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Table of Contents

Lead Story

Making hay of new IRS reporting requirements

Adam Atlas
Attorney at Law

News

Industry Update

TCF Bank lawsuit challenges Durbin Amendment

Reaching out to medical marijuana dispensaries

Mercator explains growth in micropayments, virtual purchasing

New MasterCard credit card generates passwords

Trade Association News

Features

Research Rundown

Selling Prepaid

Prepaid in brief

Open-loop prepaid part of CTA's new fare system

Prepaid's emergence in India

Views

Challenges to Dodd-Frank, Durbin heat up

Mark Brady and Ross Federgreen
CSRSI, The Payment Advisors

It's the economy, again

Brandes Elitch
CrossCheck Inc.

Education

Street SmartsSM:
What the feet on the street need from acquirers

Ken Musante
Eureka Payments LLC

Content marketing delivers by engaging prospects

Peggy Bekavac Olson
Strategic Marketing

Going beyond PCI

Tim Cranny
Panoptic Security Inc.

Where is our industry heading?

Jeffrey Shavitz
Charge Card Systems Inc.

Become a payment superhero

Jeff Fortney
Clearent LLC

What PCI DSS 2.0 means for financial institutions

Gary Palgon
nuBridges Inc.

Company Profile

Global Electronic Technology Inc.

New Products

Encrypting, entertaining self-service terminal

KST9000
Key Innovations Ltd.

Inspiration

The pursuit of happiness

Departments

Forum

Resource Guide

Datebook

A Bigger Thing

The Green Sheet Online Edition

November 08, 2010  •  Issue 10:11:01

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New MasterCard credit card generates passwords

MasterCard Worldwide recently introduced a chip-embedded card in Taiwan that functions as both a regular credit card and an authenticator for online banking money transfers.

The SinoPac Display Card functions the same way a normal credit card does, except a chip embedded in the upper right hand corner generates one-time-use authentication passwords. The card contains a button to push to generate the six-digit display.

Online banking customers who use the card will enter their account credentials to execute transfers, but once that information is validated, consumers will be prompted to also enter their one-time passcode. Then, consumers will push the display card button to generate a new, six-digit number and subsequently enter that to finalize the transaction.

The bank's back-end network is able to validate a consumer's entry because it knows what number a specific card will generate within a given period, according to Randy Vanderhoof, Executive Director of the Smart Card Alliance.

"This is addressing the risk of people having their accounts taken over and funds being moved out without their approval," Vanderhoof said.

"It's a much higher level of security because the password's only good for a limited amount of time, and the user has to have possession of the card along with other credentials at the same time."

Bank of America Corp. unveiled a product last year, called SafePass, which also uses a card-embedded, chip-generated password to authenticate online banking activity. But SafePass is a standalone product, while SinoPac Display Card functions as both an online banking authenticator and a credit card.

Additionally, MasterCard said its card display service is faster than authentication services that send text messages to users' mobile phones to verify money transfers and other transactions.

Other uses for display cards?

Vanderhoof said some companies are considering the use of digital chips on prepaid cards as a way to show a user's real-time balance by generating a new number with each purchase or add-on.

He also said the technology might eventually be used with a PIN code that consumers would enter to unlock a card for purchasing, although that would require that a small keypad be embedded in the card along with the digital reader.

"This is just another way of using chip technology to build additional security functionality in the payment card," Vanderhoof said. "This along with EMV along with contactless are all steps in, how do you make that payment vehicle and that identity card more secure? All of it is helping move the industry off the dumb, mag stripe, flat form to something that's more secure, more intelligent and offers more services," he said.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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