One-Time Code Cardholder Veri cation Method in Electronic Funds Transfer Transactions

Card payments are getting more and more popular across the world. The dominant standard used for Electronic Funds Transfer transaction is EMV. It is widely used across Europe and Canada, and currently it is being introduced in the USA. The most frequently used Cardholder Veri cation Method in EMV transaction is PIN, which requires from the payment terminal to be equipped with pinpad which increases the cost of the whole payment device. In this article I present an alternative Cardholder Veri cation 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 currently utilized authorization protocols, it does not a ect rules of EMV speci cation and may decrease time of transaction processing.