Credit card of the future

This article is reposted from Rackspace’s Building43 with permission.

Credit/Debit card fraud is a huge problem that costs banks and consumers billions of dollars per year. NagraID is tackling this problem by creating the credit card of the future, complete with computer chips and other security features that promise to make transactions both more secure and more convenient in the future.

“As you know, when there’s money involved, there’s also fraud involved,” explains Sebastian Pochic, Product Manager with MasterCard Europe. “As a consumer, it’s very inconvenient when you have had a fraudulent transaction on your credit card, or even worse, on your [debit card]. What we’re trying to do is put in place some preventative measures to avoid any of these fraudulent transactions and make the use of the credit card more convenient for our customers.”

One of these measures is to house your security information on a computer chip within the card as opposed to displaying it on the card. Another is a unique display window that reveals a security code necessary to complete a transaction. Each code can only be used once, so even if your card information were stolen, a thief would be unable to effect a transaction without having physical possession of the card and its security code. This window can also display account information such as your last transaction, your balance, how much you have spent this month, even messages from your bank.

One thing the card will not do is broadcast your location or reveal other private information. “The card is not a tracking device,” explains Phillippe Guilland, co-founder and CTO of NagraID Security. “It does not send back information regarding your location or the way you shop.”

More info:

NagraID web site: http://www.nagraid.com/
NagraID on Twitter: http://twitter.com/nidsecurity

About Robert Scoble

As Startup Liaison for Rackspace, the Open Cloud Computing Company, I travel the world with Rocky Barbanica looking for what's happening on the bleeding edge of technology and report that here.

6 thoughts on “Credit card of the future

  1. The future is closer than you think, It’s been already launched in the UK last year, in very small volume though. It was named Visa CodeSure using Emue.com technology.

    Although the technology is quite impressive, the user experience is pretty average. Pushing on these buttons can be quite painful. I still believe we’ll find a better trade-off between security and convenience by using our phones as a second factor in the authentication.

  2. I’d have thought twice before putting ‘Nagra-’ on the front of its name, synonymous as it is with TV encryption that’s been repeatedly cracked. Once to the extent that (like the PS3 today) it was permanently and irretrievably felled.

  3. “The card is not a tracking device,” explains Phillippe Guilland, co-founder and CTO of NagraID Security. “It does not send back information regarding your location or the way you shop.”

    Nope, no need. The retail groups can do that very efficiently on their own no matter the kind of payment technology you use — unless you use cash and refuse to use the “loyalty cards”.

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