Visa Testing New Credit Card in UK - Emue

A credit card with a built-in display is being tested by Visa with the aim of reducing online fraud.  The Emue Card generates and displays a unique code each time it is used.  Developers say that the new technology would make it very hard for fraudsters, as any transaction would require the PIN to generate the code.  Watch Video

The new technology comes against a growing backdrop of fraud. While chip and pin technology has helped reduce crime at the tills, when it comes to phone, internet, and mail order fraud - known in the industry as card-not-present or CNP fraud - the figures are growing every year and now make up more than 50% of all credit card fraud.

These transactions ask for the 16-digit code on the front of the card, and expiry date and some also ask for the three digit security card on the back. All of these details are available to a criminal who has a stolen card.

The new code technology could reduce so-called 'card not present' fraud  According to figures from the Association for Payment Clearing Services (Apacs) - the trade forum for banks, building societies, and credit card firms - CNP fraud accounted for more than £328.4 million in 2008, a rise of 13% from the previous year.

Michelle Whiteman, a spokesperson for Apacs, said there were a number of problems in tackling CNP fraud.

"Firstly, you aren't able to check the card's physical security measures, such as the hologram or signature.  "Then, at present, there is no form of chip and pin security.  "And finally, because of the anonymous nature of internet transactions, there fraudsters have a much lower chance of getting caught, which probably encourages some people who might otherwise not commit a crime," she said.

Visa say the new Emue system could help combat this by adding an additional layer of security. While the three-figure security code would remain, an additional four figure code - generated by the card - would also be required before a transaction could go through.

Backwards compatible

Sandra Alzetta, head of innovation at Visa, said that the card was bringing the principles of chip and pin technology to the online world.  "The card needs to be globally compatible: that means 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.

Continue Reading

Emue Card