Friday, August 19, 2011

Citi, B of A Card Customers Hit by Merchant Data Breach

CitigroupImage via Wikipedia

From the Editors of American Banker


Citigroup Inc. and Bank of America Corp. closed some of their card customers' accounts this week, citing data breaches at unidentified retailers. It was not immediately clear if both banks' customers were affected

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Dynamics Inc. Announces First-of-Its-Kind US Manufacturing and Secure Personalization Facility for Next-Generation Payment Devices


August 18, 2011 07:00 AM Eastern Daylight Time 

Leading Payments Industry Innovator Prepares for High-Volume Next-Gen Magnetic Stripe Production


PITTSBURGH--(BUSINESS WIRE)--Dynamics Inc., an innovator in next-generation payment cards, today announced it has purchased a state-of-the art facility in the Pittsburgh, PA region to serve as its new world headquarters. Dynamics worked closely with the Regional Industrial Development Corporation of Southwestern Pennsylvania (RIDC) to purchase the facility, which will house Dynamics’ administrative, engineering, manufacturing, secure payment card personalization, and R&D departments.
http://poweredcards.com/index.php
“Dynamics now has a world-class consumer electronics production facility that is a first for the payments industry”
“Dynamics now has a world-class consumer electronics production facility that is a first for the payments industry,” stated Jeff Mullen, Dynamics’ CEO. “We are experiencing very strong demand, especially for our next-generation magnetic stripe products. This facility gives Dynamics the capacity to scale to this demand and produce tens of millions of these next-generation payment cards per month – a capacity that rivals even the largest consumer electronics manufacturers.”
Dynamics is currently in the process of moving its proprietary high-volume production equipment into the approximately 115,000 square foot facility, of which nearly 100,000 square feet is conditioned “clean room” engineering and manufacturing space. The facility is located on approximately 8 acres of property. Dynamics is also securing a portion of the facility so that its next-generation magnetic stripe cards can be personalized under the Visa, MasterCard, and American Express networks on behalf of its card issuers.
“Our mission at RIDC is to assist the growth of technology and manufacturing assets in the region,” stated Don Smith, President, RIDC. “We worked closely with Dynamics to ensure that the volume manufacturing and personalization of these devices, invented here in Pittsburgh, would not only stay within the United States, but here in the Pittsburgh region.”
“RIDC’s assistance allowed us to secure, close, and move into one of the regions highest quality conditioned and 'clean' manufacturing spaces in less than 20 days,” stated Jeff Mullen, Dynamics’ CEO. “I do not know of another region that has an asset such as the RIDC. We are now working with the RIDC on a number of additional initiatives within the region that will provide Dynamics with additional competitive and differentiating assets.”
About Dynamics Inc.
Dynamics Inc. was founded and seeded in 2007 by Jeff Mullen, its President and CEO. Dynamics produces and manufactures intelligent powered cards such as advanced payment cards. Focused on introducing fast-cycle innovation to top card issuers, the company's first commercial application is the world's first fully card-programmable magnetic stripe for use in next-generation payment cards. The company has won many of the world's most prestigious international business plan competitions, including the Rice Business Plan Competition, Carnegie Mellon McGinnis Venture Competition and the University of San Francisco Business Plan Competition. The company won DEMOgod and the $1M People's Choice Award at DEMO Fall 2010 and Best of Show at FinovateFall 2010. In January, the company won Best in Show at the 2011 International CES for Personal Electronics. Dynamics has closed a $5.7M Series A round led by Adams Capital Management and a $35M Series B round led by Bain Capital Ventures. Dynamics is headquartered at 493 Nixon Road, Pittsburgh, Pa. More information on the company, its technology and applications can be found at www.poweredcards.com.
About RIDC
The Regional Industrial Development Corporation of Southwestern Pennsylvania (RIDC) is a private, non-profit organization that focuses on a regional approach to economic development. Established in 1955, the RIDC was formed to foster new employment opportunities and to diversify the regional economy of southwestern Pennsylvania. Through a wide range of real estate development activities, RIDC provides development, finance and leasing of new and redeveloped buildings and stands ready assist the growth of businesses through the Pittsburgh region.

