Eliminating All Paper and Coin Money

I try not to give to much personal opinion here, and to present facts, but sometimes I can't stand it. I am now tucking my hair up into my cap, and mounting my handsome steed to do my imitation of Paul Revere, but my call is not the "British are Coming", but the "Cards are Coming."

"How fortunate for those in power that the people never think." -- Adolf Hitler

The technology is here, how easy to sell the concept OF ELIMINATING ALL PAPER AND COIN MONEY

1) Convenience,

(a) no necessity of carrying around nasty dirty money

(b) no necessity of finding an ATM machine or bank

© no requirement of making change

(d) no checks to write

(e) easy tracking of all your income and payments

2) Safety

(a) obviously this makes it non productive to mug you and take your wallet, since there will be nothing of value in it. I'm sure however that where there is a will there is a way. Perhaps your card and your thumb, Yuk.

3) Crime control

(a) The elimination of cash money obviously puts a crimp in many types of crimes, you can barter for drugs and barter stolen merchandise, but the elimination of cash creates all sort of problems for these types of transactions.

OK, have I sold you on the idea, ready to sign up? Consider this, the national ID card (article below) is already law. What number would be more appropriate for your smart card than your national ID card number. Simple right.

I'm sure you report every drop of income on your tax return now, the garage sale, the money you won playing golf, little bits here and there, and I'm equally sure you, unlike some other people who have come to light lately, pay social security tax on the wages of everyone you hire around the house, the kid mowing the lawn, the babysitter, the handyman who put up the gutters that fell down. So as an added bonus in convenience consider this, since every penny you take in and every penny you spend will be neatly recorded on your card, it will be absolutely no problem for the government to conveniently deduct the tax your owe. No more tax returns to fill out. The government will also be able to take better care of you, no insurance payment on that car you're buying gas for? No health insurance for little Johnny? These are obviously problems that need to be addressed, and speaking of gas, your usage seems to be a little high, perhaps you are not really making an effort to drive less, or perhaps we should run a check on that vehicle to see why it's guzzling so much gas. Hmm, look at all these purchases of alcohol and what's this cigarettes in a home with children in it?

April 1997 issue of "Biometric Digest"...

CITIBANK SIGNS LICENSE FOR IRIS SCAN AT ATMs

Sensar Inc., of Moorestown, announced that it has licensed to one of the nation's largest banks a technology that identifies an individual from the individual's eyes. Citibank, which has invested $3 million in Sensar as part of the deal, could install Sensar's iris- recognition technology in its ATM machines.

[By the way, the logo for Sensar is a pyramid with the sun obscured about 1/4 behind it, about half-way from ground level, and to the left side of the logo. -- LM]

Sensar's product, called IrisIdent, uses a standard video camera, military technology that points and zooms the camera at a customer's right eye, and a software program that digitally maps the eye and matches it with an eye on file.

This digital map traces the tissue that comprises the iris, which is about one-sixth the surface area of the eye, a Sensar official said.The map amounts to a string of 64 computer characters.

It takes seconds to do the identification, which can be accomplished through contact lenses and eyeglasses. The company calls iris matching virtually fraud-proof.

Sensar president Thomas J. Drury Jr. said the Citibank deal legitimized iris recognition as a promising method for identifying customers in banking transactions. "It sort of sets the standard for taking the technology forward," Drury said.

Because iris recognition is so precise, it's believed by some in the banking industry that cards and personal identification numbers will be phased out in banking. The technology also could be used in other identification functions, such as for passports, driver's licenses and welfare payments.

Sensar's technology and rapidly expanding staff reflect the growing field of biometrics, or identification of an individual through body parts.

In addition to Citibank, Sensar has signed agreements with Oki Electric Industry Co., a Japanese ATM manufacturer, and a third company, which Drury declined to identify. Oki Electric has agreed to buy at least $35 million in Sensar products during the next five years. In return, Sensar granted Oki Electric exclusive rights to its technology in Japan.

