<p>The new set of test requirements will be implemented by the end of 2006 and is a significant move towards the eventual commercial use of emerging card-based authentication solutions and other dynamic capabilities. <br /><br />Powered cards function through a tiny battery embedded in the plastic card, enabling value-added capabilities such as displays, dynamic account information, authentication services, light and sound. <br /><br />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.<br /><br />Visa said that the new test requirements have been developed as a result of research carried out in the past two years. The company expects to pilot a number of powered card capabilities during 2007.<br /><br />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 of the innovation division at Visa International. <br /><br />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, he continued.</p>