Contacts

for Dynamics Inc.
Allen Bush, 650-283-3575 (Media)
Allen.Bush@edelman.com
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PCI Security Standards Council Exceeds 100 Members in Europe


http://www.pcisecuritystandards.org
August 19, 2011 09:17 AM Eastern Daylight Time 
In advance of annual PCI Community Meeting, Council celebrates more than 100 European companies as key contributors to the ongoing development of the PCI Standards 
WAKEFIELD, Mass. & LONDON--(BUSINESS WIRE)--The PCI Security Standards Council (PCI SSC), a global, open industry standards body providing management of the Payment Card Industry Data Security Standard (PCI DSS), PIN Transaction Security (PTS) requirements and the Payment Application Data Security Standard (PA-DSS), today announced a milestone in ongoing momentum and global participation – more than 100 European companies are now PCI Participating Organizations, promising a strong showing for this year’s PCI European Community Meeting on October 17-19, 2011, in London, England.
“We are excited to bring our geographic and industry perspectives to the Council in serving on the Board this term and working with the PCI community to continue to drive increased protection of cardholder data in Europe and globally.”
The Council is made up of more than 600 global Participating Organizations (POs) worldwide. Continual global involvement not only benefits stakeholder organizations but also the larger payment security community, by ensuring the diverse and unique industry and geographic perspectives of those across the payment chain are represented in the work of the Council. European participation – including merchants, financial institutions and processors from around the continent - has been a key factor in the Council’s analysis and guidance on technologies in the payment environment, such as call center recording technologies and EMV, as well as the development of critical resources like the Prioritized Approach framework.
This year, Participating Organizations also elected a new Board of Advisors, with 7 of the 21 seats being represented by European companies, a testimony to the growing European involvement in the Council and the work and collaboration that is taking place in Europe to drive payment security forward.
”As a member of the Council since 2007, we are pleased to see the growing awareness around payment security in the UK and European regions over the last few years,” said PCI SSC Board of Advisors member Philip Morton, information security compliance manager, British Airways. “We are excited to bring our geographic and industry perspectives to the Council in serving on the Board this term and working with the PCI community to continue to drive increased protection of cardholder data in Europe and globally.”
Twenty-five percent of the growth among European POs has occurred in the last year, since the Council brought on European Director Jeremy King to concentrate PCI efforts in the region. This number has more than tripled since the first year of the Council’s existence.
“Counter to those who suggested that the issue of PCI Standards and global card security were U.S.-centric initiatives, our ongoing growth in participation in Europe illustrates the increase in awareness, focus and feedback we are achieving globally,” said Jeremy King, European director, PCI Security Standards Council. “I am very excited about the growing number of European-based organizations who will join us at this year’s European Community Meeting. As we kick off our feedback period for the PCI Standards, I look forward to engaging this core group of stakeholders in our global standards lifecycle process. Together, these organizations will help influence the Council’s agenda and the direction and evolution of the PCI Standards in the coming years.”
Click here for a special video message from Jeremy King on the upcoming meeting.
At both the European Community Meeting in London, and North American Community Meeting, the 3-day programs will include the latest in breaking forensics, security trends and technology from expert keynote speakers; SSC updates on the global state of PCI and technologies such as: point-to-point encryption, mobile payments, virtualization and tokenization; as well as dedicated sessions providing guidance to those aiding in PCI assessments, including Approved Scanning Vendors (ASV), Qualified Security Assessors (QSA),Internal Security Assessors (ISA) and PCI Forensic Investigators (PFI).
The full agendas for each meeting can be found at the Community Meeting website: https://www.pcisecuritystandards.org/communitymeeting/2011/
The 2011 PCI SSC Community Meetings feature a Vendor Showcase for Participating Organizations, QSAs and ASVs to demonstrate their products and services, as well as a number of sponsorship opportunities.
For more information, or to register to attend, please visit the Community Meetings website: https://www.pcisecuritystandards.org/communitymeeting/2011/
Are you attending? Get a head start on networking at the event and RSVP on LinkedIn to connect with others participating in this year’s meetings:
North America Community Meeting: http://linkd.in/jEw5jP
European Community Meeting: http://linkd.in/raDh0z
Also, make sure to join the Council’s upcoming Webinar: Making PCI Connections: How to Get the Most Out of the PCI Community Meeting Experience
Click to Tweet: PCI announces Community Meetings - I'm going! http://bit.ly/gtibfM
About the PCI Security Standards Council
The PCI Security Standards Council is an open, global forum that is responsible for the development, management, education, and awareness of the PCI Data Security Standard (PCI DSS) and related standards that increase payment data security.
Founded in 2006 by the major payment card brands American Express, Discover Financial Services, JCB International, MasterCard Worldwide and Visa Inc., the Council has more than 600 Participating Organizations representing merchants, banks, processors and vendors worldwide. To learn more about playing a part in securing payment card data globally, please visit: http://pcisecuritystandards.org.
Connect with the PCI Council on LinkedIn: http://www.linkedin.com/company/pcisecurity-standards-council
Join the conversation on Twitter: http://twitter.com/#!/PCISSC
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The Durbin Amendment: Planning for $ix Billion in Change to Banks, Networks, Merchants and Consumers


August 19, 2011 08:14 AM Eastern Daylight Time 

DUBLIN--(BUSINESS WIRE)--Research and Markets has announced the addition of Javelin Strategy & Research's new report "The Durbin Amendment: Planning for $ix Billion in Change to Banks, Networks, Merchants and Consumers" to their offering.

