Transcript Nathan Dewitt

Smart Credit Cards
Nathan DeWitt
CS 410
Fall 2007
Green Team
Credit Card Debt
• Total Consumer Debt: $2.39 trillion
• Average Household Debt/Income Ratio: 21.5%
• Average Credit Card Rates Increasing
http://www.bloomberg.com/apps/news?pid=20601087&sid=aZO6230mMNgI&refer=home
http://www.bankrate.com/brm/publ/cc_top_ten_mkt.asp
Feedback
• A signal used within a system to provide self
control
• Cash
– Money in wallet
• Check
– Register shows balance decreasing
• Credit Card
– ???
Add Display to Credit Card
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Provides Balance Information
Instant Feedback
Requires No Power to View
Requires No Flash Memory
High Resolution
Backwards Compatible with Existing POS
http://eink.com/
Benefits
• Credit Card Companies
– Excellent Public Relations Campaign
– Gain Trust of New Customers
• Consumer
– Quickly Ascertain Financial Standing
– No Need to Wait for Monthly Statement
Credit Card Reader
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Retrieves Updated Balance from Server
Updates Display on Card
Update Operation Takes ~500 ms
User Can Update Balance from Home
http://eink.com/products/segmented/specsheet.html
Authorization Request
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Sends Card Number
Sends Expiration Date
Sends Transaction Amount
Receives Authorization with Updated Balance
Requirements
• Credit Cards
– e-Paper Display
• POS Equipment
– Request Balance Amount
– Write Balance to Card
• Server
– Send Balance Amount
Timeframe
• Minimal Development Time
– 8-12 Months Display & Reader
– 6-8 Months Server Software
• POS Rollout Would Take Longer
– Proposed System Backward Compatible
Concerns
• Privacy
– Knowing Current Balance Does Not Help Criminal
– Thief Has Access to Card Regardless
• Cost to Upgrade POS
– If Stores Elect to Forego Upgrade, Card Still
Compatible
Cost
• Total Estimates Under $500,000
– 1” x 2” Display Under 30¢
– Server Software ~$150,000
– POS Reader Development ~$250,000
http://www.wired.com/news/business/0,69839-0.html
Summary
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Credit Card Debt Out of Control
Balance Display on Card Provides Feedback
Credit Card Companies Gain Customers
Consumers Can Manage Spending
Cost-effective Way to Improve Financial Health
References
• Bloomberg
– http://www.bloomberg.com/apps/news?pid=20601087&sid=aZO6230
mMNgI&refer=home
• BankRate.com
– http://www.bankrate.com/brm/publ/cc_top_ten_mkt.asp
• Wired.com
– http://www.wired.com/news/business/0,69839-0.html
• E·INK
– http://eink.com/products/segmented/specsheet.html