International Verifact Inc., the largest terminal manufacturer in Canada, has developed a card reader that can read magnetic stripes and computer chips at the same time.
The patent-pending Flying Head Card Reader is designed for use in public telephones, vending machines, gaming equipment, point of sale terminals, and similar applications. The company said it is the first of its kind in the industry.
The reader uses a unique moving head that glides over magnetic stripes and makes contact with chip cards simultaneously, increasing reading accuracy, said the Toronto-based company's president, L. Barry Thomson.
Mr. Thomson said the compact device is "slightly more" expensive than traditional magnetic stripe readers, but he did not divulge the cost per unit.
The reading mechanism is spring driven, negating the need for its own power source, and providing easy installation, said Mr. Thomson.
The device has been introduced to selected customers, though units have yet to be sold.
Wayne Lewin, global marketing manager-chip cards, for Redwood City, Calif.-based Verifone, said Verifone doesn't carry a similar reader in its present product line and he hasn't heard of any on the market.
"That doesn't mean it doesn't exist - developments are happening both quickly and globally," he said.
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International Verifact also signed a three-year reseller agreement with International Game Technology, a slot machine distributor, giving it the exclusive right to market its secure personal identification number encryption technology to the gaming industry worldwide.
The two companies teamed with Caesar's Palace in Las Vegas to initiate a networked proprietary debit card system, which can be accepted by slot machines.
With the technology, gamblers deposit money or establish a line of credit with a casino. The gambler is issued a card with a magnetic stripe, which is linked to the account. The gambler can then use the card to electronically access funds. The gambler's account is debited.
To date, more than 2,000 slot machines are operating in Caesar's Palace. It is anticipated that an additional 3,000 units will be installed in other Caesar's properties this year and at least one other Las Vegas casino has a planned installation of 6,000 units, the companies said.
International Game has cornered 80% of the electronic slot machine market in North America.
Recent changes in the gaming laws have cleared the way for the proprietary systems to be linked to the automated teller machine/point of sale networks.
