Tuesday, February 2, 2010

HomeATM Headline News through February 2nd





On the Back Burner in Congress, Interchange Heats up in California

Proposed regulation of interchange is stalled in Congress, but California lawmakers are investigating the controversial revenue generator for credit and debit card issuers that merchants ultimately pay. It’s not clear yet, however, whether the...



Study: Of All Breaches, Those Caused by Hacking Are the Costliest

The cost of data breaches rose slightly last year, but breaches resulting from computer hacking incurred by far the highest losses, according to a new report from privacy and data-security research firm Ponemon Institute LLC....



3D Secure Online Payment System Not Secure, Researchers Say

PCWorld: A new paper published by researchers at the University of Cambridge sounds a warning about the Verified by Visa and MasterCard SecureCode programs



For Businesses That Accept Cards, Tips for Cutting Fees

Wall Street Journal For example, Visa allows merchants to discount cash, checks and PIN debit purchases, while MasterCard allows for discounts on any debit purchases



P2P Payments Grow, Primarily Online

Bank Technology News ... is reselling P2P services from Toronto-based CPNI, MasterCard announced its Mobile MoneySend service last May, provided using technology from Obopay.



Amazon.com Fourth Quarter Sales up 42% to $9.5 Billion

RedlineChina Ecommerce retailer Amazon's net sales increased 42% to $9.52 billion in the fourth quarter, compared with $6.70 billion in fourth quarter 2008. ...



Why Google can say no to China

Boston Globe But as a rebuke to notions of the Party as paternalistic provider, Google's exit will be felt by even those who rarely use the search engine.



NYCE Names Neil Marcous as President


NYCE has announced that Neil Marcous has been named President of NYCE Payments Network, LLC, and will lead FIS’ Payment Network Solutions business. Frank D’Angelo, executive vice president, FIS Payment Solutions Group, said “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.”



SSL Assault Targets CIA, PayPal, Others


eSecurity Planet By eSecurityPlanet Staff The Shadowserver Foundation reports that the CIA, PayPal and hundreds of other organizations are being bombarded with unexplained



Meta's Payday Lender Deal Raises Capital and Eyebrows

American Banker | Feb 1 Meta Financial Group has secured $5.65 million worth of funding from a very nontraditional — and potentially controversial — source: Cash America International, a payday lender.



Does Shakeup at First Data Hint at IPO Plans?

First Data is reorganizing its international division as part of an effort to unite the company into a single global organization that can develop and deliver products faster.



Biz Break: Apple's iPad vs. Amazon's Kindle, the first skirmish

Today: Amazon's stock slides after a weekend fracas involving e-book prices. (Yes, there's an iPad effect at work.) Yahoo signs a deal with the AP. Exxon's yearly profit slides to a mere $19.3 billion. Read article »



Is PCI compliance attainable in a public cloud?

SearchCloudComputing.com PCI-DSS does, however, directly address shared hosting providers, and there has been guidance on Internet Service Providers (ISPs). ...



MOST PEOPLE REUSE BANKING PASSWORDS ON OTHER SITES - TRUSTEER


Around two thirds of Internet users are putting themselves at risk of fraud by using their online banking credentials on other sites, according to e-security vendor Trusteer. More on this story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21027



China Works to Toughen Hacking Laws

PC World China late last year released a tort law that touches on privacy issues and requires Internet service providers to take action when an individual is using ...



Anatomy of a Data Breach

Smartmoney.com ... identity theft where new accounts are opened fraudulently, but, as a consumer potentially at higher risk of credit-card fraud, I wanted to know more.



MoneyGram's CEO, Pamela Patsley, describes the tough times it has had recently ...

Mobile-Financial.com Emirates Business interviews Pamela Patsley, CEO of MoneyGram, about its battle back from heavy sub-prime mortgage related investment losses to top line ...



SMVI Launches Free Discount Pet Prescription Card, PetsPlacesCard.com

SOURCE: Social Media Ventures, Inc.
At the Center of Robust Global Animal Health Product Growth, the U.S. Market for Pet Medications Is Going Gangbusters, With Continued Double-Digit Sales Gains Predicted for the Foreseeable Future as All of the World's Largest Pharmaceutical Companies Move Full-Force Into the Segment, Adapting Human Technologies and Developing Pet-Specific Ones, According to Packaged Facts



JERICHO, NY--(Marketwire - February 1, 2010) - Social Media Ventures, Inc. (PINKSHEETS: SMVI) is pleased to announce that beginning today it will distribute online its free drug discount card for pets. The card is exclusively for pet owners and can be used by members of the Company's social networking site for pet owners, PetsPlaces.com (www.PetsPlaces.com). The drug discount card is now available at www.petsplacescard.com.



Members of PetsPlaces.com, as well as interested consumers, will be able to simply print the card from www.PetsPlacesCard.com and present the card at participating pharmacies to receive a discount. Discounts will be available for pet prescription medications only and savings will vary.



Robert W. Thayer, CEO of SMVI, stated, "PetsPlacesCard.com is a great service for any pet owner. This card can be very valuable in helping alleviate the high costs for anyone purchasing pet prescription medication from their participating pharmacy. Potentially, it can prove to be an excellent revenue-producing offering for SMVI. I like the fact that it is free for our members as well as others who care for their pets."



