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Next month consumers will begin to see "contactless" credit cards when applying for new credit or renewing old credit cards. While credit card companies are touting the new technology as a way to save time and simplify the payment process at the cashier counter, you can take those rationalizations with a grain of salt. The real reason the new technology is being dispersed is that studies show that the contactless system gets people to both spend more often and more money.
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One study found that the amount spent using the contactless credit cards rose 15% versus using current credit cards. The same study showed that the number of people buying items with the contactless system increased more than 3% an hour.
The system uses computer chips embedded in the credit card that stores your information. Instead of handing the card to the cashier and having it swiped through the machine, all you have to do is wave the card by the machine and sensors will complete the transaction.
According to a story at <A HREF="http://www.usatoday.com/money/perfi/credit/2005-05-23-constactless-usat_x.htm">usatoday.com</A> the credit card industry predicts that 35 million to 50 million cards will be contactless by the end of 2006 and will be accepted at 25,000 to 50,000 locations.
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One study found that the amount spent using the contactless credit cards rose 15% versus using current credit cards. The same study showed that the number of people buying items with the contactless system increased more than 3% an hour.
The system uses computer chips embedded in the credit card that stores your information. Instead of handing the card to the cashier and having it swiped through the machine, all you have to do is wave the card by the machine and sensors will complete the transaction.
According to a story at <A HREF="http://www.usatoday.com/money/perfi/credit/2005-05-23-constactless-usat_x.htm">usatoday.com</A> the credit card industry predicts that 35 million to 50 million cards will be contactless by the end of 2006 and will be accepted at 25,000 to 50,000 locations.
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