Some offshore credit card companies, recognizing that smart cards are a phenomenon that could change the face of the credit card industry, plan to launch their own versions of smart cards that will address the privacy and confidentiality concerns. Brian Trowbridge, chairperson and chief executive officer of Turks and Caicos Islands-based Lochaven Financial Ltd., says his company is considering introducing a smart card to go along with its MasterCard Horizon Card. Bahamas-based Axxess International plans to issue a smart card to complement its three international MasterCards. In the meantime, Axxess is developing a virtual debit card, which will give users the ability to shop online safely and efficiently while maintaining a real and physical presence outside of the Internet. Suzanne Pattusch, international marketing manager for Axxess International, explains that smart cards focus on having the ability to store significant amounts of information on the card itself.
Debit cards focus on the opposite.
In the case of debit cards, personal information is stored on a secure database as opposed to a chip on the actual card. In order to access information about the card, a cardholder must have a personal security code. In order to withdraw funds, a user must insert a four-digit PIN number. This procedure is identical to the smart card. However, the difference lies in where the information is coming from.