• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

Nevada Business Magazine

The Decision Maker's Magazine

Subscribe Now!

  • Subscriptions
    • Print
    • Mobile App
    • Email
    • Nevada News & PR Wire
  • Features
    • New This Month
    • View Issues
    • Cover Stories
    • Feature Stories
    • Industry Focus
    • Building Nevada
    • Special Reports
    • Meet the Decision Maker
    • Press Release Wire
    • Nevada Industries
  • Departments
    • A Matter of Opinion
    • Around the State
    • Business Indicators
    • Commentary
    • Commercial RE Report
    • Crossfire
    • Expert Advice
    • Face to Face
    • Free Market Watch
    • Inside Politics
    • Power of Attorney
    • Profit & Loss
    • Speaking for Nevada
    • Tech.knowledge.me
    • The Last Word
    • Vital Signs
  • Planning Calendar
  • Advertising
    • Advertising Info
    • Advertising Staff
    • Submission Requirements
    • Online Advertising
  • Events
    • NBM Events
  • About
    • About the Magazine
    • Contact the Staff
  • Connect
    • Business Directory
    • Press Release Wire
    • Business Calendar
    • Submit Listing
    • Post Press Release
    • Add Your Event
    • Sign Up
    • Log In
You are here: Home / Uncategorized / How Smart is Your Card? Microprocessor Cards Slowly Coming to U.S.

How Smart is Your Card? Microprocessor Cards Slowly Coming to U.S.

May 1, 2002 By Nevada Business Magazine Leave a Comment

In Europe, cards with embedded microprocessors – “smart cards” – have been around for years. In the United States, several million consumers have signed up for the American Express Blue Visa card, and financial institutions such as Providian and Fleet have begun to issue “smart Visa” cards. MasterCard is set to deploy its own smart card.

However, U.S. consumers, at least for the time being, won’t be able to find a use for the “smart” feature. Until the majority of bricks-and-mortar vendors install smart card readers, the magnetic stripes on the cards will still be the only technology in play.

So why has the card been such a success in Europe? Smart cards, when partnered with a smart card reader attached to a PC, can authenticate a user by “talking to” the microprocessor in the card. In Europe, the benefits were clear in the context of an expensive and problematic telecom system. “In European countries, the telecom structure has been very poor, and as a result, they never moved to online verification of credit cards,” explained Adam Shostak, director of technology at Zero-Knowledge Systems. “Without online verification, anyone could print something looking vaguely like a credit card and spend money. So card companies in Europe had an incentive to push smart cards.” In fact, the key reason issuers in Europe and elsewhere around the world adopted smart cards was to reduce authorization costs and prevent fraud losses — in short, to save money. In the United States, which has extensive online mainframe-based computer networks for verification and processing, issuers are using them to make money and to differentiate themselves in an ever-consolidating market.

Potentially, smart cards have a lot going for them. They can immediately perform user authentication; they can hold personal information such as medical and insurance information; they can track consumer behavior and enhance loyalty programs; and they can store e-commerce information like the purchase of airline tickets, allowing travelers to skip the check-in process with a sweep of a card through a reader. But, other than user authentication, those benefits are in the future.

The big gap — and truly a chicken-and-egg conundrum — is merchants. “Not many merchants are accepting the card yet,” notedanalyst Alan Alper. Bill Buchanan, senior vice president of Providian Financial Corp., acknowledged that the use of the chip is limited until merchants around the world adopt it. “We and other smart card issuers are pushing heavily,” he said. “When we get to some kind of critical mass of customers, I think you’ll start to see merchants begin to adopt the technology fairly rapidly. But I don’t know what that critical mass number is.”

According to David Robertson, president of The Nilson Report, “Merchants will be the last to embrace smart card technology. They have three-year replacement cycles for point of sale (POS) terminals and for mom-and-pops it’s even longer. It will be at least six years before we begin to regularly use POS terminals with a chip reader. With nearly 10 million POS terminals in the United States, it will be a dozen years before all merchants can read a chip.”

For now, issuers and card companies are banking on consumers seeing benefits in security for now — and perhaps the intrinsically “cool” factor of having a high-tech card. “It’s first-mover advantage,” said Alper. “Half the battle is getting people aware. But it’s only going to be when these programs they tout start to come out that you’ve got something beyond hype and bluster, beyond ‘smart’.”

Adapted from an article by the Technology, Media & Telecommunications Group of Deloitte & Touche LLP.

