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January 13, 2014

NXT-ID's Dynamic Pairing Technology to Prevent Credit Card Fraud

By Frank Griffin, TMCnet Contributing Writer

Different variations of the wallet have been in use for millennia, and just like almost everything else, digital technology may soon do away with this ubiquitous item. The introduction of the credit card in the 1950's introduced an added level of convenience when it came to paying for product and services, but e-commerce and mobile technology is going to be more efficient than any payment method that has preceded it. The one issue getting in the way of full adoption of digital wallet technology is security. NXT-ID, provider of biometrics solutions for mobile commerce markets, has announced Checkout with Wocket, an initiative that uses patent-pending dynamic pairing technology (DPT) to prevent credit card fraud at the point of sales (POS).

With this initiative, NXT-ID is delivering a platform that secures all payment card information throughout the transaction process. Without changing the current payment infrastructure it is going to be able to secure payment card information before, during and after the transaction.

As the company stated, their security solution is to make the data the hacker steals completely useless. If the credit card data is stolen it cannot be used outside of the Wocket itself.

While one-time-passcodes (OTP) and chip-and-pin cards have had relative success, the expense associated with implementing this technology across the board by retailers has resulted in low adoption rates. The Wocket on the other hand generates a dynamic account number without revealing information about the actual account number. It dynamically pairs a specific account number so a transaction can take place without uprooting the retailer's existing infrastructure. The reprogrammable standard magnetic stripe technology means retailers will not have to invest in additional hardware.

"2013 was clearly the 'Year of Personal Data Breach.' Target (News - Alert) capped off the year with over 40 million credit and debit card account numbers lost to hackers by malware at point of sale terminals. Our dynamic pairing technology is built upon the existing systems retailers use today, but with the Wocket smart wallet, we can provide a dynamic pairing number for any account, not just a single 'card," says David Tunnell, CTO of NXT-ID.

The Wocket dynamic pairing technology gives retailers, banks and credit card companies the option of making the information of their customers available without having to modify current payment processes and the risk of fraud. The Wocket is designed to replace all the cards in a wallet without having to use a smartphone while at the same time providing next generation biometric technology to ensure the safety of all transactions.

Edited by Cassandra Tucker
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