Community

General discussion

Locked

RFID enabled Credit Cards on the horizon

By deepsand ·
It's interesting to note that, in the ticket broker industry, counterfeit tickets are known as blinkers. Will blinker cards follow blink credit cards?
==================================================
May 19, 2005

Chase To Issue RFID-Embedded Credit Cards


By Elena Malykhina Courtesy of InformationWeek
Chase Bank U.S.A., a division of the nation's largest credit-card issuer, J.P. Morgan Chase & Co., will begin offering credit cards that use radio-frequency identification technology. The technology, called "blink," will let consumers make purchases by passing RFID chip-embedded cards in front a point-of-sale terminal. Chase plans to issue millions of blink cards by the end of this year.
Chase, ranked as the No. 1 credit-card issuer on the Nilson Report this year, will begin rollout of RFID-chip-embedded Visa and MasterCard cards in two undisclosed cities this summer. The bank is partnering with movie theaters, convenience and specialty retailers, restaurants, and drug stores, where customers will be able to wave their cards in front of a point-of-sale terminal at checkout instead of swiping their cards in a device or giving them to the cashier.

The new process is intended to give cardholders a quicker and more convenient way to check out and provides retailers with a more efficient way to conduct business, says Scott Rau, senior VP of Chase. "We hear from our customers that they are looking for new places to use their cards for a faster and more convenient service experience," Rau says. That includes fast-food restaurants such as McDonald's, which until recently accepted only cash as a payment method.

Sheetz Inc., which operates more than 300 convenience stores and gas stations in Pennsylvania and five other states, will be the first partner to issue a co-branded Chase credit card with blink technology, according to Chase. Chase expects to have thousands of locations across the United States accepting blink credit cards by the end of the year. 7-Eleven Inc. will be an early adopter of the technology and plans to test it in 170 of its stores, according to 7-Eleven. The retailer's goal is to have 5,300 7-Eleven stores in the United States accepting Chase's blink credit cards.

Some are concerned that waving cards from distances of up to 4 inches might cause payments to be accidentally charged to the wrong credit card. But Chase says its new cards will come with several security features that will prevent that from happening. For example, the point-of-sale terminals won't be able to read multiple cards at the same time, thereby limiting a transaction to one cardholder, Rau says. "The customers are in total control of their cards."

American Express, the fourth-largest credit-card issuer on the Nilson Report, also disclosed plans to introduce RFID-enabled credit cards called ExpressPay. CVS Corp. will be the first American Express partner to accept ExpressPay at its stores. CVS already has ExpressPay-enabled point-of-sale terminals in 485 stores in Arizona, Florida, Kansas, Louisiana, Mississippi, Missouri, and Texas, according to American Express, and plans a full rollout to its more than 5,300 stores by midyear.

This conversation is currently closed to new comments.

Thread display: Collapse - | Expand +

All Comments

Collapse -

Who cares

by mjd420nova In reply to RFID enabled Credit Cards ...

who cares about credit cards in general??
Not me , identity theft?? Let them try,
I hold no credit cards and will never use one.
I've been that route before, and after 20 years
and $30,000 on 12 cards I cut them all up, paid
them off and have remained "sober" for 10 years.
I'll not pass that way again. If you want to find out which of your cards are worth keeping, contact them and tell them you are closing your account. Then listen to the fireworks and threats. If they don't offer to lower the % rate they charge, try to get them to stop charging the monthly or yearly fee.. if they offer no help, get out.. they only want your money.

Collapse -

I do!

by jmgarvin In reply to Who cares

I can't do much without a credit card/debit card. Why? I can't rent a car, buy plane tickets, buy stuff online that doesn't take pay-pal, and I can't even shop at some places!

You have to have a credit card if you live in the US. Most places don't take checks anymore!!

So I care...I care that my credit card company is buying into infant level technology. I care that my identity is going to be stolen even more often than it is now!

Collapse -

Debit card YES

by mjd420nova In reply to I do!

A bank ATM card is all I have, works fine, but stops me from spending more than I have.

Collapse -

Then, expect to be affected by the changes envisioned.

by deepsand In reply to Debit card YES

If this is universally adopted, there will be no distinction made between debit & credit cards.

Collapse -

If living within the constraints imposed by engaging in cash ...

by deepsand In reply to Who cares

transactions only works for you, great.

However, as cash is no longer the lingua franca of the financial world, for the vast majority such is neither possible nor practical.

The issue here is that of the security of the personal data of millions of people.

Related Discussions

Related Forums