Friday, January 29, 2010

Verified by Visa: "Textbook Example of How NOT to Design an Authentication Protocol"

In a TG Daily story, Emma Woolacott writes about the recent revelation that Verified by Visa and MasterCard SecureCode are NOT SECURE...

Credit card verification systems 'not secure'

Emma Woollacott | Fri 29th Jan 2010, 05:41 am

  • The Verified by Visa and MasterCard SecureCode credit card checks are fundamentally flawed, according to security researchers.

  • The 3-D Secure protocol, which underlies both, "might be a textbook example of how NOT to design an authentication protocol," say Steven Murdoch and Ross Anderson of the University of Cambridge Computer Lab.

  • "It ignores good design principles and has significant vulnerabilities, some of which are already being exploited. 

Bank of America Online Banking Site Down

"Online Banking on the Bank Of America website kept on sleeping till late afternoon. Innumerous attempts to load the page by bankers produced nothing at all. Rumors of a cyber-attack flew in the windows of households and offices.

Though it was a 50-50 proposition at the beginning as bankers could get through half the time and get stuck rest of the time, soon the site was totally down and it turned into a 100 percent failure"...  (Entertainment and Showbiz)

UBA Appoints New Leadership Team

Issue: 2010/04

Date: 28 Jan 2010


UBA appoints new leadership team

United Bank for Africa (UBA) will continue pursuing ‘aggressive expansion’ in Africa in 2010, according to its new group chief executive designate, Phillips Oduoza.

Oduoza will succeed current UBA group chief executive Tony Elumelu on 1 August 2010 as part of a radical restructuring of the bank’s management team.

Lafferty Retail Banking News can also reveal that Angela Nwabuoku, CEO of UBA Global Consumer Bank, has announced her resignation. She is expected to leave UBA by August 2010 at the latest. A replacement for Nwabuoku has yet to be named.

A spokesman for UBA declined to comment on the reason for Nwabuoku’s resignation.

Elumelu will depart UBA in response to guidelines issued by the Central Bank of Nigeria in January 2010 that limit the tenure of bank CEOs to a maximum of ten years – inclusive of the years served in a pre-merger component bank.

UBA said that Oduoza will work in tandem with Elumelu during the interim period to ensure the transition is seamless.

As part of the internal reshuffle, Femi Olaloku has been appointed executive director and group chief operating officer for UBA. Kennedy Uzoka will become executive director for Nigeria South. Ifeatu Onejeme will become executive director with responsibility for the bank’s treasury, corporate and investment banking activities, as well as the group’s operations outside Africa.

Speaking to Lafferty Retail Banking News, Oduoza said he would strengthen the bank’s strategic plan in order to position UBA as a leader in Nigeria and the rest of the continent.

He explained that significantly improving UBA’s customer service delivery and leveraging technology to streamline the bank’s business processes would be among his priorities.

Oduoza’s remarks follow a period of turmoil in Nigeria’s retail banking sector. In August 2009, Nigeria’s central bank governor, Sanusi Lamido Aminu Sanusi, dismissed the managing directors and executive directors of five banks, including Afribank, Finbank and Intercontinental. He also promised a $2.64 billion bailout to save the country’s banking system from a systemic crisis.

Events accelerated in October 2009 when Sanusi bailed out four more banks and fired three executives, bringing the total pumped into the financial sector to $3.94 billion. Nigeria’s central bank is currently seeking to consolidate the country’s banking sector, leading to interest from South Africa’s FirstRand Group and Standard Bank.

UBA has also registered its interest in acquiring any of the banks bailed out by Nigeria’s central bank. Oduoza said: “To date, we are operating from 15 African countries and the plan is to have a presence in more countries before the end of 2010. Whilst pursuing our organic growth strategy, we are also open to any opportunistic acquisition that will significantly add to our shareholder value.”

Prior to his new appointment, Oduoza was deputy managing director at UBA, overseeing its operations in the southern half of Nigeria  

African Cybercrime Threatens to Derail Internet Banking

African cybercrime threatens to derail Internet banking

Michael Malakata

29.01.2010 kl 17:35 | IDG News Service

An upsurge in African cybercrime targeting the financial sector threatens to derail the rollout of Internet banking and electronic commerce services and has forced the Nigerian government to raise an alarm over the vulnerability of the country's ICT infrastructure.

