In Pursuit of More Advanced Card Technologies: MasterCard's Consumer/Merchant Research/''Gradualism'' the Key to Development for Visa

Recent research conducted by MasterCard International Inc. concerning the smart card showed that, contrary to popular belief, most consumers feel credit card fraud is paid for, to some degree, by cardholders. Furthermore, the respondents indicated that using personal identification numbers (PIN) as...

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Bibliographic Details
Published in:Journal of retail banking services : JRBS 1987-04, Vol.9 (1), p.57
Format: Article
Language:English
Subjects:
Bank credit cards
Case studies
Financial institutions
Fraud
Identification
Personal
Personal identification numbers
Service introduction
Smart cards
Technological change
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Summary:Recent research conducted by MasterCard International Inc. concerning the smart card showed that, contrary to popular belief, most consumers feel credit card fraud is paid for, to some degree, by cardholders. Furthermore, the respondents indicated that using personal identification numbers (PIN) as the point of sale is not a problem for them. Where PINs were not used, the reason was lack of awareness, not resistance. Smart-1 card users cited greater security as the main benefit of the card. In addition, most merchants surveyed believe the smart card is a deterrent to fraud. MasterCard plans to continue experimenting with smart cards in 1987. With Visa International Inc.'s second-generation smart card, issuers can choose whether and under what circumstances PINs should be required with the transaction. The company's third-generation smart card, which is widely used in France, carries a computer chip embedded in the plastic. Currently in the prototype stage is a fourth-generation ''supercard'' that does not need a terminal or an online authorization network to function.
ISSN:0195-2064