What is Keyno?

Keyno is the maker of the first dynamic CVV2 (“dCVV2”) code technology that integrates with already-issued credit, debit, and prepaid cards to prevent online fraud. The CVVkey™ service is offered in collaboration with Visa to card-issuing financial institutions.

What problems does Keyno solve?

In short, Keyno addresses the large, and growing, online card fraud losses that banks, credit unions, merchants, and cardholders incur. Online CNP (card not present) fraud is 4X more likely than in-store (or card present) fraud.¹

• Consumers aren’t typically held financially responsible for online card fraud when their card number is stolen. But they spend hours notifying merchants and banks of the fraud, replacing the card, and re-inputting the card number into card-on-file sites where they make frequent purchases or have recurring payments.
• Banks and credit unions (and to a lesser extent, merchants) put a massive amount of resources toward combating and responding to online credit and debit card fraud ($12 billion in 2022.²) Making matters worse, online card fraud is projected to rapidly increase along with the skyrocketing online purchases in this post COVID-19 environment.³
• Merchants most often take the financial hit for card fraud, and say they would welcome more secure, easy-to-implement solutions.

How does Keyno’s technology work?

Keyno is available as a standalone or branded mobile app, or as a software developer kit (SDK) plug-in to a bank or credit union’s mobile app. 

Keyno’s technology is implemented via a two-step process:  First, the card-issuing bank or credit union contracts with Keyno and notifies Visa to enable dCVV2 on a range of cards. Banks and credit unions can then offer the CVVkey™ solution as an option to their cardholders, who can quickly and easily activate the service on their current cards. After activation, the dCVV2 code is then validated for each transaction on VisaNet prior to the financial institution’s card processing.

Depending on how each bank offers Keyno, cardholders can turn on the service on by scanning a QR code from their card issuer, and then downloading the Keyno app, or by enrolling via their card issuer’s banking app. Once activated, a new dynamically created dCVV2 security code is issued every 4-12 hours, similar to how Google Authenticator rotates secure codes, and regardless if they use their card. When cardholders make an online purchase for which they must input their CVV2 code, they simply refer to their mobile app and input the current dCVV2 code to make a secure purchase. 

What makes Keyno different, and better, than any other card fraud solution?

• Keyno’s technology works with already-issued credit, debit and prepaid cards, which is less expensive for banks, and more convenient for cardholders.
• Keyno requires implementation only by the cardholder’s bank; the cardholder only needs to enroll and download the Keyno or bank-branded app.
• The dCVV2 code is valid for a short period of time and changes continually, ensuring consumers that their card details cannot be stolen by online hackers.

Are there other solutions on the market?

One payment card features an LCD screen and built-in battery, uses dCVV2, but is typically offered only to high net worth individuals, because it costs 5 times that of a standard credit/debit card. There are a few other fraud detection solutions implemented by merchants and supported by banks, but they do not prevent online card fraud before it happens.

Once I start using dCVV2 codes from my smartphone to make online purchases, will the “static” 3-digit security code on my card still work?

No. The dCVV2 replaces the static CVV2 printed on the card, in all places where the CVV2 is requested.

Does Keyno work with the online sites where I have automatic payments set up?

Yes. When you first enter your card to be “on file,” you enter your dCVV2 code, just as you would have entered your static 3-digit code on the back of your card. After that, charges are processed as recurring payments without the dCVV2 code.

How does Keyno work with  mobile payments providers such as Apple Pay, Google Pay, and others?

Keyno is compatible with all of the mobile payment providers and all of the merchants that store cards on file.

What does Visa’s collaboration with Keyno mean in terms of getting the technology into cardholders’ hands?

The collaboration makes it easy for card issuers to enroll in dCVV2. All it takes is BIN-level signup via a simple form (CIQ), after which their cardholders can enroll in the service in a matter of weeks.

References

1. Javelin Identity Study, 2018.
2. The Nilson Report, Issue 1142, November 2018.
3. Quantum Metric, as printed in “Coronavirus and e-commerce: It’s complicated”, Marketing Land, April 16, 2020. “Brick and Mortar retailers … saw an average revenue weekly growth rate increase of 52% and an 8.8% increase in conversion rates” compared to a year ago. The company’s findings are based on more than 5 billion U.S. retailer web and mobile site visits between January 1 and February 29.