Payment IC card specifications nearly complete

Electronic News, June 5, 1995

NEW YORK--Europay International, MasterCard International and Visa International last week said they expect to complete major portions of their joint specification on IC cards--a.k.a. "chip" or "smart" cards--for payment systems by the end of this month (EN, June 27, July 25, Nov. 14, 1994).

When completed, the release of the IC card and card-reading terminal specs will allow vendors to develop parts, systems and applications under a common set of technical parameters for integration of microelectronics into payment cards and interaction with terminals. The specs include mechanical and electrical characteristics and transmission protocols; they will be updated and issued annually to allow enhancements.

The June release of specs will include enhancements for multiple-application chip cards to work with terminals to help guide cardholders through applications selections.

Beginning in July, the companies will evaluate a so-called interpreter concept intended to create an architecture for adding new chip card applications with minimal change to the card-reading terminal while providing issuing institutions with more control over the transaction process.

In June 1996, the three payment organizations plan to issue a subsequent release of the IC card and terminal specs that will include the interpreter concept (pending a successful evaluation), a dynamic data authentication method, and electronic purse/stored value specs.

The three companies first decided in December 1993 to form a working group on the specs.

In another development, AT&T said it will start a new licensing program for its "contactless" smart card technology. AT&T's smart cards are already being used by Delta Airlines in the northeastern U.S., for highway toll-collection in Italy, and by a cashless vending machine company (GiroVend Holding Ltd.) in the U.S. and Europe. AT&T and Lockheed Martin are also working with other companies to develop building security and other security applications for the cards.

"We are already negotiating with three companies in different parts of the world for technology licenses," said John Bermingham, president of AT&T Smart Cards. AT&T said it will help customers who license the technology develop applications for transportation, banking, financial services, retail, security, health and other industries.

AT&T's Smart Cards contain 8-bit processors and use a contactless technology without exposed metallic contacts. The memory for AT&T cards is designed for 100,000 write and erase cycles.