This new 'smart' card may help fight fraud

Oberthur Technologies launches Motion Code credit card

 

Oberthur Technologies launches Motion Code credit card

The editorial content below is based solely on the objective assessment of our writers and is not driven by advertising dollars. However, we do receive compensation when you click on links to products from our partners. Learn more about our advertising policy

In an attempt to decrease the rate of card-not-present (CNP) fraud, French digital security company Oberthur Technologies recently introduced Motion Code, a credit card that randomly generates a new card verification value (CVV) every hour.

Several efforts have been made in recent years to combat card-present fraud (unauthorized transactions made in a face-to-face setting), such as the introduction of EMV technology. However, with the continued rise of ecommerce around the globe, there is an increased need to provide better security for transactions where a merchant cannot physically verify a credit card. According to Oberthur Technologies, card-not-present transactions, such as purchases made online or over the phone, represent 65 percent of total card fraud.

Motion Code technology aims to curb the growing CNP fraud problem by replacing the static CVV on a card with a dynamic version. A CVV is a three- or four-digit number that helps verify the legitimacy of a credit card for CNP transactions. Depending on the card type, the CVV can appear on the front or back of the credit card, and may also be referred to as a card security code (CSC), card verification code (CVC), card code verification (CCV) or security panel code (SPC).

In contrast to a card with a static CVV, the Motion Code card features a mini-screen on the back that displays the CVV and automatically refreshes it every hour. This adds an extra layer of security for the cardholder in the event that a computer hacker retrieves an online shopper’s credit card information and attempts to sell it on the dark web, or a thief steals an individual’s card number from a receipt in the trash. Without the most up-to-date CVV, the card becomes useless to the thief.

Shopping as usual

Powered by a thin lithium battery designed to last for three years, the Motion Code credit card provides a fully transparent experience for both the cardholder and the e-merchant. With no special plug-in to install on a browser and no button to press, a cardholder can continue to shop online as he or she would with a traditional credit card. Additionally, the e-merchant is not required to modify its website to include extra buttons or pop-up windows of any kind.

 

 

While Motion Code offers transparency and convenience, it also has its drawbacks. The card’s technology can only protect the user from phishing and cloning – not from physical card theft. Also, when shopping online, the cardholder must enter the randomly-generated CVV each time he or she makes an online purchase.

The Motion Code card is currently being tested in two financial institutions in France, as well as a bank in Poland. Oberthur Technologies expects to have the card in the hands of consumers in France by the end of this year.


Join the discussion
We encourage an active and insightful conversation among our users. Please help us keep our community civil and respectful. For your safety, do not disclose confidential or personal information such as bank account numbers or social security numbers. Anything you post may be disclosed, published, transmitted or reused.

If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.

The editorial content on CreditCards.com is not sponsored by any bank or credit card issuer. The journalists in the editorial department are separate from the company's business operations. The comments posted below are not provided, reviewed or approved by any company mentioned in our editorial content. Additionally, any companies mentioned in the content do not assume responsibility to ensure that all posts and/or questions are answered.




Weekly newsletter
Get the latest news, advice, articles and tips delivered to your inbox. It's FREE.


Updated: 11-24-2017