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As a method of battling online fraud and other unauthorized card-not-present transactions, PNC Bank is testing credit cards with e-ink displays that generate new card verification values (CCVs) at regular intervals throughout the day. The dynamic CCVs should prevent thieves from using credit card information that was stolen online, but there are at least two downsides, which include limited lifespan (the cards require lithium batteries) and significantly higher pricing (a regular chip card costs $2 to $4; these cost $15).
In PNC’s case, the motion-code application is hosted on a Visa server synchronized with the dynamic CVV cards. During the authorization process, the server is able to verify the correct CVV code because it knows the algorithm used to produce the numbers. PNC and other card issuers can set the cards to refresh at custom intervals -- every 30 or 60-minutes, for example. “We picked a particular interval, but can’t disclose it,” Mr. Ward said.
In PNC’s case, the motion-code application is hosted on a Visa server synchronized with the dynamic CVV cards. During the authorization process, the server is able to verify the correct CVV code because it knows the algorithm used to produce the numbers. PNC and other card issuers can set the cards to refresh at custom intervals -- every 30 or 60-minutes, for example. “We picked a particular interval, but can’t disclose it,” Mr. Ward said.