Wednesday, July 29, 2009

(MoneyWatch.com) This story by Alice Garbarini Hurley originally appeared on CBS MoneyWatch.com.

If you own one of the nation's 437 million debit cards, watch out. You might get scammed. Experts predict debit card fraud will rise by more than 10 percent this year, according to a recent survey by Actimize, a bank fraud consultant. That's because crooks are getting smarter and debit cards are becoming more popular.

And when it comes to card chicanery, not all plastic is equal."Debit card scams are a nightmare," warns Ed Mierzwinski, consumerprogram director for the U.S. Public Interest Research Group (PIRG) in Washington, D.C. "You don't get the same consumer protection as with a credit card."

By federal law, your liability for unauthorized transactions with acredit card tops out at $50. But that $50 limit applies to a debit cardonly if you notify the bank within two business days after the theftoccurs. Otherwise, you could be on the hook for up to $500. If you failto report the bogus charges within 60 days after your bank statement ismailed, your liability is unlimited.

Debit cards now account for almost 60 percent of purchases madewith plastic, and 90 percent of households with bank accounts have alinked debit card. The allure is obvious: With a tap, swipe, orsignature, you can pay for everything from postage stamps to a fancymeal and have the money automatically withdrawn from your bank account.The cards are equally alluring to scammers, who enjoy the ability tosuck money from the accounts of unsuspecting debit card customers. Andonce they start robbing you, it can be nearly impossible to get them tostop. "Some people have had to close their accounts to stop beingbilled," says Alison Southwick of the Better Business Bureauheadquarters in Arlington, Va. "It's a bit of a nuclear option, but forsome, that's the only way that worked."

Look for These Debit Card Scams

Here's the down and dirty on the three most common ways debit card information is getting swiped and how to protect yourself:

1. Pop-Up Ads- Editor's Note: Not to be confused with the Pop-Up PIN Pad!

These pop-up's show up on e-commerce sites after you've made a purchasewith your debit card. The pop-up promises cash-back rewards once youclick "Yes" on the ad. But you may not realize that you're actuallyagreeing to automatically sign up for a company's online membershipservice. And unless you cancel, your card will get charged every month,indefinitely. The scam, which also nails credit card holders, is legalbut slimy. Sen. Jay Rockefeller (D-W.Va.) is investigating this type ofpop-up ad fraud, which generates thousands of mysterious monthlycharges to cardholders.

One New Jersey couple with debit cards connected to their jointchecking account told MoneyWatch.com they recently got scammed for $80in monthly subscription charges to two sites they had never heard of:one for adult content and one for "Internet service." They noticed the$39.97 and $39.95 charges on their statement and called the bank, butwere told they had to either cancel their two cards or file acomplaint. Frustrated, they deciphered the toll-free number for eachhoax (the first nine numbers in the cryptic sequence listed on the bankstatement) and called the companies to demand their money back. Thefirst site refunded the cash. But the second refused, claiming that thecompany had processed the refund; it told the customers to call theirbank to find out why the money had not been released.

Continue Reading

Wells Fargo's "Excess Funds Retention Policy" Under Fire

Courthouse News Service is reporting that a class action lawsuit has been filed against Wells Fargo regarding their "Excess Funds Retention Policy."

Class Action Lawsuit Claims Bank Cheats on ATM Deposits
By MARIA DINZEO

SAN DIEGO - Wells Fargo takes advantage of customers who make math errors on ATM deposits by keeping the extra money even after it discovers the mistake, a class action claims in Superior Court. The "threshold amount" for the bank to snatch the money is about $10, the class says.

Lead plaintiff Brandi McLay says that when customers make a deposit by ATM and mistakenly enter an amount lower than the amount of the check, Wells Fargo pockets the difference.

She claims Wells Fargo does not inform customers of their errors, but keeps the money under what it calls an "Excess Funds Retention Policy" - which its customers do not know exists.

"This was a policy that we discovered through our investigation," said David Gallo, who filed the complaint. "It is a policy Wells Fargo keeps secret because they know they could probably get in trouble if they did disclose it."

