diff --git a/constants/images_paths.py b/constants/images_paths.py
index d5db236..47f62f3 100644
--- a/constants/images_paths.py
+++ b/constants/images_paths.py
@@ -9,3 +9,4 @@ KEYCARD_INSERTED_IMAGE_PATH = '/imports/assets/png/keycard/card-inserted.png'
 CHOOSE_KEYCARD_PIN_IMAGE_PATH = '/imports/assets/png/keycard/enter-pin-0.png'
 KEYCARD_SUCCESS_IMAGE_PATH = '/imports/assets/png/keycard/strong_success/img-20.png'
 KEYCARD_RECOGNIZED_IMAGE_PATH = '/imports/assets/png/keycard/success/img-13.png'
+KEYCARD_ERROR_IMAGE_PATH = '/imports/assets/png/keycard/plain-error.png'
diff --git a/constants/keycard.py b/constants/keycard.py
index 0017bca..d28e375 100644
--- a/constants/keycard.py
+++ b/constants/keycard.py
@@ -3,6 +3,7 @@ from enum import Enum
 
 class Keycard(Enum):
     KEYCARD_PIN = '111111'
+    KEYCARD_INCORRECT_PIN = '222222'
     KEYCARD_NAME = 'Test Keycard'
     ACCOUNT_NAME = 'Test Account'
     KEYCARD_POPUP_HEADER_CREATE_SEED = 'Create a new Keycard account with a new seed phrase'
@@ -13,6 +14,7 @@ class Keycard(Enum):
     KEYCARD_RECOGNIZED = 'Keycard recognized'
     KEYCARD_CHOOSE_PIN = 'Choose a Keycard PIN'
     KEYCARD_ENTER_PIN = "Enter this Keycard’s PIN"
+    KEYCARD_ENTER_PIN_2 = "Enter Keycard PIN"
     KEYCARD_PIN_NOTE = 'It is very important that you do not lose this PIN'
     KEYCARD_REPEAT_PIN = 'Repeat Keycard PIN'
     KEYCARD_PIN_SET = 'Keycard PIN set'
@@ -34,3 +36,10 @@ class Keycard(Enum):
     KEYCARD_LOCKED = 'Keycard locked'
     KEYCARD_LOCKED_NOTE = 'You will need to unlock it before proceeding'
     KEYCARD_ACCOUNTS = 'Accounts on this Keycard'
+    KEYCARD_FACTORY_RESET_TITLE = 'A factory reset will delete the key on this Keycard.\nAre you sure you want to do this?'
+    KEYCARD_FACTORY_RESET_SUCCESSFUL = 'Keycard successfully factory reset'
+    KEYCARD_YOU_CAN_USE_AS_EMPTY = 'You can now use this Keycard as if it\nwas a brand new empty Keycard'
+    KEYCARD_INCORRECT_PIN_MESSAGE = 'PIN incorrect'
+    KEYCARD_2_ATTEMPTS_REMAINING = '2 attempts remaining'
+    KEYCARD_1_ATTEMPT_REMAINING = '1 attempt remaining'
+    KEYCARD_LOCKED_INCORRECT_PIN = 'Pin entered incorrectly too many times'
diff --git a/gui/components/settings/keycard_popup.py b/gui/components/settings/keycard_popup.py
index 5a16699..dcbe960 100644
--- a/gui/components/settings/keycard_popup.py
+++ b/gui/components/settings/keycard_popup.py
@@ -7,6 +7,7 @@ import configs
 import driver
 from gui.components.base_popup import BasePopup
 from gui.elements.button import Button
+from gui.elements.check_box import CheckBox
 from gui.elements.object import QObject
 from gui.elements.text_edit import TextEdit
 from gui.elements.text_label import TextLabel
@@ -37,6 +38,8 @@ class KeycardPopup(BasePopup):
         self._selection_box = QObject('radioButton_StatusRadioButton')
         self._keycard_init = QObject('o_KeycardInit')
         self._cancel_button = Button('cancel_StatusButton')
+        self._understand_keypair_deleted_checkbox = CheckBox(
+            'i_understand_the_key_pair_on_this_Keycard_will_be_deleted_StatusCheckBox')
 
     @property
     @allure.step('Get keycard image source path')
@@ -205,3 +208,7 @@ class KeycardPopup(BasePopup):
     @allure.step('Click cancel button')
     def cancel(self):
         self._cancel_button.click()
+
+    @allure.step('Confirm that understand that keypair will be deleted in checkbox')
+    def confirm_keypair_will_be_deleted(self, value: bool):
+        self._understand_keypair_deleted_checkbox.set(value)
diff --git a/gui/objects_map/component_names.py b/gui/objects_map/component_names.py
