EMV technology provider Aconite has launched its new pre-authorized smart card designed to serve the underserved sector of card users that include those without bank accounts and those with a poor or limited credit history.
According to Aconite, the pre-authorized funds and smart card security protects issuers from potential bad debt and fraud, while providing a new payment method for cardholders and merchants.
Additionally, the company believes the pre-authorized cards will also provide new revenue streams for vendors in countries where bank account penetration is low or where there is high market demand for alternatives to closed loop payment solutions, such as benefits payments or gift cards.
The new card solution can be deployed as a standalone pre-authorized payments solution or as part of a wider EMV migration package, incorporating full EMV transaction processing and scripting.
Commenting on the launch, Mike Woods, Aconite’s CEO, said: Aconite’s pre-authorized payment solution is an exciting new addition to our payments portfolio providing a low risk, highly cost-effective method of payment. Pre-authorization of funds allows banks to reduce fraud and debt whilst minimizing telecommunications and central processing costs through offline transaction processing.