Nigeria joins other countries in Africa, including Zambia and Kenya, in warning about problems for online banking as a result of cybercrime.

Africa is experiencing an explosion of mobile money services as banks and mobile providers compete for customers who would otherwise not have a bank account. This has increased phishing attacks on unsuspecting customers, in efforts to lure them to fake sites.

Cybercrime in the region has further increased following the landing last year of the SEACOM and TEAMS international cables, which are starting to lower bandwidth and Internet connectivity costs.

Nigeria now wants to formulate a legal framework for national cybercrime prevention, while the Zambian government already has enacted a law that could see a convicted hacker being sent to prison for up to 25 years.

Nigeria is Africa's largest telecom market by investment and subscribers and the country now wants to work with other nations in the region on cybercrime prevention and warning systems.

  • Currently, very few banks that provide Internet services are able to also offer security software to curb cybersecurity attacks.

  • Phishing attacks aimed at bank customers feature unsolicited messages instructing users to follow a link to confirm their account information, as a way for criminals to obtain passwords and user identities.

Sylvester Anyanwu, Nigerian Senate Communications Committee chairman, said in an e-mail interview that "Nigeria, which has 90 percent wireless ICT infrastructure, is very vulnerable to cyber attacks. But we are preparing to ensure the country does not become hostage to cyber criminals."

Continue Reading

P2P Payments Grow, Primarily Online

Bank Technology News  |  February 2010 | Rebecca Sausner

Person-to-person transfers are quickly moving from press release material to deployed applications. 

New York-based CashEdge is making much of the recent news with its rollouts of the service at PNC Bank, FNBO Direct, and First Hawaiian Bank.

In a recent survey, Javelin Strategy & Research found that monthly usage almost doubled from 2008 to 2009, with 44 percent of consumers saying they've initiated an online P2P transfer in the past 12 months.

Continue Reading at BTN

NYCE Names Neil Marcous as President

News Releases

Secaucus, N.J., –PIN Payments News Blog -  Jan. 29, 2010 – NYCE® today announced that Neil Marcous has been named President of NYCE Payments Network, LLC, and will lead FIS’ Payment Network Solutions business. NYCE Payments Network, LLC, is a leading U.S. electronic payments network and an FIS™ company. FIS is one of the world’s largest providers of banking and payments technology.

Frank D’Angelo, executive vice president, FIS Payment Solutions Group, stated, “The nationwide NYCE Network is a critical component of our end-to-end, industry-leading payments strategy at FIS and continues to present tremendous growth opportunities for our organization. Neil’s extensive leadership experience and vast knowledge of the payments space will help us execute on our strategic vision for NYCE. I’m confident Neil and his team will continue to drive growth and market leadership for this key business line.”

“NYCE has built a strong reputation in the industry as a leading provider of electronic payments through innovative product offerings, such as SafeDebit and Mobile Financial Services, as well as its commitment to meeting clients’ strategic business needs,” said Neil Marcous, president of NYCE. “I’m excited about becoming part of NYCE’s stellar organization and look forward to building upon its successful 25-year track record of delivering advanced payment solutions that help clients drive increased ROI.”

Prior to joining FIS, Marcous was group president and chief operating officer at the BISYS Group, Inc., and was responsible for establishing its strategic direction and managing day-to-day operations. He has also held leadership positions at Automatic Data Processing (ADP) and Electronic Data Systems, Inc. (EDS), and served in key consulting roles with Armed Forces Financial Network (AFFN), Transaction Services, Inc., and Welch, Carson and Anderson.

Marcous has served as a member of the board of directors for various public and private companies, including the Electronic Funds Transfer Association (EFTA). He holds degrees in finance and economics from Bowling Green University.

About NYCE

NYCE Payments Network, LLC, an FIS™ company, helps its clients grow with innovative new products and strategic alliances that enable them to capitalize on the efficiency, consumer convenience and security of electronic real-time payments. The NYCE Network provides consumers with secure, real-time access to their money, offering hundreds of thousands of ATM locations and millions of point-of-sale locations nationwide. The NYCE Direct Bill Payment service offers cardholders a convenient way to pay bills online in real-time using their deposit accounts. Headquartered in Secaucus, N.J., NYCE Payments Network, LLC, ( is a wholly owned subsidiary of FIS (NYSE:FIS).

