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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 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:

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.

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