Report: Consumers Prefer Dynamic CVV

March 17, 2016

Report: Consumers Prefer Dynamic CVV Given the choice, 80 percent of U.S. consumers would prefer to use a credit card with a dynamic CVV when shopping online, according to the results of a new survey. Cards with a CVV code display that randomly changes could provide an answer to merchants looking for ways to ensure that customers on their Websites are who they say they are—without putting extra friction into the checkout process.

Many sites already ask shoppers for the CVV code during online transactions or over the phone. Oberthur Technologies, which sponsored the research, offers a card with a small screen on which a different CVV number appears every hour. If a thief is using credit card information stolen from a data intrusion and the online merchant asks for the CVV, it likely would have changed by the time the fraud attempt is made and the transaction would be declined.

According to Oberthur, an overwhelming majority of survey respondents called the cards “an efficient answer to online fraud issues” (88 percent), “easy to use” (88 percent) and “innovative” (90 percent). The technology is an intuitive solution to a growing problem and addresses merchant concerns that some authentication technology negatively affects conversion rates. The problem? The cost to issuers. Cards with displays that enable a dynamic CVV code reportedly are 10 times more expensive than chip cards and 50 times more expensive than magstripe cards. Martin Ferenczi, Oberthur’s president for North America, told the company has “received significant interest from issuing banks” despite the relative expense.

“And, while OT is unable to say who would bear the cost,” Ferenczi said, he reiterated that the a significant majority of consumers (80 percent) in the survey stated they would be more likely to use a card with dynamic CVV vs. a static CVV.