Visa. has filed a patent for a payment card that restricts transactions based on its physical integrity. The card consists of two detachable portions, with the second portion containing card details and a pre-configured Merchant Category Code (MCC) that limits transactions to products related to the MCC. If the second portion is detached during a transaction, the card will restrict the transaction to the specified product category. GlobalData’s report on Visa gives a 360-degree view of the company including its patenting strategy. Buy the report here.

According to GlobalData’s company profile on Visa, contactless Card Payments was a key innovation area identified from patents. Visa's grant share as of September 2023 was 41%. Grant share is based on the ratio of number of grants to total number of patents.

A payment card with detachable portions for restricted transactions

Source: United States Patent and Trademark Office (USPTO). Credit: Visa Inc

A recently filed patent (Publication Number: US20230316259A1) describes a payment card with a unique design and functionality. The payment card consists of two detachable portions, each containing a chip. A physical communication link connects the two portions, allowing for the determination of whether they are physically intact. The second portion of the card includes card details, such as a card number, CVV, expiry date, and name, while the first portion either includes only a partial portion of the card details or does not include them at all.

When the second portion is detached during a transaction, it is pre-configured with a Merchant Category Code (MCC) that restricts the transaction to products related to the MCC. This feature adds an extra layer of security and control to the payment card.

The patent also describes a system that includes the payment card, a remote terminal, and a card processing server. The remote terminal retrieves card details from the payment card and receives signature data from the primary and secondary chips. Based on the received signature data, the remote terminal sets a flag to indicate whether the first and second portions are physically intact. It then transmits the card details, signature data, flag, MCC, and transaction amount to the card processing server for transaction initiation. The card processing server validates the payment card based on the card details and signature data, and performs different actions based on the condition indicated by the flag. If the MCC corresponds to a pre-configured MCC, the transaction is processed. If not, the transaction is declined.

The system also allows for the detection of attachment or detachment of the first and second portions based on the flag value. This provides an additional layer of security and helps prevent fraudulent use of the payment card.

Overall, this patent introduces a unique payment card design with detachable portions and a physical communication link. The system described in the patent enhances security and control during transactions by restricting transactions based on the detachment of the second portion and validating the payment card based on signature data.

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GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.

GlobalData Patent Analytics tracks bibliographic data, legal events data, point in time patent ownerships, and backward and forward citations from global patenting offices. Textual analysis and official patent classifications are used to group patents into key thematic areas and link them to specific companies across the world’s largest industries.