Smart Cards Counting On Dumb Users
Here is a short list of things we really don't need.
1. Smart Cards
Banks are hoping that these disposable, plastic cards will catch
on and soon be in the pocket of ever U.S. consumer. The cards
contain a microchip and come in $10, $20, $50 and $100 denominations.
First off, the consumer may believe that he or she has "Cash," on
their stored value card, but actually they have only some monetary
value in the form of a promise that their bank makes to pay the debt
incurred from their card.
There is no guarantee of reimbursement if a stored-value card is
lost, stolen, or damaged, even if a personal identification number
(PIN) prevents others from accessing the funds on the card.
These cards hold the promise of fat profits for banks due to: the
"float" (you've got the card, but the bank has your money); fees
charged to merchants who accept the cards; advertising that can be
placed on the cards; and any spare change inadvertently left on a
card when it's thrown away.
Consumers will be the judge if this new card idea is really
"Smart" for them. But it is clear that there is some money to be
made in a "Smart" ISO's future.
[Go Back]
Ê