Smart Tech Guide Book

Credit Cards and Use of New Technology to Secure Online Transactions

Many alternative payment systems are being developed all around the world but cards still hold the majority space in the payment processing industry. Credit card companies are gearing up for the future and ushering in many innovative features to stay above the competition and develop a leading edge for themselves. Let us now look at some of the new technologies that are being incorporated.

 credit cards with microchips

Use of Microchips

Microchips effectively ward off attacks by cyber criminals who often steal user data from eBay and replicate magnetic strips on cards to do online fraud. Since it is quite difficult to replicate functionality embedded in a microchip, cyber criminals find it hard to do any type of fraud on such cards.

The cards with microchips make use of one time code that is used between the register of the retailer and the chip and data transfer is useless to others apart from the parties involved in the transaction. Chip technology is still in use and it will take some more time before we see all credit cards using such microchips.



Biometrics is an effective method for increasing security through identification and recognition. Recently Seiko Epson has come up with a fingerprint reader that is ultra thin and it would be easy to add it to common items such as credit cards.

The company also has plans to add self-authentication on cards by adding small processor on the card, which will compare the fingerprint of user with value stored in embedded memory. In case the fingerprints do not match then card will become useless and thereby prevent abuse of such card.

 power suit, there is embedded payment chip in the sleeve


Now you have credit cards embedded on the sleeves. One Australian tailoring firm has made prototype of this power suit in partnership with credit card provider Visa. In this power suit, there is embedded payment chip in the sleeve of the suit, which can be used for making payments and looks something out of James Bond flick.

 lady using credit card

Evolving Technology in Credit Cards

The technology used in credit cards is still evolving and there is a long way to go. The important thing is to have technology, which gives users seamless experience and at the same time is completely secure to use.


It is quite clear that there is a lot that is possible in credit card technology, which makes it both secure and easy to use. Features like biometrics and microchips hold a lot prospect and we still have to see how credit card companies make use of such advanced technology to give users a more secure way to transact.

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