On all types of veterinary services combined, including medical treatments and anything else spent at vet offices, such as boarding and medications, pet owners spend $19 billion annually; nearly double from 11.1 billion in 1996, according to the American Veterinary Medical Association (AVMA). SMVI hopes to capitalize on this growing market with the launch of its pet drug prescription card at www.PetsPlacesCard.com.



Any individual that purchases prescription drugs for their pet is eligible to use the card. The discount pet drug card is completely free and provides SMVI with $0.50 per transaction for anyone using the discount drug card for their pet. The card was made possible through an agreement signed with Management of SMVI and a drug discount card provider.



About Social Media Ventures, Inc.



Social Media Ventures (SMVI) is an online media venture company, creating and acquiring niche social networking websites as well as revenue generating web sites. SMVI will integrate an online advertising program that focuses on attracting advertisers to its core demographics for each social networking site. Currently SMVI operates next-generation social networking sites including www.petsplaces.com and www.rocktag.us.



Forward-looking statements: This press release contains certain forward-looking statements, which are made pursuant to the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Statements of future goals or expectations, containing words such as "expect," "believe," "should," "anticipate," "intend," "plan," "may," "will" or similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks, uncertainties and assumptions that are difficult to predict and that could cause actual results to differ materially from those currently anticipated. Factors that could cause or contribute to such differences include, but are not limited to, the successful completion of acquisitions and the integration of such businesses with those of the Company, competition, technological changes, the ability to obtain financing and other factors. The Company undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release.






MasterCard Board of Directors Announces Regular Quarterly Dividend

http://www.mastercard.com
PURCHASE, N.Y.--(BUSINESS WIRE)--MasterCard Incorporated (NYSE: MA) today announced that its Board of Directors has declared a quarterly cash dividend to holders of shares of its Class A common stock and Class B common stock. The cash dividend of 15 cents per share will be paid on May 10, 2010 to holders of record of its Class A common stock and Class B common stock as of April 9, 2010.



About MasterCard Incorporated

MasterCard Incorporated advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes approximately 21 billion transactions each year, and provides industry leading analysis and consulting services to financial-institution customers and merchants. Powered by the MasterCard Worldwide Network and through its family of brands, including MasterCard®, Maestro® and Cirrus®, MasterCard serves consumers and businesses in more than 210 countries and territories. For more information go to www.mastercard.com.








February 2010 PIN Debit Interchange Updates

February 2010


NYCE PIN Debit


  • The switch fee will be decreased from $0.05 to $0.0425.

  • etail merchants will be billed at 0.75% + $0.2125 per transaction. The minimum transaction fee will be decreased to $0.3025.

  • Quick Service Restaurant merchants will be billed at 0.55% + $0.1075 per transaction with a maximum fee of $0.5425. The minimum transaction fee will be decreased to $0.2275.

  • Supermarket merchants will be decreased to $0.3025.

  • Petroleum merchants will be billed at 0.85% + $0.1925 per transaction. The minimum transaction fee will be decreased to $0.3025.

  • Returns will be decreased to $0.0425 per transaction.

  • PINless Utility merchants will be billed at $0.6550 per transaction.

  • PINless Cable merchants will continue to be assessed 1.00% + $0.125 per transaction. The maximum transaction fee will be increased to $1.055.

CU24 PIN Debit

  • The switch fee will be increased from $0.025 to $0.028.

  • Retail merchants will be billed at 0.75% + $0.178 per transaction with a maximum fee of $0.828

  • Quick Service Restaurant merchants will be billed at 1.25% + $0.058 per transaction with a maximum fee of $0.478.

  • Supermarket merchants will now be billed $0.258 per transaction.

  • Drug Store and Pharmacy merchants will be billed at 0.75% + $0.178 per transaction with a maximum fee of $0.828

  • Petroleum merchants will be billed at 0.75% + $0.168 per transaction with a maximum fee of $0.728

  • Returns will now be billed $0.028 per transaction

April 2010


MasterCard


Currently, MasterCard's Assessment fee is 0.095%. MasterCard will increase the Assessment fee to 0.110%.

MasterCard is introducing new Interregional Interchange programs. A unique brand product classification has been defined for each of the consumer credit, debit, and commercial product families. The following brand products will qualify for the new Interregional Consumer Premium Interchange Structure.

  • MasterCard World Card

  • MasterCard World Elite

  • World MasterCard for Business

  • MasterCard Corporate World

  • World Elite MasterCard Business

  • MasterCard Corporate World Elite

Different rates have not yet been announced by MasterCard.



MasterCard is revising the qualification criteria for Commercial Face to Face and Commercial Data Rate II. Effective April 2010, zero will no longer be accepted as a valid tax value to qualify for these rate categories. Only non-zero tax values that fall within the specified valid range will be accepted. Therefore, if a commercial transaction has no sales tax, the transaction will downgrade to a lower Interchange level.



MasterCard is adding a new Interchange program for MasterCard Enhanced Small Business. Pricing for the new program categories will be announced once released. The following card programs will be supported in the U.S. Small Business Sector:

  • MasterCard BusinessCard Card

  • MasterCard Professional Card

  • MasterCard Executive BusinessCard Card

Visa



Visa is implementing modifications to the No Signature Required program:

  • MCC 5993 (Cigar Stores/Stands) is being added as an eligible MCC

  • Standardize amount to equal to or less than US $25.00 to be eligible.