About FIS

FIS delivers banking and payments technologies to more than 14,000 financial institutions and businesses in over 100 countries worldwide. FIS provides financial institution core processing, and card issuer and transaction processing services, including the NYCE® Network. FIS maintains processing and technology relationships with 40 of the top 50 global banks, including nine of the top 10. FIS is a member of Standard and Poor's (S&P) 500® Index and consistently holds a leading ranking in the annual FinTech 100 rankings. Headquartered in Jacksonville, Fla., FIS employs more than 30,000 on a global basis. FIS is listed on the New York Stock Exchange under the “FIS” ticker symbol. For more information about FIS see

For More Information:

Marcia Danzeisen, SVP, Global Marketing and Communications

Phone: 904.854.5083, Email:

Mary Waggoner, SVP, Investor Relations, FIS

Phone: 904.854.3282, Email:

Best Online Banks

I saw this post at DoughRoller and started wondering how the list would be affected if one of them offered "secure" online banking authentication by mandating that users swipe their bank issued card and enter their bank issued PIN. 

Maybe the banks don't want to do anything into their are "regulated" to do so, but think of the marketing prowess behind offering consumers not only a safer and more secure way to authenticate themselves, but provide them with the key to secure online financial transactions across the board. 

The opportunity to establish trust, empower the FI's brand and earn revenue off transactions conducted with our PCI 2.O Certified PIN Entry Device should be compelling enough to justify the one-time cost to roll out the devices. 

DoughRoller's List of the Best Online Banks

by Michael

Many of us made a New Year's resolution to spend less and save more.  Saving more can be the more difficult part of that resolution.  One way to get into the habit of saving is to set up an automatic savings plan with an online bank. We like online banks because they offer competitive interest rates, low fees, and other options, while making banking more convenient than it's ever been.   With all of the online banks available today, let's review which ones stand out amongst the rest (Note: interest rates area as of 1/29/2010. For current rates, click on the name of the bank below):

EverBankEverBank is one of the few online banking institutions that offers users a high interest checking account. When I say high interest, I mean up to a 1.46% APY return during the first year and a 1.26% APY return every year after that. Everbank offers customers an introductory 3-month bonus rate of 2.25% APY which allows for that higher first year return. In addition to their high yield checking account, Everbank also offers a Money Market account and a variety of CD's. Everbank requires a minimum deposit of $1,500, and if you carry at least a $5,000 balance, Everbank will reimburse your ATM fees, if you acquire them.

SmartyPigSmartyPig, the new and exciting addition to the online banking community, provides only one account option for it's customers; the SmartyPig online savings account. A 2.01%APY is as high as you can find for an interest rate and since SmartyPig has removed most of its account fees, it has become a popular online savings account option. A few cool features that are included in this account are its ability to have deposits made from family and friends via other SmartyPig accounts or by credit card, and the ability to withdraw funds onto a gift card. SmartyPig has teamed up with a large group of well known retailers to offer you a bonus on your gift card conversions. For example, if you withdraw $1,000 onto a Macy's gift card, you will earn an additional 12% on the card, making the total value of the Macy's gift card, $1,200. Pretty sweet!

Ally Bank Ally Bank, formerly the bank known as GMAC, transformed it's image with a new name, new slogan and new purple color.  Funny commercials aside, Ally Bank is a great option for your online banking needs and offers a wide variety of CD's, including a 9-Month No Penalty CD with a competitive interest rate.  As of January 14th, the Ally savings account rate is 1.49% APY and their 9-Month No Penalty CD rate is 1.24% APY but you should check our high yield online savings accounts page, as their rates frequently fluctuate.

HSBC DirectHSBC Direct, which unbeknown to be stands for HongKong and Shanghai Banking Corporation, continues to be my online bank of choice.  HSBC Direct currently offers a 1.35% APY on their no minimum savings accounts and offers a wide variety of CD's.  A big plus that HSBC Direct has going for it is it's international availability as it currently has over 10,000 branches in 85 different countries.  If you are planning a road trip, there's a good chance that you can find a branch close to you, in-case you find yourself in money troubles abroad.  One of the oldest and most respected online banking institutions, I use HSBC Direct as their interest rate rarely fluctuates and their convenience and customer service has always been of a "top shelf" quality.

