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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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Speaking of Credit Cards.....
By callmeroy on 5/14/2009 1:40:23 PM , Rating: 2
Did anyone hear about this new bill the senate is going over right now? I just heard about it for the first time this morning on my drive in. Basically if passed it will do several things in efforts to try to rein in credit card abuse and also try to limit the near extortionistic level to which credit card companies penalize people.

Two things I like that are included in this proposed bill : 1) No more "pre-approved" offers sent to anyone with a pulse. This bill will make it illegal for any creditor to even allow anyone under the age of 21 to sign up for a credit card AT ALL, _or_ if you are at least 18 and have a co-signer _or_ you can document you are employed, only then could you get a credit card. The difference today if you wonder --- there is no real checks in place, though "technically" you have to be 18 --- for example, my 16 y/o niece got her own credit card with little trouble. She doesn't even work (and btw she used her REAL information and no one co-signed). Under this bill - she never would have been granted that card.

2) Second thing I like -- if you miss a couple payments that get you that horribly increased APR that most cc companies would then impose, under this bill you could earn your previous rate back --- as long as you were never late again for at least a consecutive 6 month period of payment minimum payments.

I believe the 3rd thing is something about capping credit card limits based on income or in the case of a 21 y/o (who can get a card w/o income documentation -- even under this new law) -- there would standardized minimum caps for no income accounts.

I think this bill sounds pretty good to somes very sensible, about time....

RE: Speaking of Credit Cards.....
By callmeroy on 5/14/2009 1:44:06 PM , Rating: 2
I meant there would be MAXIMUM credit caps, not minimum -- that wouldn't make sense... :)

RE: Speaking of Credit Cards.....
By Zoomer on 5/15/2009 9:20:34 PM , Rating: 2
Sounds pretty crazy to me. What's with all that crap? If someone misses a payment, they should pay interest just like they agreed to.

Standardized minimum caps: people with "bad" credit who would otherwise get cards will not get cards then.

21 year old min age for card: Why 21? I believe 18 is the age where one can enter into legally binding agreements. Oh wait, never mind, "no one" believes that contracts should be binding.

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