FiTeq Introduces Dynamic Authentication Solution with Unparalleled Security and Fraud Protection Readable by both EMV and Magnetic Stripe Terminals
First EMV Approved Payment Applet in Conjunction with Dynamic Magnetic Stripe Data
Tiburon, CA – February 9, 2012– FiTeq Technologies announced today the launch of the first payment card that incorporates an approved EMV payment applet in combination with the FiTeq Energizer Stripe™ enabling a unique cryptogram (FiTeq Transaction Specific Code™) to be created within the magnetic stripe data packet for each transaction. This combination solution ensures dynamic authentication whether the card is used at EMV terminals or legacy magnetic stripe terminals. Dynamic authentication safeguards cardholder data by making it valid for one transaction only, then expiring, precluding re-use by fraudsters. Dynamic authentication is widely regarded as the optimal means to prevent losses from skimming and Account Data Compromise (ADC), both of which can result in counterfeit account usage. This technology will potentially save institutions billions of dollars per year by providing a fraud protection solution that is unparalleled in the payments industry.
"As payment card fraud continues to grow in recent years, solutions have focused on card technologies requiring new terminals. There can be no doubt, it is no longer a matter of "if" EMV will be adopted, but "when" it will be adopted. In this time of transition, a bridging technology can ease the transition to EMV while accelerating the usage of dynamic authentication, regardless of reader type." said Joan Ziegler, CEO of FiTeq. "Our mission when developing this card was to bring dynamic authentication to all terminals globally. FiTeq's bridging technology enables dynamic authentication whether the card is read at traditional magnetic stripe terminals or EMV terminals. We put the best of both in one solution to protect consumer's account data globally – anytime, anywhere."
FiTeq's cards appear much like conventional credit/debit cards, but are battery-powered and embedded with FiTeq's Energizer Stripe, enabling the magnetic stripe data packet to create a unique ID that changes for each transaction: the FiTeq Transaction Specific Code. As opposed to the traditional static magnetic stripe card, which is susceptible to a host of fraud related attacks, the FiTeq Transaction Specific Code uses a patented algorithm to ensure the cardholder's personal information cannot be reused if exposed in a data breach or a card skimming practice used by fraudsters. To further secure the consumer's identity while adapting to the changing payments landscape, the card also features an EMV approved chip, which is the global standard for authenticating credit and debit card transactions.
"While there is a lot of talk about EMV becoming the standard in the U.S., there are dynamic data solutions, like FiTeq, that can be deployed without major infrastructure modifications today. Merchants and banks can cost-effectively deploy these dynamic data solutions right now to deter fraudsters until EMV finally arrives" said Gray Taylor, Executive Director of the Petroleum Convenience Alliance for Technology Standards (PCATS).
FiTeq™ takes payment card solutions to the next level by differentiating card services and leveraging FiTeq's fraud fighting technologies while easing the transition to an EMV future. FiTeq's solutions leverage their patented Extensible Electronic Device Architecture and Vault Software to produce a line of FiTeq cards, each possessing an EMV payment applet in conjunction with the FiTeq Energizer Stripe™ and FiTeq Transaction Specific Code™. FiTeq cards produce a unique cryptogram for each transaction readable by both EMV terminals and legacy magnetic stripe terminals to protect cardholder data, while also providing new card services. The FiTeq Vault Authentication Software™ resides on the issuing banks' authorization platform and decrypts the FiTeq Transaction Specific Code™ to authenticate the card and provide several innovative card services. FiTeq is a vertically integrated payment solution provider: from card design to personalization using industry-standard Datacard equipment and IBM mainframe Vault Authentication Software, FiTeq solutions are plug-and-play with all terminals and all back-end business processes. Both FiTeq EMV Cards and the FiTeq Vault Authentication Software create exceptional value to banks, enabling a solid ROI from fraud reduction as well as unprecedented innovation in card services to drive top line revenue.
Established in 2008 by a team of seasoned payment industry veterans, FiTeq has raised over $15 million in private funding to develop and distribute innovative solutions leveraging its patented technology. FiTeq is privately held and has their licensed patented technology already in each of the over 100 million U.S. contactless cards already in use by American Express, Discover, MasterCard and Visa. FiTeq is based in Tiburon, California.
FiTeq Financial Technologies — Powering Innovation in Payments