Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

12 of 12
Reprogramming the credit card industry
Reprogramming the credit card industry
VP of Finance Andy Hicks and CEO Jeff Mullen
Company: Dynamics
School: Carnegie Mellon University
Team members: Jeff Mullen, Bruce Cloutier, Philip Yen, Brad Carpenter
1st place winner

Concept: Since the 1970s, credit and debit cards have sported static magnetic stripes that are programmed before the card is delivered to the consumer and cannot be reprogrammed. Nearly 95% of card transactions use this stripe. Dynamics is developing a reprogrammable magnetic stripe that will work with existing card-reading machines while providing additional services and security for the end user.

For example, most credit card fraud involves mimicking a magnetic stripe; dynamic stripes could generate one-time credit card numbers, based on the current date and time, that will only be validated by banking company software if the number and timestamp match. Dynamics is also developing a credit card with a digital display, so users can read the one-time number off the front of the card, and a keypad so credit card use can be PIN-protected. A single card could also be linked to multiple accounts, eliminating the need to carry a wallet full of cards. Dynamics founders hope that the introduction of this technology will encourage innovation throughout the banking industry. -Rose Fox

More galleries

LAST UPDATE: Apr 21 2009 | 9:26 PM ET
Sponsored by
Where are they now? Striking deals with the San Francisco Giants and landing millions in venture financing, last year's top teams have battled the downturn. More
7 business plan superstars After winning competitions with their business plans, these 7 ventures turned their paper visions into thriving companies. More
6 ideas for changing the world Do good and make money: That's the goal of these six startups vying for the Social Venture Award and $10,000 in seed money. More