WT DirectWTDirect, which stands for Wilmington Trust Direct, is one of the first companies to offer an online savings account without a national brand name.  Located in Delaware, WTDirect currently offers it's customers a 1.41% APY on their savings accounts ONLY IF they have at least $10,000 deposited.  If your account balance is less than $10,000, you should consider moving your money elsewhere as WTDirect is only offering 0.15% on your money. While you won't find any CD or Money Market options, WTDirect routinely offers customers cash earning promotions and provides excellent customer service.

ING DirectING Direct, which stands for Internationale Nederlanden Groep (It's a dutch thing) currently offers customers a wide variety of accounts and services that many other online banking institutions do not. In addition to their online savings account which offers a 1.25% APY and their electric orange high yield checking account which offers a 1.45% APY, ING Direct also can provide customers with home loans, business savings and checking accounts, investment opportunities through their ShareBuilder brand and IRA accounts and rollovers. ING Direct is a fan favorite of the personal finance community and if you are looking for one account that has a variety of future options, then ING Direct is definitely a top choice.

DiscoverDiscover is more than just credit cards these days and when you compare their savings rates with other online banks, Discover Bank will usually come out on top.  They currently offer a pretty sweet 1.60% APY on their online savings account and a very high 3.25% APY on a 5-year CD.  With no minimum requirements for their savings account, Discover Bank makes for a very attractive place to store your cash.  Discover Bank also offers a neat twist to your IRA as you can earn 3.70% APY on a 10-year IRA CD return.  There's really no telling if interest rates will pick up anytime soon and 3.70% APY is one of the highest rates you will find for any guaranteed return today. Lastly, Discover Bank also is one of the few online banks to offer a 9-month no penalty CD, in-case you need to pull funds out early.

ETradeE*Trade offers an online savings account, checking account and plenty of CD options even if you are not using them as a stock or options broker.  The APY's leave much to be desired as the current checking account APY is 0.30% for balances of 5K+ and their online savings account rate is a low 0.50% but the main advantage of opening and online banking account with E*Trade is the convenience you will have if you choose to use them as a broker.  Transferring funds to and from your broker account using your E*Trade savings or checking account is a cinch and can save you a few days in transfer time as well.  However, if you're not planning to use your E*Trade savings account for investing purposes, you can certainly find better interest rates elsewhere.

Dollar Savings DirectDollar Savings Direct, a division of Emigrant Direct is the simplest form of online banking available today.  Dollar Savings Direct only offers one savings account option and currently offers it at 1.50% APY, which is just high enough to beat out a majority of other banks on this list.  Your current checking account will need to be linked to your Dollar Savings Account to make deposits and you must maintain a minimum balance of $1,000 to receiver the high interest rate.  You can also set up CD's using your savings account, however the interest rates available are not very attractive.

FNBO DirectFNBO Direct, which stands for First National Bank of Omaha, currently offers a competitive 1.40% APY for its online savings account, with a minimum deposit of $500.00 (The balance must also be maintained at $500.00).  In addition to it's online savings account, FNBO Direct also offers a extra rewards credit card where you can redeem the points you earn for cash right back into your savings account.  For the first year, you earn double points on all purchases, then the standard 1 point per dollar spent.  While FNBO Direct does offer CD's their rates are significantly lower than what you can find at Ally Bank, so you may want to look elsewhere.

Capital OneCapital One Direct has recently added a 10% interest bonus on their online savings account meaning that you can earn 1.76% APY on your money each and every year that you maintain at least $15,000 in your account or have an active Capital One Credit card.  If you do not meet this criteria, then your rate each year is still 1.60% APY as long you maintain a balance of $2,500.   Unfortunately Capital One has recently removed their checking account options but they also provide the standard timetables for CD's and offer Money Market accounts.  Capital One Direct continues to earn JD Power and Associates rewards for their banking customer service so you can feel confident that all of your issues will be handled in a timely and professional manner.