Filed Under: Uncategorized

Paul Krakovitz: Intermountain Healthcare

Edward Vance: EV&A Architects

Scott Arkills: Silver State Schools Credit Union

Tonya Ruby: Cox Media Las Vegas

Online Advertorials

Online Advertorials

Bank of NevadaFunding Will Provide Nevada Students With Financial Literacy Education

Infrastructure InvestmentsAssure Our Community’s Water Future

Roseman’s College of MedicineAddressing the Physician Workforce Shortage

Groundbreaking LawRequires Businesses Replace Decorative Grass

Advertise With Us

Advertise With Us. more details ►

Primary Sidebar

Get important updates from Nevada Business Magazine, directly to your inbox.
Subscribe

Executive Education in NevadaDetermining Return on Investment

Industry Focus: EmploymentJune 2022

The Rise of Experiential-Based Retail in NevadaChallenges and Opportunities

Governor’s Office of Economic DevelopmentThe Heart of Workforce Development

Nevada News & PR Wire

  • Take on Summer With Dunkin’s New Lineup of Iced Drinks

  • Nonprofit Cristo Rey St. Viator College Preparatory High School Kicks off Summer Campaign to Gain Additional Business Partners for Student Work-Study Program

  • Naqvi Injury Law Opens Henderson Office

  • Foster Care Panel Scheduled to Discuss Need for Foster Parents in Nye County – Division of Child and Family Services Will Host Event in Pahrump

  • Sportsman’s Royal Manor’s Continuous Improvements to Property Result in Low Crime Numbers

  • Miracle Flights Celebrates 150,000 Flight Milestone by Honoring Local Boy

  • United Way of Southern Nevada Announces Internal Promotions

  • Henderson Chamber of Commerce to Host Networking Breakfast: On a Roll – Local Gaming Update With M Resort Spa Casino Leadership

  • Nevada Supreme Court Justices Recognize Southern Nevada Senior Law Program

  • SR Construction Announces Completion Of The Henderson Hospital Expansion Project

  • Celebrate Dad With These Specials at Ava Rose Agency Restaurant Clients

  • Las Vegas-based Body Balance System to Showcase OvationULT Red Light Therapy Bed at This Year’s IECSC Show

  • Henderson Professional Fire Fighters, Henderson Police Officers’ Association, and the City of Henderson Launch Annual Safety Campaign, “Check Your Seats in the Heat”

  • Juzzef Martinez promoted to Commercial Banker for JPMorgan Chase in Las Vegas

  • Las Vegas Realtor Offers Free Buying Guide to Clark County Residents.

  • Team Nevada Returns After a Successful Appearance at the 2022 Special Olympics USA Games

  • The Problem Solver To Speak at Celebrity Speakers Business Network

  • Plumas Bancorp Honored Among Best-In-Class Banking Institutions

  • ImageWords Communications Founder Ruth Furman to Share Media Relations Tips at NAWBO Southern Nevada’s Personal Branding Workshop on June 28

  • Nevada Custom Residence Designed by Daniel Joseph Chenin, Ltd. Receives International Architizer A+ Design Award

  • National Council of Juvenile and Family Court Judges Adopts Resolution To Strengthen Role of Judges Nationwide

  • Ovation Design & Development Celebrated Grand Opening of Arioso Affordable Senior Apartment Complex — Governor Steve Sisolak and County Commissioner Justin Jones Joined Developers and Finance Leaders to Promote Affordable Housing Solutions —

  • aha! Announces Wine Flies Free Program

  • Via Brasil Steakhouse Hosts Father’s Day All You Can Eat Brunch and Dinner at $54.99!

  • Crew Las Vegas Hosts “Woman Who Build” Luncheon, June 14

  • Fennemore Joins Forces With Bay Area Wendel Rosen

  • Communities in Schools of Nevada Announces the Promotion of Alex Bybee to Chief Strategy Officer

  • Marker Trax Adds Director of Product Development and Integration to Help Company Continue to Grow

  • Grand Sierra Resort and Casino Announces the Addition of Chickie’s & Pete’s Crab House and Sports Bar

  • Southwest Medical Adds Two New Health Care Providers

  • Reno Tahoe Pain Associates Welcomes New Staff

  • How Adaptable Is Your Company? iTernal Networks’ Free Upcoming Webinar “Planning for Scalability – Tech More, Stress Less” – June 16th 1 pm PDT

  • De Castroverde Law Group receives Chambers USA’s highest ranking for the second consecutive year

