Community

CVC2/CVV2: Do you really know all what they are used for?
Ping me if I missed one.

Thank you Mark. 

Thank for your input Mark. 

Dynamic CSC provides protection right at the card level. The solutions you mentioned operate as a second line of defense as they do not prevent theft of information present on the physical card or stored (such as the recent Ticketmaster database breach), which can be used subsequently by fraudsters. Not to mention that SCA itself brings a whole different set of issues, just look at the numerous reports linking SCA with low authentication success rates, cart abandonments, etc. 

Most Neobanks issue debit cards only, that have very low interchange rates. Any fraud that occurs requires a lot more transactions to recover the total cost of the fraud that include the fraud management costs.

For cardholders, the impact and experience are terrible as funds leave their account right away. It’s already expensive for banks to acquire new clients, challenging to keep an account active, so you can imagine the titanic effort that is necessary to retain them following a fraud. The stakes are much higher for Neobanks, which makes it essential to provide security at every layer. 

In addition of the security, DCSC card bring a WOW effect, top of wallet and a great marketing tool.  

BTW would you mind sharing the source of the fraud rates that you made reference to. 

Thank you Nahum for your insights. 

It’s true that Neobanks must face the reality of the banking business however, they should still continue to bring innovative features and value for which their clients will be willing to pay. (like Dynamic Security Code Cards...)