Ever notice how the credit card keeps evolving? It started off with just your word that you’d repay (back when your word actually meant something), and if you didn’t repay, well then it was debtor’s prison for you. Then, as more and more people began to default and be carted off to prison, creditor’s began to realize they had a veritable cash cow.

Next came the actual cards, but not like the ones we know now. These cards were big, clunky, and made of metal. They didn’t have a sophisticated system of keeping track of balances owed like we do today. Instead, merchants kept track of the tab and sent it over to the “credit card companies.” Eventually we arrived at the system that we have in place today.

But credit card companies aren’t the only ones benefiting from our use and dependence on credit cards. Merchant services providers are cashing in on the profits, as well, and they’re looking to revolutionize the industry. Well, First Data is, anyway.

First Data has created something called the GO-tag. The Go-tag comes in the form of some fob, like a sticker, that can be attached to the consumer’s personal item of choice. The sticker has a pea-sized microchip embedded in it that is pre-loaded with a certain amount of money – whatever the consumer decides to load it with – and then the consumer can simply swipe their sticker when making a purchase. It’s sort of like the “blink” credit cards.

For those unfamiliar with the “blink” credit cards, those are the cards that do not require customers to swipe their cards, they simply wave the card in front of a reader and the information is transmitted via radio waves. The problem with these cards, however, is that someone with a similar device to the merchant, could walk up behind the “blink” user and record the information as it’s being handed over to the merchant. Presto…instant identity theft.

But, the GO-tag is different in that you don’t have an actual credit card. It’s a sticker that is reloadable. If you live in a city with toll roads, it works pretty similar to your toll tag. The reader scans the sticker (or whatever) and then you’re on your way. No signing a slip and no worrying about cash. You can chose to set-up auto payments to refill your tag, or you can refill it when you want to.

First Data is hoping to take advantage of the fact that we’re going mobile now, they want people to realize that they’ll be able to shop without the hassle of carrying a wallet or purse. I’m not sure why they think that’s such a great benefit to us, but they do. Even still, I don’t see this replacing mainstream credit cards any time soon. It’s certainly a neat idea, but I’m still inclined to use my credit cards.

I’ve never been a big fan of the “blink” cards because of the safety issue. The GO-tag certainly doesn’t have the same kind of issue; however, there are still some risks involved. What happens if the sticker is lost or stolen? I’m sure First Data refunds your money, but what’s the process? I haven’t seen much information about that. There’s a lot of talk about how this is so much safer than the “blink” cards, which appears to be true on the surface, but the sticker could still be stolen or the information on it still read. While it doesn’t give criminals access to your accounts – unless you’ve automatically linked them to your GO-tag – there’s still the matter of the money already on the tag. What happens to that money and how is it refunded?

I imagine the process is much the same as it is now, but how is that any different from using a debit or credit card? It seems to me the only real value to this product is the convenience it provides for speeding up a transaction. The problem with that is the fact that not every merchant has the necessary equipment to “read” these GO-tags. So, you’d still have to carry a purse or wallet just in case. It doesn’t really seem to make anything that much easier. Maybe when the equipment is more widespread amongst retailers there will be more value to it.

All in all, I’m not seeing a substantial benefit to it. I might give it a try simply because I like the idea of quick transactions. I love my Exxon Speedpass for that very reason. But, I wouldn’t be tying any of my accounts to it, and I’d still have to have my debit card on me just in case.

So, do you think this will become very popular given that the “blink” cards didn’t do as well as hoped? And, do you think you’d try this?

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5. 5 Tricks That Make Your Credit Card ‘Readable’