Just wave to pay

NEW YORK (6/1/05)--Waving good-bye to your money has taken on a whole new meaning. J.P. Morgan and American Express announced plans to issue new credit cards that customers wave in front of a special reader. The cards, which still can be swiped and signed, will speed up the payment process (The Wall Street Journal May 19).

Experts say consumers will charge more frequently and spend more because they won't be digging in their pockets for cash. Consumers also may be more likely to purchase higher ticket items with the no-contact cards.

An embedded chip in the card allows a special reader to access an account. The new readers will accept Visa, MasterCard, and American Express cards equipped with the new technology. Already CVS Corp., McDonald's Corp., the Regal Entertainment Group's movie-theatre chain, and 7-Eleven Inc. have signed up for the readers.

The new card doesn't require a customer signature, making it more convenient and faster than traditional cards. There are fewer chances of theft because the card never leaves the cardholder's hand. The cards have built-in sensors that tell the smart chip to disable itself if anyone tries to retrieve confidential data. While thieves could use the card, they won't be able to access or duplicate the information.

J.P. Morgan, the nation's largest credit-card issuer, will start issuing the cards with the new "blink" technology in June. The company also plans to re-issue credit cards to current customers. American Express also will launch its "ExpressPay" version in June. For now, neither company has plans to add the technology to its debit cards.

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