Tuesday, March 29, 2011

South Korea Q-Store Previews NFC Future

South Korea's Q-Store Previews Our Rich-Media Future of NFC Shopping

BY KIT EATONToday - Fast Company

nfc-qrNear-field communications tech for shopping? Check. QR codes for smartphone interactivity? Check. Blend of in-store and online purchasing? Check. A South Korean store is basically previewing how we'll all shop inside five years.
The effort is from Korean cell phone operator SK Telecom, and the first Q-Store in Seoul is just one of an entire chain that'll be constructed in the near future. As befits a high-tech sales outfit in a nation where much of the world's high tech is made, the Q-Stores leverage smartphone integration to take the shopping experience into the 21st Century.
Each of the 200 or so product lines has a QR code on its shelf price tag, and inside each tag is a hidden NFC data loop. Shoppers browsing the shelves can scan the code with a smartphone or wave their phone over the NFC tag (if they own a Nexus S or one of the handful of other phones that have NFC built in) and the phone will display extra information about the product automatically. If they chose the item, they can buy it conventionally in-store, or choose to buy it online for a saving of 10% to 40%, and even arrange delivery directly inside the phone app.
Essentially the Korean phone network is demonstrating some of the big benefits that NFC and smartphone-enabled smart shopping are expected to bring to us all inside a few years. What the Q-Store seems to lack is rich data feedback to the consumer in the form of uploaded apps or price-incentivised advertising, instead seeming to be a kind of hyper-local Augmented Reality system that delivers extra product information. We can, however, imagine that SK Telecom is using the data collected from its customers to inform its stock decisions--for example, if people often browse a particular product in-store but only ever buy it online, then there's less need to keep a stockpile of that item in the store room.
To read more news like this, follow Fast Company on Twitter: Click here.

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SHAZAM® Enables PaySecure Internet PIN Debit across Eligible Issuer Base

PaySecure reduces fraud and charge-backs, bringing banks and credit unions significant value

ATLANTA--(BUSINESS WIRE)--Acculynk and SHAZAM announced today that PaySecure®, Acculynk’s software-only payment method for Internet PIN debit, has been enabled for all of SHAZAM’s eligible banks and credit unions. Acculynk, a leading technology provider in the online payments space and SHAZAM, a premier innovator of electronic funds transfer (EFT) services for 35 years, partnered in the summer of 2009 to pilot PaySecure.

“We were one of the first EFT networks to announce a partnership with Acculynk for PaySecure back in July 2009, just five months after the product was introduced,” said Terry DooleySHAZAM Senior Vice President of Information Technology & Chief Information Officer (CIO). “We certainly understood the utility PaySecure would bring to our financial institutions when we first partnered with Acculynk, but with the potential regulation on debit card interchange, PaySecure becomes even more relevant to our issuer base because of its fraud and charge-back reduction capabilities, which are inherently lower when using a PIN.
”Based on pilot results, which included steady consumer adoption and positive issuer feedback, SHAZAM began enabling more debit/ATM cards for PaySecure in Q4 of 2010, and this month will add nearly all eligible debit/ATM cards in their issuing portfolio.
PaySecure is implemented into the online merchant checkout and utilizes a patented, graphical PIN-pad for PIN entry. Consumers use their existing debit card and financial institution-issued PIN to pay with PaySecure right on the merchant website. There are no passwords, enrollment or redirection required, making it a simple payment service for consumers to use for their everyday Internet shopping.
“One out of every two consumers presented the option to enter their PIN with PaySecure do so rather than running their transaction as a signature debit, which is the alternative,” said Ulrike Guigui, EVP of Acculynk. “These overwhelming adoption statistics are testament to the ease of use and security of the solution, and great news for issuers seeking a payment method that brings consistent usage and increased transactions from security-conscious consumers, and a method to gain higher debit card margins in the post-Durbin era.”
“PaySecure helps us differentiate our services from other networks, and right now, issuers are shopping around for new ways to transact online,” said Terry Dooley. 