American ExpressAmerican Express was struggling to make ends meet when the credit crisis became a big problem a little over a year ago.  Credit card holders were defaulting at an enormously high rate and without any solid liquid assets to speak of, AMEX asked for approval to become a bank so they could have the liquidity they needed to persevere.  Just launching a few months ago, the American Express Bank product line is simple and limited to an online savings account and standard CD's and they currently offer a respectable 1.50% APY if you decide to open a savings account.  I'm sure as the economy continues to stabilize, American Express will enhance it's available products and increase the variety within, however right now, the banking concept is still a little raw.

Zions BankZions Bank provides it's customers the option of having an internet only account, which is how they fall into the online savings account category.  Initially when visiting their website, it was hard for me to find where their rates and available online accounts were listed but there is a tab titles "Internet Only" that led me to my desired page.  Through Zions Bank, you can sign up for an online savings account with a 1.25% APY or take advantage of their CD's and IRA CD's.  Once you've browsed through their savings options you may want to take a look at their credit card options as they have a few cards with incredibly low APR's and excellent rewards.

E-LoanE-Loanoffers two varieties of their online savings accounts, one that earns 1.35% APY and another that earns 1.15% APY.  Both accounts require a minimum deposit of $5,000 and if you want to earn the higher interest rate you need to make sure that you deposit at least $100 into the account every month.  If you fail to make a deposit of this amount within any 60-day period, your interest rate will revert back to the 1.15% APY.  In addition to online savings accounts, E-Loan also offers home loans, mortgage refinance, auto loans, student loans and pretty much any other loan you can think of.  Savings accounts and CD's are a new twist for E-Loan but it's relatively high interest rate on savings and CD's show they mean business. E-Loan is backed by Banco Popular North America.

Univest DirectUnivest Direct offers all users a no fee, no minimum online savings account, checking account and business savings account.  If you're fed up with larger companies like Citibank charging you fees for your checking account, then opening a Univest Direct checking account may be your best bet.  Currently, customers earn a low 0.25% APY on their checking account but if you're old school and still write paper checks, no worries,  Univest still allows for the use of paper checks.  Your online savings account will earn a very respectable 1.25% APY and you escape surcharges at over 37,000 ATM's nationwide when you use your Univest Direct debit card.

HomeATM Headline News through January 29

3D Secure Online Payment System Not Secure, Researchers Say

PC World By Jeremy Kirk, IDG News Service A widely deployed system intended to reduce on-line payment card fraud is fraught with security problems, according to

5 Burning Questions: CHARGE Anywhere's John Coloe

In an exclusive video interview, puts CHARGE Anywhere's vice president of Corporate Development, John Coloe, in the Briefing Hot Seat to answer burning questions on the mobile platform wars and its impact on the payments industry. Watch the interview


The 3-D Secure protocol adopted by banks and card schemes under the Verified by Visa and MasterCard SecureCode banners has been branded by Cambridge University academics as "a textbook example of how not to design an authentication protocol" by ignoring good design principles and presenting "signifi cant vulnerabilities". More on this story:

The 50 most innovative mobile apps in the world

Mobile Entertainment M-commerce got an (espresso) shot in the arm with this app, that lets people pay for their coffees using their iPhones. Well, in Silicon Valley, anyway.

How Merchants Deal with Rising Credit-Card Costs

Wall Street Journal ... going to get a great price on any type of terminal fees or premium," says Conrad Sheehan, founder and CEO of mPayy, a mobile and online payment service.

Grab VoIP technology to make free internet calls

TMC Net With the ease of internet, now the user can easily make calls on the move also. The demand of VoIP calls are increasing day by day so service providers are

Unbanked India could give traction to e-wallet

Economic Times Andley says it is the unbanked who would embrace M commerce more than those who have bank accounts, because for the latter M-commerce would be just another ...

Japan - Mobile Market - Overview & Statistics - 2010

TMCnet Mobile content 6.1 Global Positioning System (GPS) 6.2 M-commerce/m-cash 6.3 Mobile banking 6.4 Mobile advertising 6.5 Mobile TV and radio 6.6 Mobile

iPhone in 2010: Mobile Commerce, Social Networking Star

San Francisco Chronicle Some analysts say that this year will also be the year of the start of a mobile commerce tidal wave. Market researcher Gartner predicts mobile app revenue

Grooming its image, eBay lowers listing fees

CNET While eBay beat Wall Street's expectations last quarter, much of that growth was fueled by transaction system PayPal and ticket reselling outlet StubHub

Biz Break: Apple tablet countdown: Stock rises after record profit

Today: Apple stock gains after the Mac maker posts record profit. Yahoo reports earnings for its latest quarter. Plus: eBay, Google Voice, San Francisco-area home prices. Read article » attack sparks Internet security debate

Tiger Weekly Baidu is now suing, its US service provider, for negligence during the attack. responded in a statement that said Baidu's lawsuit ...

