U.S. Banks To Test Smart Cards In NYC
Ray Van Eng (04/27/96)
Chase Manhattan, Citibank, together with Visa and Mastercard will begin
testing 'smart cards' (cards that have micro-chip embedded for handling
digital cash storage) in New York City.
A total of 50,000 cards will be issued and will be accepted by 500 merchants in a defined area in Manhattan. These cards are meant to be used for purchases below $20 in fast food restaurants, newsstands, pay phones, gas stations etc.
Consumers can download cash into their cards via ATM terminals. Research have shown that consumers like the convenience of such cards to pay for small purchases. Merchants would benefit by reducing cash and check handling cost. Banks would enjoy providing one more service and a chance to strengthen loyalty with their customers.
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