index 4e2c13d..7787c6b 100644
--- a/gui/objects_map/component_names.py
+++ b/gui/objects_map/component_names.py
@@ -343,3 +343,4 @@ switchTabBar_StatusSwitchTabBar = {"container": statusDesktop_mainWindow_overlay
 switchTabBar_12_words_StatusSwitchTabButton = {"checkable": True, "container": switchTabBar_StatusSwitchTabBar, "objectName": "12SeedButton", "text": "12 words", "type": "StatusSwitchTabButton", "visible": True}
 switchTabBar_18_words_StatusSwitchTabButton = {"checkable": True, "container": switchTabBar_StatusSwitchTabBar, "objectName": "18SeedButton", "text": "18 words", "type": "StatusSwitchTabButton", "visible": True}
 switchTabBar_24_words_StatusSwitchTabButton = {"checkable": True, "container": switchTabBar_StatusSwitchTabBar, "objectName": "24SeedButton", "text": "24 words", "type": "StatusSwitchTabButton", "visible": True}
+i_understand_the_key_pair_on_this_Keycard_will_be_deleted_StatusCheckBox = {"checkable": True, "container": statusDesktop_mainWindow_overlay, "id": "confirmation", "type": "StatusCheckBox", "visible": True}
diff --git a/gui/screens/settings_keycard.py b/gui/screens/settings_keycard.py
index 02b4115..dd61ee5 100644
--- a/gui/screens/settings_keycard.py
+++ b/gui/screens/settings_keycard.py
@@ -44,6 +44,11 @@ class KeycardSettingsView(QObject):
         self._check_whats_on_keycard_button.click()
         return KeycardPopup().wait_until_appears()
 
+    @allure.step('Choose factory reset a keycard')
+    def click_factory_reset_keycard(self):
+        self._factory_reset_keycard_button.click()
+        return KeycardPopup().wait_until_appears()
+
     @allure.step('Check that all keycard options displayed')
     def all_keycard_options_available(self):
         assert self._setup_keycard_with_existing_account_button.is_visible, f'Setup keycard with existing account not visible'
diff --git a/tests/settings/settings_keycard/test_factory_reset_keycard.py b/tests/settings/settings_keycard/test_factory_reset_keycard.py
new file mode 100644
index 0000000..76a4b4d
--- /dev/null
+++ b/tests/settings/settings_keycard/test_factory_reset_keycard.py
@@ -0,0 +1,158 @@
+import allure
+import pytest
+from allure_commons._allure import step
+
+import configs
+import constants
+import driver
+from constants import aut_options
+from constants.images_paths import KEYCARD_ERROR_IMAGE_PATH
+from constants.keycard import Keycard
+from gui.main_window import MainWindow
+from gui.mocked_keycard_controller import MockedKeycardController
+
+
+@allure.testcase('https://ethstatus.testrail.net/index.php?/cases/view/703628', 'Factory reset a Keycard')
+@pytest.mark.case(703628)
+@pytest.mark.parametrize('user_account', [constants.user.user_account_one])
+@pytest.mark.parametrize('options', [aut_options.MOCK_KEYCARD])
+@pytest.mark.skip(reason="https://github.com/status-im/desktop-qa-automation/issues/274")
+def test_factory_reset_keycard(main_screen: MainWindow, user_account, options):
+    main_screen.prepare()
+
+    with step('Open keycard settings'):
+        keycard_settings = main_screen.left_panel.open_settings().left_panel.open_keycard_settings()
+
+    with step('Choose option Factory reset a keycard'):
+        keycard_popup = keycard_settings.click_factory_reset_keycard()
+
+    with step('Insert keycard with accounts on it'):
+        main_screen.hide()
+        keycard_controller = MockedKeycardController().wait_until_appears()
+        keycard_controller.plugin_reader()
+        keycard_controller.choose_mnemonic_metadata_keycard()
+        keycard_controller.register_keycard()
