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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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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.

"Young lady, in this house we obey the laws of thermodynamics!" -- Homer Simpson

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