Inside Contactless is providing what it calls “dual-interface chips” for the contactless cards being used in a pilot for First Data Corp.’s debit card fraud-protection product, the France-based chip manufacturer announced Sept. 28.
Last month, First Data’s Star electronic funds network introduced a product that uses a contactless chip to produce a unique, one-time card number to complete point-of-sale transactions (see story).
The one-time numbers replace authentic card-account information to complete a portion of the transaction process. Star reverts the one-time number back into the actual card number at its switch before sending the transaction to the issuer for authorization.
The technology is Star’s answer to EMV chip-and-PIN cards, which have garnered little support in the United States despite their use worldwide.
The Interac Association, which operates Canada’s sole PIN-debit network, also is using the Inside Contactless chip. Interac is adding a contactless function to its EMV chip-and-PIN cards (see story).
Consumers would be able to use the Interac contactless function, called Flash, for purchases less than $50 without the need to enter a PIN. Canada is in the process of migrating to an EMV-based card system.
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