The $3 million agreement with Citibank "is pretty close to the final piece" of deal-making to raise the $20 million necessary to bring the iris-recognition technology through development and into the commercial market, Drury said. The $3 million was described as licensing fees, advanced technology development funding, and warrants to acquire a minority interest in Sensar.

Jim Zeanah, chief technology officer for Citibank's development division in Los Angeles, said Citibank has been running a 500- person test with the Sensar product. "It's doing pretty well," he said, "not perfect, but pretty well."

Zeanah said the bank was looking at iris recognition and other biometrics to improve the security for ATM transactions. He said that the iris provides a "huge degree" of differentiation in individuals and that there's a "good possibility" that Citibank eventually will install Sensar equipment in its ATM machines.

Precis Smart Card Systems, Chicago White Sox Introducing Smart Cards Commemorating Historic Interleague Games

05:23 p.m May 06, 1997 Eastern

OKLAHOMA CITY, May 6 /PRNewswire/ -- Precis Smart Card Systems, Inc. and the Chicago White Sox announced that the White Sox will issue Major League Baseball's first smart cards on June 16. The cards will commemorate the first regular season meeting between the White Sox and Cubs. On June 17, the White Sox will issue three additional card designs.

A smart card is a wallet-sized plastic card resembling a credit card in appearance, but containing an embedded microchip instead of the familiar magnetic strip. This microchip gives smart cards the capacity to securely store data and transmit information than other technologies afford.

Fans attending White Sox games can buy a card for $20. They may use the card's full stored value to purchase concessions throughout Comiskey Park, and retain the card as a keepsake.

PrecisCache(TM), a stored value application developed by Precis Smart Card Systems, Inc., will run the system that processes transactions, deducting value from the preprogrammed cards. The cards were designed by the White Sox and Precis to appeal to baseball fans and the collectors market.

"We are excited about being the first Major League Ball Club to issue smart cards," said Howard Pizer, executive vice president of the Chicago White Sox. "They will offer convenience to fans attending games at Comiskey Park, and provide a collectible souvenir of this historic interleague series."

Precis Smart Card Systems president, Jim Lout, said, "Precis is delighted to be embarking on this project with the Chicago White Sox. These cards combine leading-edge technology with handsome graphics to create a consumer product that offers value, practicality and nostalgia."

Three major technology companies partnered with Precis Smart Card Systems to develop the first smart card system created specifically for the sports market. Those companies include VeriFone, Inc., the world's largest transaction automation company; Gemplus, the leading smart card manufacturer, and Tangent Associates, the top provider of arena and stadium point-of-sale systems.

Precis Smart Card Systems, Inc. is a leading developer of smart card applications in the United States, working with a broad range of companies in the entertainment, medical, financial, security and transportation industries. SOURCE Precis Smart Card Systems, Inc.

Date: 97-05-15 22:41:22 EDT

FT. LEONARD WOOD, Mo., May 15 /PRNewswire/ --

Over 28,000 new recruits will be issued more than a uniform as they begin their army training at Ft.Leonard Wood - they will also be issued a First Union smart card. Starting today, recruits will use the funds on these smart cards to pay for their personal items such as toiletries and haircuts during their eight weeks of basic training on the post.

As the first Visa Cash pilot in the government's history, the Department of Treasury funded program will examine the use of stored value as a prototype for future military operations and for the possibility for eliminating cash in military facilities. By eliminating hard currency, the Department of Defense will reduce their cash handling operating costs by automating services.

Featuring an embedded microchip, the Schlumberger manufactured Visa Cash smart cards store money as electronic cash. Verifone Omni 395 card-accepting terminals will be stationed at designated locations and will automatically deduct the cost of the recruit's purchase from the chip balance.

The Army Air Force Exchange Service will support all merchant terminals on the post and ensure daily settlement of the smart card machines."We studied the Visa Cash pilot in the open market during the Atlanta Olympics and were impressed with the technology and conveniences it offered consumers," said Gary Grippo, project manager electronic money with the U.S. Department of Treasury. "We selected First Union as the issuing bank for this project because of their extensive smart card experience and their leadership position in implementing smart card technology."