  • Transaction with cash back amounts will not be eligible.

NYCE PIN Debit

  • NYCE will implement a Premier Issuer fee of $0.011 per transaction. This will be an addition to the existing interchange fees.





November 2009

Accel, Jeanie, and Maestro have announced modifications to the current rates effective November 1, 2009. The actual changes are as follows: 



Accel


  • The maximum fee for Retail transactions has been eliminated

Jeanie

  • Retail transactions will be billed at 0.80% + $0.20 per transaction with a maximum fee of $0.80.

  • Supermarket merchants will now be billed a total of $0.35 per transaction.

Maestro

  • Retail transactions will be billed at 0.90% + $0.175 per transaction with no maximum fee.

  • Quick Service Restaurant transactions will be billed at 0.75% + $0.195 per transaction with a maximum fee of $0.975.

  • Supermarket merchants will now be billed 1.05% + $0.175 per transaction with a maximum fee of $0.375.

  • Cross-Border transactions will be billed at 1.60% + $0.025 per transaction with no maximum fee.






October 2009



MasterCard



MasterCard will increase Cross Border fees as well as the Acquirer Support fee. Only MC International transactions will be assessed the Acquirer Program Support Fee (previous 0.45%, increasing to 0.55%), and the Cross Border fee (previous 0.30%, increasing to 0.40%), as these fees apply to US merchants settling International transactions in USD. 

MasterCard is modifying the World Elite Restaurant and the High Value Restaurant Interchange rate programs significantly.





Rate Descriptions
Current Rate
New Rate
World Elite Restaurant
1.73 % + $0.10
2.20 % + $0.10
High Value Restaurant
1.73 % + $0.10
2.20 % + $0.10


MasterCard is slightly lowering Interregional POS Consumer interchange rates and expanding its Utilities program to Business Cards. with the addition of Interchange categories for Business Utilities, Business World Utilities, and Business World Elite Utilities.



Visa


Visa will assess an International Acquirer fee (IAF) to U.S. Acquirers. Impact is expected to be limited. Only Visa International transactions will be assessed the 0.45% IAF fee. 

Visa announced the implementation of fees for transactions that do not match authorization items to settlement items. 

  • The Misuse of Authorization System fee – There will be a fee assessed for transactions in which an approval authorization is obtained, but there is no matching settled transaction or authorization reversal.

{A merchant obtains an approval code and doesn't use it, Visa will assess a $0.045 per occurrence.  This fee will be effective October 2009.}

The Misuse of Authorization System fee only refers to authorizations that do not have corresponding settled transactions.  Merchants may process an Auth Only with the forced transaction processed a few days later (the original authorization is subsequently used).  Note: The auth amounts and settled amounts do not have to match. 

Misuse of Authorization fees are assessed on approved or partially-approved authorization transactions that cannot be matched to a clearing (settled) transaction or an authorization reversal.  Clearing must occur within 10 days of authorization for all merchant categories, with the exception of T&E segments, which must clear transactions within 20 days of authorization, regardless of the transaction date. Visa implemented this penalty fee to reduce the occurrence of "ghost authorizations" (authorizations that are approved but never cleared), as these can adversely impact a cardholder's open-to-buy, leading to increased declines and confusion at the point of sale. To clarify, authorization reversals will only occur for a cancelled sale, or a timeout.  An authorization reversal cannot be manually processed by the merchant.

Visa Operating Regulations allow for $1 status check transactions for automated fuel dispenser and select lodging merchants, but other merchants must utilize the $0 account verification message.
  • Zero Floor Limit Fee – There will be a fee assessed for transactions in which a settled transaction can not be matched to an approved authorization.

{A merchant settles a transaction without a valid approval code (makes up an approval code), Visa will assess a $0.10 per occurrence.  This fee will be effective October 2009.}
Visa has made a modification to the Account Verification Service (AVS) fee. Visa is now charging $0.025 on AVS only transactions. AVS only transactions are considered Zero Dollar Account Verifications as this type of transaction occurs when no authorization is requested or obtained.



Discover




Discover has introduced a new International Processing Fee and an International Service Fee.

  • The International Processing Fee will be processed on all transactions, including Cash Advance, conducted at a merchant location in a country other than the country that the card was issued in.

  • The International Service Fee will be assessed on transactions conducted at a merchant location in the United States where the issuer of the card is in a country other than the United States. 

Discover has also introduced International Interchange rate categories and made modifications to several categories including increasing Consumer Core, Rewards, Premium Mid and Base and Commercial Base rates by 10 basis points.



Effective in October 2009, merchants in the U.S. and designated U.S. territories that accept the Discover card will be enabled to accept JCB and Diners Club cards under the Discover network.  JCB and Diners Club transactions will be processed at your Discover rate.   



American Express

Effective October 1, 2009 the American Express Monthly Flat Fee will increase to $7.95 per month. Monthly Flat Fee is mandatory (regardless of estimated Charge Volume) for these industries: Internet-Physical Delivery merchants; Mail Order/Telephone Order; Home Based Businesses.