  • Donor Network West Opens New Northern Nevada Headquarters

  • Blueprint Sports Launches ‘Friends of UNILV’ Name, Image, and Likeness Collective at University of Nevada, Las Vegas

  • aha! Announces Nonstop Flights to Idaho Falls From Reno-Tahoe Hub

  • Nevada Women’s Fund Selects Marilyn Newton as 2022 Salute to Women of Achievement Hall of Fame Inductee

  • Debbie Strimling Announced as Jewish Nevada Women’s Philanthropy Council Chair

  • Northcap Commercial Arranges Sale of 3842 Royal Crest St Apartments for $951,500

  • Northcap Commercial Arranges Sale of 3828 Hazelwood St Apartments for $1,730,000

  • Senior Operator at Broadbent & Associates, Inc. Receives Wastewater Operator of the Year Award

  • Siena Italian Authentic Trattoria Offers 50% Off on Wine Bottles

  • Huntington Jewelers to Add New Summerlin Location

  • CAMCO Nevada Hires Ashley King as New CFO

  • June 16 NAIOP Southern Nevada Breakfast Presents “Inflation and Rising Interest Rates: What Is the Impact to CRE Investment Sales?”

  • Project 150 Awarding More Than $170,000 in Scholarships at June 22 Event

  • Las Vegas Home Prices Set Another Record Amid Signs of a Shift in Local Housing Market

  • Emerald Island Grille in Downtown Henderson Unveils Expanded Menu

  • Touro University Nevada’s College of Osteopathic Medicine Receives Top-Level 10-Year Accreditation with ‘Exceptional Outcome’

  • Touro University Nevada’s School of Nursing Programs Receive Prestigious 10-Year Accreditation Extension

  • Quinn Gallagher Joins Blackmon Home Loans as Mortgage Loan Officer

  • Communities In Schools of Nevada Announces First Recipient of the Elaine P. Wynn Stronger Together Scholarship

  • 56th Anniversary of Miranda Rights

  • Martin Vece Named Favorite Teacher in Teacher Appreciation Week Contest — 570 Teachers Nominated in Move 4 Less Contest —

  • In-Person Workplace Safety Training Courses Have Resumed for Nevada Businesses and Employees

  • International Celebrity Vocal Coach Romeo Johnson Offers Vocal Lessons To Clark County Resident

  • 2022 WSOP Sponsor Lexicon Bank is All In Supporting Southern Nevada Charities

  • Holley Driggs Las Vegas Office Expands with New Attorney Additions

  • Nevada’s Exchange Promotes Two Long-Time Employees to Leadership Roles

  • Nathan Strager Awarded Top 1% Of Real Estate Agents in Las Vegas Valley

  • The Embedded Technology Expo To Be Hosted By The Las Vegas Convention Center

  • ExpressJet Airlines Names Bobby Looney Director of Safety

  • Angels of Las Vegas Hosts 2nd Angels on the Green Fundraiser!

  • Dragon Lights Festival Returns to Reno

  • Great Western Steam-up Features Days of Family Fun

  • Student Enrollment Now Open at Groundbreaking New Cactus Park Elementary in Las Vegas

  • CVMC CEO Prater Board Chair of Nevada Rural Hospital Partners

  • Henderson Chamber of Commerce Along With the Henderson Development Association Hosts Commercial Real Estate Development Update & Mixer

  • Michael Grimm and Bill Zappia “Givin’ It to ‘Em” New Variety Show Headlining at the Stirling Club in Las Vegas for a Limited Engagement

  • United Way of Southern Nevada’s 65th Anniversary Golf United Tournament Raises $126,440 for Las Vegas Community

  • Local Students Earn Scholarships in “Shark Tank” Style Business Pitch Competition by Junior Achievement of Southern Nevada

  • Girl Scouts Partner with CAMCO to Deliver Free Cookies to Summerlin Hospital Emergency Room Staff

  • Mark Wiley Group Welcomes New Vice President of Marketing and Communications

  • CSN and The National Juneteenth Observance Foundation Present Two-Day “Juneteenth Powwow” Festivities

  • Nevada Dairy Farmers Award $15,000 in Scholarship Money to Two Winners

  • Lily Funds Announces Sale of 2.2 Acres of Land on Las Vegas Strip

  • MDX Labs Fundraiser Supports Caridad Charity

  • Hosts of the Problem Solver Show Offering Clark County Schools Free Active Shooter Training

