| |
An
embedded radio chip in
credit cards
could change the way we use our plastic friends
when making purchases in retail establishments.
The magnetic strips we’ve become accustomed to on
the backs of our credit cards are sharing the
small surface area with something called “radio
frequency identification”, otherwise known as RFID,
and may someday make “swiping” credit cards a
thing of the past. The RFID system would let
credit card users hold their card within an inch
or two of the card reader to make a purchase-
similar to the EZPass for the NY State Thruway, or
the gas pumps that accept special key chains at
the sensor to process your payment. You would no
longer hand your card to the cashier, there would
be no swiping to read the magnetic strip on the
back of your card, and therefore, it would be
considered contact-less payments.
Consider the television remote control. It
magically changes the channels and adjusts the
volume from across the room- all without contact
with the television. That same technology can, and
has already been used to power your credit card
payments when shopping!
There are currently a few card lenders trying out
these contact-less credit cards, including some of
the larger banks; Key Bank, Wells Fargo, Bank of
America, Chase,
American Express
and Citibank, mainly in the cities of New York,
Connecticut, Atlanta and Denver. There are over 90
million RFID credit cards in use by Chase
customers alone, using a technology Chase has
labeled “Blink”. If you have a Chase credit card
and would like to use the “Blink” system for
contact-less payments to try it out, you can do so
even if you are not in one of the four pilot
cities- just call customer service and request
one.
At this time, there are about 30,000 out of over 5
million retail locations throughout the United
States where a contact-less credit card would
work. It’s a small number compared to the number
of potential merchants who may someday be
accepting contact-less payments; but the number is
expected to go up as more banks issue cards with
the radio chips embedded into the plastic.
Many people might argue that the magnetic strip
system was working just fine, and if “it ain’t
broke, don’t fix it”, right? What’s the big deal
about contact-less payments? Speed, of course. In
a time when everything is rushed, and people are
constantly sprinting from one activity to the
next, speeding up transactions benefits both the
consumer and the merchant. In places of
high-volume sales transactions, like fast-food
retailers, sports venues, movie ticket counters
and public transportation, writing checks, swiping
credit cards and counting out cash takes quite a
bit of time. You’ll notice most of these locations
often have long lines of people waiting to pay.
With a contact-less credit card, the cardholder
would flash their card to the reader and if the
transaction is under $25, they wouldn’t even have
to sign a receipt. Visa’s director of corporate
relations, Elvira Swanson states that the
contact-less credit card purchases are about 25%
faster than cash transactions.
The radio frequency cards might also help
consumers who have credit cards with magnetic
stripping that has been damaged. It can be a
highly embarrassing experience for consumers who
have their credit card declined, particularly when
they know there is available funds on the card.
With the radio frequency, contact-less payments
option, the strip could be rubbed completely off
the card and you’d still be able to make your
purchase.
|
|