“Once issuers are certified, SHAZAM can enable PaySecure on their behalf and manage the bank identification number (BIN) enrollment on behalf of the financial institution on the debit cards they want to participate. There are no technology changes or new back-end connections.”
Acculynk is expanding PaySecure into new channels and applications in 2011. The company announced introduction of its mobile solution in January and is bringing PaySecure to person to person (P2P) authentication this year, in addition to several other product applications which Acculynk has not yet disclosed.
About Acculynk
Acculynk offers a suite of software-only services that secure online transactions. PaySecure®, Acculynk’s flagship payment product, capitalizes on the security and convenience of PIN debit to lower online fraud and associated costs for Ecommerce merchants, bank issuers and EFT networks, while providing new sources of incremental sales. PaySecure is available through the Internet, mobile and kiosk channels and Acculynk has distribution partnerships with 9 EFT networks and major merchant acquirers. Over 3,000 U.S. Ecommerce merchants have been enabled for PaySecure, and Acculynk is extending the benefits of PaySecure to international markets and additional product applications in 2011. For more information, visit http://www.acculynk.com.
The SHAZAM network was founded in 1976 and is one of the last remaining member-owned and controlled EFT networks and processors in the industry. SHAZAM provides nationwide EFT services, switching, and ATM and POS acceptance to nearly 1,500 community financial institutions and their cardholders. SHAZAM offers ATM processing, Visa® debit and Debit MasterCard® national debit products, card authorization services, merchant processing, automated clearing house (ACH) services, core banking services, and information security solutions. SHAZAM is endorsed by 17 community financial institution trade organizations and bankers' banks. For more information, visit http://www.shazam.net/.


Danielle Duclos, 678-894-7013
Connie Taylor, 800-537-5427 ext. 4160

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"Dodo" becomes "Don'tdon't" as Wells Fargo and SunTrust Drop Debit Rewards and Contribute to Extinction

Banks are Dropping Debit Rewards Programs like Flies...is it a Dodo headed move or will it Fly?

Colloquy say's Don't Do It...

US Banker - 1 hour ago
By Sara Lepro Following the lead of other big banks, SunTrust Banks Inc. is ending rewards for its primary debit card. The Atlanta-based bank began notifying clients a 
From Colloquy:  According to UPI and per a story in COLLOQUY’s Market Alert last week, banks continue dropping debit card rewards in response to the Federal Reserve’s cap on interchange fees.  The article continues, "Wells Fargo has announced on March 25th that they will no longer offer new customers its debit rewards program, joining JPMorgan Chase who, as noted in COLLOQUY’s breaking news, notified customers they will end their debit-card rewards program.  Citi said it is "in the process of evaluating potential changes to our rewards programs."

For COLLOQUY’s perspective, see Stephanie Cohen’s recent blog post, "Reward More Engagements with Customers, not Fewer"
Click Here to learn more.

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2011 AFP Payments Fraud and Control Survey - B2B Fraud Raging in U.S.