Shazam Debit Network


  • Retail transactions will be billed at 0.75% + $0.19 per transaction which is a decrease from the current rate of 0.75% + $0.20 and there will no longer be a maximum per transaction fee. 

  • Quick Service Restaurant and Small Ticket merchants will be billed at 1.25% + $0.09 per transaction and there will no longer be a maximum per transaction fee. 

  • Petroleum merchants will be billed at 0.75% + $0.17 per transaction and there will no longer be a maximum per transaction fee. 

  • All other fees remain the same.



August 2009


PIN Debit




The debit network NYCE has announced several changes to their debit network pricing effective August 1, 2009. The changed fees are as follows:

  • There will be a new Petroleum category (MCC 5541 and 5542) with a debit rate of 0.85% + $0.20 per transaction with a minimum rate of $0.31 per transaction.

  • Standard (Retail) transactions will now be assessed a minimum rate of $0.31 per transaction.

  • QSR transactions (MCC 5814) will now be assessed a minimum rate of $0.235 per transaction.

  • All remaining fees for NYCE transactions remain the same.

  • Retail merchants will now be billed at 0.75% + $0.18 per transaction with a new maximum fee of $0.73.

  • Grocery merchants will now be billed at $0.28 per transaction. 

  • All remaining fees for ACCEL transactions remain the same.

April 2009 Interchange Adjustments



Visa



Visa will modify several Consumer Credit and Signature Preferred Interchange fees. Visa is lowering Card Not Present, Key Entry and E-Commerce Interchange rates as well as lowering Hotel and Car Rental rate categories. Restaurants will be impacted by a 5 basis point increase on Visa Rewards cards. Visa will extend Small Ticket Interchange Rates to Service Stations when the transaction size is $15.00 or less. Visa will modify Interlink Interchange fees including the establishment a unique Interlink interchange category for Automated Fuel Dispenser (AFD) and Service Station transactions.



MasterCard



MasterCard will modify commercial Interchange rates. Some higher, some lower. The goal of these changes are unclear. MasterCard will launch the availability for issuers to enroll Consumer World accounts in the "World High Value" program to qualify for differentiated interchange. As of April 2009, Interchange rates for the new category will mirror those currently used for the Consumer World Elite cards, so there will be no immediate impact of this launch. In an upcoming April 2009 initiative, the MasterCard Acquirer Access fee that is currently in place and being billed at a pass through cost of $0.005 per authorization is being eliminated and replaced with Network Access and Brand Usage (NABU) fee which will be billed at a pass through cost of $0.0185 per item. This MasterCard change will greatly impact merchants with small transaction sales.



Debit




AFFN debit network has announced changes to their debit network pricing structure effective March 2009.

  • Retail transactions will now be billed at 0.65% + $0.155 per transaction with a new maximum fee of $0 .535 per transaction.

  • Major merchants will now be billed at 0.50% + $0.10 per transaction with a new maximum fee of $0.435 per transaction.

  • Grocery merchants will now be billed at $0.205 per transaction.

  • Returns will now be assessed at $0 .035 per transaction.

Interlink has announced an increase to their Retail per transaction rate.  As a result of these changes, Retail merchants will now be charged 0.75% + $0.205 per transaction with no maximum fee. Interlink is also creating a new category for Petroleum Fuel.  These merchants will be charged 0.70% + $0.205 per transaction with a maximum fee of $0.985 per transaction. 

Pulse has announced a rate increase effective April 1, 2009. The changes are as follows:

  • The Switch Fee is increasing from $.07 to $.08 Per Item for all PIN based activity and from $.06 to $.07 for all PINless activity.

  • Retail & Petroleum transactions will now be billed a total of 0.75% + $0.18 per transaction.

  • Grocery merchants will now be billed a total of $0.30 per transaction.

  • Returns will now be billed at $.08 per transaction.

  • PINless Utility will be billed at $0.665 per transaction; all other PINless activity will now be billed 0.80% + $0.16 per transaction with no maximum.

January & February 2009 Update


PIN Debit

Effective February 1, 2009, the following rates apply for STAR debit activity:

  • The STAR PINless debit interchange rate will remain at 0.65% + $0.14, with an updated maximum rate of $1.01 per item.  The associated break-even amount is $133.85. 

  • The STAR Petroleum interchange rate will change to 0.80% + $0.14 per item, with an updated maximum rate of $0.71 per item.  The associated break-even amount is $71.25.

Changes are scheduled  to the pricing  of the NYCE and STAR debit networks .  



NYCE – Effective January 1, 2009

  • The Switch Fee is increasing from $.0375 to $.05 Per Item. This impacts the following pricing categories: 

  • Retail transactions will be billed at 0.75% + $0.20 per transaction and there will no longer be a maximum per transaction fee.

  • Quick Service Restaurant merchants will be billed at 0.55% + $0.115 per transaction with a maximum of $.55 per transaction.

  • Grocery merchants will now be $0.31 per transaction.

  • Returns will now be billed at $.05 per transaction.

STAR – Effective February 1, 2009

  • Petroleum merchants will now be charged .80% + $0.1725 per transaction with a maximum transaction fee of $0.7425.

  • PINless Bill Payer transactions have a new maximum fee of $1.0425 per transaction.

