Wednesday, March 16, 2011

Visa Pushes for Dynamic Authentication

The Answer to Card Fraud?

Visa recently announced the launch of its Technology Innovation Program, designed to eliminate eligible merchants from the annual requirement to validate their compliance with the Payment Card Industry Data Security Standard. The program, which takes effect March 31, aims to fuel dynamic data authentication through the continued deployment of EMV chip terminals in all parts of the world except the U.S.

What is 'Dynamic Authentication'?

The concept of dynamic authentication is intended to promote the use of a dynamic variable that will be included as part of each transaction that flows through the payment system. And the notion is that if there is a dynamic variable that accompanies that transaction that changes with every transaction, then that information cannot be used in the future to replay a transaction for fraudulent purposes. So, the notion of dynamic data is very powerful in that, again, each transaction would be unique. EMV chip, in particular, promotes the transmission of dynamic data by generating a cryptographic message that accompanies the transaction, and thereby makes that transaction dynamic.

Refer here or here to read more details on this initiative.

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