PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Is Fingerprinting Next For Credit Card Security?

By Alex Johnson
May 9, 2016
in Analysts Coverage
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Is UK Government Really Increasing Financial Services Competition? - PaymentsJournal

“As the debate over the value of EMV cards in fighting credit card fraud rages on following the implementation of the liability shift last October, one company is urging the addition of a new level of biometric security to some cards. SmartMetricis reportedly in talks with a number of card issuers to adopt miniature fingerprint scanners inside credit cards that conform to ISO standards and could satisfy bank concerns about card fraud.”

So is fingerprinting the next big thing in credit card security? It’s an interesting question. Let’s do a quick point-counterpoint.

Point:

“According to SmartMetric, 80 percent of credit card holders express concern about card and identity fraud, and 66 percent of them would pay for a safer, biometric secured credit card with a built-in fingerprint reader if it could guarantee their security.”

Counterpoint:

Consumers’ are definitely concerned about credit card fraud, but given the lack of personal liability that consumers have for fraud due to lost and stolen credit cards, I’m not convinced how acute that concern really is. That lack of personal liability is what makes me skeptical that a majority of consumers would in fact pay for biometrically secured cards, which would be necessary to cover the added cost for issuers.

I’m also a bit skeptical of the promise “guarantee their security”, for two reasons. First, biometric security built into a physical card would only secure card-present transactions. It would do nothing for card-not-present transactions, which as we all know, is where a majority of commerce growth is happening. Second, doesn’t the storing of biometric credentials on a physical card increase the risk of my biometrics being compromised if (or more accurately when) I misplace my card? There are numerous safeguards built into the iPhone that make it difficult for criminals to steal my fingerprints. Are those same safeguards built into these smartcards? Shouldn’t I, as a consumer, be more concerned with my fingerprints being stolen than my credit card number anyway?

Overview by Alex Johnson, Director, Credit Advisory Service at Mercator Advisory Group

Read the full story here

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    embedded lending

    Embedded Lending as a Growth Strategy for ISVs—How to Maximize Revenue Potential

    June 18, 2025
    merchant ai

    Merchants Find More Use Cases for AI Amid Risks

    June 17, 2025
    prepaid payroll

    Taking the Check Out of Paycheck: The Role of Prepaid in Payroll

    June 16, 2025
    Banking-as-a-service BaaS

    Remodeling Main Street: How Community Banks Can Leverage the Banking-as-a-Service Paradigm

    June 12, 2025
    How Employee Performance Enhances the Customer Experience

    Three Strategies to Maximize Loyalty in the AI-Driven World 

    June 11, 2025
    PFM tools

    How FIs Are Cutting Through Subscription Clutter with PFM Tools

    June 10, 2025
    child identity theft

    Stranger Danger: Protecting Your Children from Identity Theft

    June 9, 2025
    agentic commerce

    The Agentic Advent: How the Next Iteration of AI is Shaping Commerce

    June 6, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result