American Express introduces 'contactless' cards
Mon Jun 6, 2005 12:02 PM ET
http://www.reuters.com/newsArticle.jhtml?type=technologyNews&storyID=8707794
&src=rss/technologyNews

NEW YORK (Reuters) - American Express (AXP.N: Quote, Profile, Research) on
Monday said it will begin issuing credit cards that are waved in front of a
sensor to make payments, following plans announced by JPMorgan Chase & Co.
(JPM.N: Quote, Profile, Research) in May to introduce a similar credit card
technology .

The new cards offer a function already common at many U.S. gas stations.
They are an alternative to the traditional cards that are swiped through a
machine that reads information embedded in a magnetic strip.

American Express's Blue cards with ExpressPay will allow payment to be
authorized in seconds and will not require a signature. Convenience store
chain 7-Eleven (SE.N: Quote, Profile, Research) will test the card in 170
stores and eventually plans to accept it at all its 5,300 stores.

CVS Corp. (CVS.N: Quote, Profile, Research) drug stores, East Coast
convenience store chain Sheetz Inc. and Ritz Camera will also accept the new
cards.

American Express said test results showed that, on average, ExpressPay
transactions are 63 percent faster than using cash.

The new cards also can be used the same way as traditional credit cards with
a magnetic strip.

The new card payment technology is similar to a contactless system now used
by customers at many Exxon Mobil Corp. (XOM.N: Quote, Profile, Research) gas
stations.

The gas station's payment card has a miniature transponder that is attached
to a customer's key chain and is waved in front of an electronic reader at
pumps and checkout counters. A credit card or check card designated by the
customer is then charged for the purchases.



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