“The Durbin Amendment: Planning for $ix Billion in Change to Banks, Networks, Merchants and Consumers”
On June 29, 2011, the Board of Governors of the Federal Reserve System announced definitive Durbin-based regulations affecting debit interchange rates, network exclusivity, and routing. Fraud provisions were also announced but remain in an interim status with comments due by September 30, 2011. This report explores the initial outcomes, implications, and longer-term expectations of the Durbin Amendment as it moves toward initial implementation in October of this year, detailing the amendment's effects on various stakeholders and making recommendations about how institutions, networks, and others should respond.
Primary Questions
  • What are the final and interim Durbin Amendment requirements?
  • How will the Durbin Amendment affect various stakeholders: networks, issuers, acquirers, merchants, consumers, and regulators?
  • What additional consequences will accrue to affected parties?
  • What environmental changes will be fostered by Durbin Amendment implementation?
  • Is the Durbin Amendment a harbinger of additional regulation of the card and overall payments industry?
Companies Mentioned:
  • BankofAmerica
  • NYCE
  • BankofNewYorkMellon
  • PNC
  • CapitalOne
  • STAR
  • Citigroup
  • SunTrust
  • Discover
  • TDBank
  • JPMorganChase
  • U.S.Bancorp
  • KeyBank
  • Visa
  • MasterCard
  • WellsFargo
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Visa Cardholder Spending Grows Due to the FIFA U-20 World Cup Colombia 2011