  • KPS3 Announces New Hires

  • Cindy Buchanan Joins JPMorgan Chase Commercial Banking in Northern Nevada

  • Dr. Chris Robey, DC, Doctor of Chiropractic, Joins the Crovetti Orthopaedics & Sports Medicine Team

  • Gaetano’s Ristorante Owner’s Recent Travels to Sicily Inspire New Authentic Recipes for 20th Anniversary Menu

  • John Rinaldo Joins Cristo Rey St. Viator College Preparatory High School as Director of Business Partnerships

  • Green Valley Library Re-Opening to Community After Extensive Renovation

  • McCarthy Building Companies Promotes Mark Mohning to Vice President of Integrated Design Delivery

  • Education Non-Profit CORE Promotes Founder Lindsay Harper to Chief Executive Officer, Launches Search for New Executive Director

  • Barracuda Championship Announced as First PGA Tour Event to Accept Cryptocurrency

  • TRU Development and LMC, A Lennar Company Officially Break Ground

  • Dueling Axes Las Vegas Launches “Cosmic Axes” to Kick off AREA15’s “Neon Dream” Memorial Day Weekend 2022

  • FEA Consulting Engineers Principal Selected to Lead UNLV College of Engineering Alumni Board

  • Boys & Girls Clubs of Southern Nevada Summer Program Offers Solution for Kids and Teens for Summer Break — Fun, Affordable Program at Locations Throughout Valley —

  • Esteemed Community Member Don Snyder to serve as Honorary Campaign Chairman for United Way of Southern Nevada’s 65th Anniversary

  • ExpressJet Airlines Names Neville Randeria Chief Financial Officer

  • Eaglemark Savings Bank Donates $10,000 to CASA of Carson City

  • Lacy J. Dalton Receives Platinum Award for Duet With Willie Nelson on ‘Half Nelson’ Album

  • Emerald Island Casino in Downtown Henderson Celebrates 19th Anniversary

  • Larissa Drohobyczer Esq. To Offer Free Seminar on Wills, Trusts and Avoiding Probate

  • The Problem Solver Show Announces New Spin Off – Las Vegas Crime Solvers

  • Roundabout Announces Acquisition of Campo in Downtown Reno

  • As New Projects Continue to Develop in Las Vegas, Nigro Construction Builds a Bigger Team



 
Submit Your News & PR | Subscribe
Submit Your News & PR

Business Connection

Business Connection Portal

Log In Sign Up

Business Connection Portal

Log In Sign Up

Nevada Business Calendar

There are no upcoming events.

View Full Calendar ►

Nevada Business Directory

Featured Businesses
Find a Nevada-Based Business Submit Your Business Subscribe to the Nevada News & PR Wire

Nevada Industries

Architects & Engineers
Arts & Culture
Banking
Commercial Real Estate
Construction
Credit Unions
Economic Development
Education
Financial Management
Healthcare
Human Resources
Insurance
Law
Manufacturing
Marketing
Media
Mining
Philanthropy
Residential Real Estate
Rural Nevada
Sports
Tax Planning and Accounting
Technology
Telecom
Tourism
Transportation
Utilities

Footer

Subscriptions

  • Print Subscription
  • Mobile App
  • E-mail Subscription

Editorial

  • Features
  • Departments
  • Events

Advertising

  • Advertise
  • Submission Requirements

Connect

  • Contact
  • LinkedIn
  • Facebook
  • Twitter

Copyright © 2022, Business Link LLC dba Nevada Business Magazine and Nevada Business Journal. Privacy Policy | Terms & Conditions
Nevada Web Design services by Nevada Central Media using Genesis Framework by StudioPress

    *Your Name

    *Your Email

    Phone Number

    Company

    *Subject

    *Your Message

      *Your Name

      *Your Email

      Phone Number

      Company

      *Subject

      *Your Message

        *Your Name

        *Your Email

        Phone Number

        Company

        *Subject

        *Your Message

          *Your Name

          *Your Email

          Phone Number

          Company

          *Subject

          *Your Message

            *Your Name

            *Your Email

            Phone Number

            Company

            *Subject

            *Your Message

              *Your Name

              *Your Email

              Phone Number

              Company

              *Subject

              *Your Message

                *Your Name

                *Your Email

                Phone Number

                Company

                *Subject

                *Your Message

                  *Your Name

                  *Your Email

                  Phone Number

                  Company

                  *Subject

                  *Your Message

                    *Your Name

                    *Your Email

                    Phone Number

                    Company

                    *Subject

                    *Your Message