
12-05-2008, 10:50 AM
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Senior Member
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Join Date: Nov 2008
Posts: 137
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Credit Card with One-Time Password Generator
This is a nifty little device: a credit card with an onboard one-time password generator. The idea is that the user enters his PIN every time he makes an online purchase, and enters the one-time code on the screen into the webform. The article doesn't say if the code is time-based or just sequence-based, but in either case the credit card company will be able to verify it remotely.
The idea is that this cuts down on card-not-present credit card fraud.
The efficacy of this countermeasure depends a lot on how much these new credit cards cost versus the amount of this type of fraud that happens, but in general it seems like a really good idea. Certainly better than that three-digit code printed on the back of cards these days.
According to the article, Visa will be testing this card in 2009 in the UK.
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