What is the Future of Credit Card Security?
New credit cards with a microchip and screen — powered by a lithium-ion battery — may be the solution to credit card theft worldwide.
With continuously evolving technology, and a never-ending supply of ideas and innovation from tech companies around the globe, it’s not surprising that there are frequent updates to one piece of tech almost everyone has: a credit card. With fraudulent activity and theft as a constant worry, many people are concerned with making their credit cards safer than ever. Considering recent large-scale hacks at many retailers — most notably Target — consumers are worried that their information is at risk.
Although there are many potential solutions out there, a few companies have come up with some revolutionary ideas that would keep your information safe. These solutions will help to protect you against the credit card fraud and Internet identity theft that so many people have already experienced.
Read more: Google Fixes Two Major Security Problems
New Credit Card Technology
French company Oberthur has released a new credit card model that, if approved by major banking chains, could be in consumers’ pockets as soon as this year. This new card, which features a mini screen on the back of the card, would update the CVV — or credit verification value — number once per hour. The screen, which is powered by a battery similar to those in cell phones, would last about three years.
Because of the changing code, the card would not work for anyone except the owner. Once the number changes, it renders the rest of the card’s information useless. This would eliminate theft that comes from someone writing down or scanning credit card information.
Aside from easier theft prevention, an advantage for retailers is that this new credit card would use the hardware already in place in stores. They wouldn’t need to replace everything, as they had to do for the new chip cards. Stores could use their usual scanners that function with a traditional credit card or contact pay systems, like Android Pay.
Although the US is currently in the process of a widespread adoption of the credit card chip system used throughout Europe, this digitally updated card would prevent theft at an even higher level. While the new chip system helps to prevent in-person theft, people are still equally at risk when shopping online or being targeted by computer hackers.
A Higher Price Tag
One barrier for widespread adoption of this new high tech credit card, however, is its higher cost (in comparison to regular cards). The estimated price currently falls between $10 and $20 each. Even though this technology would improve safety for customers worldwide, the cost of the technology might lead US banks to delay in acquiring and distributing this technology. It remains to be seen if the US will adopt this new technology, despite the higher cost.