| "> | | | | embedded in a credit card. When the card is waved in |
| Last year, much talk followed the release of credit | | | | front of the reader, the radio field near the reader |
| cards from Chase with which the bank refers to as | | | | generates an electric current in the antenna that |
| 'Blink', their version of contactless Visa or MasterCard. | | | | powers up the tiny chip. The chip then transmits back |
| While the technology behind 'Blink' may seem new, the | | | | a response through a process called 'backscattering' |
| idea behind contactless credit cards isn't. Radio | | | | to the card reader, all without having to make any |
| Frequency Identification, or RFID has been used by | | | | physical contact. |
| Exxon-Mobil and others since the late 90's and the | | | | Not all contactless credit cards are compatible with |
| technology and concept behind RFID has had it's | | | | one another. Card issuers have yet to agree upon a |
| beginnings in the 1920's. | | | | standard and as such different systems are in place |
| But it was only in the turn of this century that credit | | | | for different cards. For instance, American Express |
| card issuers began to look at contactless credit card | | | | has its ExpressPay system, the MasterCard system is |
| technologies seriously. With incidence of credit card | | | | called PayPass and both Visa and Discover are |
| "skimming" occurring more often, many consumers had | | | | holding back on a launch of their contactless card |
| been losing confidence on the security provided by | | | | systems, with both companies showing more interest |
| traditional magnetic stripe cards. The search was on | | | | in mobile phone card technologies. |
| for a replacement and card issuers like American | | | | One of the first concerns the consumer had was of |
| Express, Visa and MasterCard introduced 'contact' | | | | course, security. How safe is the card? Chase argues |
| smart cards with chips in them as a means to combat | | | | that the card is safer because it never has to leave |
| fraud. | | | | your hand, so skimming isn't going to happen. Perhaps |
| Merchants and banks in the United States were initially | | | | so, but 20 years ago nobody thought people would |
| uninterested as the initial costs seemed high and there | | | | come up with small, hand-held devices that can 'skim' |
| didn't seem to be much benefit to them other than | | | | the account information off the credit card. However, |
| added security on the consumer's part. Still, regular | | | | the thief would have to very technologically savvy to |
| 'contact' smart card technologies were adopted widely | | | | get this information, and even if he gets the account |
| in the Asia Pacific region in the face of increased | | | | number used on the contactless card, it is not the |
| cases of credit card fraud. In other words, it made | | | | same number but a unique number only used in the |
| economic sense. | | | | RFID system. That means the risk of a 'carder' |
| Meanwhile in the States, credit cards were starting to | | | | intercepting the signal and going on a shopping spree |
| become accepted at more and more 'frontline' retail | | | | online is negligible. |
| outlets and stores such as convenience stores, gas | | | | Whatever the concerns, it looks like contactless credit |
| stations, movie theatres, fast-food restaurants and | | | | cards or systems similar to it are poised to come into |
| drive-throughs. The stage was set for contactless | | | | widespread use. Just at the end of April this year, |
| credit cards to be introduced in the markets, as the | | | | Nokia and Visa had announced a system they are |
| technology would allow for faster transactions at the | | | | working on that would allow consumers to make |
| point of sale. | | | | payments with their mobile phones - the Visa Wave. |
| The technology behind contactless credit cards is | | | | With people becoming more and more reliant on their |
| simple on paper. A tiny chip measuring less than a | | | | mobile phones, it looks like this type of contactless |
| millimeter in length with an antenna the size of a | | | | electronic payment systems are the next logical step. |
| postage stamp but thinner than a sheet of paper is | | | | |