Credit-card technology boosts security, options

By Felicia Taraczozkozy

Swiping a credit card has become a major issue because of concerns regarding fraud, increasing interest rates and the inability to access reward points.

Dynamics Inc. has designed a new card Citibank will start testing later this month. It enables the user to choose between charging to his or her credit account and redeeming rewards points at essentially any merchant. Other companies are testing different cards with intensified security-encoding features and one card that can double as a credit or debit card.

“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,” said Jeff Mullen, CEO of Dynamics, in a press release.

Recently, the dissatisfaction with credit-card companies has skyrocketed. Last year, the Credit Card Act of 2009 changed the way credit-card companies can conduct business. The legislation provides regulations that guard card issuers from malpractice with users. Because of the guidelines, companies are being forced to devise new ways to attract customers.

“The benefits of this new technology will vary depending on user circumstances,” said Dr. Howard Newell, university professor of business administration. “For some consumers, the card’s new features will be worth the added fees, while others may be perfectly content with the cards they have now.”

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The Cardinal & Cream is a student publication of Union University in Jackson, Tennessee. Our staff ranges from freshmen to seniors and includes a variety of majors — including journalism, public relations, advertising, marketing, digital media studies, graphic design and art majors.