A new product called codeOne from New York city-based technology firm M-CodeOne has been termed by its makers a "payment application authentication" - an intermediate device that streamlines and secures the usual card-to-terminal purchasing process.
"Basically, we have a platform on one side, and there's a bunch of technological solutions on the other side - credit cards, debit cards, chip on the credit card - and codeOne is right in the middle of all this," said Ivan Silva, President, M-CodeOne.
Simply put, the "m-payment" online cell phone application allows its user to access any number of credit or debit cards with a single code unique to each user, using a wireless signal to connect with a merchant's payment terminal.
After registering one or more cards within the application, the consumer is equipped to make purchases by opening the program on a mobile device, entering a personal password, selecting a registered card and entering the purchase amount.
The program then condenses that information into a single purchasing number that changes with every transaction, and which the consumer dictates to the merchant along with his or her cell phone number.
The merchant enters the cell and purchasing numbers for authentication - into a cell phone or conventional payment terminal using the PIN pad - and the transaction is complete (the program interfaces with an acquirer's network).
"You can go online and register one, two, maybe three major credit cards you'd like to use with it and then forget about them," Silva said. "Don't take any of those things out - just use a cell phone - because people continue to use lines of credit ... and expose that information when they have to carry those [cards] with them."
Silva said the program provides both security and safety to consumers in a number of ways.
One is that consumers do not carry around any physical cards, which can be lost or stolen and difficult to keep track of; another is that having a password makes fraud much more difficult than in conventional credit card purchases, where verification involves only signing the receipt.
Many POS mobile purchasing solutions use simple message service text messaging, often requiring several back-and-forth communications and excessive button-pushing - using a slower and less reliable connection, according to Silva.
"It takes more time for you to find the card and swipe and sign or provide I.D. And by the way, how do you know it's secure? Anyone today can fake a credit card.
With this function, the authentication is 100 percent; it is unique for that person and the time it takes for him to open his phone and enter in the phone; it's just pushing the buttons and it's done."
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