The Second Generation of Interactive Credit Cards

The next generation of interactive plastic cards is almost here. It feels like a whole world away from Dorothea’s impromptu experiment with the flat-iron and the plastic card, but it is nonetheless an extension of the magnetic stripe technology created back in 1960 by her inventor husband, Forrest Parry.

The new cards, known as ‘2G’ , are currently being developed by a company called Dynamics Inc, of Pittsburgh, founded in 2007, and focussed on technological innovations for card issuers. Dynamics is offering a range of 2G cards including:-

Hidden
This is a card that hides your credit card number. In order to display the number and use the card, the customer must enter a personal unlocking code via 5 buttons incorporated into the face of the card in a  paper-thin display. After use the digital display turns off, rendering the payment information inaccessible if the card is lost or stolen.

Multi-Account
This card has two buttons which enable the user to select the account to use. The chosen account is then
highlighted by a minute light source next to the button that has been pressed.

Redemption
Allows the card user to choose to pay for a transaction with loyalty points or with credit, again, this has
two selection buttons with indicator light sources.

Dynamic Credit Card
Designed to protect consumers and merchants from skimming fraud. Automatically displays a new dynamic security code for every online purchase; replacing the need for the traditional three or four digit security code usually printed on cards.

Other innovations from Dynamics are in the pipe-line!

The first card issuer to roll out the new 'Redemption' technology will probably be Citibank, which is planning to offer its customers an interactive rewards card called Citi 2G Card.

Over at Mastercard they are also working on 2G card, known as a 'Display Card', that will display your account balance and double as a reward card; it is being developed by NagraID Security, and is expected to become available in the US sometime in 2011.