Visa improves online security with Codesure

Visa’s latest weapon in the battle against online fraud is ready for banks to roll out to their customers.

The Visa Codesure system comprises a normal Chip and Pin bank card, which also generates one-off passcodes each time a person shops or banks online; doing away with the need for a separate smartcard reader.

Visa said the system makes it harder for criminals to authenticate a transaction or transfer money out of an account; even if they have discovered a person’s other online banking or card details.

The cards, which are used in the same way as normal Chip and Pin cards at ATMs and shopping offline, have an embedded 12-button keypad and battery.

When a person is shopping online, if the retailer is signed up to the Verified by Visa password identity check, instead of entering a password online, the user presses the Verified by Visa option on the card’s keypad.

When prompted they input their normal Pin using the card’s keypad. Then a unique one-time passcode appears in the card’s display and is input online to verify the transaction.

When people are accessing their online bank, Visa Codesure works in a similar way to a card reader. The card holder is provided with a number from the bank and enters this into the card.

When the bank verifies this number, the card holder is prompted to enter their normal Pin into the card. This creates a unique passcode for access to the online banking.

Visa said reaction from customers who have tested the cards has been positive; with nearly nine in 10 feeling happy about the level of security the cards give them.

Visa is now in discussions with banks about using the cards. Although it could not give a timeline it is hoped that some banks will roll them out by the end of the year.