to validate the ID of someone when they're making a purchase.


It's not stupid at all. See, your address is a security feature for your credit card. Once you show your ID to the store clerk, he/she now has all the info they need to shop with your card online - card number, expiration date, potential billing address and security number at the back.

Sure, they need to have photographic memory, but how do I know that they don't or that the security camera behind them is not recording all these details?


RE: The real problem
By FITCamaro on 5/14/2009 4:09:12 PM , Rating: 3
I'm far more concerned with people stealing my card and using it in a B&M store than a pimply faced kid having photographic memory and remembering all my information.

My family had a car stolen in 2000 with my mom's purse in the car. The thief drove to a Publix and bought $90 worth of stuff using a check. They failed to check ID on it. If they had, we would have had our car back as there was usually a police officer at that Publix. To top it all off, the store tried to make us cover the check.

Now if all credit cards had my picture on it, I wouldn't mind as much, but they don't. I really don't know why that didn't catch on more.


RE: The real problem
By Ratinator on 5/14/2009 2:46:00 PM , Rating: 2
Refuse to sell you the item??? not that any company would do that.


RE: The real problem
By FITCamaro on 5/14/2009 4:10:59 PM , Rating: 2
When I worked for Best Buy, if the card was unsigned and they didn't have ID, we would not sell them what they wanted until they showed us an ID. It was company policy.


RE: The real problem
By QueBert on 5/14/2009 4:35:43 PM , Rating: 2
One call to VISA and they would be selling me the item regardless of if they wanted to or not. I'm not sure how a store like Best Buy can have a policy that goes directly against what Visa & Mastercard have in their card holder TOS. While I wouldn't be a royal dick about it, if I was pressured to show my ID, I would get the proper people involved to have the Cashier corrected. I actually think showing ID is safer, but requiring, or even asking is illegal for any store to do. And I do not like stores who break laws.


RE: The real problem
By karkas on 5/14/2009 8:42:22 PM , Rating: 4
People using stolen/fraudulent cards do not press their point. They run out of the store.

People that write "SEE ID" on the back of their card don't care if they are asked to show ID.

I worked for BEst Buy too for a while and the only people that had a problem showing an ID were the ones sweating & fidgeting.


RE: The real problem
By QueBert on 5/15/2009 4:58:03 AM , Rating: 1
That's because most people don't know it's illegal for a store to ask to see your ID. If this was common knowledge you would have plenty of people who would raise a bitch when asked. I wrote "you can't see my ID" on the back. I understand the majority of cashiers don't know Visa's TOS so I can't get upset at them. But whoever trained them definitely should know better. And I'm not a big fan of training people to break the law. I have walked out of stores because I refused to show my ID. Ultimately it wasn't worth it to me to put up a fight even with me being right.


RE: The real problem
By keith524 on 5/18/2009 8:51:31 AM , Rating: 2
While everyone says it's "illegal in some States" a quick search doesn't produce any specific results (maybe if I spent more than 2min I could find one). The only thing I've been able to find is that according to the Visa agreement they can't use a lack of ID to refuse taking the card. The only thing they can use is comparing the signatures.

Page 31 on this PDF from Visa: http://usa.visa.com/download/merchants/card_accept...

So I guess if you are a idiot and refuse id when asked then the store could always just say the signatures didn't appear to match in their opinion.

If you think companies really care about the Visa policies keep in mind it is also against Visa policy to have a minimum purchase for credit cards.


RE: The real problem
By AlexWade on 5/14/2009 9:57:07 AM , Rating: 2
I have yet to sign any of my credit cards. Yet I have been able to use them anytime I want in any store.


RE: The real problem
By FITCamaro on 5/14/2009 10:23:47 AM , Rating: 2
That's kind of his point. Stores are supposed to be checking that you are you. When I was a cashier if a card wasn't signed we asked for ID. If you didn't have ID, you weren't buying anything.

Now you just have to scribble on a screen and they assume its you because you have the card.


RE: The real problem
By Lifted on 5/14/2009 11:56:16 AM , Rating: 2
Who cares? We don't have to pay for any fraudulent purchases made at stores with lazy managers/staff, the store does. Let them run their business into the ground, I don't care.


RE: The real problem
By mmcdonalataocdotgov on 5/14/2009 12:18:48 PM , Rating: 3
The credit card company usually foots that bill, and the card holders pay for it in service fees and higher interest rates. So you see, your caring attitude is misplaced.


RE: The real problem
By leexgx on 5/15/2009 10:57:32 AM , Rating: 2
if chip and pin is not used the company norm foots the bill (in the UK that is) you find alot of stores in the UK will not accept an no chip and pin user (i have forgotten my pin users) as the card companys norm blame shops
cheqs are norm not accpeted any more as well as cant be verfied untill you cash it in at the bank, as thay can be stoped even if it has been accepted by the bank after


RE: The real problem
By FITCamaro on 5/14/2009 12:53:44 PM , Rating: 4
Yes and free health care will be free right?

As another said CC companies usually pay for it. But even if it was the stores, that lost money would be made up in the cost of the product. Businesses raise prices, cut staff, cut quality, or close down when they lose money.

So you'll eventually care.


RE: The real problem
By nayy on 5/14/2009 3:08:59 PM , Rating: 2
quote:
...when it comes to phone, internet, and mail order fraud. According to the BBC, thefts occurring through these mediums, known as card-not-present or CNP fraud, are continuously increasing and make up over 50 percent of all credit card fraud.


This is not meant for your in store transactions, just like you dont have to type the 3 digit code in the back off your card every time you swipe it some where. This is meant to make the transacrions you make over your phone or computer safer.
For example if some manages to install a key logger in your computer, under current conditions they may get all the information they need to make charges to your card, but with a random code being requierd it gets a lot harder


RE: The real problem
By 85 on 5/14/2009 11:55:57 PM , Rating: 2
this is such a huge problem. why not make it a federal law with harsh fines? it would be much easier to bust someone for not checking an id then selling alcohol to a minor. with the ridiculous amount of money the FBI spends every year, you would think something would have been done sooner.


RE: The real problem
By LikeLinus on 5/18/2009 10:36:46 AM , Rating: 2
That is simply not true. A store has the right to refuse the sell of an item to anyone. It's a private business and they legally do not have to make a sell. Don't spread complete BS if you don't know the actual law.

If they ask for ID and you are unwilling to show it, they can simply refuse the sell.


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