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Australian firm 'helping Visa develop next generation of credit cards'

Australian firm 'helping Visa develop next generation of credit cards'

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Date Published : Monday, June 23, 2008

Credit card provider Visa is reportedly working in partnership with an Australian technology firm to develop a new line of credit cards armed with microprocessors that will give each transaction a unique identification number.

Heise Online reports that the Visa cards are being designed by Sydney-based payment authentication specialist Emue Technologies.

In addition to a microprocessor for generating each transaction number, or Tan, the cards will also have a display and onboard keypad, the site says.

When a consumer uses the card for a payment, they enter their personal identification number - or Pin - and receive a Tan up to eight-digits in length. This is then used to confirm individual payments.

The site says the technology will be "particularly useful" for credit card holders making "card not present" transactions, such as online purchases or telephone orders.

It will also be used to tackle fraud by confirming the identity of telephone banking staff. When someone purporting to be from a bank telephones a consumer, they will have to give a code that the customer enters on the card in order to check they are genuine.

Visa said the card, which according to Emue's promotional material will be approximately the same size as a standard credit card, represents a "milestone in fraud prevention".

The Sydney Morning Herald recently reported that although Australia has low overall levels of payment scams, around 70 per cent of new credit card fraud is linked to "card not present" transactions.

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