August 18, 2011 03:51 PM Eastern Daylight Time 
The Host Country Received Approximately 20% Increase in Visa Cards Spending1 in the Lead Up to and During the Group Phase of the FIFA Tournament
http://www.visa.comMIAMI--(BUSINESS WIRE)--Colombian merchants experienced an increase in business in the lead up to and during the group phase of the FIFA U-20 World Cup Colombia 2011. Visa cardholders’ spending between July 22 and August 6 grew around 20% compared to the same period in 2010, reaching over $674 billion Colombian pesos (USD$ 378 million). Domestic consumption led the increase, with Colombian Visa cardholders spending 21% more in the period, while international cardholder transactions grew 8%.
“As the world’s leading electronic payments brand and sponsor of mega sporting events for over 25 years, Visa has been a driving force in facilitating tourism, offering incomparable benefits to consumers on the go, wherever and whenever they travel”
“Visa spending data clearly shows how the FIFA U-20 World Cup brought immediate economic benefits to Colombia, heating up commerce and increasing tourism,” says Yuri Morales, head of Sponsorships for Visa Latin America and the Caribbean. “As the world’s leading electronic payments brand and sponsor of mega sporting events for over 25 years, Visa has been a driving force in facilitating tourism, offering incomparable benefits to consumers on the go, wherever and whenever they travel,” he concluded.
Visa spending data indicates domestic tourism has been greatly benefited by the tournament. The merchant categories in which Colombians spent more during the period include:
  • Transportation, up 34%;
  • Gas Stations, up 30%;
  • Restaurants, up 28%;
  • Airline Tickets, up 23%.
In terms of international Visa cardholders spending in the period, the main merchant categories benefited were:
  • Hotel Accommodations, up 23%;
  • Beauty & Spa, up 86%
  • Restaurants, up 24%;
  • Clothing, up 12%.
Visa spending data indicates that the United States continues to be the strongest contributor to inbound international tourism to Colombia in terms of transaction volume, being responsible for almost half of the international Visa cardholders spending, reaching close to $21 billion Colombian Pesos (USD$12 million). However, inbound tourism from the United States experienced no significant change during the period that can be attributed to the tournament.
On the other hand, the data suggests that the FIFA U-20 World Cup Colombia 2011 attracted international soccer fans, especially from Brazil, which increased 89% between July 22 and August 6 of this year in comparison with the same period of 2010. According to Visa spending data, the countries which experienced an increase in inbound transactions in Colombia during the period are:
1. Brazil, up 89%
2. Mexico, up 36%
3. Canada, up 34%
4. Spain, up 27%
5. Panama, up 19%
6. France, up 17%
7. Peru, up 6%
Visa Mega Sporting Events Report
Visa has recently released a report that shows the effects of mega-sporting events and the impact they have on tourism spending in the event host countries. The report analyzes Visa cardholder spending patterns, known as VisaVue Travel data, of three recent mega-events: 2010 FIFA World Cup South Africa™, the Vancouver 2010 Olympic Winter Games and the Beijing 2008 Olympics Games. According to the report, events of this scale create significant increases in expenditure and give host counties a chance to shine on the global stage.
For each of the three events analyzed, there was healthy growth in Visa payment card expenditure during the event compared to the year prior:
  • 82% for the 2010 FIFA World Cup South Africa™
  • 93% for the Vancouver 2010 Olympic Winter Games
  • 15% for the Beijing 2008 Olympic Games
FIFA World Cup
Daily Visa payment card expenditures made by all non-South Africans while in South Africa during the period from June 1, 2010 until July 31, 2010 were compared to similar data for the same two month period in 2009. As the FIFA World Cup™ itself lasted from June 11 to July 11, 2010, the data set provided comparative information for 10 days before and 20 days after the Cup. According to this data, the FIFA World Cup™ provided a platform for South Africa to showcase their nation to the world, up-leveling their global status and tourism levels increased throughout the year. While the FIFA World Cup™ played a significant role in the growth experienced in June and July, visitor arrivals were amplified all year. Spending levels by international Visa cardholders traveling to South Africa in December ($220M) and January ($200M) even rivaled the June ($222M) and July ($204M) World Cup months.
Olympic Games
One of the key factors for any Olympic host city and country is the legacy that is left behind. It is critical for countries to be in a position to leverage the global attention events like the Olympic Games can generate as well as maximize investments made in preparation for the influx of inbound travelers.
  • In Beijing, visitors from the U.S., Hong Kong, the United Kingdom, South Korea and Japan accounted for more than half of all Visa card spend in China from Aug. 8-25, 2008. During that period, there were approximately 840,000 Visa transactions with an average daily spend of $10.6 million from international cardholders.2
  • Vancouver experienced double digit growth in the total tourism spending by inbound Visa cardholders during the months of February and March compared to the same time period in 2009. In the heart of the Games, from February 12 – 28, there were approximately 1.14 million Visa transactions, with an average daily spend of $7.2 million from international cardholders.3
Since 1986, Visa has been a proud Worldwide Sponsor of the Olympic Games and will be the exclusive payment services sponsor and the only card accepted at match venues through 2020, including the London 2012 Olympic Games, the 2014 Olympic Winter Games in Sochi, Russia, the 2016 Olympic Games in Rio de Janeiro, Brazil, the Pyeongchang 2018 Olympic Winter Games in South Korea and the 2020 Olympic Summer Games whose site has yet to be selected.
Visa is also one of six global FIFA Partners with global rights in the Financial Services product category to all FIFA World Cup™ activities. Following its debut as an official sponsor at the 2010 FIFA World Cup South Africa™, Visa’s FIFA sponsorship includes the rights to the FIFA Women’s World Cup Germany 2011™ and the 2014 FIFA World Cup Brazil™.
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, visit www.corporate.visa.com.
1 Source for all data related to Visa cardholder spending in Colombia: Credibanco
2 Based on daily international Visa card spend into China August 8 – 25, 2008
3 Based on daily international Visa card spend into British Columbia, Canada February 12 - 28, 2010
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DiGi Telecommunications unveils DiGi Simple MasterCard

(Source: Datamonitor) DiGi Telecommunications Sdn Bhd, a provider of mobile voice, internet and broadband services, has announced the launch of DiGi Simple MasterCard.

In collaboration with Alliance Bank Malaysia Berhad and MasterCard International, the new offering is the first convenient and secure cashless payment card in the market to offer telco benefits.

The prepaid card enables cardholders to make purchases, much like a credit card, with a subscription process that does not require a banking account; incur fees related to credit cards, or the necessary income eligibility criteria and credit evaluation.

DiGi's Head of Financial Services, Galvin Yeo, said: "We have combined the purchasing philosophy of a credit card and the payment philosophy of prepaid mobile services to make it easier for our customers. DiGi users who previously were not entitled to a credit or debit card now have the option of making cashless transactions, with the added convenience of performing cash withdrawals with our card."

Exclusively for DiGi Prepaid, Postpaid and Enterprise customers above 18-years-old with valid personal identification and local mailing address, the card can be used by topping up any amount not more than RM10,000 via cash deposit machines, ATMs or online funds transfer. Subsequently, cardholders can begin making purchases at any international and local MasterCard merchants or withdrawals at selected ATMs

According to the company, the card also provides customers limited risks involved in making physical or online transactions as usage is regulated by the amount deposited and stored on the card. Moreover, the card is a secure EMV chip-based card with the MasterCard SecureCode technology. The MasterCard security feature is an added layer used to authenticate cardholders' information for online payments, helping to improve safety of internet transactions.
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