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Industry News

Credit card companies introducing state-of-the-art anti-fraud technologies

By Jospeh Trigliari

09/08/2010 - In the wake of uncertain economic conditions and a rash of federal regulatory reforms, the credit card industry is searching for ways to recoup losses and increase customer use of credit-debit machines.

Credit card companies are introducing cards with new cutting-edge features, Creditcards.com reports. MasterCard and Visa have both developed next-generation cards with LCD screens that produce a one-time pass code to help prevent fraud, while MasterCard is additionally piloting a keyboard card that can display an account balance when inserted into an ATM or point-of-sale terminal.

Part of the drive to introduce new card technologies comes from card companies’ desire to expand their market. "There's always a drive to differentiate one card from another, and when markets tighten up, there's even more demand to get your brand on more cards than the other guy," industry consultant Brad Paulson of Thor Engineering told the site.

Additionally, the cards have implemented an array of anti-fraud technologies as part of a multilayer strategy that will make verification easy, but replication hard. Some of the technologies include color-shifting inks and films, microtext, holograms, floating images and ultraviolet inks, the site writes.

The race to provide new technologies and features can also be considered as part of the effort to stave off mobile carriers, who are developing new technology that allows smartphones to act as credit cards.

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