rovidian Financial Corp. recently conducted the first credit card payment transaction utilizing smart chip technology.

Providian has issued more than one million smart cards to consumers for traditional payment transactions. Smart chip transactions already are possible using a card reader that is connected to the consumer's computer and have been used for transactions via the Internet. But physical-world POS transactions have required the card's magnetic stripe for traditional payment.

National Processing Company (NPC), in collaboration with Vital Processing Services, is the payment processor behind this new smart card acceptance solution. With this development, "brick and mortar" retailers will be able to receive payment from customers using the new chip-based technology embedded in each Providian Smart Visa card.

"We have established NPC as the first integrated provider of chip processing solutions to apply cutting edge technology and meet all requirements to help bring life to this program. And Providian's commitment to product innovation for a broad consumer market has helped us realize this goal," said Thomas A. Wimsett, president and CEO of NPC.

Elizabeth Tse, senior vice president for Providian, said, "The successful completion of today's transaction is just the tip of the iceberg. We look forward to continuing to share exciting news on our smart card programs and new chip applications throughout the year."

For more information, visit www.providian.com and www.npc.net.