Dynamic CVV Cards Could Fight Fraud

Headlines about data breaches and how it affects merchants and consumers are a common theme these days. Payment flaws have allowed fraudsters to hack systems and steal sensitive information affecting everyone including major retailers, SMBs and consumers.

But there may be some hope in fighting against data breaches and making shopping more secure via credit and debit cards with a new, dynamic card-verification value (CVV). And with fraudsters recently shifting their focus to card-not-present environments like eCommerce, this new type of CVV code could make a difference in the fight against data breaches.

Greater Online Security with Dynamic CVV

Worldpay Inc., a Cincinnati-based payment processor and technology provider, decided that it was time to start focusing on security for credit and debit cards so that card issuers are more protected from these data breaches.

According to Digital Transactions, Worldpay is currently testing their solution – Motion Code-enabled credit and debit cards that use a dynamic CVV code. They are piloting the solution with two undisclosed credit unions and a bank before it becomes available to the public, which is expected by the end of 2018.

What is a Motion Code-Enabled Card?

Idemia a smart-card making company, developed Motion Code technology that replaces the static printed CVV code on the back of a credit or debit card. The frequency of the new dynamic CVV code changes based on each card issuer’s specification. A dynamic CVV code means a criminal may obtain the card number but will be unable to verify the CVV because it will have changed. And this will help stop fraud.

The new cards will contain:

• An electronic ink display on the back instead of the static CVV code which will always be visible, and a cardholder won’t have to press a button to activate it.
• The conventional EMV and contactless features that credit and debit cards currently have today.

Motion Code-enabled cards range from $15 and $17 – which is not cheap compared to your typical $2 EMV card. However, the dynamic CVV codes will hopefully prevent card issuers from having a data breach and help them produce a return on investment.

How Does a Motion Code-Enabled Card Transaction Work?

A transaction will work like any other transaction for both the cardholder and the merchant. Merchant integration isn’t needed. However, the process changes on the backend after the data flows to the card issuer for authorization. The card issuer will check the CVV code against a Worldpay server to ensure its validity, and then the card issuer will make the ultimate decision about the authorization.

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