Stored-value Cashless Card Goes On Trial
Sydney Morning Herald
Tuesday July 16, 1996
AUSTRALIA'S credit union movement has introduced a privacy code for the development of its Stored Value Cards (SVCs).
SVCs allow consumers to make small purchases with a "prepaid" card, eliminating the need for cash. They are being trialled in several areas to refine the technology and see what features of the cards appeal.
The simplest SVCs are like phone cards: disposable cards with a limited value. However, an SVC chip can be incorporated into a standard credit or debit card to allow it to be "reloaded" at an ATM or EFTPOS machine.
The Credit Union Services Corporation started issuing such a card through the Universities Credit Union in Newcastle on Monday. It developed the privacy code to prevent information available from the card being misused.
Corporation chief executive Dr Vern Harvey says a chip will be incorporated in the credit union's Redicard to allow it to be used as an SVC card.
The card will retain the standard magnetic stripe allowing it to be used as a debit card and recording account details. But the information recorded on the stripe will be kept separate.
"Credit unions will be responsible for processing debit-card transactions via the standard magnetic stripe," says Dr Harvey. "Quicklink (the company providing the chip technology) will be responsible for processing SVC transactions via the chip."
© 1996 Sydney Morning Herald
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