Cybersecurity is an increasingly important issue as the world goes online. According to new research, 51% of shoppers now make their purchases online. This number is expected to climb going forward. Mobile technology is improving and shoppers have come to expect the convenience that goes along with online stores. Consumer matching platforms allow online stores to learn customer habits and show people what they want before they even know they want it. We can thank Amazon for that. All of this is good news for consumers, but it also spells trouble in the form of hackers. When your financial life lives on a magnetic strip or on a series of sixteen numbers, it is vulnerable to credit card fraud. Advanced hackers have the ability to access your personal and financial information when you enter your details online. All it takes is a breach of a secure website, or an installation of malware on a company’s system: take a look at the recent scandals involving Target and Home Depot. Between the two stores, approximately 96 million people had their credit card information compromised.
Step in Mastercard and some pretty cool technology. Mastercard has just introduced a new credit card that has a built-in fingerprint scanner! The card is the same size and thickness as your current credit card, but instead of a signature or a PIN to verify your identity, simply place your thumb on the scanner and you’re set. Mobile phones have all started using fingerprint technology to keep your phones safe. Credit card companies are starting to follow the trend. This means that no one, other than you, will be able to purchase things using your credit card. We applaud Mastercard for using technology to advance the world of credit payments. Sure, there will always be risks involved if someone can manage to get a mold of your fingerprint, but overall the fingerprint makes the credit card a lot safer. They will help prevent fraud, foster customer loyalty, improve checkout times, and make for a more pleasant shopping experience.
Read a clip of the article from Mastercard’s newsroom below, and check out the full article here.
How It Works
A cardholder enrolls their card by simply registering with their financial institution. Upon registration, their fingerprint is converted into an encrypted digital template that is stored on the card. The card is now ready to be used at any EMV card terminal globally.
When shopping and paying in-store, the biometric card works like any other chip card. The cardholder simply dips the card into a retailer’s terminal while placing their finger on the embedded sensor. The fingerprint is verified against the template and – if the biometrics match – the cardholder is successfully authenticated and the transaction can then be approved with the card never leaving the consumer’s hand.
Authenticating a payment transaction biometrically – in this instance via a fingerprint – confirms in a very unique way that the person using the card is the genuine cardholder.
Merchants can easily maximize the shopping experience delivered to their customers, as the card works with existing EMV card terminal infrastructure and does not require any new hardware or software upgrades.
For issuers, the technology helps detect and prevent fraud, increase approval rates, reduce operational costs and foster customer loyalty. Additionally, a future version of the card will feature contactless technology, adding to the simplicity and convenience at checkout.
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