For seventh year, survey shows B2B payments fraud high, with checks remaining an easy target
BETHESDA, Md.March 28, 2011 /PRNewswire/ -- Corporate payments fraud is as high as it ever was, according to a new survey by the Association for Financial Professionals (AFP), with corporate account takeover emerging as a serious threat. While checks continue to be the most widely used vehicle for payments fraud, corporations also must be vigilant to protect payments access points linked to web-based transactions and corporate cards, a new survey shows.
The 2011 AFP Payments Fraud and Control Survey, underwritten by J.P. Morgan, found that despite a dramatic shift toward electronic B2B payments and the adoption of preventative techniques, payments fraud has remained persistent over the last five years.
"Checks have been a known vulnerability for many years. The fact that 93 percent of companies that had experienced payments fraud in 2010 are telling us that checks were a target provides  companies with a consistent incentive to shift more transactions to electronic payments," said David Bellinger, AFP's director of payments.  "But checks are not the only area of vulnerability. We are now seeing companies fall prey to corporate account takeover, where someone gains access to a company's credentials and uses those to empty business accounts."  
In corporate account takeover, fraudsters use technology or social interactions -- ranging from phone conversations to social networking messages -- to induce an employee to divulge an organization's account information, allowing the fraudster to move money and cause large losses in a very short time.  The AFP survey found that 14% of respondents experienced this type of fraud last year, with 2% actually suffering a loss. It has become prevalent enough to warrant warnings to businesses from the FBI and other federal agencies.
Across all types of payments fraud, criminals outside the corporation make most of the attempts, accounting for 87 percent of the fraud reported in the AFP survey. Roughly 10 percent of respondents suffered payments fraud originating from an organized crime ring or third-party/outsourcer.  Only nine percent of organizations were subject to internal payments fraud.
"J.P. Morgan is firmly committed to helping clients understand the pervasive threat from payment fraud, and the importance of providing objective information about the latest trends and approaches to combating it," said Stephen Markwell, Executive Director, J.P. Morgan Treasury Services.  "The steady migration from paper to electronic payment forms, and the wider adoption of ACH debits, corporate payment cards and Web-based and mobile access channels present new vulnerabilities to potential fraud.  J.P. Morgan supports efforts that provide a greater understanding of these threats and the effectiveness of new technologies and practices  aimed at preventing fraud."
Since 2005, AFP has examined the nature and frequency of fraudulent attacks on business-to-business payments, the environment that allows those attacks to occur, and the methods that organizations use to control them.  
  • Seventy-one percent of organizations experienced attempted or actual payments fraud in 2010.
    • Large organizations were significantly more likely to have experienced payments fraud than were smaller ones. Eighty-two percent of organizations with annual revenues over $1 billion were victims of payments fraud, compared with 58 percent of organizations with annual revenues under $1 billion.
  • Twenty-nine percent of survey respondents report more incidents of fraud in 2010 than in 2009.
  • Checks were the payment format most frequently targeted by fraudsters, with 93 percent of affected organizations reporting that their checks were targeted.  Other payments formats targeted were:
    • ACH debit (25 percent)
    • Consumer credit/debit cards (23 percent)
    • Corporate/commercial cards (15 percent)
    • ACH credits (four percent)
    • Wire transfers (four percent)
  • Seventy-one percent of organizations that were victims of actual and/or attempted payments fraud experienced no financial loss from it.
  • For those that did suffer a financial loss resulting from payments fraud, the typical amount was $18,400.

In January 2011, AFP surveyed corporate members and prospects that held the job title of cash manager, analyst or director and received 399 responses. The vast majority of respondents were from mid-market and large U.S. organizations with revenues of at least $250 million, spanning a wide range of industries.
Read the full survey: www.afponline.org/paymentsfraud
ABOUT AFP® (www.afponline.org/about )
The Association for Financial Professionals (AFP) serves a network of more than 16,000 treasury and finance professionals. Headquartered outside Washington, DC, AFP provides members with news, economic research and data on the evolving world of treasury and finance, as well as treasury certification programs, networking events, financial analytical tools, training, and public policy representation to legislators and regulators. AFP is the daily resource for treasury and finance professionals.
AFP's global reach extends to over 150,000 treasury and financial professionals worldwide, including AFP of CanadaLondon-based gtnews, an on-line resource for the treasury and finance community; and bobsguide, a financial IT solutions network.
Available Topic Expert(s): For information on the listed expert(s), click appropriate link.
David Bellinger
SOURCE Association for Financial Professionals

Discover to Offer Unique Rewards and Experiences Through New Social Media Contests

RIVERWOODS, Ill.--(BUSINESS WIRE)--Discover Financial Services (NYSE: DFS) announced today its three exciting social media contests that give cardmembers and Discover fans opportunities to win prizes, a once-in-a-lifetime Stanley Cup experience for their child, and the chance to give back to a local school.  The contests are designed to provide fans with exciting and relevant ways to join the conversation and partake in engaging experiences.
“Discover has a history of connecting cardmembers to rewarding experiences using social media, and we're pleased to announce three new ways for customers to further engage with us," said Mike Boush, vice president of E-Business at Discover.

