Has anyone ever had any experience with this type of transaction? If so, what'd you think of it?

http://www.msnbc.msn.com/id/10429787/

Dave

Wow give me a break.

Japan isn't the first country to do this. It was firstly done in Hong Kong and Singapore at least 5 years before Japan started this a few years ago.

And that's such a MINOR aspect.

P.S. there are plenty of ridicious news of people losing 30,000USD+ of cash from home and businesses. Why? Because they can't trust the banks and banks give almost zero interest.

I doubt how well it will go especially when Japan does not widely accept credit cards. Maybe on the other hand, because there is a lack of credit cards, such project will go well.

Yes, but a bit more limited in scope. My public transport card works on the same basis. I can buy a minimum of 2 weeks transport, or load cash onto the card for single transits. I just wave the card in front of the reader as I board the bus/tram/metro and it deducts the cost. It makes for smoother transit as there is less hassle of playing with cash. As large numbers of people use public transport and are familiar with how the card works, I am sure it will not be too long before it spreads to other uses as well.

Then again, I can always send on SMS on my cell phone and purchase a single transit pass that way too.

We have this in The Netherlands for quite some time already. It was introduced in 1996.

All our bank cards are equiped with a chip and that chip has some memory.



On special loading stations (usually right next to an ATM), one can load "cash" onto your card.


For that, you require your personal and secret Personal Identification Number (PIN). For security reasons, one can not load more than 500 euro on the card. When stolen or lost, that amount of money is lost. Since a loaded card can be used to pay without use of a PIN, anyonme can use that card.



In a store, or in a phone boot, xerox machines in stores, vending machines, or when you need to pay for parking, you insert your card in a little machine and the amount to be taken from your card is shown in a display. You only need to press the "YES" button and you've payed. Takes just 2 or 3 seconds. The amount you've payed is immediately subtracted form the amount on the card.

They're also widely used in sidewalk cafe's. No more hasle with cash, the waiter/waitress enterd the amount, you insert your card and press "YES" and you're done.

I think it's a neat and convenient system. I never put much money on it, just as I would never cary a lot of cash with me.


Since 2 years, that chip is also used for something else. It's no longer allowed here to buy tobacco products here when younger than 16 years old.
In a regular store, the seller can verify the age of the buyer, but with vending machines that's a little tricky. And since vending machines are used a lot here, for sellign cigaterres, something had to be found.


A system is developed that uses the same chip on a bank card. A special code, the Age Key, must be written in that chip and when that code is not present, the vending machine will not accept the payment. To get that code in your chip, you need to go to your bank, with a passport or other official ID with photograph that states your age. On these vending machines, purchases require a PIN, so it's unlikely that a too young person will use the bank card of an older person, as reveiling the sectret PIN is not likely to happen.

I've only had one type of experience other than in retail stores with my ATM/Bankcard/Visa card. In Spokane, WA we had a trial of 'modern' parking meters where there was only one per block and you pay with a credit/bankcard and put a sticker in your window. At first I thought it was weird, but then I had to go to Portland, Oregon where curbside parking areas had these all over. I got used to them really fast and was happy not to have to fumble for coins and worry about whether the meter takes quarters only or would take dimes and nickles also. When I returned to Spokane, the new meters were replaced with the old style ones!

I really like having cash, but I think that these cards might be a nice way to go as well. I know we will likely never be able to adopt it here as fully as the Japanese have (according to the article), but it would be a nice alternative to having to worry about change and small bills, etc.

Heh, that seems to be the "last straw" fror the German GeldKarte ... In DE we have had a similar cash chip for years but it never really caught on. Even though for a while pretty much every EC card also had such a GeldKarte chip, people just did not use that feature much. So recently many banks have been issuing EC/Maestro cards without that chip. But as from Jan-2007 the 600,000 or so cigarette vending machines in Germany have to be GeldKarte operated http://www.geldkarte-jugendschutz.de/ww/de...m_automaten.htm since that allows an age verification, as you wrote. If you're under 16 - no way. (Of course, if you have a friend who is a little older than you ...)

I used the GeldKarte primarily with ticket machines (parking and public transport) but hardly ever for small purchases in stores. Currently I do not have one. Theoretically I can buy parking tickets in "my" city with a cell phone, but the procedure is quite cumbersome, and does not necessarily work in other cities. That is also what I dislike about those Chipknip, GeldKarte, etc. solutions: They only work in a limited geographic area. I could never use my GeldKarte in NL, and you will not be able to use the Chipknip in DE. No such problems with cash ...

Christian

Sounds like my Exxon/Mobil speedpass, with a broader acceptance base.

Right now, only about 8% of all transactions in the USA are cash. We can argue about coins versus paper and we will be blocked by labor unions in both plants. However, with chipcards, the problem is solved and even less cash is needed. Yes, there will always be cash, just as now we still "barter" cows for wheat on the commodities exchanges. Even without fiat money, electronic money denominated in gold would have been technologically inevitable.

I am enthusiastic.

However, the best course of action is "wait and see."

By the way, is anyone collecting these cards? How many logos are out there now? Are they as cool as phone cards were?

And phone cards brings up an interesting point. The cellphone killed phone cards. These chipcards might have a short live, as well.