Online, phone, and mail order transactions
While EMV technology has helped reduce crime at the tills, fraudulent transactions have shifted to more vulnerable telephone, internet, and mail order transactions €known in the industry as card-not-present or CNP transactions. as of May 2009 CNP transactions made up more than 50% of all credit card fraud. Because of physical distance, it is not possible for the merchant to present a keypad to the customer in these cases, so alternatives have been devised, including:
- Software solutions for online transactions that involve interaction with the card-issuing bank or network's web site, such as Verified by Visa and MasterCard Secure Code (implementations of Visa's 3-D Secure protocol).
- Additional hardware with keypad and screen that can produce a one-time password, such as the Chip Authentication Program.
- Keypad and screen integrated into the card to produce a one-time password. Since 2008, VISA has been running pilot projects using the Emue card, where the generated number replaces the code printed on the back of standard cards.