Are Smart Cards, Er, Smart?
What makes a smart card smart? Well, each card is loaded with a mini-microprocessor that allows the user to enter identification data for each transaction. It works similarly to a bank debit card where the user must enter a password. Smart cards can also have an amount of money “loaded” so the user can use it like traveler’s checks. AmEx’s new Blue Card is a credit card plus. It comes with a menu of services, including a site where customers can pay bills online and fraud protection.
Europeans have been “smart” for a long time. U.S. companies realize that, with the need for tighter credit card security, it’s time to embrace smart cards. The booming e-commerce activity alone could help bolster smart card supporters.
Experts hypothesize that smart cards will grow in use 60 percent over the next year.
Voice of the Editor
Which isn’t completely true. I mean, occasionally I drop by when I manage to sneak out of the nonstop frat party over at Going Concern, but I’m mostly a wallflower over there. I’m happy to say that I’ve been given express permission (or explicit orders, if you like) to wander over here to AccountingWEB more often.
Why is that, you might ask? My job is to replace the irreplaceable Gail Perry as Editor-in-Chief. What does that mean? I don’t really know! I think it’ll be fun getting a feel for things, throwing in my own thoughts here and there, and listening to the discussions you’re having about the accounting profession.