One-Time Code Cardholder Verification Method in Electronic Funds Transfer Transactions

Abstract

Card payments are getting more and more popular across the world. The dominantstandard used for Electronic Funds Transfer transaction is EMV. It is widely used across Europeand Canada, and currently it is being introduced in the USA. The most frequently used CardholderVerification Method in EMV transaction is PIN, which requires from the payment terminal to beequipped with pinpad - which increases the cost of the whole payment device. In this article I presentan alternative Cardholder Verification Method (CVM) that can be used instead of traditional PIN.The key advantage of the presented mechanism is that it can be easily implemented in currentlyutilized authorization protocols, it does not affect rules of EMV specification and may decrease timeof transaction processing.