January 30, 2006, 12:00 AM

Visa’s dynamic pass code display card targets online fraud

Visa International is helping to develop a card designed to prevent online fraud by generating a one-time use dynamic pass code that authenticates a cardholder at the time of purchase.

Kurt Peters

Executive Editor

Visa International is helping to develop a card designed to prevent online fraud by generating a one-time-use dynamic passcode that authenticates a cardholder at the time of purchase. Visa is working with vendors Innovative Card Technologies and nCryptone, which will sell the cards directly to banks, says Debbie Arnold, vice president of product and market integration, Visa International. Visa has a marketing alliance with the vendors.

The so-called dynamic pass code display card contains a battery, a circuit board, and a button to activate the display. The cardholder presses the button to generate a unique numeric code which the cardholder then types in to complete an online purchase.

The code is based on OATH, an industry standard algorithm for one-time passwords, says Doug Fisher, product director of e-commerce for Visa International. The new technology is complementary to the Verified-by-Visa cardholder authentication program. Merchants that have already signed up for Verified by Visa won’t require additional software to accept the passcode, he says.

Non- Verified by Visa merchants also could use the technology but would have to work directly with the card-issuing bank.

The dynamic display card has the same dimensions and features of regular Visa cards and can be used at ATMs and in stores.

Visa hopes to begin pilots of the program in various regional markets after the first quarter, Arnold says.

Visa executive Gerry Sweeney will speak at the Internet Retailer Conference & Exhibition June 5-7 in Chicago in a session entitled Getting the Nervous Nellies to Buy Online http://www.internetretailer.com/IR2006/Sessions/session16.asp

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