Apple and the Dawn of i-Commerce: What the iPad Means for Payments

The tech world is abuzz with Apple's latest and greatest invention, but what does it mean for the payments industry? For industry insight from Silicon Valley, Commerce Fault Line's Patrick Gauthier weighs in: "It will take a couple of iterations, but the iPad will open new frontiers for 'e-transactions'."

Read more

New PCI Phone Rules: A Number Spoken Is Just As Risky As One Typed

Last week, PCI changed its policy on audio recordings. It now instructs retailers to treat a digital audio capture exactly the same as if it was written. This means that all of those call centers asking for credit card details over the phone must dispose of those recordings, or at least the parts that store the prohibited data, immediately. The PCI community has been debating the audio rules for years, with our first story on it back in August 2007. The issues go beyond the literal digital audio capture ruling that PCI just issued. Another key concern are overheard snatches of conversation. Read more.


The Hong Kong Monetary Authority is hatching a scheme to create a common cross-border e-money card and eftpos framework for transit and small value payments in the Pearl River Delta region, which comprises Hong Kong, Macau and nine municipalities of the Guangdong Province in the mainland of China. More on this story:

How Facebook, Cloud, Mobility Are Changing Enterprise IT

Over the next five years, enterprise IT will undergo a dramatic change. In that time, cloud computing and virtualization will become even more important, as fewer business will own their own hardware. Facebook and other social networking Websites will also change the landscape. Here, eWEEK looks at several trends that are changing enterprise IT. READ MORE >>

Walmart gears up for global online push

Financial Times By Jonathan Birchall in New York Walmart, the world's largest retailer, has set up a new global e-commerce unit that it says will be tasked with driving ... grows annual sales by 28% in 2009

While other web retailers may have seen their sales and profits lag in 2009, flourished. Total sales for the year and in Q4 increased 28% and 41.9%, respectively.

Featured Article:  Card Fraud Costs Payments Industry Billions Annually

PaymentsSource | Thursday, January 28, 2010 By Meghan Boyer
Card fraud costs the U.S. payments industry, including issuers, merchants and acquirers, an estimated $8.6 billion per year, according to a report from Aite Group LLC, a Boston-based consulting firm. However, fraud amounts to only 0.4% of the estimated $2.1 trillion in U.S. card volume annually, according to the report “Card Fraud in the United States: The Case for Encryption.” Aite interviewed more than 30 fraud-management professionals for the report. While card-fraud losses represent a small percentage of overall card volume, “this remains a troubling area for the industry due to the volatile nature of fraud,” notes Adil Moussa, Aite analyst and author of the report. As the industry prevents fraud in one area, “it will inevitably pop up in a less-protected area,” he says. The largest category for U.S. card fraud is first-party fraud committed by crooks pretending to be legitimate cardholders or by legitimate cardholders who decide not to pay off their balances. First-party fraud represents between 7% and 10% of overall issuer charge-offs, according to the report. The three main forms of third-party fraud in the U.S. are card-not-present, counterfeit and lost-and-stolen data fraud, representing roughly 15% of overall card fraud per category, according to the report. ID theft and non-receipt fraud account for 1.5% and 0.3% of card fraud respectively., Inc. Names Kristin Dach Executive Vice President

http://www.2checkout.comCOLUMBUS, Ohio--(BUSINESS WIRE), Inc.’s (2Checkout) Chief Operating and Chief Financial Officer, Kristin Dach, has agreed to assume the responsibilities of Executive Vice President, to manage crucial portions of the company’s aggressive growth plan.

ccording to 2Checkout’s President, Tom Dailey, “We are excited about our newly established aggressive plans for growth at 2Checkout. In order to appropriately execute these plans, it is imperative we have the right management organization in place to accomplish these ambitious goals. I am pleased Kristin will assume this position and is up for the challenge.”