The class seeks restitution and damages for conversion, unfair competition and unjust enrichment. They are represented by Gallo of Del Mar.

Barclays Suffers another Internet Glitch

Barclays suffers internet glitch

Barclays says that the problem was fixed after a few hours

Barclays' online banking services were unavailable to some UK customers on Monday owing to a hardware glitch.

The bank said that some customers were unable to log in to the personal banking site from 9.30am to 2pm.

A spokesman said the problem should have been resolved, and was unconnected to a redesign of the website that took place at the weekend.

It said high volume of demand was also to blame for the fault, which followed a similar failure a month ago.

On 16 June, a technical fault left some of the bank's 15 million UK customers unable to withdraw cash from ATMs, while online and telephone banking services across the UK were not working.

During the latest problem, a message posted on the Barclays website said: "We're currently experiencing technical problems in Online Banking that mean some of you may not be able to log in to the service.

"We apologize for any inconvenience this may cause and suggest you try logging in again later."

Tuesday, July 28, 2009

Botnets Being Stalked by Researches

July 28, 2009
Researchers Try to Stalk Botnets Used by Hackers
By JOHN MARKOFF - NY Times

Researchers at Sandia National Laboratories in Livermore, Calif., are creating what is in effect a vast digital petri dish able to hold one million operating systems at once in an effort to study the behavior of rogue programs known as botnets.

Botnets are used extensively by malicious computer hackers to steal computing power from Internet-connected computers. The hackers harness the stolen resources into a scattered but powerful computer that can be used to send spam, execute phishing scams or steal digital information. These remote-controlled “distributed computers” are difficult to observe and track.

Botnets may take over parts of tens of thousands or in some cases even millions of computers, making them among the world’s most powerful computers for some applications.

“When a forest is on fire you can fly over it, but with a cyberattack you have no clear idea of what it looks like,” said Ron Minnich, a Sandia scientist who specializes in computer security. “It’s an extremely difficult task to get a global picture.”

To stalk the botnets, Mr. Minnich and his colleague Don Rudish have converted a Dell supercomputer to simulate a mini-Internet of one million computers.

The researchers said they hoped to be able to infect their digital petri dish with a botnet in October and then gather data on how the system behaves. One of the challenges will be in tricking the botnet components into believing they are running in the open Internet.

Continue Reading at NY Times

RSA Conference Says Mobile Security Tops List of Threats

RSA® Conference Survey Reveals Disparity Between Security Needs and Technology Purchases

Email and Mobile Security Top the List of Threats, but Spending is Earmarked Elsewhere
RSA Conference 2010

SAN MATEO, Calif.--(AllPayNews.com)--RSA® Conference (www.rsaconference.com), the world’s leading information security conferences and expositions, today released the results of a recent survey of security professionals regarding the critical security threats and infrastructure issues they currently face, including those exacerbated by the current economic climate. The study, “What Security Issues Are You Currently Facing?,” includes responses from nearly 150 C-level executives and professionals charged with directing, managing and engineering security infrastructures within their respective organizations.

The study indicates that even though practitioners are most concerned about email phishing and securing mobile devices, technologies addressing these needs are at risk of being cut from IT budgets. Seventy-two percent of respondents indicated a rise in email-borne malware and phishing attempts since Fall 2008, with 57% stating they have seen an increase in Web-borne malware. Concerns about zero-day attacks and rogue employees as a result of layoffs were cited by 28% and 26% of survey respondents, respectively

When asked about the top security and organizational challenges they expect to face in the next 12 months, 57% of respondents cited budgetary constraints; 44% cited employee education as a major concern and 40% called out lost or stolen devices.

The survey also asked what technology investments will likely be bypassed or curtailed due to spending freezes and budget cuts. Given the above information, however, the survey illustrates that even though employees are seeing increases in email- and Web-borne malware and phishing, IT budgets are not being sufficiently allocated to defend against these issues.

