In a bold move that could redefine the future of banking security, Mastercard has initiated a significant overhaul of its card system, proposing the introduction of numberless cards to combat fraud.
The concept of numberless cards is simple yet revolutionary. By removing the static 16-digit number from the face of the card, Mastercard aims to thwart criminal hackers who prey on these details to commit fraud.
Instead, a dynamic system would generate new card details for each transaction, rendering stolen information useless.
This innovative approach has caught the attention of Australia’s leading banks, with Commonwealth Bank (CBA) and Westpac considering adopting this cutting-edge technology.
Westpac, one of Australia’s major banks, remains undecided on the matter. A spokesperson stated that they are still weighing the potential benefits and implications of this advancement.
On the other hand, CBA has expressed enthusiasm for the idea, viewing numberless cards as a promising solution to enhance security and reduce fraud.
The push for numberless cards is part of a broader shift towards more secure payment methods, including the ‘Click to Pay’ biometric checkout process.
Mastercard’s Australasia president, Richard Wormald, has emphasised that each bank must consider the diverse needs of its customer base before implementing such changes.
‘They always have to think about how a broad range of communities in their customer base might be impacted, where fintechs might not have such a broad customer base.’
He notes that while technical readiness is crucial, ensuring proper data environments and customer consent is equally important.
Similar numberless card technology is available for the other members of the Big Four, NAB and ANZ, which primarily use Visa.
NAB is actively collaborating with Visa to integrate this new development smoothly, while ANZ has already introduced measures like a dynamic CVV that changes every 12 hours and is accessible through the ANZ Plus app.
A spokesperson said, ‘Customers can find their unique three-digit code in the ANZ Plus app giving them greater control and smarter protection against fraud.’
Visa’s head for Australia, New Zealand & South Pacific, Alan Machet, has highlighted that numberless cards have been issued globally since 2020, marking a step towards an utterly cardless future.
‘With numberless cards, we eliminate sensitive information printed on the surface, reducing the risk of unauthorised access and identity theft of stolen cards,’ Mr Machet said.
As early as February, AMP Bank has already taken the lead by issuing numberless cards to its small business and personal banking customers.
Card fraud is a billion-dollar issue in Australia, and these new cards are designed to reduce such losses.
Under the new system, customers would access their banking app to generate a new 16-digit card number and CVV for online payments.
This dynamic approach ensures that even if card details are compromised in a hack or data breach, fraudsters cannot exploit them.
Despite the potential security benefits, there are concerns about the practicality of the new system.
Fat Zebra’s CEO, Pred Dragila, warns that generating new digits for each transaction could slow down the shopping process.
This would require customers to use their phones or log into online banking to retrieve their new card details, which he fears could add complexity and create a barrier to online commerce.
‘This could add complexity and create a barrier for online commerce. The moment you make a customer think about a transaction, you reduce the probability of it happening,’ Mr Dragila said.
While the promise of enhanced security is appealing, the banks’ willingness to adopt this technology and the practicality of its implementation will determine its success.
As the conversation around this development continues, it’s clear that the future of banking and online shopping in Australia may soon take a very different shape.
We are curious to hear your thoughts on this potential change. How do you feel about the move towards numberless cards? Is the added security worth the inconvenience? Share your opinions in the comments below, and let’s discuss the future of secure banking together.
Also read: Mastercard plans to get rid of credit card numbers. We could be heading towards the end of cards
I can see the benefits in the ideas. Wondering how you would use a numberless card for online purchases and direct debits?
I definitely agree with the generating a CVV with each use. I’ve always wondered where the security existed with having it on the card – if someone steals your card then they have the CCV… if you enter your card details into an online page, they ask for your CCV. Therefore, the information is out there! The new trend of putting the CCV on the front of the card instead of the back removed the single safety feature, it was originally put on the back so that if a scammer took an image of your card, they wouldn’t have the CCV. Now they have all of the info they need on the front of the card.
The comments against generating a CCV, to me, are ridiculous. I would rather take the extra minute to generate a CCV than risk losing money, losing money is more of an inconvenience that the transaction taking an extra minute, probably less. I do it already because I always use Paypal for online purchases, so I have to wait for the transaction to be approved by PayPal. Better taking the time to be safe rather than sorry. Businesses wouldn’t lose money because if someone wants to buy something, they will, if they change their mind during that extra time it indicates that it was an impulse buy, so it will reduce the number of refund requests. Generating codes is already in practice and has been for quite a few years. Government agencies and quite a few businesses, will send a code to either your phone or email after you have entered your password, without it, you can’t log in. A lot of business owners have been using generated codes for security for many years with no issues at all. From making payments from their business account to signing into financial accounting packages like MYOB for example. It requires a simple app on your phone, when you put in a request to access an account, your provider requests a code to be set to you via the app. It literally takes seconds.
Any perceived inconvenience by consumers will quickly pass, history shows that there have always been people that rebuff anything new, but they have always quickly adapted if they have no other option.
I understand that there is a population of people that don’t have mobile phones or struggle using technology, however as time progresses this number is getting smaller.
Well said, Katz.
One thing about cards that have always had me on edge is how visible the critical details like the CVV are. These days, it seems like a second is already a long time for anyone who wants your card details for their personal gain.
This proposal has may weaknesses, and predominantly in relation to people with disabilities, and those who do not have internet access and those who do not have a mobile phone.
For those that say that is only a few people, the facts that I have discovered from groups that I am involved with, and the figure is in excess of 10%, which means that this would effect over three million people, and not an insignificant number.
I personally do not use my phone for banking, and my wife has sight and hearing disabilities and which preclude her from using the phone for banking.
Also there are many people on low incomes, but particularly older single women and single pensioners who cannot afford internet access to or mobile phones.
This is a wonderful point, 45er! I admit to not thinking how the change would go for differently-abled people, and your comment really had me in a pensive state.
My card number isn’t embossed on the face of my card, it’s printed on the back, with all other details. Therefore, if anyone wanted to take a photo of my card, then they’d be in for a rude shock – there’s nothing to take a photo of, as the front of my card is blank with only the colour purple & the bank’s logo on it. I don’t know how many banks are introducing this type of card, but mine has been doing it for at least 4 years (how long I’ve been a member of the bank).
I don’t have my cards on my phone, as it takes far too long to access my phone, then pull up the wallet. I’m old-fashioned and only use physical cards, if, and when I need to.
I only use cash for my food & general spending (just to keep a good eye on how much & where I’m spending it in MYOB). I don’t want up to 10 pages of my bank statement to reconcile every month! 3 is enough. Thinking of bank statements, do you really want your bank, real estate agent or potential credit provider knowing exactly where you spend every cent? I certainly don’t.