Gemalto Launches Dynamic CVV/CVC Solution with BBVA Bancomer

Nov. 30, 2015

Gemalto Launches Dynamic CVV/CVC Solution with BBVA Bancomer Dutch digital security firm Gemalto, which unveiled in October a dynamic CVV/CVC solution to combat card-not-present fraud, on Thursday announced the first issuer to roll the solution out. Mexican financial institution BBVA Bancomer will make Dynamic Code Verification from Gemalto available in its mobile wallet. The solution generates a new CVV/CVC code intermittently on the user’s phone, which the issuer can validate when retailers ask for that verification type during an online or other card-not-present transaction.

“This doesn’t change the acceptance process for merchants in any way,” Philippe Benitez, vice president of marketing for mobile payments at Gemalto, told during a recent interview. “What it does require is for the bank to be able to authorize the CVV, which changes. It uses the existing payment rails and everything else stays the same.”

Benitez acknowledged that Gemalto’s dynamic CVV card would introduce additional costs for banks that wanted to issue the display card version of Dynamic Code Verification (actual physical cards with a CVV/CVC display on the back allowing for changing codes) but not as much for the mobile version, which generates the codes and sends them to the user’s smartphone. Benitez sees many issuers, like BBVA Bancomer, going with the mobile version, but said issuers might target certain portfolios of their users with the physical card version (e.g., high-volume, high-spending e-commerce users).