The banking industry is continually looking at new measures to combat fraudulent behaviour. One is to educate consumers about predominant types of credit card fraud taking place. Another is to introduce new technology that reduces fraud. One such technology is the use of smart cards, which FNB along with other banks are looking to introduce to the market.
"The smart card, which is an integrated chip, is embedded on the face of the plastic credit card. It provides not only memory capacity, but also replaces the need for a magnetic strip, which would completely eradicate card skimming (the process whereby card details are lifted off the magnetic strip)," says Jan Kleynhans, CEO of FNB Card.
"Smart cards can be used for a variety of different applications in addition to the normal payment processing, for example for use in the loyalty programme, where eBucks could be loaded onto the smart card and which can then be used as a mechanism to spend eBucks.
"The implementation of the new smart card technology is a complex process and South African consumers can expect to wait an estimated five to eight years for a fully integrated implementation," Kleynhans concludes.
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