(This article contains some corrected information.)

Giesecke & Devrient GmbH has developed two cards that generate one-time passcodes to provide consumers with more security for online banking and e-commerce, the Germany-based technology provider announced in late November.

Giesecke & Devrient’s GDC4004 and GDC5120 cards are standalone products financial institutions would issue, a Giesecke & Devrient spokesperson tells PaymentsSouce.

The company plans to use the technology to target the consumer-authentication, online banking and e-commerce markets. Giesecke & Devrient says it has struck deals with card issuers but declines to name the organizations.

The cards include a thin battery, a display element, a display controller chip and a thin push button, the spokesperson says.

The GDC4004 only provides single-use passcodes, while the GDC5120 also functions as a magnetic stripe payment card for in-store purchases and may replace a consumer’s existing credit or debit card, the spokesperson says.

Each card is designed to last about three years and may generate up to 10,000 one-time passcodes, the spokesperson notes. Financial institutions pay a fee to purchase the cards. The spokesperson did not disclose the purchase price.

To generate the one-time passcodes, consumers press a touch-sensitive area on the card’s surface. The password appears on the display screen, and consumers enter it into the online form along with their normal login name and password, the spokesperson explains.

The cards help to reduce fraud because “relying on a straight username and password often is insecure,” Julie Conroy McNelley, a senior analyst with Boston-based Aite Group LLC, tells PaymentsSource.

Though not yet widely available in the United States, such cards are relatively common in Europe, especially in countries that have embraced enhanced card security, McNelley adds.

Visa Inc. in June launched a similar product called CodeSure to help combat card-not-present fraud. The card provides cardholders additional security when making online purchases by generating single-use numeric codes (see story). 

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