European Stars And Stripes (Newspaper) - July 28, 1985, Darmstadt, Hesse                                Daily Magazine by Susan Postlewaite United press International picture this scenario you walk up to an airline ticket plug a plastic card embedded with a computer Chip into a terminal and Boom it charges your credit card account for a assigns you a window makes a reservation at your favorite hotel and sends an electronic message to your wife saying youll be there in two the picture int that manufacturers of the Chip card say a test of their product in Palm and Maryland by Mastercard beginning in August May eventually Lead to use of the cards by and other in Chip called smart have been around for but while they have caught on in where Banks plan to switch entirely from magnetic Stripe cards to computer chips by they have not had much of an Impact in the United Mastercard Hopes the Quarter Inch Square Chip with a memory the size of a pocket computer will help it outwit credit card after absorbing million in credit card losses last year due to fraud and card Mastercard thinks the chips time has finally card fraud is an increasingly serious problem for the said a spokeswoman for Mastercard in new its incumbent on the card companies to explore technological opportunities and the Chip offers a really promising solution to the problem of card one of the biggest advantages of the Chip cards is the Chip cannot be the manufacturers since organized crime latched onto making phony plastic Mastercard reported that its losses from counterfeiting snowballed in five years from in 1979 to million last about of a japanese made Chip card will be distributed in August by first National Bank of Palm Beach to the Mastercard Banks in Maryland will distribute of a French version of the card in another test in a larger Market Between Baltimore and cards Are to be Mastercard Hopes the tryouts will enable it to establish some production standards for the Chip card which it May decide to distribute to its 103 million card hold ers Chip cards look and feel the same As a Standard credit but Are programmed with the card holders personal identification number and Are Able to calculate available credit As purchases said Rob Ert president of Casio Micro card in new its an entirely new plastic card technology that is certain to initially and then very quickly the magnetic Stripe on the cards said who left Mastercard less than a year ago to form a marketing firm for Casio computer the japanese company which manufactures the Micro the major Points to be proved Are customer acceptance and merchant he Ray vice president of marketing for first National Bank of Palm said he believes merchants will adapt easily to the new card because it should simplify credit card a sales clerk will not have to phone ahead to verify a shoppers but will just plug the card into a terminal which reads the information he said the Bank would offer the cards As soon As Mastercard installs about 200 electronic terminals with area other credit with billions invested in magnetic Stripe Are watching some marketing experts have expressed doubts that the ultimate Cost of the smart cards can be others Point to the Selling Point of having a Little computer in your pocket that saves time and we already know the Chip technology said visa International spokesman Dick theres no question the Chip is More secure than the magnetic visa has More than billion invested in magnetic Stripe technology and conversion to the Chip could Cost he about Point Sale terminals used world wide by All the credit card companies Are equipped to read magnetic they would have to be Retro William Security chief for said while a photo Frau proof French credit card with a Builtin computer smart cards visa is considering the it is also talking with the makers of the which is being devel oped in Colorado Springs by Inte Licard looks like a Wallet calculator with a Keypad and liquid Crystal visa is also trying out an anti counterfeiting terminal in several including fort Lauderdale and Las the beige called provide a digital readout of the number encoded on the cards Black magnetic which the sales clerk must match with the number embossed on the Neuman said the terminals should prevent use of cards with a fake Black Stripe on the Back or which have had the punched in numbers tampered Richard president of Micro card technologies in a subsidiary of the French card said the Cost of the technology has dropped so substantially it is just a matter of time before july 1985 and then everyone will embrace the he expects to be manufacturing the cards by the end of the year at a Plant in the Dallas he said the Plant will be Able to produce several million Chip cards a month at a card for very Large orders of a million or youll see As the test proves Suc More and More functions will be put on the he because the Chip has a it can contain a great Deal of information besides banking person Al medical insurance data and airline ticketing Are by 1 would think All financial and medical cards would carry Basic such As blood any serious your insurance information and so said the stars and stripes Page 13