Apr 12, 2001 Dayton, Ohio-based NCR Corporation (NYSE: NCR) said it has made chip-embedded "smart" cards even smarter to protect ATM users from fraud and security breaches. Company officials added that NCR's hardware system, which was designed to process chip cards in Denmark, has passed all tests to become approved by EMV -- a European consortium formed by Europay, MasterCard and Visa -- marking a significant step toward a global rollout of smart cards.
Chip cards store personal information and allow users to make purchases and conduct other transactions without repeatedly entering or confirming data. They also hold more information, have more security features and can better protect customers against card counterfeiting and fraud, according to NCR. Because of these benefits, credit card companies and other financial institutions are attempting to move away from magnetic-stripe cards and toward chip cards.
Security Standards Met
NCR said it has met "Level 2" standards imposed by EMV and added that its system for ATMs includes security and encryption features that will reduce fraud. The company said it is the first ATM manufacturer to support end-to-end smart-card transactions.
"This is the culmination of a great deal of work to solve a difficult technical problem," said Christophe Primault, vice president of global marketing at NCR. Primault said NCR's system, which is used with 300 software applications in Europe, will help financial-service companies implement new ATM programs more effectively.
Long Approval Process
NCR received "Level 1" approval from EMV in February 1999. EMV was established in 1993 to devise industry specifications for chip cards, terminals and software applications in Europe. Consistent operation among different systems and security concerns are among the key issues the consortium oversees.
NCR employs more than 32,000 people in 100-plus countries. The company serves customers worldwide in the retail, financial services, communication, manufacturing, insurance, travel and transportation industries.
The company's services are geared toward data warehousing, customer relationship management, store automation and ATM programs, among other areas.
Working with Visa
Last fall, NCR joined the Visa Smart Partner program. The company is helping Visa with measures designed to boost Visa member banks' migration from magnetic-stripe cards to chip-based debit and credit cards.
Visa International is working with global technology companies to provide low-cost components and services to help Visa member banks launch smart-card products.
NCR and Visa are conducting business workshops covering such issues as revenue-boosting strategies for companies that implement smart-card programs. NCR officials said they are developing a range of other customized EMV-approved programs to be deployed across Europe.