Dach brings a wealth of experience to the position. She said, “I’ve witnessed the increasing value of 2Checkout’s offerings since joining the company nearly nine years ago when it was little more than a dream, and operating out of Mr. Homewood’s spare bedrooms. Participation in the Executive Committee reinforces my commitment to the company and I welcome the continued opportunity to help spur and guide growth into 2010 and beyond. My thanks to Tom Dailey and Alan Homewood for their confidence in the value of my contributions,” Dach concluded.

With the recent placement of Dach, 2Checkout has also officially established an Executive Committee responsible for the highest-level strategic and operating decisions of the company. The committee will serve as the senior steering committee for the majority of the company’s business.

About, Inc.

Established in 2000, and headquartered in Columbus, Ohio, is a full service online payments solution provider serving over 60,000 web-based businesses throughout the world. 2Checkout provides online businesses a merchant account alternative and a fully automated suite of backend services. In addition to a fast and secure checkout system accepting a wide variety of payment methods, 2Checkout offers built-in fraud protection, 24-hour customer care, PCI data storage compliance, an automated shopping cart, easy to use plug-n-play code and settlement in multiple international currencies.

Evolving US Payment Systems and Bank Delivery Channels: Death of the Teller...Again? (Part I)

In a two part series Evolving US Payment Systems and Bank Delivery Channels: Death of the Teller... Again? - Mercator Advisory Group's Bob Landry, vice president, Banking Group Advisory Services provides a comprehensive overview of the growth and trends over almost three decades detailing the various market drivers impacting consumer payment products and bank delivery channels.

Maynard, MA, January 29, 2010 --( Two part series Examines Evolving Consumer Payments

and the Impact on Bank Delivery Channels

In a two part series Evolving US Payment Systems and Bank Delivery Channels: Death of the Teller... Again? - Mercator Advisory Group's Bob Landry, vice president, Banking Group Advisory Services provides a comprehensive overview of the growth and trends over almost three decades detailing the various market drivers impacting consumer payment products and bank delivery channels.

The research series evaluates how major shifts in consumer payments have reordered the structure and roles of bank delivery channels. Within the series Mercator Advisory Group projects the impact of payment trends on consumer payment transaction and dollar volume and models delivery channel capacity to predict how channels will change from 2010 out to 2015.

Highlights of the series include:

The move toward electronic based payments will continued unabated and will constitute 68% of consumer payments by dollar volume in 2012 and almost 75% by 2017. Checks are the big loser while cards will become the leading form of non-cash payment in 2012.

Branches will be the focal point for significant change as check related transaction volume slows and sales and service capacity is expanded to meet the needs of retiring baby boomers and cement relationships with profitable customers.

Online banking will show strong growth and matures into the primary customer interaction channel. Mobile banking will grow at over 50% CAGR as smart phone adoption accelerates and security concerns are addressed.

Cash usage is holding steady as a result of the recession but the convenience of card payments and the increasing acceptance of cards for low dollar amounts will result in a slow decline.

Contact center agent capacity will increase to support front line sales and service as well as support other channels including chat and email for online banking and provide product expertise to branches and online banking using teleconference and video collaboration.

"Although cash and checks remain widely used in the US, other forms of payment continue to gain market share, with businesses and consumers adopting more convenient and potentially less costly electronic-based payment products. The movement from paper based payments to electronics accelerated over the past decade resulting in a dramatic reversal of roles.  Cash and checks fell off their perch tumbling from 60% of dollar volume in 2002 to a projected 32% in 2012 while electronic payments zoomed by them to capture 68% of dollar volume. With this dramatic swing in volume you would expect the transaction capacity of the primary bank channels supporting checks and cash to decline." Bob Landry, vice president, Banking Group Advisory Services comments. "But banks added almost 17,000 branches and 74,000 additional ATMs and cash dispensers were deployed - a 17% increase in delivery capacity since 2002. And banks plan to add more. Are we over branched? Can we encourage our customers to use electronic channels and reduce the number of branches and ATMs? How do we balance cost reduction with customer experience quality and satisfaction? This report addresses these questions from a fresh perspective, provides alternative solutions and offers an integrated multi-channel approach to a key strategic issue."