At Facebook.com/Discover, users can participate in the following contests:
  • Discover School Giveaway: Building on its charitable mission of supporting public education, Discover is awarding $25,000 to a U.S. public school (K-12) through its “School Giveaway” contest, which is an extension of its year-long “Everyday Giveaway” sweepstakes program. From now until April 30th, Discover Facebook fans may nominate their favorite public school and cast one vote each day throughout the contest period. The school earning the most votes will receive $25,000 to use on books, supplies, technology and other much-needed items. Discover is planning to announce the winner in May.
  • Win a Day with the Stanley Cup: Through its partnership with the National Hockey League, Discover is creating unique and exciting opportunities to engage with hockey fans nationwide. On March 24, Discover launched a contest where a U.S. youth hockey player will get to spend a day with the Stanley Cup. To be considered for this once-in-a-lifetime opportunity, parents of players ages 13 and younger can submit a short video of their child’s most memorable moment on the ice. From April 15-21, Facebook users will vote for their favorite video. The top three videos earning the most votes will be judged by a panel and one winner will receive a special certificate from the NHL commissioner to spend a day with Lord Stanley’s Cup. The winner will be announced in May.
  • Feel the Earn: Beginning April 1st, Discover is encouraging cardmembers to share how they have maximized their Cashback Bonus® rewards through the “Feel the Earn” promotion. Each week through June 30, four cardmember submissions will be chosen at random to receive a $25 Discover gift card. Weekly winners’ contest submissions will then be judged by a panel and one grand prize winner will be chosen to receive $5,000 in Cashback Bonus. The grand prize winner will be determined based on several criteria, including appropriateness to theme, originality and creativity, and perceived practical use of their entry. Discover is planning to announce the winner in July.
To read official rules and participate in the contests, visit Discover’s Facebook page at Facebook.com/Discover.
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company operates the Discover card, America's cash rewards pioneer, and offers personal and student loans, online savings accounts, certificates of deposit and money market accounts through its Discover Bank subsidiary. Its payment businesses consist of Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club International, a global payments network with acceptance in more than 185 countries and territories. For more information, visit www.discoverfinancial.com.

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ACS Introduces ACR122L VisualVantage NFC Reader

