Nearly six years in the making, the final prototype of abiometrically enhanced card designed to combat fraud before itoccurs is set for a test-run among several credit unions thisfall.

The XCalibur card was created by CUSO XCard Systems LLC withassistance from IBM Global Engineering Solutions. Also referred toas the XCard, it aims to function as a “biometrically securedvault” for financial and personal data. It has the same dimensionsand feel as a regular plastic card. The owner will have the abilityto store multiple credit, debit, gift, loyalty and smart cardswithin the device. Various levels of security and informationstored within the card may be reached by using separate biometricauthentications, which is supposed to eliminate the need ofremembering passwords or PINs.

In October, employees and board members at three credit unionswill test 50 of the cards on traditional devices such as ATMs andmagnetic swipe readers, said Vic Pantea, president/CEO of MemberGateways LLC, a product development CUSO that has been involved inthe card's pilot. A simultaneous testing for Visa and MasterCardstandards will also take place. From these tests, any finalrevisions will be made and the card device will enter finalproduction.

“One of the key components is to stop fraud. The type of fraudwith Heartland and TJ Maxx-that was back-end theft with thousandsof records stolen at one time,” Pantea explained.

One of the features that sets it apart from typical debit andcredit cards is a biometric touch sensor that authenticates theuser before activation. The card can then only be activated by theuser or an authorized user, according to XCard. Certain keyfunctions allow the user to pick which account to use for aparticular transaction. The security code changes with eachtransaction, Pantea said.

Several entities came together to make the XCalibur card areality. CU*Answers is providing card processing and core systemtesting and Beyond Marketing LLC will market the card. KentDisplays Inc. created the screen display and Seidenfaden Designcame up with the prototype sleeve. Prevas Engineering has alsoplayed a role in the overall development. Fifteen investorsincluding 13 credit unions, Member Gateways and private investorshave provided the funding for XCalibur's launch.

In cases of card breaches, it is typically a costly undertakingto reissue cards to those affected by fraud. Pantea said premiumscharged on the bond side are exorbitant. With XCalibur, reissuingis all but eliminated because of the how the card isstructured.

“The member impact is 'I don't have to wait for a new account.'You can upload new information immediately,” said Curtis Hays,director of strategy at Beyond Marketing. “In theory, this couldreplace all your debit, credit and customer cards for grocerystores and retail. You could even use it for municipaltransportation systems.”

Pantea said while XCalibur will set its foundation within thecredit union industry, he has received inquiries from the medicalfield on possibly using the cards to store medical records and assecurity cards for building entry.

“This is a good way for credit unions to take the lead in fraudprevention especially in times when you have many consumersquestioning relationships with former banks and credit card[providers],” Pantea said. “This is an opportunity for creditunions to create a deeper foothold.”

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