"First Union committed to chip card technology in 1994. We have worked with Visa Cash on several projects, including the Atlanta Olympics and believe that our vision for the future of smarts cards provided us with this opportunity today," said Mike Love, vice president of smart card technology for First Union's Customer Direct Access Division. "We are honored to work with these organizations and to develop this innovative prototype application for the Department of the Army."

The Defense Finance and Accounting service will prepare and distribute cards to incoming Ft. Leonard Wood recruits. All smart cards will be personalized with the soldiers name and contain a signature panel on the back for identification purposes. At the end of basic training any unused portion of the First Union issued smart card will be credited to the soldiers' military payroll account.

"First Union's new chip-card program with the U.S. Department of Treasury and the Department of Defense demonstrates how the Visa Cash stored-value product can be used to solve commercial issues," said Diana Knox, vice president of chip products for Visa U.S.A. "Visa Cash is an open and accountable payment product for small-ticket items that, in the future, will be combined on the chip with credit and debit functionality to give consumers a full range of payment options."

Charlotte-based First Union Corp. (NYSE: FTU) provides financial products and services to more than 12 million corporate and retail customers nationwide. First Union is the nation's sixth-largest bank holding company with assets of $137 billion as of March 31, 1997.

The Financial Management Service, a bureau of the U.S. Department of the Treasury, is the Federal Government's cash manager. The Financial Management Service issues over 850 million payments on behalf of non-defense agencies, annually; manages the collection of over $1 trillion in revenues, including all Federal income taxes each year; administers the Government's central accounting and financial record keeping duties; and manages the collection of the Government's non-tax delinquent debt portfolio.

Visa is the world's largest consumer payment system. It plays a pivotal role in advancing new payment products and technologies to benefit its 20,700 member financial institutions, their cardholders and the global economy. Visa's 561 million cards are accepted at 13 million locations worldwide.

The Visa Global ATM Network consists of more than 342,000 ATMs in 113 countries. For more information on Visa, visit Visa Expo at www.visa.com.

CO: First Union Corporation; Visa; U.S. Department of the Treasury

Good news!?! The Cashless Society is (almost) here!

In the early spring of 1997 the Dutch "Postbank" will introduce in the Netherlands the "Chip-Card". Other banks, like SNS, ING, RABO and ABN/AMRO, will course do the same. READ THE REST OF THIS ARTICLE AT http://www.cybercomm.nl%7Eyabshua/cashless.html

The changeover to the single currency is an essential step in the European integration process and will concern all economic players : banks, business, administrations and consumers.

The decisions taken by the Madrid European Council in December 1995 have now dispelled the main uncertainties, and particularly those surrounding the name of the single currency and the timetable and scenario for its introduction. READ THE REST OF THIS ARTICLE AT http://europa.eu.int/en/agenda/emu/enscsc.html

Air Force Tests Smart Cards For Medical Records 03/27/97

ROSLYN HEIGHTS, NEW YORK, U.S.A. 1997 MAR 27 (NB) -- By Bill Pietrucha.

The US Air Force is testing smart cards as possible portable patient records for both military personnel and civilian dependents. The field test, which began today at Keesler Medical Center at the Keesler Air Force Base in Mississippi, is using optical memory cards made by Drexler Technology Corp. [NASDAQ:DRXR].

The HealthPass, developed from Drexler's optical memory cards by Novus Technologies Inc., will carry the cardholder's medical history and emergency information, Novus spokesperson Robert Miller told Newsbytes, and will facilitate communication between emergency services, the pediatric asthma clinic, radiology department, and hospital admissions.

Keesler Medical Center is a full-service medical facility at Keesler Air Force Base in Biloxi, Mississippi, and is one of the largest Air Force hospitals in the country.

Miller said the credit card sized HealthPass is a computer readable/recordable, permanent, portable digital storage card.

"The card is designed to archive and communicate patient information and medical history with privacy and security, through participating physicians, clinics, and hospitals," he said.

