Print This PageEvolving Technology, Secure Data, Rapid Transactions
Ever-evolving needs and new demands on the card industry have led to new, improved and innovative card technologies. Chip technology has been in development, and is now available through the GSA SmartPay2 Master Contract. This type of technology is currently being used in several ways, some examples being the ExxonMobil SpeedPass™ and the WMATA SmarTrip® transit card, which do not require the swipe of a card to capture transaction information. Some merchants are already set up to accept these new card products, but it has yet to become an industry standard in the United States, and is not widely accepted. This technology may not currently be appropriate for Purchase Card programs, but could become an important card product in the future. There may be some areas within your program which are appropriate for the incorporation of this type of technology now. Agencies should determine if there are benefits to giving overseas employees, or those who frequently travel abroad, contactless or contact chip cards. If cardholders have faced issues with magnetic stripe acceptance, chip cards may provide a successful solution for use overseas where merchants are more often set up to accept this card product.
What are contactless chip cards?
A contactless chip card is a card product that has a chip and antenna integrated within the plastic, in addition to a traditional magnetic strip which is found on the back of the card. As an alternative to swiping a card through a card reader, a contactless chip card needs merely to be placed over a RFID (Radio-Frequency Identification) reader in order for the transaction data to be captured and a purchase to be completed. Contactless chip cards use highly secure data transmission standards, and are considered difficult to compromise. Typically, the contactless chip within the card creates a unique transaction number for every transaction that is included with the card number details, which makes it very difficult for any data to be copied and reused by those wishing to commit fraud.
How can contactless chip cards benefit my agency?
• A unique and separate transaction number is generated for each and every transaction.
• Improved safety and security of information and transactions
What are contact chip cards?
Contact chip cards are another new form of plastic with a specialized chip integrated within the plastic. Over time this type of card may eliminate the need for a magnetic strip to appear on the back of the traditional plastic, and will hold information more securely. Transactions are authenticated using a secret key that is securely stored on the chip. In addition, contact cards optionally allow for the cardholder to enter a PIN, to help protect against fraudulent use of the card when the card has been lost or stolen. Banks are now able to offer contact chip cards through the GSA SmartPay program as long as they are used in compliance with Europay,Mastercard and Visa (EMV) standards.
What are the benefits of contact chip cards?
The primary benefits of contact chip cards are greater worldwide interoperability coupled with enhanced security and protection against fraud. Greater security is provided by:
• Advanced tamper-proof chip technology
• The inclusion of a dynamic cryptogram with each transaction
• The ability to authenticate the cardholder with a secure PIN number