Specifically, the survey demonstrates that even though 72% of respondents have seen a rise in email-borne malware and phishing, 8% still plan on cutting money that would previously be earmarked to attempt to mitigate those risks. Even more alarming is that 40% of respondents admitted that securing lost or stolen devices – like the iPhone or Blackberry – is a top concern in the coming year, yet 15% of those surveyed will be reducing spending in this area.

“It is very disconcerting to see that while the trends and the experience of security professionals point to web and email-borne malware as the biggest threat, companies are cutting messaging and web security budgets,” said Andreas Antonopoulos, Senior Vice President and Founding Partner at Nemertes Research. “Companies tend to focus too much on the spectacular attacks (zero-day and organized crime) versus the mundane but extremely costly attacks (phishing and malware). Security controls should be driven by risk/reward calculations that soberly evaluate the impact on the business, rather than sensationalist media reports. Security professionals know where the real threats are but often find it difficult to quantify and explain the risks to senior management.”

In an attempt to uncover the impact of the recent Facebook and Twitter phishing attacks that have received extensive media coverage over the last several months, RSA Conference asked respondents how their organizations were affected. The survey found that while 84% of respondents allow the use of these tools, only a mere 3% were seriously affected by the attacks. Conversely, 73% said that their organization was not impacted at all and 24% indicated they were somewhat affected.

“We rely on the real world experiences of security practitioners to develop the educational programming and the agenda at RSA Conference,” said Sandra Toms LaPedis, Area Vice President and General Manager of RSA Conference. “This survey not only serves as a benchmark for the industry and a vehicle to learn from one another, but also provides insight into the issues that may become the content focus of RSA Conference 2010.”

For more information and to see additional survey results, please go to: https://365.rsaconference.com/blogs/rsa_conference_blog.

About RSA Conference

RSA Conference helps drive the global information security agenda with annual events in the U.S., Europe and Japan. Throughout its 19-year history, RSA Conference consistently attracts the world’s best and brightest in the field, creating opportunities to learn about information security’s most important issues through face-to-face and online interactions with peers, luminaries and emerging and established companies. As information security professionals work to stay ahead of ever-changing security threats and trends, they turn to RSA Conference for a 360-degree view of the industry. RSA Conference seeks to arm participants with the knowledge they need to remain at the forefront of the information security business. More information on events, online programming and the most up-to-date news pertaining to the information security industry can be found at www.rsaconference.com.

RSA and the RSA Conference logo are either registered trademarks or trademarks of RSA Security Inc. in the United States and/or other countries. All other marks are trademarks of their respective companies.

ContactsSHIFT Communications
Alex Kirschner,

415-591-8421

akirschner@shiftcomm.com

Is Your False Sense of Security Insecure?

Are PIN debits coming soon to e-commerce transactions?
by Neil Moncrief on July 28, 2009

In a blog post written by Neil Moncrief of CreekFinancial, he writes about PIN Debit for eCommerce transactions. He makes a couple key points, which I have emboldened in red. The one point he misses out on, is the difference between "perceived" security and "authentic" security. I'm sure you've heard the term: "perception" is reality, but I can guarantee you that "perceived" security and reality can be and this case are, completely dissparate.

Every so often, I’ll have an e-commerce client ask me “Will I ever be able to accept PIN-based debits online?” Although many companies have tried to devise a solution, I never seriously believed it would happen.

After all, how could a consumer enter a 4-digit PIN from a personal computer and still meet the high encryption standards required for Payment Card Industry (PCI) compliance? (Editor's Note: They Cannot)

Nevertheless, the topic is resurfacing again, and online PIN debits may finally be just around the bend.

The primary reason e-commerce merchants want to accept PIN debits is the savings. As I explained in this article I posted several months ago, brick-and-mortar merchants with high-dollar average sales can save considerable amounts by requesting PIN numbers from customers.

But the PCI rules requiring that the debit card be swiped through a magnetic card reader and that the PIN number be encrypted have kept online merchants from participating. (Editor's Question: What has changed?)

