Consumer Payment Card News

IC Kids Card

UT-based IC One, IBM and Intellect launched a smart card program yesterday to help raise funds for schools and children’s hospitals. The “IC Kids Card” program test pilot, utilizing the ‘Intellect 8515’ terminal, involves 35 retailers and several hundred cardholders in Cache County, Utah. An additional 1700 ‘IC Kids Cards’ are now being distributed. The ‘IC Kids Card’ has a stored value and a loyalty purse application. The stored value purse allows cardholders to load funds on the card, which can be used to make purchases at participating merchant locations. The loyalty purse holds value called ‘EduCents’, which the cardholder can use to pay for qualified educational expenses at participating schools. Participating merchants contribute a pre-determined percentage of every purchase made when the ‘IC Kids Card’ is presented. The Intellect terminal located in the merchant check-out lane tracks the amount of the purchase and calculates, using its embedded processor, the amount the merchant will contribute to the program. For each purchase made using the ‘IC Kids Card’, a portion of the merchant contribution goes to the school(s) of the cardholder’s choice. An additional portion of the contribution is reserved to benefit the cardholder, and can be redeemed for any qualified educational purpose.

FULL STORY:
IC One, a Utah-based smart card integrator and solution provider, has launched an innovative program that uses smart card technology to help raise funds for schools and children’s hospitals. Developed in cooperation with IBM, the IC Kids Card program utilizes Intellect 8515 payment terminals at participating merchant locations. The “IC Kids Card” program test pilot involves 35 retailers and several hundred cardholders in Cache County, Utah. An additional 1700 IC Kids Cards are being distributed in mid-June.

“The IC Kids Card provides a solid business case for the deployment of smart cards and the infrastructure needed to support them,” said James E. Biorge, CEO of IC One, Inc. “Our program has generated support from the State School Board Association, school districts, the Chamber of Commerce, cardholders and merchants and we are very optimistic about the program’s future,” he continued.

The IC Kids Card has two applications — a stored value purse and a loyalty purse. The stored value purse allows cardholders to load funds on the card, which can be used to make purchases at participating merchant locations. The loyalty purse holds value called EduCents, which the cardholder can use to pay for qualified educational expenses at participating schools.

Participating merchants contribute a pre-determined percentage of every purchase made when the IC Kids Card is presented. The Intellect terminal located in the merchant check-out lane tracks the amount of the purchase and calculates, using its embedded processor, the amount the merchant will contribute to the program. For each purchase made using the IC Kids Card, a portion of the merchant contribution goes to the school(s) of the cardholder’s choice. An additional portion of the contribution is reserved to benefit the cardholder, and can be redeemed for any qualified educational purpose.

“Merchants are extremely motivated to participate in the IC Kids Card program,” stated Biorge, “because they are convinced the program will increase revenues and allow them to attract and retain loyal customers. The cardholders love the program because, the more they spend using the IC Kids Card, the more funds that are contributed to schools and children’s hospitals. Everybody wins.”

The program has been designed to allow multiple applications to be loaded on the card, and can also be used as a value-added application on cards issued by businesses, government or financial institutions.

“Smart cards are another example of how businesses and consumers are benefiting from the ease-of-use and efficiencies of e-business,” said Bruce Caswell, IBM North American manager of smart card solutions. “Multiple application smart cards, like those being implemented by IC One, are quickly emerging as an enabling technology for new products and services, and this project demonstrates IBM’s commitment to providing open and interoperable solutions for our customers.”

“The banking market in the United States market has been slower than expected in its adoption of smart card technology. Loyalty and other affinity programs have significant customer and merchant appeal and premier solutions, like the IC Kids Card, have a tremendous potential,” said Thomas G. Ream, President of Intellect Electronics, Inc. “Intellect has an on-going program to empower skilled third-party developers on our open Operating System in order to bring innovative applications to market on Intellect terminals. IBM and IC One were early adopters of this approach and our ability to allow them to control the development of their own applications is a key benefit Intellect brings to the party.”

About Intellect

Intellect designs and develops secure solutions for electronic payments and networks. These products range from smart card readers, payment systems, electronic wallet and mobile terminals to cryptographic processors that secure facilities such as a banking network.

Intellect’s main offices are in Sydney, Melbourne, Perth, Auckland, Brussels, Cambridge (UK), Tokyo, San Jose and Philadelphia. Its products are sold in 30 countries including The Netherlands, Belgium, Austria, Switzerland, Norway, Germany, Australia, Singapore, New Zealand, Brazil, Canada and the United States. Intellect can be found on the World Wide Web at http://www.intellect.com.au

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