March 29, 2011
ACS Introduces ACR122L VisualVantage NFC Reader
The new ACR122L VisualVantage is ACS's first NFC Reader to feature an LCD for rich user interaction in many contactless applications. Developed based on ISO 14443 RFID and ISO 18092, ACR122L supports a variety of contactless and NFC cards and tags.
Advanced Card Systems Ltd. (ACS, wholly owned subsidiary of Advanced Card Systems Holdings Ltd., SEHK: 8210), Asia Pacific's top supplier and one of the world's top 3 suppliers of PC-linked smart card readers, introduces its first LCD-equipped Near Field Communication (NFC) reader—the ACR122L VisualVantage—which features a wide range of interfacing options for many contactless applications..
NFC has increasingly gained popularity in recent years, with e-Passport and mass transit projects being its key drivers (Frost & Sullivan, August 2010). Barriers caused by the lack of infrastructure supporting NFC have nearly been removed, in view of the release of innovative products like NFC phones from leading handset developers, looming to unlock the boundless possibilities NFC applications offer. With a number of NFC commercial roll outs now in full swing, including the major European NFC city pilot in France that began in May last year, the promising outlook on the wide acceptance for NFC technology across the globe is finally coming to fruition. In response to this optimistic development, ACS has developed and launched commercially its new ACR122L with LCD specifically for e-payment applications with NFC phones or other NFC devices.
"As one of the pioneer developers of NFC readers, we are proud to add ACR122L to our revolutionary line of contactless readers, ACR122 Series, which includes the world's first CCID-compliant NFC and FeliCa card reader," said Mr. Gilbert Leung, ACS's Sales Director. "ACR122L provides users with the advantage of having an LCD, a visual guide on the contactless operations they are performing. Ultimately, it presents a more interactive experience for the users and caters for a wide variety of applications where such an advantage is important."
ACR122L was developed based on the ISO 14443 RFID and ISO 18092 NFC technologies, and supports ISO 14443 Type A and B cards, Mifare cards, FeliCa card, other NFC tags, and all three NFC modes, namely, reader/writer, card emulation and peer-to-peer. With its anti-collision and selective card polling features, it ensures smooth contactless operations by only communicating with the correct card, even when multiple cards are presented. It also has 3 ISO 7816-compliant SAM slots for enhanced security. Furthermore, besides its 2-line graphic LCD, the ACR122L also features multiple language support, 4 LEDs and buzzer capabilities, fully demonstrating its versatile interfacing options.
ACR122L comes with a Software Development Kit (SDK) to facilitate development of various applications, including applications for payments, customer loyalty programs, public transportation, and network and physical access control. The SDK includes sample codes, tools and utilities, and application demos simulating payment and loyalty applications.
Learn more about ACR122L at http://acs.com.hk/index.php?pid=product&prod_sections=0& ....
About ACS 
Advanced Card Systems Ltd. (ACS, wholly owned subsidiary of Advanced Card Systems Holdings Ltd., SEHK: 8210), founded in 1995, is Asia Pacific's top supplier and one of the world's top 3 suppliers of PC-linked smart card readers, as well as the winner of the Product Quality Leadership Award for Smart Card Readers from Frost & Sullivan. One of the companies on Forbes Asia's 2010 "Best Under a Billion" list, a prestigious list of 200 top-performing companies with sales between US$5M and US$1B, selected from 12,930 publicly listed firms in Asia Pacific, ACS develops a wide range of high quality smart card reading/writing devices, smart cards and related products and distributes them to over 100 countries worldwide. For more information, visit http://www.acs.com.hk/.
SOURCE: Advanced Card Systems Ltd.

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Visa Inc. To Announce Fiscal Second Quarter 2011 Financial Results on May 5, 2011

SAN FRANCISCOMarch 29, 2011 /PRNewswire/ -- Visa Inc. (NYSE: V) will report its fiscal second quarter 2011 financial results onThursday, May 5, 2011. The results will be included in a press release, with accompanying financial information that will be released after market close and posted on the Visa Investor Relations website.
Visa's executive management team will then host a live audio webcast beginning at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss the financial results and business highlights.
All interested parties are invited to listen to the live webcast at http://investor.visa.com. A replay of the webcast will be available on Visa's Investor Relations website for 30 days.
Concurrent with this press release, Visa will impose its customary "quiet period", during which time company executives will not be interacting with the investment community. This quiet period will extend until fiscal second quarter 2011 earnings are released onMay 5, 2011.
About Visa: 
Visa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the world's most advanced processing networks--VisaNet--that is capable of handling more than 20,000 transactions a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank, and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: Pay now with debit, ahead of time with prepaid or later with credit products. For more information, please visit www.corporate.visa.com.

Gemalto Mobile NFC Payment Application First in the World Certified by MasterCard

