InComm, an Atlanta-based company that sells prepaid cards through third parties like supermarkets, pharmacies and convenience stores, has partnered with Florida-based startup Tender Armor to reduce fraud for consumers who use reloadable prepaid cards in card-not-present environments. The pilot program, starting in early 2017, will offer select InComm cardholders a version of their cards that include Tender Armor’s CVV+ dynamic CVV solution.
Dynamic CVV is not new, but the idea has usually been executed using a display window on a physical card. The cards are expensive and have not seen much adoption by issuers. Tender Armor is leveraging the mobile device so that users who sign up for the service can receive a text or email with a unique CVV code when a card-not-present merchant requires the information. The CVV associated with a specific card changes each day.
“Our mission is to alleviate consumer worry about fraud and the associated hassles of fixing the problem or waiting for a replacement card,” said Madeline Aufseeser, CEO of Tender Armor. “Card issuers and banks risk losing consumer trust, accounts, brand equity and market share every time one of their payment cards is compromised. CVV+ reduces that risk while also reducing the chance of embarrassing mistaken card declines—an advent of fraud detection systems—through empowering cardholders across any payment method.”