The Council of State Restaurant Associations (CSRA) Joins Partnership to Enhance Business Services for Restaurants Nationwide

CSRA Partners with the National Restaurant Association, 40 State Restaurant Associations and Heartland Payment Systems to Deliver Suite of Exclusively Endorsed Business Solutions




PRINCETON, N.J. & BALTIMORE--(BUSINESS WIRE)--The Council of State Restaurant Associations (CSRA) ― a key industry organization comprised of state restaurant associations in America ― has joined the National Restaurant Association, 40 state restaurant associations and Heartland Payment Systems® ― one of the nation’s largest payments processors ― in a strategic partnership to bring best-in-class business services to restaurateurs nationwide. This alliance will help restaurant owners lower their costs and increase their profitability with streamlined, cost-effective payments and business solutions ― all from one provider.



The initial alliance between the National Restaurant Association, state restaurant associations and Heartland was unveiled on January 19, 2010. On that date, the associations and Heartland introduced the first-ever unified payments processing platform for the restaurant industry ― the engine behind the partnership’s “Full Course Business SolutionsSM”.



Full Course launched with an exclusively endorsed suite of payments products ― including card processing, payroll, check management and tip reporting and compliance services ― and will grow to encompass other critical business services. This suite of solutions is supported by Heartland’s national sales and servicing organization of 1,800 professionals located in communities across America and its 1,600 service, information technology and administrative employees.



“Being part of this partnership aligns with the mission of the CSRA,” said Pete Meersman, president of the Council of State Restaurant Associations and the Colorado State Restaurant Association. “The CSRA aims to foster goodwill and promote the success of state restaurant associations and their members ― which is exactly what Heartland’s merchant-focused business model and this partnership will help us achieve.”



The partnership empowers restaurateurs to take control of their costs and improve their operations ― revolutionizing their businesses and boosting their profitability.



“Gaining the support of the Council of State Restaurant Associations is a testament to the game-changing nature of this partnership,” said Bob Carr, Heartland’s chairman and chief executive officer. “Another is the traction we’ve gained in just two weeks. We’ve made significant progress in solidifying our partnerships with state restaurant associations and anticipate the participation of even more associations in the alliance in the coming days. With these powerful partners, we’ll make a significant impact on the industry ― and restaurant owners in communities across America.”









To learn more about Full Course Business Solutions, visit GoFullCourse.com.



To learn more about Heartland’s other offerings for the restaurant industry, including gift marketing, POS and back-office solutions, visit HeartlandPaymentSystems.com/Restaurant.



About The Council of State Restaurant Associations



The Council of State Restaurant Associations is comprised of state restaurant trade associations of any State of the United States, the District of Columbia, the Commonwealth of Puerto Rico and any territory of the United States. CSRA's Mission is to foster goodwill and promote the success of state restaurant associations and their members. For more information, visit our website StateRestaurantAssociations.org.



About The National Restaurant Association



Founded in 1919, the National Restaurant Association is the leading business association for the restaurant industry, which is comprised of 945,000 restaurant and foodservice outlets and a work force of 13 million employees. Together with the National Restaurant Association Educational Foundation, the Association works to lead America’s restaurant industry into a new era of prosperity, prominence, and participation, enhancing the quality of life for all we serve. For more information, visit our website at Restaurant.org.

Elavon and Santander Form a Merchant Services Alliance in Mexico

http://www.elavon.com
Alliance to Strengthen Relationship and Fuel Global Growth



ATLANTA & MEXICO CITY--(BUSINESS WIRE)--Elavon, a wholly owned subsidiary of U.S. Bancorp (NYSE: USB) and a leading global payments provider, has extended its relationship with Santander, one of the strongest and best capitalized banks in the world, through the establishment of a joint alliance in Mexico.



The alliance establishes a new global foothold for Elavon in a burgeoning credit card market and capitalizes on an existing relationship with Santander in Spain, the UK and Puerto Rico.



Under the terms of the marketing alliance, acquiring services will be offered to existing and prospective Santander merchants, backed by the powerful combination of the trusted Santander brand and Elavon’s payments industry expertise.



“Santander has always offered acquiring services as a valuable product to our clients,” said Marcos Martínez Gavica, Executive President of Santander-Mexico. “However, we believe that we can better respond to the needs of the payments industry and our customers by transitioning the business to an alliance solely dedicated to acquiring.”



“Expanding our global footprint into Latin America is in line with Elavon’s global growth strategy,” said Stuart C. Harvey, Jr., CEO of Elavon. “Santander is a strong, trusted bank and this alliance will deepen our relationship while delivering value to merchants doing business in Mexico.”



About Elavon: Elavon's Global Acquiring Solutions organization is a part of U.S. Bancorp. Elavon provides end-to-end payment processing services to more than one million merchants in the United States, Europe, Canada and Puerto Rico. Solutions include credit and debit card processing, electronic check services, gift cards, dynamic currency conversion, multi-currency support, and cross-border acquiring. Elavon's services are marketed through multiple alliance partner channels including financial institutions, trade associations and ISOs. Elavon has solutions to meet the needs of merchants in specialized markets including small business, retail, hospitality/T&E, health care, education and the public sector. Visit Elavon online at www.elavon.com.



