CardLogix has developed Vault Card™ technology to:

• Reduce credit and debit card fraud
• Stimulate growth in new card accounts
• Provide the user with added features, ultimate security
• Work with existing card mag-strip readers
• Give issuers a significantly differentiated product

 These cards are activated upon user entry of a PIN (personal identification number) directly on to the card The card self verifies the PIN, then activates the magnetic-stripe Smart Module or both. The card is then handed to the merchant to complete the transaction. After a transaction is completed, the card automatically returns to an inactive state and cannot be used again without reactivation-PIN input.

Main benefits are:

• Entry and verification process is fast, simple, and secure.
• Card self-verification eliminates the need for an external PIN database
• No transmission of a PIN, reducing the chance of interception and misuse.

Vault-M Cards

The Vault-M Card is a combination chip and magnetic-stripe card that is designed to be readable in all current magnetic-stripe card readers.

Vault-S Card

This card has a smart card interface and can be read by all standard 7816 smart card readers. The Vault-S Card eliminates the need to maintain a PIN database. Self-verification also cuts down on transaction time.

Vault-C Card

The Vault-C Card combines smart card and magnetic-stripe capability, enabling use of the card in readers of both types. Dual reader capability will be important as systems transition from one technology to another, or when international travel necessitates both types.

Competing Technologies to the Vault-M Card for Deterring Fraud

BENEFITS TO ISSUER
Allows the issuer to offer a significantly differentiated product
Increases market share
Generates additional revenue
Increased transactions
New outstandings generated
New Card fees generated
Reduces costs associated with fraudulent behavior
Enhances corporate image

BENEFITS TO USER
Highest available card security
Readable in over 15 million readers US
Heightened recognition by peers and merchants
No lost or stolen card liability or worries