Freedom Card on thelaunch-padThe Freedom Card, another new UK wallet-based product for on-line shoppping, is nowon the launch-pad, in as much as it is beingpromoted in computer magazines. However,the Freedom Card is not a pre-paid card suchas Splash Plastic and Smart Creds. TheFreedom cardholder is assigned a credit limit;this is determined after the applicant hassubmitted the usual range of personal detailsto establish their credit status.

Once approved the cardholder is issued with aPIN number code, an account and a credit limit.The cardholder either pays off the balance ontheir Freedom Card at the end of a 54 dayinterest-free period - or makes a minimummonthly payment. The selling point of the Freedom Card is that thegoods for which it acts as a payment instrumentcan only be sent to the home address of thepurchaser.

When the cardholder shops on-line, theyselect the option to pay by Freedom Card. Theyare then prompted for their log-in name andpassword; when these are entered, thecardholder’s personal and purchase details aredisplayed; if correct, the cardholder confirms thetransaction by entering by entering their PINcode. The order is then confirmed and theaccount is updated. As with any wallet, once thedetails have been entered on application, there isno subsequent need to type in e-mail or houseaddress, phone number, and other details.

If anyone else obtains the rightful cardholder’slog-in name, password and PIN code, all theycan achieve by using the card is to have the goodssent to the cardholder’s home address.

Freedom tells prospective cardholders andmerchants that it will give them a better dealthan conventional credit card companies. Theysay that when an on-line credit card fraud isreported, credit card companies investigate theclaim, before re-imbursing the card holder withcredit.

“Their investigations can take severalmonths,” says Freedom Card, “meanwhile creditis frozen on the account. If the claim is deemedvalid, the cardholder’s account is re-imbursedbut not always to the total amount, dependingon the agreement with the issuing company. Theon-line store then has the amount of thetransaction clawed back by the credit cardcompany.

“Freedom Card has no ‘claw back’ or‘customer not-present’ clauses. This means thatwhen a merchant receives an order from a

Freedom Card user, he knows that it is aconfirmed, fully-authorised order.

“No set-up fee is charged to the merchant,while transactions are charged from 2% - farlower than the combined charges of credit cardcompanies and payment providers.”

The people behind the Freedom Card (whohad not revealed their identity to us at the timeof going to press) also promise that cardholderswill receive invitations for exclusive sales,promotions and discounts from Freedom’snetwork of on-line merchants. Every poundspent will earn 1 Freedom Point; Freedom Pointscan be exchanged for a variety of products.

Contact: Freedom Card at www.freedomcard.co.uk

Keyware fits outEuronext buildingThe Euronext building in Brussels hasinstalled an access control system using‘advanced proximity’ cards supplied byKeyware.

Euronext, a joint venture of the Amsterdam,Brussels and Paris Stock Exchanges, is nowconsidering whether to add biometric ID to theencryption system currently running on thecard. The Central Authentication Server (CAS)supplied by Keyware will enable Euronext tomanage both biometric and non-biometricauthentication techniques if required.

Keyware explained that their advancedproximity card does not conform to the ISOstandards for contact or contactless ‘smart’ cards.“A proximity card is a type of card that needs tobe shown at less than 10 centimetres from thereader. There is no physical contact made. Thecard carries a unique number and somecommand codes that are downloaded at thereader. It is mainly a memory card with atechnology [that is] able to transfer data over awireless environment. World-wide, about 80%of these cards are using the Mayfair technology,which is an Intellectual Property Right fromMotorola.”

Keyware is also to develop e-payment andauthentication tools for the the Tanjung PuteriDevelopment in Malaysia. Using smart cardand biometric technology, Keyware will workwith Waterside IT Solutions - a Kuala Lumpur-based company – to build systems for the newcity, where US$ $24 million is to be spent onIT over five years. The 147 acre city is intendedto be an IT showplace for Malaysia and forASEAN (Association of South East-AsianNations).

Contact: Elizabeth Marshall at Keyware, Tel: +1 781933 1311, e-mail: emarshall@keyware.com

10Card Technology Today April 2001

news

e-commerce

• Israeli-based OTI is to supply smart cardsand readers for use in an automated farecollection service on the Beidou Bridge tollbridge at Panyu, in the Guandong province ofChina. The project will be run by e-SmartSystem, a joint venture between OTI andCheung Kong Infrastructure Holdings (CKI).Some 5,000 contact/contactless cards carryingpre-loaded value will be handled at ten tollstations. Shai Ziv, CEO of e-Smart, said:“Once deployed for fare collection, we canextend the use of these contactless smart cardsfor other payment applications in the city -such as public transit, utility meters, socialservices benefits, banking applications, loyaltyprograms, and more.” OTI is also providingEYECON dual interface (contact and contact-less) smart cards for South Africa-basedMediKredit, which is to launch a pilot for ahealth insurance card. The company processesclaims for the refunds of the costs of pharma-ceuticals and treatment by general practitioners(GPs). The ID of patients claiming refundsfrom insurers will be verified throughbiometric information stored on the card.

• MediKredit currently handles claims formore than 3.4 million private health insuranceusers in South Africa; it processes more than60,000 on-line transactions per day across itsHealthNet Superior Technology system.Contracted insurance providers includeNewmed, Sanlam Health, Bestmed, LibertyHealthcare, Discovery Health, Old MutualHealth, CAMAF, Protector Health, MultimedAdministrators and Sovereign Health.

• Philips Semiconductors has set up a newassembly line to produce smart card chipmodules at its Bangkok semiconductor plant.The line will have a capacity of 100 millionmodules per year; these can carry eithercontact micro-controller chips or PhilipsMifare dual interface (contact/contactless)chips. Chip card modules provide smart cardmanufacturers with a complete package that isready to be embedded in a plastic card. Thenew facility incorporates automated reel-to-reel production and testing techniques. Proton World has issued the specifications forits Proton Prisma multi-application card.Prisma runs on Java technology and will beable to carry domestic e-purses, theinteroperable European CEPS purse, EMVcompliant debit/credit applications and PKI-based authentication. The first Prisma cardsare to be produced by Gemplus and will besupplied to Banksys (the Belgian banks’payment association) and Interpay (the Dutchbanks’ payment association).

in brief

access control

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