Study: Credit Card Issuers Can Do More on Safety
News from ABC News:

Credit card companies could make customers’ accounts and identities more secure with a few simple steps.

That’s what consulting firm Javelin Strategy & Research said in a study released Tuesday that looks at the policies banks use to protect customer data.

Javelin gave Bank of America Corp. its highest score for safety among the top U.S. card issuers, 87 out of 100 points. Bank of America is the third largest U.S. card issuer, based on how much is spent on their cards.

The biggest card issuer, American Express, was ranked seventh for safety with 66 points. The second largest, JPMorgan Chase, was ranked sixth with 67 points.

The study gave a maximum 45 points for prevention efforts, 35 points for detecting fraud and 20 for resolving problems once they were discovered. The average score for the 23 card issuers examined was 59.

The study found that card companies do a good job resolving fraud problems once they occur — averaging 18 out of 20 point…………… continues on ABC News
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Related News:

Dynamics raises $ 35M round for computerized smartcards and payment systems
News from VentureBeat:

Dynamics, the big winner in the 2010 DEMOfall conference, has raised $ 35 million in funding to accelerate its business of making computerized smartcards and payment systems.

The funding led by Bain Capital Ventures is the largest second funding round in the payments business this year and is the largest round in the history of Pittsburgh, Pa., where the company is based. That says a lot about the potential of Dynamics, which is seeking to bring old-fashioned credit cards into the modern computer age.

In the U.S., most credit cards use magnetic stripes that are read by 1970s-era card readers. Dynamics uses those same magnetic-stripe readers, but it has features built into the plastic of its Card 2.0 credit cards that enable more innovative features without requiring a multibillion-dollar upgrade in the payments infrastructure.

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