Tuesday, August 23, 2011

SHAZAM Announces Dual-Message PIN Transactions and EMV Card Support

Mike Hollinger, President and CEODes Moines, Iowa (August 22, 2011) ― The SHAZAM Network today announced the creation of a dual-message PIN product, a first for the EFT industry, and plans to expand its support of EMV. The product will use a dual-message transaction with separate authorization and settlement messages for PIN-based transactions, a capability previously only available on signature-based transactions.

“The SHAZAM network was a pioneer with single message PIN transactions and will now become a pioneer again by supporting dual message PIN transactions,” said Michael Hollinger, SHAZAM President and CEO.

This support for both single and dual-message PIN products will allow SHAZAM debit cardholders to make PIN-based purchases at more online retailers than ever before. In addition to e-commerce, the dual-message PIN product will be useful at brick-and-mortar merchants that accept signature debit transactions, like restaurants, car rental companies and hotels.

“Our financial institution participants understand the importance of increasing PIN debit transactions in a post-Durbin world,” said Hollinger. “SHAZAM will be enhancing PIN processing though support of EMV chip and PIN technology and the dual-message PIN system technology. This will give debit cardholders more options, more security, and overall, more reasons to choose their SHAZAM card over any in their wallet.”

The solution provides the SHAZAM PIN debit brand as an alternative that will lessen the cost and effort required to support the Durbin Amendment for merchants and financial institutions, enabling them to integrate network routing alternatives allowed by the Federal Reserve Board’s final rules.

SHAZAM acquirers can send SHAZAM transactions using the standard dual-message processing logic they use today with the added security of a PIN in the authorization message. SHAZAM’s state-of-the-art processing system will be used to track the number of completions to the original authorization to prevent the cardholder or merchant from posting more than the original approved authorization.

The dual-message PIN transactions will be considered PIN transactions for routing purposes and will follow SHAZAM operating rules. Interchange rates for the dual-message transactions have not been set.

“Both the issuing and acquiring communities are facing tough decisions in the wake of Regulation II and an anticipated shift to chip-and-PIN to support EMV,” said Hollinger. “SHAZAM understands the need to be aggressive in supporting these changes, as well as other authentication technologies.”


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 innovative and state-of-the-art EFT services to community financial institutions in 30 states. SHAZAM is a single source provider for ATM processing, debit and ATM card processing, card authorization services, merchant processing, Automated Clearing House (ACH) services, and information security solutions.

SunTrust imposing new fees to use debit cards

SunTrust imposing new fees to use debit cards
Sarasota Herald-Tribune

Suhr noted that SunTrust's new debit card fee is per checking account, not per card. One checking account may have severaldebit cards tied to it. The fee is triggered when the card is used for a signature, PIN point-of-sale or recurring transaction. ...

  • Two Ways to Play New Debit-Card Fees
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    Threats Report Shows Significant Growth for Malware on Mobile Platforms

    McAfee Q2 2011 Threats Report Shows Significant Growth for Malware on Mobile Platforms