+        keycard_controller.insert_keycard_1()
+        main_screen.show()
+
+    with step('Enter PIN and verify keycard popup instructions are correct'):
+        assert driver.waitFor(lambda: Keycard.KEYCARD_ENTER_PIN.value in keycard_popup.keycard_instructions,
+                              configs.timeouts.UI_LOAD_TIMEOUT_MSEC), "There is no correct keycard instruction"
+        pin = Keycard.KEYCARD_PIN.value
+        keycard_name = 'Card-1 Name'
+        keycard_popup.input_pin(pin)
+        assert driver.waitFor(lambda: Keycard.KEYCARD_PIN_VERIFIED.value in keycard_popup.keycard_instructions), \
+            "There is no correct keycard instruction"
+
+    with step('Close keycard popup'):
+        keycard_popup.click_next()
+
+    with step('Verify that preview shows correct keycard and instructions are correct'):
+        assert driver.waitFor(lambda: Keycard.KEYCARD_ACCOUNTS.value in keycard_popup.keycard_instructions), \
+            "There is no correct keycard instruction"
+
+        assert keycard_popup.keypair_on_keycard_name == keycard_name, "Keycard name in preview is incorrect"
+        keycard_popup.click_next()
+
+    with step('Verify keycard factory reset title'):
+        assert driver.waitFor(lambda: Keycard.KEYCARD_FACTORY_RESET_TITLE.value in keycard_popup.keycard_instructions,
+                              configs.timeouts.UI_LOAD_TIMEOUT_MSEC), f"There is no correct keycard instruction {keycard_popup.keycard_instructions}"
+
+    with step('Confirm that keypair will be deleted in checkbox'):
+        keycard_popup.confirm_keypair_will_be_deleted(True)
+        keycard_popup.click_next()
+
+    with step('Verify keycard factory successful'):
+        assert driver.waitFor(
+            lambda: Keycard.KEYCARD_FACTORY_RESET_SUCCESSFUL.value in keycard_popup.keycard_instructions,
+            configs.timeouts.UI_LOAD_TIMEOUT_MSEC), "There is no correct keycard instruction"
+        assert driver.waitFor(
+            lambda: Keycard.KEYCARD_YOU_CAN_USE_AS_EMPTY.value in keycard_popup.keycard_instructions,
+            configs.timeouts.UI_LOAD_TIMEOUT_MSEC), "There is no correct keycard instruction"
+
+
+@allure.testcase('https://ethstatus.testrail.net/index.php?/cases/view/704606', 'Factory reset a Keycard: incorrect PIN')
+@pytest.mark.case(704606)
+@pytest.mark.parametrize('user_account', [constants.user.user_account_one])
+@pytest.mark.parametrize('options', [aut_options.MOCK_KEYCARD])
+@pytest.mark.skip(reason="https://github.com/status-im/desktop-qa-automation/issues/274")
+def test_factory_reset_keycard_incorrect_pin(main_screen: MainWindow, user_account, options):
+    main_screen.prepare()
+
+    with step('Open keycard settings'):
+        keycard_settings = main_screen.left_panel.open_settings().left_panel.open_keycard_settings()
+
+    with step('Choose option Factory reset a keycard'):
+        keycard_popup = keycard_settings.click_factory_reset_keycard()
+
+    with step('Insert keycard with accounts on it'):
+        main_screen.hide()
+        keycard_controller = MockedKeycardController().wait_until_appears()
+        keycard_controller.plugin_reader()
+        keycard_controller.choose_mnemonic_metadata_keycard()
+        keycard_controller.register_keycard()
+        keycard_controller.insert_keycard_1()
+        main_screen.show()
+
+    with step('Enter incorrect PIN and verify keycard popup instructions are correct'):
+        assert driver.waitFor(lambda: Keycard.KEYCARD_ENTER_PIN.value in keycard_popup.keycard_instructions,
