MasterCard Canada details plans for on-board security chip

It seems that plans I reported on last month to add an onboard chip and basic keypad to credit/debit cards are marching onwards, as MasterCard Canada has started talking about the technology.

As I reported last month, the gameplan is for credit and debit cards to be capable of generating a one-time TAN (transaction authentication number) for cardholder-not-present transactions.

MasterCard Canada's CEO Oliver Manahan is quoted by the UPI Newswire as confirming the chips will generate a PIN to authorise purchases made online.

"We know fraud is like a balloon, you squeeze in one place and it bulges in another," he told reporters.

Manahan said that, in addition to the chip-impregnated cards, a new computer reader will be introduced that can enhance security for any online transactions.

This will, he said, allow the one-time TANs to be used for online purchases on those Web sites which don't have a TAN capability - a bit like the SecureCode (aka 3D Secure) system seen on MasterCard/Maestro online transactions...