    Report Shows Record Growth for Malware and Rootkits; Major Hacktivist Activity
    SANTA CLARA, Calif., – August 23, 2011 – McAfee today released the McAfee Threats Report: Second Quarter 2011, showing that amount of malware targeted at Android devices jumped 76 percent since last quarter, to become the most attacked mobile operating system. 2011 has also resulted in the busiest ever first half-year in malware history, including a first-ever appearance of Mac fake AV and a significant uptick in rootkits, suggesting that McAfee’s comprehensive malware “zoo” collection will reach a record 75 million samples by the year’s end.
    “This year we’ve seen record breaking numbers of malware, especially on mobile devices, where the uptick is in direct correlation to popularity,” said Vincent Weafer, senior vice president of McAfee Labs. “Overall attacks are becoming more stealth and more sophisticated, suggesting that we could see attacks that remain unnoticed for longer periods of time. High-profile hacktivist groups have also changed the landscape by drawing a line between attacks for personal gain and attacks meant to send a message.”
    The report also details specific activity shaping the way cybercriminals operate, such as cybercrime “pricebooks” that determine the going rate for large email address lists, and acts of hacktivism and cyberwar.
    2011 On Track to Reach Record “Malware Zoo”
    With an approximate 12 million unique samples for the first half of 2011, a 22 percent increase over 2010, this has been the busiest first half-year in malware history. With the addition of Q2’s numbers, the grand total of total malware samples in McAfee’s database has reached approximately 65 million, and McAfee researchers estimate that this “Malware Zoo” will reach at least 75 million samples by the year’s end.
    Android Nabs Top Spot for Most Mobile Malware
    With the vast amounts of personal and business data now found on user’s mobile phones, mobile malware is steadily increasing, often mimicking the same code as PC-based threats. In the second quarter of 2011, Android OS-based malware surpassed Symbian OS for the most popular target for mobile malware developers. While Symbian OS and Java ME remain the most targeted to date, the rapid rise in Android malware in Q2 indicates that the platform could become an increasing target for cybercriminals – affecting everything from calendar apps, to comedy apps to SMS messages to a fake Angry Birds updates.
    Fake Anti-Virus for Apple, Rootkits and Stealth Malware Reach New Terrain
    There are more Mac users than ever before, and as organizations increasingly adopt Macs for business use, Apple now has become more a target for malware authors. Though historically the Apple platform has been unaffected by fake anti-virus (fake AV) software, activity in Q2 indicates that it is now being affected. Although this type of fake AV is the first of its kind, McAfee Labs does expect fake AV in general will drop off over time.
    Another malware category that is demonstrating recent steady growth is stealth malware. The tactic of hiding malware in a rootkit is used by cybercrminals to make malware stealthier and more persistent, and has seen this type of attack gain in prominence over the past year, with high-profile attacks such as Stuxnet. Stealth malware has increased more rapidly in the last six months than in any previous period, up almost 38 percent over 2010.
    Acts of Hacktivism and Cyberwar Make Their Mark
    Acts of hacktivism, primarily from the groups Anonymous and LulzSec, were among some of the most prominent cyber news generators for Q2. The report details hacktivist activity from Q2, with at least 20 global attacks reported in Q2 alone, and with the majority allegedly at the hands of LulzSec. The report also outlines acts of cyberwar that occurred in Q2, including attacks on United States’ Oak Ridge National Laboratory, and an attack on South Korea’s National Agricultural Cooperative Federation.
    Email “Black Market” for Spammers
    Though spam is still at historic low levels, due in part to the Rustock takedown, McAfee Labs still expects to see a sharp rise in activity over the coming months. A common method for cybercriminals to increase their volume of spam activity is to purchase a bulk list of emails in order to flood as much spam as possible to a widespread group of people. Whether it’s a botnet or a rental service, prices vary for such enterprises, often by location. For instance, in the United States, the going rate for 1 million emails is $25, whereas in England 1.5 million emails are worth $100.

    For more information on trends related to hacktivism, cyberwar, web threats and malware, please download a full copy of the McAfee Threats Report: Second Quarter 2011 at http://www.mcafee.com/us/resources/reports/rp-quarterly-threat-q2-2011.pdf
    About McAfee
    McAfee, a wholly owned subsidiary of Intel Corporation (NASDAQ:INTC), is the world's largest dedicated security technology company. McAfee delivers proactive and proven solutions and services that help secure systems, networks, and mobile devices around the world, allowing users to safely connect to the Internet, browse and shop the Web more securely. Backed by its unrivaled Global Threat Intelligence, McAfee creates innovative products that empower home users, businesses, the public sector and service providers by enabling them to prove compliance with regulations, protect data, prevent disruptions, identify vulnerabilities, and continuously monitor and improve their security. McAfee is relentlessly focused on constantly finding new ways to keep our customers safe.http://www.mcafee.com.
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    Alabama Expands Use of Electronic Cards for Child Support Payments, Other Key Services

    Paperless programs administered by ACS, A Xerox Company, will drive efficiency, savings

