Following a string of bank pilots, Visa Europe has commercially launched its CodeSure system, which comprises a card with a display for generating one-time codes to authenticate online transactions.
The Visa card features an alpha-numeric display and a 12-button keypad built into the back of a conventional credit, debit or prepaid card. The card, developed using technology from Australia-based Emue technologies, promises a three-year battery life, overcoming a potential stumbling block to such schemes in the past.
To validate a transaction when shopping on the Web or logging in to an online banking service, the cardholder activates the authentication process by pressing the "Verified by Visa" option button on the card's keypad.
When prompted, they then enter their PIN into the keypad embedded in the card which prompts a unique one-time-passcode to appears on the display, which is then used to authenticate the transaction.
Since 2009 eight banks in countries throughout Europe, including the UK, Italy, and Germany, have piloted the system, with 86% of participants reassured about security. Most cardholders - 70% - also say they would use their cards for card-not-present transactions more often.
Sandra Alzetta, head, innovation, Visa Europe, says: "The banks and their cardholder trials have shown an appetite for innovation and the broadening of a payment card's use. This exclusive Visa solution is an extremely convenient way to bring a similar level of security to payments online as we now enjoy on the high street with chip and PIN."
Visa Europe has approved the technology for PIN generated one-time-passcodes for Verified by Visa payments at participating merchants globally, PIN-generated one-time passcode for online and telephone banking access, transaction signing for online e-banking services and access to third party services such as corporate virtual private networks.