Smart Cards? Don't Be Fooled

I read the cover story in The Green Sheet on smart cards ("Smart Card Graduating from Exception to Acceptance," May 26, 2003, issue 03:05:02), and have to say that it will be a long time, if ever, before smart cards become an integral part of payments in this country.

After experiencing first hand the Visa Cash introduction in Atlanta and serving at Visa in the chip product office, I am more than a bit skeptical that the technology will ever take off in the U.S. bankcard industry.

The magnetic stripe infrastructure and low cost telecommunications will make widespread chip acceptance at the point-of-sale very difficult to achieve.

Since all cards will have to carry a mag stripe until universal chip issuance and acceptance is achieved, why make the investment? In this country, as far as payment systems are concerned, chip cards may be a solution looking for a problem.

Jack Dale

CEO

Entandem Inc.

These Terminals Aren't Finished ... Yet

We seem to be having new policies regarding the Hypercom T7P, the Trans 460, the Trans 420 and the Zon Jr. Apparently, we can no longer accept applications from merchants who are planning to use these terminals because of compliance regulations.

Does this seem accurate? I still see these terminals for sale all over the industry. Thanks.

John Hajewski

Account Representative

Cardservice International

John:

Some of the equipment you mentioned faces compliance limitations. Visa and MasterCard often mandate new compliance regulations. Some equipment (Zon Jr.) is just old technology. Manufacturers are always coming out with new and approved terminals, and any processor would want to offer its merchants the best possible choices.

We have been told that Cardservice International continues to support Hypercom T7P and VeriFone's Trans 460, the Trans 420 and the Zon Jr.

Editor

Revved Up for Full Report

Where can I find a comprehensive review or comparisons of the different terminals - similar to the new car comparisons that you might read in Motor Trend Magazine? Simply viewing the different manufacturers' PDFs doesn't tell the whole story. Thanks.

Gary Spears

ISO/North American Bancard

Gary:

Our GSQ V5N4 is our annual equipment report. You should be able to find what you are looking for in there. This issue may be viewed online at www.greensheet.com/gsq/Secured-/gsq2002.html

Editor