Shiny Surfaced Cards Offer Intense Customer Appeal

Introduction
One of the latest card manufacturing industry trends experiencing high customer demand is the proliferation of full-faced shiny surfaced cards in mirror-like or holographic foil finishes. In fact, one card manufacturer, QualTeq, patented its first generation foil card in 1990 and has through process and material improvement, recently acquired a new patent for its Foil Card® technology (U.S. patent 4,897,533) which it has licensed to Plastag Corporation in a non-exclusive agreement. Unlike previous foil card processes, this card can accept litho and silkscreen inks, foil stamping, lamination, and other applications such as holograms. Another card manufacturer, Giesecke & Devrient, has a patent underway on its Full Face Foil card which offers a unique method that attracts and reflects light and uses a process that increases the lamination specifications to the high end of the ISO specifications range.

To discuss the customer appeal, manufacturing and marketing of these cards, ICMA interviewed seven members, including five card manufacturers and two suppliers.

The card manufacturers interviewed (listed in alphabetical order by company) are:

  • Cheryl Hutton, manager of product development for Giesecke & Devrient, Markham, Ontario, Canada
  • Daniel Defore, director of conventional marketing for Oberthur Card Systems, Rancho Dominguez, CA, USA
  • Michael Swiecicki, president of Plastag Corporation, Elk Grove Village, IL, USA
  • Scott Magnacca, executive vice president, sales and marketing for QualTeq, South Plainfield, NJ, USA
  • Disa McClellan, marketing manager for UV Color Inc., Roseville, MN, USA.

    The suppliers interviewed are:

  • Josef Feldman, president of FM Group, Inc., Sloatsburg, NY, USA
  • William Crawford, president of Waytek Corporation, Franklin, OH, USA.


The participants are referenced by their last names.

Defining the new shiny cards

ICMA: Let's talk about definitions. What is the difference between foil cards and full face hologram cards?

Feldman: They are similar except that a full face hologram is usually a custom holographic image with micro-security codes embedded, whereas the foil is usually a generic overall tiled pattern (commonly called wallpaper).

Magnacca: A full face hologram is different than a foil card in that it is traditionally hot stamped onto the card and is therefore not printed. Due to equipment limitations and such, the image cannot go "edge to edge," leaving a small border on the outside of the card where the image stops. Since the hologram is hotstamped, it is subject to direct exposure to surfaces that can scratch and degrade the image.

Crawford: There are many ways to try to get the full faced look onto the card. The terms and vocabulary dealing with constructions have yet to be established. Whenever someone uses these terms, I always have to ask more questions to determine the actual card construction they have in mind. I think the original Nordstrom card with the polyester full faced hologram on the outside of the card got people thinking about other ways to construct a "full faced hologram" card.

Swiecicki: They are somewhat the same, but the look of a hologram foil differs due to the graphic design that is inherently incorporated into the hologram during the foil manufacturing process. The Foil Card® differentiates itself by having all the design features applied to the foil, either through a litho or screenprinting process.

Hutton: It depends on the type of card. G&D's Full Face Foil card (patent underway) offers ranges from a mirror effect, to a refractive rainbow look, to a full holographic effect, which would be a full face hologram.

McClellan: Both types of cards use a metallized laminate produced in a vacuum metallizer by spraying liquified aluminum onto a clear film carrier made of polyester or polypropylene. The aluminum returns to a solid state and resides on the carrier material. Patterned foil, holographic foil and holograms are created by microscopically embossing a pattern or image into a thin coating on the carrier. The application of the liquified aluminum to that carrier shows the resulting metallic pattern. After metallization, the carrier is laminated to a heavier stock such as board stock, white plastic or clear plastic.

Design appeal

ICMA: What is the design appeal of foil cards for customers and users?

Defore: Foil cards allow for a greater intensity of reflection than trying to duplicate a foil design or effect with traditional printing techniques. Their stunning nature provides a few key ingredients from a marketing standpoint - dramatic differentiation from the majority of competitive cards and making a statement about the brand itself. Also, proprietary holographic images can be added to the foil to increase this differentiation. Consumers want their products to say something about themselves, be it credit cards, cell phones, PCs or other mainstream consumer products, and a foil card is one method available today.

Crawford: The cards are one of a kind. The 3D and diffraction of light is also perceived as high tech.

Swiecicki: The main purpose for using a foil card is strictly to enhance the graphic appeal of a card with the intention of attracting consumers' interest enough to carry the card on their person. Their appeal also stems from the shiny metal reflection they give off when light hits the surface, plus, they have an out-of-the-ordinary look different from usual cards.

