NEW YORK–(BUSINESS WIRE)–SmartMetric, Inc. (OTCQB: SMME) has made substantial improvements to its biometric card which includes a state-of-the-art miniature solid-state rechargeable battery. Also a sophisticated hardware solution that distinguishes a real fingerprint from a fake one.
The more advanced SmartMetric biometric credit card is being prepared to be submitted to one of the largest credit card networks in the world for approval to operate on its network.
The soon-to-be-launched new fingerprint-activated biometric credit card is hitting the market in light of alarming figures showing businesses are suffering monumental losses due to online and checkout fraud. What is so alarming is that the growth rate of online fraud for merchants is in the triple digits, with losses for chargebacks alone estimated at $30 billion in the United States.
Chargebacks are where the credit card user, among other things, denies making the card purchase or says they never received the goods. An estimated 86% of these $30 billion in “chargebacks” or, to be more precise, transaction reversals, are based on fraudulent misrepresentation by the card user.
One of the areas that besets online merchants and the credit card industry as a whole is the area commonly referred to as “friendly fraud”. Friendly fraud is far from friendly. This is a euphemism used in the credit card industry for what is essentially “customer fraud”. Back when people had to walk into a physical business to make a purchase with a credit card, any resulting fraud was referred to as “friendly fraud” since the person committing the fraud and the merchant would have been in direct contact. with each other. Now that the world has moved to billions of dollars in online transactions, there is no human interaction for today’s credit card fraudster. It is therefore inappropriate to call online fraud by customers “friendly fraud”. The fraud is actually real customer fraud. When 86% of reported fraud results in the transaction being canceled and the money returned to the fraudsters’ account, it is definitely not friendly fraud.
An additional cost to businesses and online card issuers is the amount of dollars lost in “card abandonment” when paying for the site online. In order to combat online credit card fraud, processors have now implemented automatic fraud prevention tools which, in turn, cause false rejections of credit cards used by good paying customers with money in their accounts.
An estimated 25% of so-called false positive transaction rejections result in the customer abandoning the transaction entirely. Imagine you own a department store and find that one in four customers turn around and walk out without buying anything because their card is mistakenly rejected by the card processor. A quick way out of business for any business. It doesn’t happen in physical retail stores like it happens online, simply because online anti-fraud tools are so much more restrictive to transactions than what happens on a merchant’s terminal in the store. physical.
“In a nutshell, the explosion of online fraud and, on top of that, the unimaginable loss of business due to good paying customers abandoning online shopping carts due to fake card rejections, is driving the loss of billions of dollars annually by merchants and credit card issuers in lost sales and outright fraud,” said SmartMetric President and CEO Chaya Hendrick.
Without going into too much detail, the SmartMetric biometrics activated credit card allows e-merchants to fight against customers who claim that they were not the ones who carried out the transaction (customer fraud) and at the same time to validate the User legitimacy of the card thus allowing for greater acceptance of transactions, which will greatly reduce losses due to payment cart abandonment that is rampant in the online world.
The SmartMetric biometric credit and debit card uses the cardholder’s fingerprint which is read by a nano fingerprint scanner inside the card, to activate the card before inserting it into the reader card or ATM. The cardholder’s biometrics are protected since their fingerprint is stored inside their card and never leaves it. Only the authorized holder of the SmartMetric biometric credit and debit card can use the card.
“Using the SmartMetric Biometric Credit Card which only allows the legal cardholder to use the card, protects card users, merchants, card processors and banks with advanced biometric technology embedded in the card,” said Chaya Hendrick.
Further information about the SmartMetric biometric credit card can be found on the company’s website at www.smartmetric.com
The figures used come from: https://chargebacks911.com/scary-chargeback-facts/
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