Cards That Blink
If you are tired of time-consuming swiping, then you may be interested in the latest blink technology for credit card. New contactless technology allows users to pay for merchandise by simply holding their card near a special reader instead of swiping it or handing it over to a clerk. These new "blink" cards are just beginning to be introduced U.S. consumers, but are already in use in Europe and Asia.
These new blink credit cards resemble regular credit cards in many ways. They have the account holder’s name and account number embossed on the front of the card. There is still a magnetic strip on the back enabling the card to be used as regular credit cards are used. The real difference is inside the card.
Embedded within the blink card is a small radio frequency identification, or RFID, microchip. If this chip is put close enough to the right type of terminal, the terminal reads the information from the chip. If a blink terminal is available, card holders simply need to hold their card up within a few inches. The card can stay in the card holder’s hand.
Whenever credit cards or new technology is involved, it’s natural to be concerned about security. While it may not seem safe, sending credit-card data to a terminal via radio signal is actually safer than using a magnetic-strip credit card if the process operates properly. Magnetic strips on credit cards can be read, altered or duplicated using devices that are readily available. The encryption built into blink cards makes this type of theft impossible.
A signature is not required when using a blink card, which can be seen as either a pro or a con. The encryption and other security features built into blink cards prevent the need for a signature, speeding up transactions. In fact, some research shows that blink speeds up transactions, particularly at drive-throughs, by as much as 20 percent. With time such a valuable commodity these days, that alone could be a major selling point to consumers. The concern, however, is that if manages to steal a blink card, they could use it just as easily as you. Of course, just as with any credit card, Blink users are not held accountable if the theft is reported immediately, and the most they could potentially be liable for is the same $50 limit as on any credit card.
As with any new technology, the retail world will probably adapt and improve it as it becomes more popular. Since blink cards don’t function when they are placed in a sleeve lined with metal, it probably won’t be long before RFID-blocking wallets and purses go on sale.
So why switch over to yet another new technology? While it might seem easier to just stop requiring signatures on regular credit cards, as is already happening with many retailers especially if the purchase amount is under a certain amount. The answer is in the research. Customers using blink cards often spend more for each transaction. Instead of rushing to buy only what they need or came in for, the knowledge that checking out will be quick seems to encourage them to shop at a more leisurely pace. It’s not surprising, then that credit card companies may think that it’s worth introducing this new technology, and merchants may soon agree.
In any type of sales, novelty is always a factor, at least initially. For now, the fact that blink is new could be enough to lead consumers to apply for these credit cards just so they can be among the first to use the new technology. That would result in more money for the companies offering these cards. As always, that’s the bottom line when it comes to what businesses offer. In a few years, regular credit cards may seem as obsolete as cash does to so many of us today.