McClellan: Foil is used for three primary reasons: aesthetics, recognition and the perception of quality or added value. Foil creates visually stunning cards that generate attention at POS. The shimmer adds shine and movement, catching light and tricking the eye into perceiving depth, especially if registered foil holograms are used. Foil is particularly effective at enhancing colors - bright hues appear backlit and metal shades have shine - and at creating outlines for halos or accenting logos. Different screen values and printing techniques on press can allow all, some, or none of the foil to show through the art. Thus the designer can choose to have only a small amount of foil show through for accents, a moderate amount for special effects like moving water, or have the entire card show foil with only type overprinting the foil. Using foil opens up a wide variety of creative options, including laminating the foil to clear plastic so that both the front and the back of the card show the metallic foil. Foil also helps build recognition both in-store and in use, providing a visual identification cue at retail. Foil can also be used to hero a logo or brand character. And once the card is in use, the sparkle of the foil makes it easy to locate in a wallet or purse. Many collectible, special occasion and high value cards use foil because the card carries an intrinsic value above and beyond whatever worth is stored on the card.

Magnacca: First, it is critical to remember that the card is a billboard for card issuers. That means that the product has to be able to differentiate itself not only in terms of APRs and other benefits such as loyalty programs but in terms of appearance. As the American Express Blue card demonstrated, consumers are influenced by the "wow" factor. The Foil Card® allows issuers to differentiate their product in terms of appearance. And the product is versatile in that many issuers can use foil but with different graphics, the product will still be exceptionally unique with "eye" appeal.

Feldman: Gold or platinum coloration historically has class or snob appeal, and foil is a variation on this theme.

Suitable applications

ICMA: What types of cards are best suited for foil cards? Can they accept chips?

Magnacca: Our customers are telling us that they are great for all types of applications in financial, retail and gift cards, and we have produced cards for that market. Chips can be embedded in foil cards, and ISO testing has shown that the product is receptive to both contact and contactless smart card technology.

Hutton: Cards that contain a high light-high contrast between the four basic colors, for example cards that show the relationship between water/sky/sand and snow. Chips can be embedded but there are still challenges in final development, for example static electricity created between chip and foil, and contact vs. contactless.

Swiecicki: Cards that do not require longevity because the surface does not hold up as well as a normal card. Gift cards, telephone cards, membership cards and ad specialty promotional cards and products are well suited for foil. I would not recommend implanting a chip unless all the manufacturing concerns are rectified.

Crawford: I hope they can find their way into all levels of cards, but they can be pricey. They can accept chips, but caution must be used as the foil has a metal component.

Defore: Any type of card in any highly competitive market segment, such as credit, debit and prepaid cards where product differentiation and branding are necessary. Testing has shown that chips can be embedded in foil cards without any impact to the chip.

McClellan: Any cards that would benefit from a visual boost. Retail debit cards that can be recharged with additional value are especially good candidates for foil because the store logo can be showcased on the card with careful graphic design around the foil. Any company trying to portray an up-to-date image can enhance their efforts with the use of foil in graphic design. Regarding chips, UV Color has not developed a foil card construction that would allow embedding of chips into foil cards. We would be willing to research this technology if circumstances dictated it.

Feldman: All types of cards are suitable, and chips can be embedded if the appropriate adhesive/manufacturing technology is used.

Foils and Inks

ICMA: Why use foil cards instead of conventional iridescent inks (e.g. gold, silver, platinum, etc.). What are the advantages or disadvantages of each?

Feldman: Foils are expensive, and because they are used as full coverage, they are usually more expensive than smaller area hot stamping. Inks don't give as high a luster as foil but are easier to apply and lower in cost. Inks are also easier to image giving greater graphic flexibility. There are large costs to make a new master holographic foil pattern.

Magnacca: We do not look at it from this perspective. In fact, foil can enhance the appearance of these inks through careful design and application. That is the beauty of foil design concepts - the ability to take existing silkscreen, lithographic print and hotstamp designs and apply them to this new surface resulting in stunning graphics.

Hutton: With foil, there is a brand new look created due to the light refraction.
Swiecicki: Conventional screenprinted gold, silver and bronze metallic inks do not offer the same reflective mirror finish as foil.

McClellan: The use of foil laminates produces brighter, more reflective surfaces than metallic inks. Some are so bright and clear that they closely resemble mirrors. Foil laminates come in a wide variety of silver and holographic patterns that provide more creative options for graphic design. The use of registered holograms is only possible with foil. And foil holograms are the ultimate tool for building depth and movement into flat cards - the holograms appear to be dimensional and can portray action as the card is moved, which is not possible with metallic ink.

Defore: Traditional printing inks cannot duplicate the stunning image created by using foils.

Crawford: The artistic patterns available from the foil manufacturers are the selling point. Their patterns such as light diffraction, ripples, broken glass and others cannot be rendered using printing presses. The 3-D effect of a hologram is a unique experience not duplicated by conventional printing methods, so these films must be laminated into the body of the card.

Manufacturing challenges

ICMA: What are some of the manufacturing challenges encountered in making foil cards? How are these overcome?