The HealthPass card can store several thousand pages of text, he said, and can carry a wide variety of information including demographics, insurance, lab tests, prescription, EKG's, and other clinical and administrative records. It also can directly capture and store digital images including x-ray, MRI, CT, and ultrasound.

Under the memorandum of understanding (MoU) with the US Air Force, Miller said, after the end of the six-month trial, the Air Force will evaluate the program, particularly in terms of cost savings and efficiency. Financial terms of the field test were not announced.

Miler said the HealthPass is one of a family of card-based medical products developed and marketed by the company. Other cards include the Novus SurgiCard, which uses high-resolution digital photography to capture and store pre- and post-operative pictures and patient information for plastic surgeries and general surgery practices; and the Medical ImageCard, used to communicate diagnostic-quality medical images, as well as reports of findings, between radiologist and referring physician, thereby eliminating the use of conventional x-ray film.

The Medical ImageCard software has been cleared for sale in the United States by the Food & Drug Administration (FDA), Miller said. He added that Novus also uses the DELA Standard optical card format which was recently adopted as the format for all optical memory cards used by the US Department of Defense.

Novus is a value-added reseller (VAR) of Drexler and its wholly owned subsidiary LaserCard Systems Corp.

Smart Pen To Catch Forgers By Erik Vlietinck

HANNOVER, Germany -- A computerized "intelligent pen" that uses biometric technology to spot even a perfectly forged signature made its first public appearance Friday at the CeBit trade show in Germany. The LCI SmartPen device is a ball-point pen fitted with sensors that let a computer authenticate its user's identity by examining the biometric characteristics of their signature. The biometric characteristics recorded by the pen are transmitted by radio signal to a host computer. By monitoring even the smallest movement of a user's hand as he or she writes, the device builds up hugely detailed biometric profiles of users.

Someone wanting to make an important financial transaction would sign their name using the SmartPen, which would then compare the details of their hand movements with a biometric profile already stored on a database. If the two don't match, the pen alerts the bank to a forgery -- even if the signature appears genuine.

The technology behind the device was developed by the IMEC research institute in Leuven, Belgium. LCI Computer Group, a Dutch developer that licensed the technology, launched the SmartPen at the CeBit trade fair in Hannover, Germany on Friday. IMEC and LCI said the pen offers fool-proof and unequivocal identification of its users.

"As the SmartPen writes on a piece of paper on a flat surface, the pen tip will travel through 3-D space near the paper. The pen tip's trajectory, as calculated, will be a 3-D curve lying around the writing surface. The curve incorporates unique characteristics of the writer," said Professor Roger Van Overstraeten, president of IMEC. "Signature verification with the SmartPen does not depend on the graphic image of the signature, but on the dynamics of the act of signing."

Since SmartPen is effectively a miniature computer, the decvice could be used for remote user authentication over the Internet and private networks, as well as in banks and offices, according to LCI's chief executive Sam Asseer.

The SmartPen device contains all the processing power needed to calculate the 3D trajectory. It has sensors, a mouse, a digital signal processor, a radio transmitter and receiver, and an encryption system built in.

An important difference with traditional signature verification technology is the fact that the pen is intended to be used on normal paper, and does not require a special digitizing "tablet". It therefore enables people to write with it as they are accustomed to. Until now, signature verification implied having a pen or digitizing "tablet" attached to the computer.

The unit price of the production version will range from US$50 to US$250, depending on the features.

"SmartPen will forever impact the way electronic commerce is conducted, particularly over the Internet. By authenticating the author of a transaction, the act will become undeniable," Asseer said. Financial institutions and health care industry organizations have already expressed an interest in the product, he said. Firms considering commerce on the Internet and companies dealing with network security are also interested, he added.

A recent Gartner Group s report predicted that adopters of computerized signature verification technology would include the medical and pharmaceutical industries and government departments. Gartner also mentions check cashing, welfare or social security, retail transactions and computer application security.

LCI will spend the next two years developing software for additional application areas, Asseer said. The company intends to be "conservative" in the initial stages of marketing the device, in order to ensure successful implementation in selective markets, he added.