Smart Credit CardsNathan DeWittCS 410Fall 2007Green Team

Credit Card Debt• Total Consumer Debt: $2.39 trillion• Average Household Debt/Income Ratio:

21.5%• Average Credit Card Rates Increasing

http://www.bloomberg.com/apps/news?pid=20601087&sid=aZO6230mMNgI&refer=home

http://www.bankrate.com/brm/publ/cc_top_ten_mkt.asp

Feedback• A signal used within a system to provide

self control• Cash– Money in wallet

• Check– Register shows balance decreasing

• Credit Card– ???

Add Display to Credit Card• Provides Balance Information• Instant Feedback• Requires No Power to View• Requires No Flash Memory• High Resolution• Backwards Compatible with Existing POS

http://eink.com/

Benefits• Credit Card Companies– Excellent Public Relations Campaign– Gain Trust of New Customers

• Consumer– Quickly Ascertain Financial Standing– No Need to Wait for Monthly Statement

Credit Card Reader• Retrieves Updated Balance from Server• Updates Display on Card• Update Operation Takes ~500 ms• User Can Update Balance from Home

http://eink.com/products/segmented/specsheet.html

Authorization Request• Sends Card Number• Sends Expiration Date• Sends Transaction Amount• Receives Authorization with Updated

Balance

Requirements• Credit Cards– e-Paper Display

• POS Equipment– Request Balance Amount– Write Balance to Card

• Server– Send Balance Amount

Timeframe• Minimal Development Time– 8-12 Months Display & Reader– 6-8 Months Server Software

• POS Rollout Would Take Longer– Proposed System Backward Compatible

Concerns• Privacy– Knowing Current Balance Does Not Help

Criminal– Thief Has Access to Card Regardless

• Cost to Upgrade POS– If Stores Elect to Forego Upgrade, Card Still

Compatible

Cost• Total Estimates Under $500,000– 1” x 2” Display Under 30¢– Server Software ~$150,000– POS Reader Development ~$250,000

http://www.wired.com/news/business/0,69839-0.html

Summary• Credit Card Debt Out of Control• Balance Display on Card Provides

Feedback• Credit Card Companies Gain Customers• Consumers Can Manage Spending• Cost-effective Way to Improve Financial

Health

References• Bloomberg

– http://www.bloomberg.com/apps/news?pid=20601087&sid=aZO6230mMNgI&refer=home

• BankRate.com– http://www.bankrate.com/brm/publ/cc_top_ten_mkt.asp

• Wired.com– http://www.wired.com/news/business/0,69839-0.html

• E·INK– http://eink.com/products/segmented/specsheet.html