SmartMetric Says Its Biometric User Fingerprint Credit Card Technology Stands to Save Card Merchants Billions of Dollars

Rhea-AI Summary

SmartMetric, Inc. (OTCQB: SMME) has enhanced its biometric credit card featuring a compact rechargeable battery and advanced hardware for authenticating live fingerprints. The upgraded card is set for submission to a major credit card network for approval. With online fraud losses estimated at $30 billion in the U.S., the new biometric card aims to counteract fraud, particularly 'friendly fraud,' which constitutes 86% of transaction reversals. This innovation seeks to improve transaction approvals and reduce cart abandonment rates caused by false rejections, ultimately benefiting merchants and enhancing security.

Positive

• Introduction of advanced biometric card with state-of-the-art technology.
• Potential to significantly reduce fraud losses in the online payment sector.
• Aimed at improving transaction approval rates, minimizing cart abandonment.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- SmartMetric, Inc. (OTCQB: SMME) has made substantial improvements in its biometric card that include a state of the art miniature solid state rechargeable battery. Also a sophisticated hardware solution that distinguishes a live fingerprint from a fake one.

The more advanced SmartMetric biometric credit card is being readied for submission to one of the world’s largest credit card networks for operating approval on its network.

The soon to be released new biometric fingerprint activated credit card is coming to market in the light of alarming figures showing that businesses are suffering monumental losses due to online and at check out fraud. What is so alarming is that the rate of growth in online fraud for merchants is in triple figures with loses for chargebacks alone has been estimated to reach $30 Billion in the United States.

Charge backs are where the credit card user amongst other things, denies making the card purchase or says they never received the goods. It is estimated that 86% of this $30 billion in “chargebacks" or to be more precise, transaction reversals, are based on fraudulent misrepresentations by the card user.

One area beleaguering online merchants and the credit card industry as a whole, is the area commonly referred to as “friendly fraud.” Friendly fraud is far from friendly. It is a euphemism used in the credit card industry for what is essentially “customer fraud.” In the day and age when people would need to walk into a physical business to make a purchase with a credit card, any resulting fraud was termed “friendly fraud” since the person committing the fraud and the merchant would have been in face to face contact with each other. Now that the world has moved to billions of dollars being transacted online there is no human interaction for today’s credit card fraudster. So, it is a misnomer to call online based fraud by customers “friendly fraud.” The fraud in fact is out and out customer fraud. When 86% of reported fraud resulting in the transaction being reversed and money is returned to the fraudsters account, then this is most definitely not friendly fraud.

An additional cost to businesses and card companies online is the number of dollars lost in “card abandonment” at the online site checkout. In order to combat online fraud credit card, processors have now ramped up automatic fraud prevention tools that are in turn causing false rejections of credit cards being used by good paying customers with good money in their accounts.

It is estimated that 25% of what is called false positive transaction rejections result in the customer abandoning the transaction completely. Imagine owning a large department store and finding out that 1 in 4 of your customers turnaround and walk out without buying anything because their card is erroneously rejected by the card processor. A quick way to go bankrupt for any business. This doesn’t happen in physical retail stores anywhere near like it happens online, simply because the anti-fraud tools online are so more restrictive of transactions then what happens at a merchant’s terminal in the physical store.

“In a nut shell the explosion in online fraud and in addition the unimaginable loss of business from good paying customers abandoning online shopping carts because of false card rejections, is causing multi-billions of dollars a year being lost by merchants and credit card issuers in lost sales and outright fraud,” said the President and CEO of SmartMetric, Chaya Hendrick.

Without going into too much detail, the SmartMetric biometric activated credit card allows online merchants to fight back against customers who say it wasn’t them who made the transaction (customer fraud) and at the same time validate the legitimacy of the card user thereby allowing for greater acceptance of transactions which will reduce substantially the losses from checkout cart abandonment that is plaguing the online world.

The SmartMetric biometric credit and debit card uses the cardholder’s fingerprint which is read by a nano fingerprint scanner inside the card, to turn on the card prior to insertion into the card reader or ATM. The cardholder’s biometrics are protected since their fingerprint is stored inside their card and never leaves the card at any time. Only the authorized holder of the SmartMetric biometric credit and debit card can use the card.

“Using the SmartMetric biometric credit card that only allows the legal card holder to use the card, protects card users, merchants, card processors and banks with state-of-the-art biometric technology built inside the card,” said Chaya Hendrick.

Further information on the SmartMetric biometric credit card is available on the company website at www.smartmetric.com

Figures used are from: https://chargebacks911.com/scary-chargeback-facts/

Safe Harbor Statement: Forward-Looking Statements in this press release, which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Also such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the use of words such as "may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe," "estimate," "predict," "potential," "continue," "likely," "will," "would" and variations of these terms and similar expressions, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon estimates and assumptions that, while considered reasonable by us and our management, are inherently uncertain. Factors that may cause actual results to differ materially from current expectations include, among others, if we are unable to access the capital necessary to fund current operations or implement our plans for growth; changes in the competitive environment in our industry and the markets where we operate; our ability to access the capital markets; and other risks discussed in the Company's filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K, which filings are available from the SEC. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date of this press release. We undertake no obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable laws. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements. Investors and security holders are urged to carefully review and consider each of SmartMetric Inc. public filings with the SEC, including but not limited to, if applicable, Annual Reports on Form 10-K, proxy statements, Current Reports on Form 8-K and Quarterly Reports on Form 10-Q.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220504005927/en/

SmartMetric, Inc. 

Chaya Hendrick 

President & CEO 

3960 Howard Hughes Parkway, Suite 500 

Las Vegas, Nevada. 89169 USA 

Tel: +1.702.990.3687 or +1.305.607.3910

ceo@smartmetric.com 

www.smartmetric.com

 

Source: SmartMetric, Inc.

FAQ

What new features does the SmartMetric biometric credit card offer?

The SmartMetric biometric credit card features a miniature rechargeable battery and advanced hardware for distinguishing live fingerprints from fakes.

How much online fraud is impacting businesses in the United States?

Online fraud losses for businesses in the United States are estimated to reach $30 billion, primarily due to chargebacks.

What percentage of chargebacks are attributed to friendly fraud according to SmartMetric?

SmartMetric states that 86% of reported chargebacks are due to fraudulent misrepresentations by card users, referred to as friendly fraud.

What is the purpose of the SmartMetric biometric card?

The SmartMetric biometric card aims to combat customer fraud and improve transaction approval rates for online merchants.

When is the SmartMetric biometric credit card expected to be submitted for approval?

The SmartMetric biometric credit card is being prepared for submission to one of the world's largest credit card networks for operating approval.