After undergoing several consumer pilots and tests with European banks, Visa Europe’s new CodeSure payment card is now available for commercial launch. The card provides cardholders additional security when making online purchases by generating single-use numeric codes.

Visa Europe and its partner, Australia-based Emue Technologies Pty Ltd., developed the card, which is the same size as a traditional payment card, as a way to significantly reduce card-not-present fraud. The card has an integrated 12-button keypad, alphanumeric digital display and an embedded battery.

When making a purchase online or logging in to an online banking service, a consumer can activate the authentication process by pressing the appropriate button on the card’s keypad. When prompted by the card, the cardholder then inputs his standard card PIN into the embedded keypad. A unique, one-time-use code appears on the card’s display panel. The consumer enters the code online at the point-of-sale to authenticate the transaction.

Generating a one-time-use code will make it significantly more difficult for criminals to commit card-not-present fraud by “adding an extra layer of security for online and telephone orders because the code will be useless to criminals,” a Visa Europe spokesperson tells PaymentsSource. Moreover, if the card is lost or stolen, a criminal will be unable to use the card for online purchases without the PIN, the spokesperson notes.

Additionally, CodeSure provides consumers multi-channel authentication technology in a one card.

When consumers access their bank online, the institution will provide them a number, the spokesperson says. They then enter the number into the CodeSure card to confirm it is a request from the consumer’s bank. After the cardholder enters the number and Visa verifies it, the CodeSure card then prompts cardholders to enter their PIN into the keypad. In doing so, both the bank and the cardholder are reassured of their legitimacy, the spokesperson notes.

Moreover, cardholders may use the card to create a PIN-generated one-time password for Verified by Visa payments at participating merchants, and cardholders may use Visa CodeSure to access third-party services, including virtual private networks for commercial card users and frequent flyer miles. Verified by Visa is an online card-security protocol in which cardholders provide a personal password when paying for purchases online.

CodeSure and other, similar cards available help reassure consumers that their transactions are secure, especially when making online purchases, Megan Bramlette, managing associate at Auriemma Consulting Group of Westbury, N.Y., tells PaymentsSource. Generally, “if there is any sort of concern about how secure their information is, consumers become uncomfortable,” she says.

The issue with cards such as CodeSure, however, is that not all consumers will actively pursue them, Bramlette surmises. The concept of more security in a card “will certainly resonate” with consumers, but it will not become high in demand overnight, she adds.

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