About U.S. Bancorp: U.S. Bancorp, with $281 billion in assets as of December 31, 2009, is the parent company of U.S. Bank, the 5th largest commercial bank in the United States. U.S. Bank was recognized by Euromoney magazine in July 2009 as the “Best Bank in the United States.” The company operates 3,015 retail banking offices in 25 states and 5,148 ATMs, and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. In addition to its North American business, U.S. Bancorp provides payment services internationally through Elavon. Visit U.S. Bancorp on the web at www.usbank.com.



About Banco Santander (SAN.MC, STD.N): Banco Santander is a retail and commercial bank, based in Spain. At the end of 2008, Santander was the largest bank in the euro zone by market capitalization and third in the world by profit. Founded in 1857, Santander had EUR 1,168 billion in managed funds at the end of 2008. Following the acquisition of Sovereign Bancorp of the U.S. in January 2009, Santander has 90 million customers, more than 14,000 branches – more than any other international bank – and 170,000 employees. It is the largest financial group in Spain and Latin America, with leading positions in the United Kingdom and Portugal and a broad presence in Europe through its Santander Consumer Finance arm. For more information visit www.santander.com.











Botnet Sends Fake SSL Connections to Major Websites

SSL is a protocol used to encrypt communications between computers for things like e-commerce and online banking.




It's getting worse...and there "IS" a way to make it better... 




According to CNN, SSL, which is used to create "secure" sessions, on sites where financial transactions take place, is now being manipulated by the bad guys: 

Pushdo botnet has been instructing its infected zombie computers to send fake SSL (Secure Sockets Layer) connections to major Web sites, a botnet expert said on Monday. The strange traffic targeting the Web sites--including sites for the CIA, FBI, PayPal, Yahoo, and Twitter, according to a list at the Shadow Server Foundation-



Pushdo downloads different Trojans onto infected machines and has been used to send spam as part of the Cutwail spambot, according to Stewart. It is comprised of about 300,000 infected PCs and the operators, believed to be located in Eastern Europe, are leasing out its usage to criminals, he said.
"It's a typical pay-per-install system," used to distribute banking Trojans, password stealers, ad clickers, and search hijackers, Stewart said.


Time to stop dropping the ball...and replicate the brick and mortar methodology for online banking and eCommerce.  Swipe your bank issued card (which encrypts the card holder data, including the Track 2 data) and enter your bank issued PIN. 





Lets Stop Dropping The Ball...Shall We? 








Discover Introduces Interactive Tool That Helps Applicants Build Their Own Card

CardBuilder Gives Users More Control in Choosing Card Terms, Rewards Program and Design


RIVERWOODS, Ill.--(BUSINESS WIRE)--Discover Financial Services today announced the launch of CardBuilder, an online tool that gives applicants the ability to select certain terms, rewards preference and card design. For the first time, CardBuilder provides prospective cardmembers with the ability to design a card based on how they want to use it.



“Providing customization options continues to be a critical component in helping cardmembers manage their finances,” said Anas Osman, vice president of acquisition at Discover Financial Services. “We understand that people use credit in different ways and are seeking flexible options that allow them to choose features that are most relevant to them.”



Prospective Discover.com cardmembers can get started by selecting which option best describes their credit standing, as well as how they plan to manage their balance. This information helps identify the best offer available for the particular applicant. Next, users may select an option from each of the three CardBuilder customization offerings.



Applicants can choose the best deal for them. They’re guided by options to select what’s most important to them (See More Terms button) or have the flexibility to customize their introductory purchase APR, Purchase APR and balance transfer APR (Create Your Own Terms button), truly giving the user control.



If “See More Terms” is selected, users are asked to choose which of the following options is most important to them: low intro APR, long intro APR duration, low purchase APR, low balance transfer APR or long balance transfer APR duration. An interactive chart will display the best offers available with that selection.



If “Create Your Own Terms” is selected, users can manipulate levers associated with each terms category displayed. The rates for each category will adjust accordingly. For example, if the purchase APR lever is increased, the remaining levers may automatically change in order to communicate a trade-off.



CardBuilder also enables users to choose which type of rewards program they prefer whether it’s cash rewards (Cashback Bonus), airline miles or getting interest back for paying on time (Pay-On-Time Bonus). CardBuilder lets applicants get the most from their card depending on what features or benefits are most important to them.



Applicants can pick a specific plastic design by choosing from 28 of the most popular card designs, including those with art, botanical, monogram, pets, sports, wildlife and patriotic themes.



Once the applicant has selected his or her rewards preference, tailored the design, customized the terms, and has been approved for a Discover card, he or she can enjoy the same built-in features and benefits that come standard with all Discover cards, such as:

  • Helpful financial tools: Discover Cardmembers can access free easy-to-understand tools such as the Paydown and Purchase Planners, and the Spend Analyzer. The tools are designed to help cardmembers better manage their credit and empower them to make smart financial decisions.

  • Award-winning customer service: Discover card products are supported by a knowledgeable and empowered team of customer service representatives, who are typically reachable within 60 seconds, 24/7, and who are committed to solving cardmembers’ issues online or over the phone.

  • Advanced fraud protection: Discover card also provides advanced and convenient fraud protection, with a $0 Fraud Liability guarantee. Cardmembers are never responsible for unauthorized charges – online, offline, anytime, anywhere.









To view, interact and apply for a Discover card with CardBuilder, go to www.cardbuilder.com.

