Visa Announces Test Requirements for Powered Cards

The set of test requirements, available later this month, is a major step towards the eventual commercial use of emerging card-based authentication solutions and other dynamic capabilities.

"By defining product, brand, testing and technology standards for new classes of products and services, such as powered cards, Visa is ensuring that card issuers can take maximum advantage of these exciting new products as they emerge," said Tom Manessis, vice president, Innovation Division, Visa International. "Issuers will be able to move forward with the knowledge that card manufacturers can demonstrate that powered cards conform to a range of functional, health and safety, and regulatory requirements. Financial institutions will be able to investigate new products more quickly and start to differentiate their offerings."

Powered cards can incorporate value-added capabilities such as displays, dynamic account information, authentication services, light and sound. They work by embedding a tiny battery into the plastic card. Visa has demonstrated various product possibilities using the technology and has been working to identify how it can potentially be used commercially. This has included evaluating display cards with one-time passcode authentication capabilities. With a display card, a cardholder presses a button on the card to display a numerical one-time passcode, generated by an algorithm programmed into the card, for online authentication. Using the passcode, the issuer can verify that the person interacting with the bank is actually in possession of the card.

Based on research and work over the past two years, Visa has developed a set of test requirements including testing protocols, best practices for addressing local and global regulations, and a selection of qualified test laboratories ready to evaluate powered cards. Tools and information will be available to Visa member financial institutions and qualified card manufacturers. Visa expects to pilot a number of powered card capabilities during 2007.