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Banks Rework Credit Cards With New Technologies

by Hugh Collins Oct 22nd 2010 8:25AM
Updated Oct 22nd 2010 9:06AM
credit cardsGet ready for credit card 2.0.

Citibank (C) is about to begin testing a card with two buttons and lights to let users choose whether they want to pay with rewards points or credits, The New York Times said.

Other issuers are giving their cards makeovers as well. Some cards could double as credit and debit cards, or provide additional security measures. One card shows a portion of the account number only when the user enters a PIN.

Credit card technology is centered on the magnetic strip, which was invented in the 1950s. In Europe, issuers now put out credit cards with a magnetic chip and the cards require a PIN.

Still, credit cards may not have much of a future. New technologies are working to develop payment systems based around mobile phones.

In the meantime, issuers are working on cards that could contain four-year batteries and lots of buttons.

"It's a big deal," said Megan Bramlette, director of research for the Auriemma Consulting Group. "If once a month a consumer can fill up their gas tank for free, and they don't have to do anything except push a button before they swipe their card, that's cool. And that is something that I think will resonate with consumers."

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noadmail

Ever wonder where they get all that money for these hight tech gadgets. They are stealing the working poor blind. Pretend to be in a financial fallout/meltdown with consequential catastrophic results, then beg for government bailouts because they seize on the opportunity of a weak administration. Then have the gall to raise interest rates to extortion like levels. Then post record profits for the year. Who is in control here?

October 24 2010 at 2:15 PM Report abuse +2 rate up rate down Reply
2 replies to noadmail's comment
jpclarksville

If you pay your bill in full on time it doesn't matter if the interest rates are 50%. Don't charge more than you can pay off when the bill comes. If you can't, then you might want to think about cutting up those cards. As for your other rantings, companies DO have other companies approaching them with technology that would be good for their business. Now go finish your koolaid.

October 24 2010 at 11:20 PM Report abuse -1 rate up rate down Reply
jpclarksville

If you pay your bill in full on time it doesn't matter if the interest rates are 50%. Don't charge more than you can pay off when the bill comes. If you can't, then you might want to think about cutting up those cards. As for your other rantings, companies DO have other companies approaching them with technology that would be good for their business. Now go finish your koolaid.

October 24 2010 at 11:20 PM Report abuse rate up rate down Reply
Peter

Hang on to your ASSets. Wonder why the economy won't jump start? The Midleclass is in hock up to its ears Now the Banks hope to bleed it further to make p for their CDO losses. Only Obama stands before the big fleecing of the sheep by the GOP

October 24 2010 at 12:02 PM Report abuse rate up rate down Reply
3 replies to Peter's comment
patdelb4

What they are talking about is SCREWING the consumer that uses credit cards as they have in the past. Forget about how the consumer has been a loyal customer and uses the credit card and pays down the debt on same that is no longer the case.

October 24 2010 at 11:58 AM Report abuse +5 rate up rate down Reply
2 replies to patdelb4's comment
ghsong

here's a helpful hint...dont use credit cards.dont spend money you dont have.in other words dont be like the government and it won't matter what they do with credit cards.

October 24 2010 at 12:41 PM Report abuse +4 rate up rate down Reply
jpclarksville

Oh...I feel so bad for you. Did you charge more than you can afford, or try too hard to keep up with the Joneses and it can back and bit you on the backside? IF you pay your bills in full on time, there is NO interest charge. In other words, the credit card company is fronting you money and TRUSTING YOU to pay them back. It's up to YOU whether you want to pay more for the item you bought by making minimum payments.

October 24 2010 at 11:25 PM Report abuse -1 rate up rate down Reply
Val

For those of you using the "if you cant afford it then dont buy it" argument to tell everyone not to have credit cards, remember this... Although you can use your debit card as you would your credit card for most hotel and car rental reservations, it's not always the smartest or safest way to go... here's an interesting article that talks about it: http://education.cardhub.com/credit-card-required/ Not everyone who uses a credit card does so because they can't afford the item they are purchasing...and many credit cards have buyer's protection which is REALLY nice when the stores wont back up their merchandise.

October 24 2010 at 10:45 AM Report abuse +3 rate up rate down Reply
1 reply to Val's comment
jpclarksville

Oh, and how much does a hotel room cost? People KNOW what they CAN and CAN'T afford. They just don't want to assume responsibility for their actions. They want to stay at a Hilton vs Motel 6. People did the same crap with buying a house. You know that if you make 50,000 a year you can't afford a 500,000 house. I had a real estate agent TRY to encourage my husband and I to buy a more expensive house because we could afford it...it's called: Just say NO.

October 24 2010 at 11:30 PM Report abuse rate up rate down Reply
martbild

How will men carry them in their wallets?

October 24 2010 at 9:44 AM Report abuse +2 rate up rate down Reply
edward1xx101

sounds like credit companys want to out fancy each other for no real reason but to say they have this or that over another. This will no doubt cause more cost to their cards and the scaner .There will be people ,for health handy caps that will be unable to use some of these . Seems this is leading to a pain in the rear in more ways than one. What wrong with a picture and finger print card ? Or something as simple to serve the same purpose ? The cost factor to them and the stores would be much less with less problems for every one.

October 24 2010 at 7:16 AM Report abuse +6 rate up rate down Reply
BABIN

Well...we need to take out CREDIT CARD completely out of the system....simple as that....credit cards is only for the Idiots...this system works just fine before credit stuff goes in the system...and now we have about $2,4 Trillion personal debts not included house market....and if credit stuff never go in this system we never have ''THAT'' Trillions in the personal debt...in the end don't change some of the laws how credit stuff is going to works, or fees, or limit,or this or that....just vote and take out completely out of the system and all personal financing problems are solved...AMEN...

October 24 2010 at 6:34 AM Report abuse -2 rate up rate down Reply
Carroll

I would appreciate more pictures to accompany this item. I have trouble visualizing what you are talking about. Cards with buttons? I cannot fathom something like that. Pictures - please!

October 24 2010 at 1:55 AM Report abuse +1 rate up rate down Reply
1 reply to Carroll's comment
crystalmoon

im trying to picture this myself

October 24 2010 at 2:15 PM Report abuse +1 rate up rate down Reply
LAURIE

For the person taking are of his mom an friend with cancer. Make sure your mom has a homestead on her home. Then contact a attorney or credit counselors. If she get social security they cant garnish s.s. and if shes in to much debt bankrupty might be your answer. With so much bad credit out there and people going under the car dealers are taking more people with bad credit. I think our econmy is hurting millions and if they dont take people with bad credit alot of companys will go under. I think we will see more and more companys with a sign in the window -No Credit check

October 23 2010 at 11:47 PM Report abuse -1 rate up rate down Reply
Bill

These new cards will also have a tracting chip in them. The government will know what you buy and where you buy it. Also they will know where you are at. Best thing is to shread all of these cards and pay them off. I canceled the only one that I had when they decided to start charging a monthly fee for just having it. If I can't afford to pay cash then I won't get it.

October 23 2010 at 8:20 PM Report abuse +9 rate up rate down Reply