Club Management - September/October 2007 - (Page 37) be applied beyond settlement within the club environment. RFID tags have become more flexible, biometric characteristics more acceptable and cellular phones more adaptable. In fact, within the club industry, innovations are leading to a transformation in definition of POS from point-of-sale to point-ofservice; the focus club managers prefer. From a technology perspective, the future isn’t what it used to be as RFID chips, hybrid cards and mobile devices begin to impact payment processing in ways that can be modified into member-friendly applications. RFID Technology Contactless payment systems utilize embedded microchips and radio frequency identification (RFID) technology to effect transactions. With contactless payments – technically referred to as proximity payment technology (PPT) – a cashless transaction is initiated and completed without physical contact between the payment media (card, tag or fob) and a POS terminal (reader). Purchase transactions are conducted with a wave or tap of the media, not the swipe of a magnetic stripe. Settlement data is exchanged through contactless linkage with a specially designed radio frequencyequipped device. Based on field testing, the transmission and receipt of radio signals between a contactless card and reader enables increase in transaction speed and enhanced consumer satisfaction. While contactless payment technology is new to the club industry, it has been used in gasoline retailing (e.g. Mobil Speedpass) and toll-road operations (e.g. EZ Pass) for nearly 10 years. Part of its success is the fact data exchanged between the contactless media and the reader is not account information but an identifier that links to an authorized payment account. To club management, proximity payment systems can represent a competitive advantage both as an alternate form of payment and a means of detecting the presence of members on the property, in the dining room or approaching the clubhouse. The RFID capability can be embedded in non-traditional items like keychain fobs, wrist watches and cellular phones. Radio frequency identification technology is used to automatically identify products, objects, pets and people. Among its advantages are a non-contact and nonline-of-sight technique and its ability to be read at high speeds. RFID technology is quickly replacing bar codes, since such coding requires each individual product be handled carefully, positioned properly and passed slowly before a scanner. To accurately conduct a bar-code inventory requires transporting each product to a scanning device and for one-at-a-time processing. Since bar coding is read-only technology, it is not capable of transmitting data to/from the reader. The same is Microchipping Members: Wave of the Future? The Baja Club of Barcelona, Spain, injects an RFID chip into its members’ left shoulders for identification and authorization purposes. The club uses a passive encapsulated microchip, injected subcutaneously. The injected chip is energized to transmit settlement information through detection by a specialty reader. The implanted chip is small (pen point), undetectable and practically indestructible. It has a special polyethylene sheath to help skin bond to it and hold it in place. Since the chip does not have a battery, there is minimal risk of chemical harm to the wearer. The subcutaneous chip has an expected life of 20 years and is available from VeriChip. not true of RFID media, which can communicate data directly to a reader without concern for sight line or scanning speed. An RFID system consists of an integrated circuit (microchip), an attached antenna embedded in media and a transceiver (reader). RFID is available in two configurations: passive and active. Contactless payment systems use a passive design. In a passive system, the reader broadcasts signals that create an electromagnetic field and a sensitive detection zone. Once a passive RFID tag enters the detection area, its antenna is activated and it becomes engaged, receiving the signals of the reader. Basically, the microchip is empowered by the magnetic field and sends a signal to the reader acknowledging its presence. These signals are used to turn on the microchip’s transmitter and allow information exchange with the reader. A passive system is a short-distance relay system (ranging from 1 inch to a few feet). In turn, the reader can transmit the captured data to an external system for subsequent processing. In the case of a club installation, the RFID sequencing is the front end of an accounts receivable transaction. In an active system, the embedded microchip and RFID reader have onboard energy supplies and both are capable of sending and receiving signals to establish a long-distance range of interaction. Active RFID microchips normally possess read and write functionality, allowing the microchip’s data to be modified or rewritten. The read range for active microchips spans from several inches to more than 100 feet. Given the nature of most club operations, a passive configuration is appropriate. RFID passive system components include: Transactional Media – Transactional media can be used to carry the microchip and onboard antenna, often via a plastic card, mini-card, flexible tag, keychain fob, printed label or cell phone. The structural material must be strong and durable enough to support an embedded microchip and attached antenna. Microchip – An encapsulated microchip is embedded into the transactional media and is externally energized to transmit encrypted settlement data through reader activation. The microchip is typically very small (e.g. size of a pen point) and practically indestructible. The microchip does not require a battery and has a workable life estimated at 10 years. Antenna – A miniature antenna or simple loop wire is connected to the embedded microchip to detect the presence of an electromagnetic field and to transmit data. The antenna, like the transactional media, is built into the structural material of the media. Reader – The reader generates an electromagnetic field through its antenna and once an RFID-equipped microchip enters the detection area, it becomes activated SEPTEMBER/OCTOBER 2007 • 37
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