A credit card with an embedded keypad, display and microprocessor is being tested by Visa with the aim of reducing online fraud. The Emue Card generates and displays a unique code each time it is used as is designed to be used for authenticating web and telephone based transactions.
We've all got used to chip and pin cards and they have done quite a lot to combat card fraud, but what they haven't dealt with is what's called 'card not present' (CNP) fraud where someone gets hold of your details and then simply types in your numbers - including the three figure number on the back of the card - into an online shopping site and off they go.
According to figures from the Association for Payment Clearing Services (Apacs) - the industry body for banks, building societies, and credit card
firms - CNP fraud accounted for more than £328.4 million in 2008, a rise of 13% from the previous year.
The Emue Card has been developed to combat CNP fraud. In effect there is a little computer built into the card. The customer types in their PIN number and it generates a string of numbers which the customer enters into a box on the online shopping site to authenticate the transaction.
Sandra Alzetta, head of innovation at Visa, said that the card was bringing the principles of chip and pin technology to the online world.
"The card needs to be globally compatible: that means embossed characters for mechanical swipes, a magnetic strip for systems that require a signature, the fixed three digit security code and now the unique four figure code.
"You have to remember that our cards work across the world and not every country or retailer has access to the level of technology we might be used
to," she said.
Ms Alzetta said she hoped field trials would be completed by the end of the year.
The following video demonstrates the user experience of generating a unique code for each online payment