biometric payment

Here's an example of how one fingerprint payment system works:

• The shopper registers for a biometric program at a store kiosk by presenting valid identification and bank account information.
• The shopper scans his index finger using the kiosk's fingerscan reader.
• The store's fingerscan reader encrypts multiple point-to-point measurements of the fingerprint and stores the customer's biometric data and banking information in a centralized database.
• The shopper now has the option of selecting biometric payment at the point of sale register. If he chooses biometric payment, he scans his finger at the checkout register with the store's electronic reader and enters his personal identification number.
• The electronic reader compares the data from the new scan to the encrypted data in the database and either approves or declines the transaction. If approved, the funds are electronically transferred from the shopper's account to the merchant.

In the United States, biometric payment has gained popularity in grocery stores, gas stations and convenience stores. In March 2006, Pay By Touch, the leading biometric payment provider, reported that more than two million customers had enrolled in their biometric services and that Pay By Touch had authenticated approximately $8 billion in transactions.

Cited advantages of biometric payment include:

• Enhanced security for the end user.
• Speedy transactions.
• No need for the end user to carry cash, checks or credit cards.
• Lower cost per transaction for the merchant, compared to standard debit or charge card fees.

Biometric payment is controversial. Traditionally, fingerprints have been associated with law enforcement. Critics of biometric payment fear that fingerprints could be made available to government agencies or law enforcement officials. Biometric payment service providers are quick to point out that they don't keep the customer's actual fingerprint in their databases -- they keep an encrypted number derived from the finger's point-to-point measurements. (It is that number which is used to verify a customer's identity, not the actual fingerprint.) In the final analysis, a biometric payment system -- like any system that accesses sensitive information -- is only as secure as the associated databases and transactions.

Learn more about Biometric Technology

	Identity and Access Management Services, Systems and Technologies: This Security School explores critical topics related to helping security practitioners establish and maintain an effective identity and access management plan.
Exploring authentication methods: How to develop secure systems: Discover authentication options and learn how to implement, maintain and secure methods of authentication, such as biometrics and smartcards to avoid breaches and protect data.
	Future authentication technologies: How to choose the right product: In this Identity and Access Management Security School lesson, Burton Group's Mark Diodati explores innovative and cost-effective user-based authentication technologies.
Identity and access management final exam: Find out how much you learned in Identity and Access Management Security School and the areas where you need to focus more attention.
Secure user authentication: Regulations, implementation and methods: Learn about the FFIEC's mandate, how to choose the right authentication option for diverse user communities and how to implement an authentication strategy.
	Identity and Access Management Services, Systems and Technologies: This Security School explores critical topics related to helping security practitioners establish and maintain an effective identity and access management plan.

Do you have something to add to this definition? Let us know. Send your comments to techterms@whatis.com

More resources from around the web: - Ellen McCarthy provides examples of biometric payment methods in use by retailers. - AMonline explains how 'Biometric Scanning Offers Vending New Payment Options.' - CNNMoney explores the issues in this article: 'Wal-Mart, Costco weigh merits of allowing customers to pay by scanning fingerprints.' - eWeek reports on consumer resistance to biometric payment.

FILE EXTENSION AND FILE FORMAT LIST File Extension and File Format List: A B C D E F G H I J K L M N O P Q R S T U V W X Y Z #

RELATED CONTENT Group to shed light on secure identity management threats Identity management technologies are struggling to keep pace with constantly evolving nature of attacks, according to the Center for Applied Identity... Biometrics project studies ways to combat bank fraud Industry consortium launches effort to see how biometrics could improve customer authentication and battle identity theft. Analyst says iris scanning... Apple iPhone app could boost two-factor IT costs and user acceptance has hindered deployments of two-factor authentication. But a new Apple iPhone application could increase use once...

RELATED GLOSSARY TERMS Terms from Whatis.com − the technology online dictionary electro-optical fingerprint recognition  (SearchSecurity.com) false acceptance  (SearchSecurity.com)