VeriSign announced a new agreement with Innovative Card Technologies to create a system that would protect credit cards used in online transactions. The technology provides for a one-time password, which can be used in association with traditional security methods such as an online username and password. Used in conjunction with one another, the technology provides consumers with two-factor authentication when it comes to their online transactions.

The technology proposed is already used by many companies to protect entry into their corporate networks. Consumers are provided a token that typically displays a number which changes. That number when used with a username and password provides entry into the network. The technology proposed by VeriSign and Innovative Card Technology basically takes the token and builds it into the credit card.

Since the number on the credit card changes, the second level of protection offered by the system is a lot more secure than a static username or password alone. Used in conjunction with a username and password, an online transaction is secured, since the credit card can only be used if the person has the username, password, and physical credit card of the customer.