    DALLAS--(BUSINESS WIRE)--Alabama is saving money and improving service to its citizens by expanding the number of state programs that use debit cards for delivering payments and benefits.
    “This system is more secure, faster and convenient.”
    ACS, A Xerox Company (NYSE: XRX), has signed a five-year, $51 million contract to administer the state’s existing card programs and provide a new system for distributing child support payments via a reloadable MasterCard debit card. The card, accepted at thousands of retailers and ATMs, will deliver funds to people faster than paper checks.
    ACS will also support the use of debit cards and electronic benefits transfer (EBT) cards for other state programs including Temporary Assistance for Needy Families, Supplemental Nutrition Assistance Program (previously known as the Food Stamp Program), and the Alabama Medicaid Agency’s Non-Emergency Transportation Program.
    “A paperless approach provides instant access to much-needed funds for our citizens while improving the efficiency of how we administer these programs,” said Nancy Buckner, commissioner of Alabama Department of Human Services. “This system is more secure, faster and convenient.”
    Card programs are proven to save money over paper checks, which can cost governments an average of $2 per check in printing and mailing costs. The card system also saves citizens time and money, eliminating the need to rely on check-cashing services.
    “We offer government agencies solutions that improve services at a reduced cost,” said Joseph Doherty, executive vice president and chief operating officer, ACS Government Solutions. “An innovative EBT solution and use of an electronic payment card program not only helps citizens but state agencies looking to stretch their budget dollars.”
    About Xerox
    Xerox Corporation is a $22 billion leading global enterprise for business process and document management. Through its broad portfolio of technology and services, Xerox provides the essential back-office support that clears the way for clients to focus on what they do best: their real business. Headquartered in Norwalk, Conn., Xerox provides leading-edgedocument technology, services, software and genuine Xerox supplies for graphic communication and office printing environments of any size. Through ACS, A Xerox Company, which Xerox acquired in February 2010, Xerox also offers extensive business process outsourcing and IT outsourcing services, including data processing, HR benefits management, finance support, and customer relationship management services for commercial and government organizations worldwide. The 134,000 people of Xerox serve clients in more than 160 countries. For more information, visit http://www.xerox.comhttp://news.xerox.comhttp://www.realbusiness.com or http://www.acs-inc.com. For investor information, visithttp://www.xerox.com/investor.
    Note: To subscribe to Xerox mobile news alerts, visit http://alerts.businesswire.com/subscribe/xerox_corporation. To receive Xerox RSS news feeds, visithttp://news.xerox.com/pr/xerox/rss.aspx. Connect with ACS, A Xerox Company, on Facebook or Twitter, and for open commentary, industry perspectives and views from events visithttp://twitter.com/xeroxcorphttp://twitter.com/xeroxofficehttp://twitter.com/xeroxproductionhttp://twitter.com/servicesatxeroxhttp://twitter.com/xeroxevents,http://www.xerox.com/blogshttp://www.xerox.com/podcasts.
    XEROX®, XEROX and Design® are trademarks of Xerox Corporation in the United States and/or other countries.


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    MasterCard Names Andrea Forster Corporate Controller and Principal Accounting Officer

    PURCHASE, N.Y.--(BUSINESS WIRE)--MasterCard Incorporated (NYSE: MA) today announced the appointment of Andrea Forster as Corporate Controller and Principal Accounting Officer, effective immediately. John Sulca, who held the role on an interim basis since May 25, 2011, will continue as Assistant Controller of the company.
    “Her extensive background and deep finance experience make her a valued addition to the team.”
    Forster’s extensive experience includes more than 10 years in various finance positions of increasing responsibilities during her tenure at Pepsi Bottling Group, Inc., including Corporate Controller from 2000-2007 and vice president, North America Finance from 2007-2008. Prior to Pepsi Bottling Group, Inc., she worked for more than 10 years at PepsiCo, Inc. in various finance positions. Most recently, she was vice president, Supply Chain Transformation, PepsiCo, Inc. She has a Bachelor of Science in Accounting from Providence College and is a certified public accountant.
    Forster will report to Martina Hund-Mejean, MasterCard Chief Financial Officer. "I am very pleased to announce Andrea’s appointment,” said Hund-Mejean. “Her extensive background and deep finance experience make her a valued addition to the team.”
    About MasterCard Incorporated
    MasterCard (NYSE: MA) is a global payments and technology company. It operates the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Learn more at www.mastercard.com.

    Erply Takes on Square, Verifone and ROAMData

    By Ben Rooney - WSJ
    A European start up that offers small shops cheap and easy to use retail software is extending its service by offering an NFC and magnetic credit card reader that integrates into its existing cloud-based suite.  Erply, based in London and Tallinn, specializes in point of sale and inventory management software for small shops. Its credit card reader, which officially launches today, costs $50 with a 1.9% transaction fee; less than fees charged by competing technologies offered by Square and Verifone.  read more

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