The SmartStripe card
The SmartStripe card provides payment card issuers with a dynamic element to authenticate their cards during card-present transactions.
QSecure’s SmartStripe technology securely writes a dynamic authentication code to the magnetic stripe of the card for each transaction. This code is then authenticated by the issuer during the authorization process, allowing them to determine whether the transaction was initiated with a valid card.
This technology virtually eliminates skimming fraud, significantly reducing issuer fraud losses and related handling costs. Additionally, the SmartStripe takes the guesswork out of fraud screening, allowing the issuer to increase revenues by decreasing the incidence of false declines. Issuers also realize the full benefit of their investment immediately because the cards work in the existing acceptance infrastructure. Finally, there is no need to educate cardholders on how to use the product. The SmartStripe card functions in exactly the same way as a conventional payment card.
SmartStripe Technology
QSecure’s core technology and patents are centered on a proprietary chip embedded under the magnetic stripe. This chip provides a unique number each time the card is used. The chip is powered by a flexible battery embedded in the card with a lifespan of three years, making the card fully electronic. QSecure’s patent portfolio encompasses the chip, card, authorization processes, and overall transaction model related to QSecure’s SmartStripe solution.
QSecure’s chip is a patented MEMS (Micro-Electro-Mechanical System) device. This chip is seamlessly embedded and integrated with the static magnetic stripe on the back of the card, to create a “hybrid stripe” that combines both static and dynamic data. To the terminal, the card data will appear identical to the standard magnetic stripe payment card. In fact, no change to the merchant’s terminal or software are required for these dynamic transactions. After the data is captured by the merchant, an authorization is formatted and routed to the issuer’s authorization host where the unique number is authenticated by QSecure software that has been integrated with these host systems. If the transaction is fraudulent, it is declined in real time.