The first report in the series Payment Trends Driving Bank Delivery Channel Change tracks the development of consumer payment products, identifies growth trends, estimates future volume and transaction growth to 2017 and identifies how bank delivery channels support payment transaction execution, sales and customer support.

The second report in the series, Bank Delivery Channels Evolve to Support Electronic Payments provides an analysis of how delivery channels have evolved, defines their role in consumer payments, estimates present and future channel capacity, and evaluates how each channel's capabilities and capacity will change by 2015 in response to payment changes.

Payment Trends Driving Bank Delivery Channel Change report contains 36 pages and 19 exhibits.

Bank Delivery Channels Evolve to Support Electronic Payments contains 42 pages and 20 exhibits.

Companies covered in this series include: Western Union, PayPal, Wal-Mart, Diners Club, MasterCard, Visa, American Express, Discover, Blockbuster, SunTrust, Wells Fargo, Wachovia, AOL, Apple Inc., Commerce Bankcorp, TD Bank, Bank of America, Merrill Lynch, Prudential Securities, Edward Jones Investments, USAA, Umpqua, WAMU/JP Morgan Chase, Barclays and Smarty Pig.

Members of Mercator Advisory Group have access to these reports as well as the upcoming research for the year ahead, presentations, analyst access and other membership benefits.

Please visit them online at

For more information, please call Mercator Advisory Group's main line: 781-419-1700 or send email to


Litle & Co. Named an e-Commerce Customer Service Finalist for Stevie Award

LOWELL, Mass.--(EON: Enhanced Online News)--Litle & Co. (Litle), a leading payment processor and consultative merchant services provider for direct-to-consumer commerce, today announced the company has been named a Stevie® Awards Finalist for e-Commerce Customer Service.

“We are honored that the Stevie’s have recognized Litle in the e-Commerce customer service category,” said Bob Botelle, Chief Customer Officer and Executive Vice President, Merchant Services at Litle & Co. “Our approach to payment processing becomes a value-added solution for e-commerce clients when consultative customer service is applied. Customer service is not just solving a single problem; it’s proactively uncovering new ways to reduce costs and increase revenue.”

More than 500 entries from organizations of all sizes and in virtually every industry were submitted to this year’s competition. The awards are presented by the Stevie Awards, which organizes several of the world's leading business awards shows including the prestigious American Business Awards.

Jenn Munson, Payment and Fraud Prevention Manager,, said, “Right from the beginning it was apparent that Litle is focused on putting our needs and those of our customers first. Litle’s approach to payment processing goes beyond traditional strategies, looking deep into an organization’s business practices to find ways to help improve operational efficiencies.”

David Fish, Senior Analyst, Mercator Advisory Group, has stated: “Litle is a ‘payment management’ company whose exclusive focus is on servicing [card-not-present] CNP merchants with next generation tools that leverage payment processing data for the merchant customer’s greater business intelligence. The Litle & Co. payments engine, which facilitates reporting for merchants down to the customer level, increases the merchant’s ability to maximize customer lifetime value.”¹

Members of the Awards' Board of Distinguished Judges & Advisors will select Stevie Award winners from among the Finalists during final judging, to take place January 25 - February 3, 2010. Finalists were chosen by business professionals worldwide during preliminary judging.

Details about the Stevie Awards for e-Commerce Customer Service and the list of Finalists in all categories are available at
About Litle & Co.

Litle & Co. is a leading payments management company for merchants who sell goods and services directly to consumers. Providing transaction processing and consultative merchant services for card-not-present (CNP) and alternative payments, the Litle & Co. payments platform is engineered specifically to meet the needs of companies in Direct Response (DRTV, radio, print), Multichannel Retail (including catalogs), Internet Retail, and Online Services. Founded in 2001, and based in Lowell, Massachusetts, Litle & Co.’s growth has been acknowledged by a No.1 Inc. 500 ranking (2006) and a No.8 Entrepreneur Hot 100 ranking (2008). To learn more about Litle & Co. visit, or call 1-800-548-5326 (1-800-LITLECO) or 978-275-6500.

¹Mercator Advisory Group, “The Rise of the VARs: Merchant Attrition and Value-Added Technology’s Impact on Account Retention,” by David Fish, June 2009

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