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

• 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
• ISSN: 0195-2064

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.