Newly certified payment application set to trigger commercial rollouts of mobile contactless ecosystem
CARTES in Asia 2011
HONG KONG--(BUSINESS WIRE)--Gemalto, the world leader in digital security, announces the world’s first UICC-embedded software application compliant with Mobile MasterCard® PayPass™ M/Chip 4, the brand new MasterCard payment specification designed for mobile near field communications (NFC). The software application and the UICC have both successfully achieved the compliance assessment and security testing certification in accordance with MasterCard’s highest chip security requirements.
“Leveraging the interoperability of MasterCard PayPass, Gemalto’s effort will enable cross-border mobile NFC payment, adding ease to the fast-paced lifestyles of more and more consumers across the world.”
This major breakthrough paves the way for mass commercial rollouts of NFC payment across the world. In the UK, Gemalto is already partnering with a global, first-tier financial institution and a world leading mobile operator, to implement the new MasterCard certified mobile payment application and carry out the solution’s first mass commercial roll out.
Gemalto's software application embeds the Trusted Service Management interface for PayPass. This feature enables mobile account issuance and over-the-air management. Its user-friendly handset interface makes mobile NFC payment extremely convenient, for example enabling consumers to easily manage the new payment means and check transaction history. It also allows consumers to define their mobile Personal Identification Number (PIN), a code of their choice, through their phone. The mobile PIN is a new cardholder verification method used notably to secure operations such as account top-up from the mobile phone.
The Gemalto mobile NFC payment application can be configured so as to cover all card portfolios including debit, credit and prepaid. In the latter case, the software application enables consumers to top-up their prepaid accounts directly from their mobile phone – the utmost convenience for prepaid customers.
“We are pleased to collaborate with Gemalto to broadly expand the use of mobile payment services,” commented James Anderson, vice president, Mobile, MasterCard Worldwide. “Leveraging the interoperability of MasterCard PayPass, Gemalto’s effort will enable cross-border mobile NFC payment, adding ease to the fast-paced lifestyles of more and more consumers across the world.”
This new certification from MasterCard makes Gemalto the first on the market for this mobile product and will enable banks and wireless operators to offer a secure, innovative and convenient payment means to their entire customer base,” added Jean-Claude Deturche, senior vice-president of mobile financial solutions at Gemalto. “Gemalto is committed to supporting its customers in their large scale deployments of mobile NFC payment, with a complete mobile contactless offer.”
About Gemalto
Gemalto (Euronext NL 0000400653 GTO) is the world leader in digital security with revenues of €1.9 billion in 2010, and over 10 thousand employees operating out of 87 offices and 13 Research & Development centers in 45 countries.
Gemalto is at the heart of our evolving digital society. The freedom to communicate, travel, shop, bank, entertain, and work—anytime, anywhere—has become an integral part of what people want and expect, in ways that are convenient, enjoyable and secure.
Gemalto delivers on the growing demands of billions of people worldwide for mobile connectivity, identity and data protection, credit card safety, health and transportation services, eGovernment services and national security. We do this by providing solutions that leverage Gemalto’s secure software and services for governments, wireless operators, banks and enterprises to help them achieve their goals, enabled by a wide range of secure personal devices. Gemalto is the world leader for electronic passports and identify cards, smart banking cards, two-factor authentication smart tokens for online protection, Subscriber Identification Modules (SIM) and Universal Integrated Circuit Cards (UICC) in mobile phones. Moreover Gemalto delivers on emerging applications related to the ‘Internet of things’ by supplying wireless modules and Machine Identification Modules (MIM) for Machine-to-Machine communication.
As the use of Gemalto’s software and secure devices increases with the number of people interacting in the digital and wireless world, the Company is poised to thrive over the coming years.
For more information visit www.gemalto.com, blog.gemalto.com, or follow @gemalto on Twitter.


Gemalto Media Contacts:
Europe, Middle East & Africa
Peggy Edoire, +33 4 42 36 45 40
Asia Pacific
Yvonne Lim, +65 6317 3730
North America
Jessi Marshall, +1-512-257-3902
Latin America
Ramzi Abdine, +55 11 5105 7659

NSA Testing Safe Mobile Architecture for Smartphones and Tablets

NSA testing smartphones, tablets on safe mobile architecture
(from nextgov on 3/28/2011)
The seal of the U.S. National Security Agency....Image via Wikipedia
The National Security Agency is testing a new mobile infrastructure, largely composed of commercial tools, to secure Top Secret information on portable devices, such as smartphones and tablet computers, a high-level NSA official said. The intelligence community, like the rest of the federal workforce, increasingly wants to access information on the go, which is creating a challenge for Debora Plunkett, director of the NSA Information Assurance Directorate. Mobility is just one of about 10 cha...   read more»

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