To learn more about Discover card products, please visit www.discover.com.



Almost 50% of Computers Are Infected with Malware - Report

ZDNet is reporting that, according to a recent report, almost half of 22 million computers scanned in a sampling were infected with malware. 



Add to the equation that, this morning, Trusteer, released their findings of a recent study which claimed that 73% of online banking customers reuse their banking credentials to sign into other sites, such as Facebook, Twitter, etc. (See an excerpt from my post on that story below) It seems fairly obvious that hackers have tremendously fertile fields to harvest.  Solution?  We need to stop typing and start swiping.



The fact that banks tell us to "TYPE" our online banking usernames and passwords into boxes in the first place leaves questions about their intelligence.  Because intelligence I've gathered says that banking malware programs, phishing, keystroke logging and myriad other threats all point to the fact that  "Typing is the cause of the problem."  



Thus...if 73% of online banking customers are "stupid" maybe it's because banks are not the brightest teachers.    After all...every online bank touts the security of its online platform... just prior to asking you to "type" your username and password into a box on a website protected by httbs:// security.    So I don't blame the consumers, I blame the banks.  Remember, just a week ago, 80% of consumers were smart...according to a recent RBS study...


Here's an excerpt from the ZDNet story...



The recently released APWG Phishing Activity Trends Report for Q3 of 2009, details record highs in multiple phishing vectors, but also offers an interesting observation on desktop crimeware infections.



According to the report, the overall number of infected computers (page 10) used in the sample decreased compared to previous quarters, however, 48.35% of the 22,754,847 scanned computers remain infected with malware.



More details:



"Though the scanning system checks for many different kinds of potentially unwanted software, for this report, Panda Labs has segmented out ‘Downloaders’ and ‘Banking Trojans/Password Stealers’ as they are most often associated with financial crimes such as automated phishing schemes.










Trusteer Says 73% of Online Banking Customers Stupid

According to Trusteer, the vast majority of online banking customers are just plain stupid.   What other explanation can there be for the fact that almost 75% of online banking customers reuse their online banking password to gain access to non-financial institution websites like Facebook or Twitter?   I guess I could give them the benefit of the doubt...they might just be "unaware."



Well, at least now we have identified HALF the problem, let's address the "OTHER" more significant half.  The banks...



The fact that banks tell us to "TYPE" our online banking usernames and passwords into boxes in the first place leaves questions about their intelligence.  Because intelligence I've gathered says that banking malware programs, phishing, keystroke logging and myriad other threats all point to the fact that  "Typing is the cause of the problem."  



Thus...if 73% of online banking customers are "stupid" maybe it's because banks are not the brightest teachers.    After all...every online bank touts the security of its online platform... just prior to asking you to "type" your username and password into a box on a website protected by httbs:// security.    So I don't blame the consumers, I blame the banks.  Remember, just a week ago, 80% of consumers were smart...according to a recent RBS study,


80% Want Better Online Banking Security than a "Username and Password"

Read more: http://pindebit.blogspot.com/2010/01/80-want-better-online-banking-security.html#ixzz0eO63X8Fn

Don't Type...Swipe...it's Smarter! 



Trusteer Finds that Two Thirds of Internet Users Reuse their Online Banking Credentials on Other Websites

73 Percent Share Online Banking Password with Non-Financial Applications 

47 Percent Use Both their Online Banking User ID and Password




The report's key findings include:


  • 73% of users share the passwords which they use for online banking, with at least one nonfinancial website

  • 47% of users share both their user ID and password with at least one nonfinancial website

  • When a bank allows users to choose their own user ID, 65% of users share this ID with nonfinancial websites

  • When a bank chooses the user ID for its customers, 42% use the bank issued user ID with at least one other website.

Here's the official press release:



Image representing Trusteer as depicted in Cru...


NEW YORK--(BUSINESS WIRE)--Trusteer, the customer protection company for online businesses, reported today that the vast majority of online banking customers reuse their login credentials to access non-financial and much less secure websites. Trusteer found that 73 percent of bank customers use their online account password to access other websites, and that 47 percent use both their online banking user ID and password to login elsewhere on the Internet. These findings are based on a sample of more than 4 million users of the Rapport browser security service, many of whom are customers of leading North American and European banks.

“Our findings were very surprising, and reveal that consumers are not aware, (a nice way of saying they are just plain stupid) or are choosing to ignore, the security implications of reusing their banking credentials on multiple websites.”


This widespread reuse of online banking credentials is being exploited by criminals who have devised various methods to harvest login credentials from less secure sources, such as webmail and social network websites. Once acquired, these usernames and passwords are tested on financial services sites to commit fraud.

Trusteer based its research on data collected over a 12 month period from millions of Rapport users in North America and Europe. Rapport protects online banking credentials, recognizes when users attempt to submit them to other websites, and warns them not to do so. The report’s key findings include:

  • 73% of users share the passwords which they use for online banking, with at least one nonfinancial website

  • 47% of users share both their user ID and password with at least one nonfinancial website

  • When a bank allows users to choose their own user ID, 65% of users share this ID with nonfinancial websites

  • When a bank chooses the user ID for its customers, 42% use the bank issued user ID with at least one other website

The full report is available at http://www.trusteer.com/sites/default/files/cross-logins-advisory.pdf



“Using stolen credentials remains the easiest way for criminals to bypass the security measures implemented by banks to protect their online applications, so we wanted to see how often users repurpose their financial service usernames and passwords,” said Amit Klein, CTO of Trusteer and head of the company’s research organization. “Our findings were very surprising, and reveal that consumers are not aware, or are choosing to ignore, the security implications of reusing their banking credentials on multiple websites.”



