LAS VEGAS--(BUSINESS WIRE)--BAI Retail Delivery – Dynamics Inc., an innovator in next-generation payment devices, unveils its anti-skimming technology today at BAI Retail Delivery in Las Vegas and will demonstrate it at Alternative Payment System Innovations on Oct. 21 in San Francisco.
Each year, the payment ecosystem loses billions of dollars from fraudsters stealing credit card numbers. In fact, all that is needed to steal a credit card number today is a pen and paper or a portable card reader. More advanced fraudsters steal credit card numbers by breaking into merchant servers where the numbers are electronically stored.
Dynamics’ anti-skimming device, called the Dynamic Credit Card™, helps to protect consumers and merchants against this threat by automatically writing a new, unique dynamic security code onto its magnetic stripe for every in-store purchase. A display can also be added to the card so the card can automatically display a new, unique dynamic security code for every online purchase – thus replacing the three or four digit security code physically printed on traditional cards.
“The Dynamic Credit Card™ technology eradicates skimming both domestically and internationally without changing a single card reader or impacting a single merchant system,” said Jeff Mullen, Dynamics’ CEO.
The security benefits of the Dynamic Credit Card™ technology can be increased when combined with other anti-fraud technologies. For example, Dynamic codes can be added to Dynamics’ Hidden™ card, where an on-card interface requires a user to enter an unlocking code into the card in order to activate the card.
“Hidden™ eradicates fraud associated with lost or stolen physical credit cards. Adding dynamic codes to Hidden™ eradicates fraud associated with lost or stolen intangible credit card numbers,” stated Mullen. “With this best-in-class one-two security punch, and combined with the U.S.’ superior fraud monitoring techniques, consumers can now enjoy the highest level of fraud protection in the world.”
The Dynamic Credit Card™ technology can also be integrated into any Dynamics card such as MultiAccount™ and Redemption™.
“Dynamics’ card technology promotes consumer choice and segmentation. While one consumer may want a security-oriented experience that requires an unlocking code to activate the card, another consumer may want a loyalty-oriented experience that allows them to pay for a purchase at the point of sale with points they’ve earned. The Dynamic Credit Card™ technology allows us to add a transparent layer of security to all of our products without impacting the consumer experience in any way,” stated Mullen.
About Dynamics’ Technology
Dynamics’ core technology, Card 2.0™, is a paper-thin, flexible computing platform in a payment card form factor. The device includes the Electronic Stripe™ – the world’s first fully card-programmable magnetic stripe. The Electronic Stripe™ can be read at any existing point-of-sale magnetic stripe reader. The device itself can change any bit of information on this programmable stripe at any given time. The device is as durable as a traditional payment card and will last over four years on a single battery charge. The technology does not require any change to the 60 million 1970s-era magnetic stripe readers or reeducation of its merchant base.
Countless applications can be realized with the Card 2.0™ platform technology and are referred to as Payments 2.0® applications. In addition to the Dynamic Credit Card™, other Payments 2.0® applications include:
MultiAccount™: The device includes two buttons on the face of a card. Next to each button is a printed account number and a light source. A user can select an account by pressing one of the buttons. The card visually indicates the selection by turning ON the light source associated with the selected account. Additionally, the magnetic-stripe information associated with the selected account is written to the Electronic Stripe™.
Hidden™: The device includes five buttons on the face of a card and a paper-thin flexible display. The display hides a portion of a cardholder’s payment card number. To turn the device ON, a user must enter a personal unlocking code into the card. If the user enters in the correct unlocking code, the card will then visually display the user’s payment card number so that the user can read the number for online transactions. The Electronic Stripe™ is then populated with the correct magnetic information so that the card can also be used with magnetic stripe readers. After a period of time, the display turns OFF and the Electronic Stripe™ erases itself – thus removing all critical payment information from the surface of the card. If the card is lost or stolen, the card is essentially useless.
Redemption™: The face of the device is printed with a single credit account number and includes two buttons with associated light sources. A user can choose whether to use points or use credit at the point of sale by pressing the appropriate button. The card will then visually indicate the selection by turning ON the light source associated with the selected option. The magnetic-stripe information associated with the payment option is then written to the Electronic Stripe™. The card can then be swiped at any magnetic stripe reader.
About Dynamics Inc.
Dynamics Inc. was founded and seeded in 2007 by Jeff Mullen, its CEO. Dynamics produces and manufactures intelligent powered cards such as advanced payment cards. Focused on introducing fast‐cycle innovation to top card issuers, the company’s first commercial application is the world’s first fully card-programmable magnetic stripe for use in next‐generation payment cards. The company has won many of the world’s most prestigious international business plan competitions, including the Rice Business Plan Competition, Carnegie Mellon McGinnis Venture Competition and the University of San Francisco Business Plan Competition. The company recently won DEMOgod and the $1M People’s Choice Award at Demo Fall 2010 and Best of Show at FinovateFall 2010. Dynamics is backed by Adams Capital Management and is headquartered in Pittsburgh, Pa., with offices in Silicon Valley and New York City. More information on the company, its technology and applications can be found at www.poweredcards.com.
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