Identity, Security, Payments, Biometrics, Smart Cards and Authentication News

Kärcher upgrades to contactless with Legic

Thursday, June 12, 2003

LEGIC Identsystems Ltd, one of the world’s leading suppliers of secure platforms for contactless smart card technology, has enabled Kärcher to upgrade its cashless payment system from magnetic stripe to chip card operation.


The Kärcher company, known all over Europe for its yellow and black power-washing equipment, has long had a cashless payment system in operation at its main factory in Winnenden. Employees used a magnetic card to make purchases at the staff canteen and from any one of over twenty vending machines located throughout the site. The CashCard systems in use, together with the then newly developed CashCard reconstruction procedure for magnetic cards resulted in a high degree of reliability and system ergonomics. Kärcher were satisfied with the technology, installed additional systems at branch offices, and looked to develop the system further.

Each branch was equipped with at least one PC hooked up to the CashCard system, and all PCs were connected together over the company’s own network making it possible to execute any system operation at any computer. This enabled the company to evaluate turnover data and, if required, access or verify on-line connectivity of devices in any remote branch office location.

The evolution of the LEGIC contactless chip card offered many state-of-the-art advantages over the old magnetic cards and so Kärcher decided to introduce a hybrid card using a LEGIC transponder for access control and time & attendance functions, retaining the magnetic stripe for the CashCard element. Later this CashCard element was also changed to LEGIC control.

But when planning the full upgrade from magnetic to chip card operation, it was clear to Kärcher that it would be impossible to collect all the cards that were already circulating and in use. Employees needed them for access control and time & attendance functions and it was infeasible to have the cards reprogrammed by the personnel office as this would have resulted in a significant loss of working time for every employee.

The solution was to issue new LEGIC chip cards to every employee and install a specially designed coding station. This contained a hybrid reader, capable of reading not only the magnetic stripe on the old cards but also of reading and writing to the new LEGIC chip cards. Each card only had to be inserted once and information from the magnetic stripe was read and transferred to the LEGIC chip card. To minimise inconvenience to the company and the employees, two coding devices were installed at the entrance to the works canteen, and as employees came in for lunch, cards were reprogrammed as they queued for their meals. Kärcher are delighted with the result. The company now has a fully cashless card system using the latest chip card technology and no working time was lost while employees were issued with new cards. As one employee was heard to quote: “Technology can be so simple.”

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HSBC announced that it will begin the conversion to contactless technology this month, replacing all customer banking debit cards, according to ThinkMoney.com.

The bank will start to roll out the new contactless cards to existing customers whose debit cards are due to expire this month and then continue the process as cards expire. Customers who don’t want a contactless card can opt out by contacting their bank before their current card expires.

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Switzerland’s LEGIC has announced two new partnerships that will bring the company’s contactless smart card technology to China.

Radio Frequency Systems, a manufacturer of contactless smart card technology, will use the LEGIC advant 4000 chip generation to create new reader modules for access control applications.

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Kaba announced that Les Hôtels JARO in Quebec City, Canada has equipped five of its properties with its contactless RFID locking systems.

The hotel management company implemented ILCO 790 locks at three of its hotels – Hotel Quebec Inn, Hotel Quebec, and Hotel Must. The Hotel Palace Royal and its sister property, the Hotel Plaza Quebec, installed Saflok RT hotel door locks with Messenger LENS online wireless system.

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Asda Stores Ltd., a British supermarket chain, is planning to trial contactless payment technology in 25 of its stores, according to Computerworld UK.

The contactless systems will be supplied by both Visa and payment value chain Streamline. Customers will be to simply tap the reader with their contactless-enabled card to pay for goods up to £15, rising to £20 June 1, potentially reducing queue times.

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OP-Pohjola Group, a Finland-based provider of financial and banking services, announced it will introduce payment cards utilizing contactless technology, making it possible for customers to pay for small purchases without entering the PIN.

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