Zero Fraud Credit Cards
The contract is for the development and operation of a Biometrics (Face and Fingerprint) Authentication Center (“BAC”) for credit card payments in Thailand, Brunei, Indonesia and Hong Kong. The objective is to achieve zero-fraud in credit card transactions. Customers targeted for the project include credit card issuers such as banks and other financial institutions, plus merchants accepting credit card payments. Revenues will be generated from sales and/or rental of Point-of-Sales (POS) terminals equipped with a USB camera and fingerprint reader and from transaction charges.
Secured Digital Applications, based in Malaysia, is a leading developer of security applications using redundant biometric information retrieved from facial recognition and fingerprint technologies. The company has been engaged to install such biometric-based security systems at various government and private facilities and has recently begun development of an online payment portal utilizing redundant biometrics. The company is also involved in developing and maintaining databases of biometric information. The combination of fingerprint and facial recognition provides accuracy similar to DNA studies.
The verification system being developed for SNC will use biometric data stored in computerized systems that will permit credit card issuers to verify the identity of a credit card user with a high degree of accuracy. Credit card users will register their face and fingerprint details when applying for a new card or upon renewal of their current cards. Merchants will enrol biometric data when users register and sign up for new cards or renew merchants’ loyalty cards.
The system protects clients through a series of authentications, certifications and authorizations. Once the user has been authenticated, details of the purchases and a certification by BAC will be forwarded to the bank’s verification and authentication server (VAS) to process credit card details (credit limit, validity, outstanding balances, etc.). Once all details have been verified, the authorization of the transaction will be transmitted back to the POS. There is no need for the customer’s signature. At the same time, the VAS will update the banking system so that payment will be made to the merchant and charged to the user’s account in real time.