+                              configs.timeouts.UI_LOAD_TIMEOUT_MSEC), "There is no correct keycard instruction"
+        incorrect_pin = Keycard.KEYCARD_INCORRECT_PIN.value
+        keycard_popup.input_pin(incorrect_pin)
+
+        assert driver.waitFor(
+            lambda: Keycard.KEYCARD_INCORRECT_PIN_MESSAGE.value in keycard_popup.keycard_instructions), \
+            "There is no correct keycard instruction"
+        assert driver.waitFor(
+            lambda: Keycard.KEYCARD_2_ATTEMPTS_REMAINING.value in keycard_popup.keycard_instructions), \
+            "There is no correct keycard instruction"
+        assert KEYCARD_ERROR_IMAGE_PATH == keycard_popup.keycard_image_source_path
+
+    with step('Enter incorrect PIN again and verify keycard popup instructions are correct'):
+        assert driver.waitFor(lambda: Keycard.KEYCARD_ENTER_PIN_2.value in keycard_popup.keycard_instructions,
+                              configs.timeouts.UI_LOAD_TIMEOUT_MSEC), "There is no correct keycard instruction"
+        incorrect_pin = Keycard.KEYCARD_INCORRECT_PIN.value
+        keycard_popup.input_pin(incorrect_pin)
+
+        assert driver.waitFor(
+            lambda: Keycard.KEYCARD_INCORRECT_PIN_MESSAGE.value in keycard_popup.keycard_instructions), \
+            "There is no correct keycard instruction"
+        assert driver.waitFor(
+            lambda: Keycard.KEYCARD_1_ATTEMPT_REMAINING.value in keycard_popup.keycard_instructions), \
+            "There is no correct keycard instruction"
+        assert KEYCARD_ERROR_IMAGE_PATH == keycard_popup.keycard_image_source_path
+
+    with step('Enter incorrect PIN again and verify keycard popup instructions are correct'):
+        assert driver.waitFor(lambda: Keycard.KEYCARD_ENTER_PIN_2.value in keycard_popup.keycard_instructions,
+                              configs.timeouts.UI_LOAD_TIMEOUT_MSEC), "There is no correct keycard instruction"
+        incorrect_pin = Keycard.KEYCARD_INCORRECT_PIN.value
+        keycard_popup.input_pin(incorrect_pin)
+
+        assert driver.waitFor(
+            lambda: Keycard.KEYCARD_LOCKED.value in keycard_popup.keycard_instructions), \
+            "There is no correct keycard instruction"
+        assert driver.waitFor(
+            lambda: Keycard.KEYCARD_LOCKED_INCORRECT_PIN.value in keycard_popup.keycard_instructions), \
+            "There is no correct keycard instruction"
+
+    with step('Close keycard popup'):
+        keycard_popup.cancel()
+
+    with step('Choose option Factory reset a keycard'):
+        keycard_popup = keycard_settings.click_factory_reset_keycard()
+
+    with step('Verify keycard factory reset title'):
+        assert driver.waitFor(lambda: Keycard.KEYCARD_FACTORY_RESET_TITLE.value in keycard_popup.keycard_instructions,
+                              configs.timeouts.UI_LOAD_TIMEOUT_MSEC), f"There is no correct keycard instruction {keycard_popup.keycard_instructions}"
+
+    with step('Confirm that keypair will be deleted in checkbox'):
+        keycard_popup.confirm_keypair_will_be_deleted(True)
+        keycard_popup.click_next()
+
+    with step('Verify keycard factory successful'):
+        assert driver.waitFor(
+            lambda: Keycard.KEYCARD_FACTORY_RESET_SUCCESSFUL.value in keycard_popup.keycard_instructions,
+            configs.timeouts.UI_LOAD_TIMEOUT_MSEC), "There is no correct keycard instruction"
+        assert driver.waitFor(
+            lambda: Keycard.KEYCARD_YOU_CAN_USE_AS_EMPTY.value in keycard_popup.keycard_instructions,
+            configs.timeouts.UI_LOAD_TIMEOUT_MSEC), "There is no correct keycard instruction"