Tender Armor Adding New Layer of Security to Credit Card Transactions
The startup's CvvPlus fraud prevention technology provides another layer of authentication via a randomly generated CVV number sent to the credit card holder.Privately held security startup Tender Armor today is exiting stealth mode with the announcement of its CvvPlus credit card fraud prevention technology. On the back of almost every major credit card there is a Card Verification Value (CVV), which is a three-digit number that is used by banks and payment processors to verify payments when the physical credit card is not present—for example, with online transactions. (American Express cards have a four-digit number on the front of the card.) The CVV is a static number on a consumer's printed credit card and as such is at risk when a credit card itself is stolen. The goal with Tender Armor's CvvPlus technology is to provide another layer of authentication via a randomly generated CVV number that is sent to the credit card holder, much like a two-factor authentication token for common types of Web access. "We built the system from scratch and have filed for patents on it," Tender Armor CEO Madeline Aufseeser told eWEEK. When a customer uses a point-of-sale (PoS) terminal, the authorization process for a credit card occurs within seconds, Aufseeser said. The authorization process verifies that cardholders are who they say they are, the card is in good standing and there are funds to approve the transaction. What Tender Armor is doing, she said, is adding another element, such that a bank can check for the CvvPlus code that is coming in to determine the validity of a given credit card.
"We communicate with the authorization platform with batch files in an asynchronous manner to give them the CvvPlus codes that we produce in our system," Aufseeser said.