Tuesday, October 26, 2010

Citi Introduces the First 2G Credit Cards - - 25 Oct 2010

Get ready for the second generation of credit cards. In November, Citibank will introduce new credit cards with two buttons on the face, and a microchip inside. The buttons allow consumers to decide whether they want to pay with credit or with rewards points.

“We’re now using technology to provide our customers with choice and flexibility at the point of sale,” Terry O’Neil, vice president of Citigroup’s North America Credit Card division, said in a promotional video for the card.

Called the Citi 2G card, it will be the same size as current credit cards. It was created by Dynamics, Inc., a Pittsburgh-based company that is developing a range of other smart cards. One would use the two buttons on the face to allow consumers to toggle between different accounts using the same card, according to a company press release.

Another Dynamics card under development has a small computer screen that displays most of the account number. Users have to enter a PIN to uncover the rest of the account number and authorize a purchase.

The technology also could be used to prevent scammers from skimming credit card numbers. Instead of the three- or four-digit security code on the back of cards, second generation cards would assign a unique code to each in-store and online purchase.

“We are just scratching the surface with what these cards can do,” Jeff Mr. Mullen, CEO of Dynamics, Inc., told the New York Times.

By Chris Maag

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