Defore: Challenges can be split into two categories, production and post-production. Production issues primarily revolve around making sure the foil allows for a strong bond and the foil remains crease- and scratch-free. These two issues have been overcome and reside with the production of the foils themselves by their manufacturers, as well as with proprietary manufacturing techniques which Oberthur has tested and stands behind.

Crawford: The difficulties are similar to those in polyester composite card manufacturing - polyester orientation mismatches that cause potato-chipped cards, uneven lamination flow that results in a loss of mirror smooth ink surfaces, delamination of the dissimilar materials involved, and general lamination cycle changes, among others. The solutions to these are considered "trade secrets" by each card manufacturer.

Hutton: Scratches can happen on every type of card, no matter how it is processed. There are existing standards for scratches but with shiny foil surfaces, because of the refractive light, any scratches that might appear are amplified. G&D has responded to this challenge by following their high quality standards for production and manually inspecting each card. Standard inspection machinery will not always pick up what the human eye can see.

Swiecicki: The number one challenge is acquiring a strong bond or adhesion between the foil surface and the PVC overlaminate. Attempting to fuse a foil substrate that has chemical properties other than PVC remains the primary challenge. Each card manufacturer applies a little different twist to applying foil unto a PVC substrate. QualTeq holds the patent and has many years of experience applying foil onto PVC.

McClellan: It's vital to use an experienced printer who understands the importance of good laminating processes and how to print on foil effectively and beautifully. Printers who are less experienced in working with foil materials will run into production problems that range from poor laminating adhesion between the foil and the substrate to poor ink adhesion on press to die cutting that leaves nicks and scratches on the foil.

Magnacca: There are a number of problems to manufacturing foil cards that can only be overcome with experience, careful supply chain management and the application of total quality principles. The issues faced are commonly lamination strength and "tourquing" and bowing of cards. Lamination, of course, is critical because it directly impacts performance and the consumer. QualTeq's solutions to this are proprietary, but we have resolved this issue demonstrated by millions of performing cards in the field. Tourquing and/or bowing is important, especially as cards are personalized, as a card with defects has difficulty traveling though personalization equipment, resulting in errors and longer processing times, not to mention appearance issues. Through careful process and material management, QualTeq has resolved these issues to produce a "flat" card. Scratching of the cards is also an important concern. Early versions of foil cards were actually surface printed allowing the printed surface to be directly exposed to scratching surfaces. QualTeq's Foil Card® is actually a laminated card, thus protecting the foil and the printed surface.

Feldman: If you choose appropriate holographic patterns and background print graphics, dirt and smudge marks can be masked. The main challenge is to create a structure that can pass the rigors of the ISO secure card specifications. This involves a combination of special materials and manufacturing techniques which FM has developed.

Security

ICMA: What security features can the foil cards accept? How do they improve security?

Crawford: The foil cards with the foil beneath the inks have a standard PVC clear overlay that accepts the standard signature panel, mag stripe and security holograms. If the holographic foil is on the outside of the card, these items may not adhere.

Defore: Every security feature present in today's traditionally printed card. They are more difficult to duplicate than traditional cards. A proprietary hologram on the foil also increases the security as well, but let's remember, duplication of cards is not the main means through which fraud is perpetrated. It is by theft of the card number, which no card design can overcome by itself.

Feldman: All features. Any color or effect that has an angular variation in appearance or has a high luster is difficult to copy on a copier or scanner and therefore is more secure.

Magnacca: The Foil Card® can accept all security features presently in addition to all hotstamp foils that are surface printed on standard cards. The foil card enhances security because the foil cannot be effectively photocopied or color scanned, preventing fraudulent use of the graphics.

McClellan: PIN numbering, scratch off labels, hot foil scratch off labels, mag stripe with or without encoding and imprinting. Tremendous security is gained by incorporating a foil hologram into wallet cards. The hologram is custom made with security features incorporated into the foil pattern. This proprietary pattern is only available to the original manufacturer and cannot be easily duplicated.

Hutton: G&D Full Face Foil cards (patent underway) meet all current security standards and accept all current security features, for example, hologram, signature panel and magnetic stripe.

Conclusion
ICMA thanks the above respondents for sharing their myriad knowledge for this article. The vibrant new shiny surfaced foil- and hologram-patterned cards are at the forefront of card innovation, as the patent interest and customer demand shows. In terms of product differentiation, collectibility, panache, security and outright dazzle, their appeal is mirror-clear.

Author's Note: To contact these respondents and obtain a list of overlay material suppliers, please send an email to mkmetcalf@icma.com. You can also visit the ICMA Web site at www.icma.com, where you will find a list of all ICMA members, (including manufacturers, personalizers, material and equipment suppliers, manufacturers' representatives and others) and their Web site links where available.

 


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