Question Question about bank credit card "motion code" technology

[wpshooter]

Can anyone tell me if banks (and other financial institutions) decide to adapt credit card motion code technology then would not the fact that the changing of the credit cards CVV codes would require almost constant communications with servers which would either generate, and record and authenticate the changing CVV codes, what would happen in cases where the servers could not for whatever reason communicate with the credit card ? Would that not throw a pretty big monkey wrench into this process ?

Thanks.

 

[mxnerd]

Enable Generation of Dynamic CVV2 Codes

You will receive the codes on your mobile device from card issuer before transactions.

Visa dCVV2 Generate

 

[wpshooter]

That might be fine, however, remember not everyone in this world has or uses a "mobile device". And also, according to my understanding, these regenerated codes could be done on time periods of as little as every few hours (or perhaps even more often than that), so if the card and the authenticating server were not able to be in almost continuous and uninterrupted communications how could this work effectively ?

 

[mxnerd]

Consumer should be able to choose whether he/she want a credit card with dynamic CVV capability.

Don't think card issuer will force the consumer to use the new technology.

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Statistics Archives | CreditCards.com

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www.creditcards.com

MOTION CODE – dynamic cryptogram card | IDEMIA

This payment card on which the security code on the back of the card has been replaced by a mini-screen renders copying of card information useless.

www.idemia.com

I don't know how it really works. But my guess is that the battery powered chip with e-ink display on the credit card will run the same algorithm which card issuer also run on the back every hour and will have the same code.

It only checks whether the codes are the same when the transaction happens. There is no way the card will maintain a wi-fi or wireless connection to the sever all the time.

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My guess was right!

 

[wpshooter]

Back to this topic:

What I am discovering about this motion code technology is that apparently banks are resistant to adopting it.

My question is why ? Is it just purely a matter of cost ? And if that is the case have they did any type of study to compare the cost of adapting this technology to the cost that they (but actually the entirety of the buying/purchasing public) are paying every year in monies lost to various credit card thefts, i.e. they/we will just thrown up our hands and called that a cost of living.

 

[akugami]

Cost of equipment, and logistics of replacing said equipment. It's not just the various credit card terminals themselves, but it also involves integration from various software providers. You'd be surprised how antiquated the back-ends for banks are. Some of underpinnings of the software many financial institutions are running on are ancient. Then you have the various merchants themselves who may need to suport the technology, and they will not want to shell out $300+ for updated hardware, and that's assuming there isn't also a software update cost.

Just look at the switch to EMV. That was a nightmare. Businesses were still using old school swipers 5 years after the "hard deadline" to adopt EMV equipment.

 

[Fallen Kell]

I also think one of the other barriers to using this is the "hassle" factor. Credit card companies have been advertising for years on hassle free, quick, fast, easy, payments, just "tap" the card, pay and go, instead of inserting into the machine or swiping, etc., etc....

Now they are saying that for an online purchase you will need to first access the bank system to request a key for use of a purchase, receive the key, and enter it on the vendor's site, all within a certain timeframe, and you are just looking for problems. It would almost be easier to just have a pre-authorize system for all purchases, wherein you simply tell the bank you are about to make a payment to company X using your card, otherwise the transaction fails...

If they want to really move to a single use/changing CCV system, it needs to be built into the card, similar to RSA SecurID tokens with a small LCD screen changing the token on an algorithm tied to a seed for the card. And have the user of the card also need to input a pin that they have set so it is pin+token value (or some kind of combo like that) to prevent the loss/theft of the card from allowing it to be used directly (since the thief would not know the hidden pin).

 

[wpshooter]

Dear Fallen:

Your 3rd paragraph pretty well describes what motion code credit card is all about. Tiny display screen on the card, algorithm use to come up with matching CCV by the card and the bank/CC issuer. Exactly, as you say (since the thief would not likely know the changing pin).

Some of my research says that this technology is already in use in some European countries. Leave it to the US to always be behind the curve !!! My thought is that the sellers in this country are just satisfied to pass all of the lost collections on "stolen merchandise" to everyone else in the country.