How exactly does the token work with the telephone?
Because of the lack of NFC capable phones in the USA today, we are using an external contactless token that contains an adhesive backing that allows it to attached anywhere on a mobile phone. It will even work if placed on the inside of the battery cover. The token is slightly larger than a postage stamp and provides all of the same information that is traditionally stored on the magnetic stripe of a card. The cardholder passes the phone within 1.5 inches of a RFID reader to initiate a transaction. The reader then queries the token for identification data and begins exchanging information back and forth as needed. Once the token is verified then the transaction is processed through our host system for authorization and settlement against the prepaid account. This part of the transaction involving the prepaid account is much like the traditional credit or debit card transactions we process everyday.
