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An article relating to this blog post on Finextra:

Visa and Emue Technologies deploy cards with built-in one-time password generator

The Visa Card with one-time code, being offered to issuing banks by Visa Europe and Emue Technologies, is an innovative new way of securing online payment and banking transactions - and building consu...

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Visa and Emue CARD OTP Combo - an innovation showcase


OTPs are of course better than static pin-codes. A move to require OTPs instead of the static pin-code will surely help eradicate card-present fraud.

Can such a card even be inserted into any chip and pin terminal? If so, I just can't imagine how I can use this card combo to: generate an OTP, try to remember the OTP, insert it into an ATM machine, then cancel the transaction just because I can't remember the OTP...  

I must admit that it does look nice. But other than that, I can think of many other reasons why a separate OTP device would make more sense.



Comments: (3)

A Finextra member
A Finextra member 02 March, 2009, 11:17Be the first to give this comment the thumbs up 0 likes


The OTP generated by the card is not the same as the PIN, and it does not serve the same function.  In a CNP environment, the OTP is used to verify that the remote purchaser is the legitimate cardholder; it is one step more secure (allegedly) than simple VbV or SecureCode pre-set passcodes, and relies on the successful result of a PIN challenge generated by the card.  The OTP is then used in place of the static passcode.

Now, what would happen in a normal retail environment, or at an ATM?

I would have to ask the card to generate a OTP, which I hope is within the "magic number 7, plus or minus 3" capabilities of my short-term memory.  The card would then ask me to authenticate myself - and I do so by keying in my PIN - which is the only way the card can tell if it is indeed me!

Ooops!  Back where we started.

[Magic Number - George A Miller - 1956]


Joe Pitcher
Joe Pitcher - Irrelevant - Wirral 02 March, 2009, 11:34Be the first to give this comment the thumbs up 0 likes


The current implementation is to use OTP for Internet/MOTO transactions only, not at ATM's. 

As such I agree that the benefit of having the ability to generate the OTP on the card is not great, a separate reader is more attractive when you consider the costs.  

A Finextra member
A Finextra member 02 March, 2009, 13:47Be the first to give this comment the thumbs up 0 likes

Yes, OTPs for card-not-present 'seems' to be a given and thus I intentionally focused on card-present fraud.

But although OTPs' lack of 'replayability' makes them a better authentication factor than let's say a pin-code, password or even biometrics, they are, however also not immune to man-in-the-middle attacks. So, let's also not get carried away with OTPs.

How difficult would it be to prop a legit-looking online merchant site (even mimicking a popular merchant site) and redirect unsuspecting Consumers to this website? Card details, even verified by visa passwords, MC's UCAF/SPA and yes, also OTPs can be intercepted and replayed by the fraudster with real legitimate online merchants.

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