Abstract: If ain't broke, don't fix it is the sentiment that stands in the way of smart cards being implemented in this country. Consequently, a new offering that makes maximum use of existing practices is poised to overcome some of the obstacles to smart card implementation. The offering makes a smart-card reader of a standard PC diskette--the user inserts his smart card into a modified 3.5 diskette and slots this into his computer's disk drive. Consumers thereby gain secure access to PC banking software that replicates the simplicity of the touch-screen ATM experience. This approach to smart cards obviates the need for new peripheral devices and proposes a more palatable means of paying for smart cards (see January issue of ABA BJ). It also overcomes some of the security concerns associated with on-line banking. Neither MoneyClip, the product offering, nor the Home ATM software includes--despite their names--enable consumers to get currency at home. Actually, the four vendors that pieced together MoneyClip see cash replacement as its last use, preceeded first by online banking, second by purchases over the Internet. The vendors are the Home Financial Network, developer of Home ATM; Fisher International Systems Corp., developer of the diskette-style reader; V-One Corp., creator of the fire-wall to separate the bank's network from the Internet; and InteliData, an electronic commerce specialist that bundles the others' offerings and markets MoneyClip. Fisher, a Naples, Fla. firm, originally developed its reader so that companies could issue smart cards as a secure way for staff to access a computer network. (Some expect network access to be the first major use of smart cards in the United States.) At time of writing, banks are testing about 5,000 of these so-called Smarty readers, which were released a few months before MoneyClip. Cards store Internet ID MoneyClip works on the assumption that parties conducting business on the Internet will each need identification, which comes in the form of a digital certificate. These certificates will also be used to access the bank's PC banking system. Much like a driver's license for the information highway, digital certificates are issued by authorities. For instance, Visa and Mastercard issue (through banks) the certificates merchants and consumers use for credit card transactions over the Internet. The candidates are stored in software form on users' PCs. With MoneyClip, the user's certificate is on his smart card, which should appeal to those who say a software-based certificate is too insecure and having resident on one PC is inconvenient because it's not portable. MoneyClip will support SET, the Secure Electronic Transaction standard for Internet-based credit card purchases, as well as smart card standards, Michael Battaglia, chief executive of Fisher, said at the product's launch in April. Although the consumer end is ready, in the form of the MoneyClip reader, the bank side of the system won't be ready till about November. Joesph Smith, executive vice-president of InteliData, says several large banks active in home banking are working with InteliData as develops remaining elements, such as the digital-certificate server and software links. …
Publication Year: 1997
Publication Date: 1997-07-01
Language: en
Type: article
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