By Dave Tushie, Magellan Consulting, Inc., ICMA Standards and Technical Representative

An industry trend I have been watching is the increasing content of technology elements resident in transaction cards. This trend has been entrenched in secure cards for some time but more recently it has become apparent that non-secure cards are also beginning to employ some of these same elements. A consequent impact of these technologies could be a more complex personalization and fulfillment process, in addition to changes in traditional non-secure card manufacturing.

With secure cards, both increasing the number of technology elements resident on a card and the increasing sophistication of their construction and personalization have been in place for many years. The incorporation of semiconductor chips/chip sets and antennas have become common while more recent developments consist of sensors, biometrics, dynamic security codes, displays, batteries and more. The construction of these multi-layer cards beyond conventional heat laminated plastic processes is necessitated to address the wider array of card applications such technologies can offer. Related complexity of personalization and fulfillment results with the requirement for cryptographic processes, amongst others, inherent in these secure cards.

Non-secure cards historically, in its largest market segments of gift and access control cards, have seen a variety of ISO standard and customized configurations with magnetic stripe, barcode and contactless (low and high frequency) technologies. Many applications utilize a “batch” personalization and fulfillment process whereby sequential numbers are personalized on the card and the finished cards are provided in “batch” form. There is not a cardholder specific personalization element such as identifying photo, name, account number, etc.

Some newer non-secure card applications are starting to change these traditional implementations. One such application in the gift card (not open loop prepaid card) market segment is the introduction of a card PIN, sometimes with a card verification value, under a security scratch off panel on the card. This could be a single, specific retailer card or a multi-retailer card used for those retailers in a gift card network. A QR code can be printed on the card to help cardholders identify which retailers are included in the multi-retailer network application.

While card manufacturing of such cards is like existing gift card production, the personalization process is greatly changed. The generation of PINs and security codes requires key management systems in the back office. This not only is a more sophisticated process than generating sequential numbers but also requires enhanced security to protect the generated PINs and security codes before, and while, they are printed on the card and before they are obscured by the security patch. And, of course, the fulfillment package must protect the card while it hangs on the J-hook.

Another developing non-secure application in the access control market is the use of a staff ID badge. In schools and corporate campuses, for example, employee badges that can also serve as an emergency alert are generating significant interest. Such an employee badge, typically with photo ID and machine-readable access control (magnetic stripe, barcode, contact/contactless), can also be equipped with a “panic button” that is pressed to alert an active threat and its location on the campus/site. GPS-like location information can even be transmitted directly to first responders. Materials of construction for such cards are likely to be similar to those in some of the more sophisticated secure cards, including chips, chip sets, antennas, buttons and batteries. 

As more creative applications of cards are developed, technology elements proven to be useful are being added to transaction cards. These technology elements continue to alter the traditional card manufacturing and personalization components and processes. If such trends become persistent, rather than niche markets, it will have a profound effect on card manufacturing processes, personalization and supply chains. Industry personalization services, manufacturers and suppliers will evolve with these changes.