Recommendations:  First Mine:  Stop being stupid...Get Smart... call your customers, and tell them to you are moving to a more secure platform which will require users to access their online banking activities  by swiping their card and entering their PIN,  just as they do at the ATM.   



For consumers: 


  • Maintain at least three sets of credentials: the first set to be used only with financial websites; the second set to be used with nonfinancial sensitive websites that hold information about your identity; the third set to be used with non-sensitive websites that do not maintain confidential information about the user. Memorizing three sets of credentials is not difficult, yet significantly improves a user’s level of security. (got all that?)

For financial institutions:

  • Identify customers who use their bank login information on nonfinancial websites and:  (What????  I ask you...how the hell would they be able to do that other than hiring a hacker, or at least a  keystroke logger?) 





    • Educate them to avoid this risk

    • Set your risk engine to higher sensitivity for these customers


About Rapport

Rapport from Trusteer is a lightweight browser plug-in plus security service that prevents criminals from tampering with a user’s browser and protects against man-in-the-browser, man-in-the-middle, and phishing attacks. When users browse to sensitive websites such as internet banking, Webmail, or online payment pages, the Rapport plug-in immediately locks down the browser and prevents any unauthorized access to web pages and confidential information that flow through the browser. Trusteer also offers in-the-cloud reporting services. When unauthorized access attempts are detected by Rapport, these are analyzed by fraud experts who provide actionable intelligence to financial institutions.



About Trusteer


Trusteer enables online businesses to secure communications with their customers over the Internet and protect personally identifiable information (PII) from a user's keyboard into the company's Web site. Trusteer's flagship product, Rapport, allows online banks, brokerages, healthcare providers, and retailers to protect their customers from identity theft and financial fraud. Unlike conventional approaches to Web security, Rapport protects users' PII even if their computer is infected with malware including Trojans and keyloggers, or is victimized by pharming or phishing attacks. Trusteer is a privately held corporation led by former executives from Cyota/RSA Security, Imperva, and NetScreen/Juniper. For more information visit www.trusteer.com.







Class Action Lawsuit Against Fifth Third Alleging Improper Overdraft Charges

Fifth Third Bank
Class Action Lawsuit Filed Against Fifth Third Bank, Alleging Bank Improperly Charges Overdraft Fees, Violating Federal Law, State Law, and Its Contract With Customers



WASHINGTON, Feb. 1 /PRNewswire/ -- A class action lawsuit filed today would require Fifth Third Bank to refund hundreds of millions of dollars in unlawful overdraft charges -- which were often charged even when the customers had enough funds in their accounts to pay for purchases.



"It is one thing to charge an overdraft fee when someone has actually overdrawn their account. It is entirely another to charge an overdraft fee when the customer's account has sufficient funds. Even worse, in some cases Fifth Third charges overdraft fees and additional fees for every day an account is overdrawn -- even when an account is overdrawn solely because of bank fees charged by Fifth Third. The bank is essentially charging overdraft fees on overdraft fees," said Hassan Zavareei, a partner at the Washington, D.C.-based law firm Tycko & Zavareei LLP, which represents the plaintiff.



"This is outrageous bank conduct, made worse by the fact that most of the bank's victims are struggling to make ends meet," said Zavareei.



The lawsuit was filed in federal court on behalf of Marlene Willard, of Hephzibah, Georgia, and other bank customers who were unfairly and illegally charged overdraft fees by Fifth Third Bancorp for charges they made on their ATM/debit cards.



The class action lawsuit alleges that these fees violate federal and state law, as well as the contractual relationship the bank has with its customers. The lawsuit seeks certification of a class action on behalf of Fifth Third Bank customers who were improperly charged overdraft fees or who received insufficient disclosures about such overdraft fees.



The complaint alleges that Fifth Third Bank manipulates debit transaction posting to cause overdraft fees even when there are sufficient funds to pay for a certain purchase. Further, Fifth Third Bank fails to properly disclose fees that will be charged at the point of sale, and uses deceptive disclosures in its contract with customers to hide its true overdraft policies.



"We are continuing to investigate Fifth Third and other banks around the country. Customers must be compensated for bank practices that caused hundreds of millions of dollars in improperly charged fees," Zavareei said.



The complaint also alleges that Fifth Third Bank has not allowed its customers to opt out of "overdraft protection," as recommended by Federal regulators.



Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. The Company has over $100 billion in assets and operates 16 affiliates with 1,306 full-service Banking Centers in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Pennsylvania, Missouri, Georgia and North Carolina.



The lawsuit is captioned Willard v. Fifth Third Financial Group, Inc. and has been filed in the Northern District of Georgia.

Copies of the complaint may be obtained from Hassan Zavareei at Tycko & Zavareei LLP.



SOURCE Tycko & Zavareei LLP RELATED LINKS http://www.tzlegal.com

























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