In her June 2009 article for Transaction Trends magazine, Julie Ritzer Ross profiles software and hardware developers that are on the leading edge of finding a workable solution. PaySecure, from Atlanta-based Acculynk, is currently being tested by some of the largest players in the debit network business: ACCEL, NYCE, and Pulse. PaySecure’s software will place a floating “keypad” on a shopper’s screen, receive the PIN, scramble and encrypt it, and then pass it along to the appropriate network.

Hardware developer, HomeATM ePayment Solutions, recently introduced Safe-T-PIN, a small and inexpensive USB PCI 2.x certified card reader with integrated PIN Pad, that allows consumers to swipe their own credit cards (and securely enter their PIN) while shopping online.

Editor's Note: HomeATM's system does not need to be "tested" since it 100% replicates the existing PIN Debit transaction done in the brick and mortar world. In fact it has been "tested" by the Payment Council Industry, (Visa, MasterCard, Discover, AMEX and JCB) and is PCI 2.x certified. HomeATM also recently went through a TG-3 audit and has been told they will receive their certification imminently. After going through both the PCI 2.x certification process and a TG-3 PIN Audit, HomeATM becomes the first and only eCommerce payments company in either hemisphere to be certified by one or the other...and we have BOTH.

When this technology finally does make its way into the homes of America’s shoppers, it will be a day for merchants to celebrate. It’s rare that something comes along that benefits business owners more than consumers or credit card companies. And with the struggles of the past year, it’s about time merchants caught a break!

Read the Entire Article at the Creek Financial Blog

It's the "Typing" Stupid!

Aite Report Says There Is No Easy Cure for Threats to Card Security

7/29/2009 - Credit Union Times
By Marc Rapport

"There’s no vaccine against card data security breaches in the United States, and the prognosis for this persisting ailment shows there is no fast cure, according to a recent report, which also said it would cost an estimated $100 billion to fix card security in the U.S.

Editor's Note: The three biggest problems according to this article (and the facts) are as follows: 1. Malware, 2. Card Cloning and 3. CNP Transactions. The web is the most dangerous place to conduct transactions and we do it by "typing" our card numbers into a box. Think about it. How stupid is that?

What was that line Clinton used to win the presidency? "It's the economy stupid!" Well here's my version...It's the "typing" stupid! Can I get anymore simplistic? Yes, I can name that tune in three words: "Swipe...Don't Type!"

Merchants are in the most vulnerable position in the card data security realm and malware, counterfeit card fraud and card-not-present fraud currently top the list of threats. Of even more concern, card security may never be fixed, as criminals will always seek new ways to commit fraud.

That’s according to a new report released by research and advisory firm Aite Group. The report, “Card Data Security: In Search of a Technology Solution,” which is based on survey responses from 29 individuals (most of whom head up risk management for North American issuing banks or payment processors), focused on what the respondents thought were today’s biggest card security problems, the responsibilities of stakeholders and possible card security solutions.

What did surveyors find as the most viable remedies for card security issues? One promising solution, a shift from magnetic stripe cards to EMV architecture (the use of smart cards), may never come to fruition.

The report stated that a decision to make the use of smart cards a standard practice is five to seven years away–or may never take place at all. Editor's Note: So why even try? We lost. Fraud is a part of the costof doing business right?. It's that same mentality that caused theproblem in the first place. Want to get rid of fraud? Get rid ofsignature debit and make the switch to PIN debit.

“With the deeply entrenched magnetic stripe infrastructure in the United States, and the cost and effort involved in transitioning stakeholders to chip and PIN infrastructure, this may be the case,” Aite Group’s Nick Holland said of the survey participants’ predictions that standardized EMV architecture may never be a reality in the U.S.

However, out of the three biggest threats to card security–malware, counterfeit card fraud and CNP fraud–counterfeit card fraud is the only problem that an EMV architecture shift could solve. There are other promising solutions to all three problem areas, the report said."

Editor's Note: Yeah, there is. For example, 1. Malware won't affect transactions that are immediately encrypted when they are swiped. What was that line Clinton used? It's the "economy" stupid. Well here's my version...It's the "typing" stupid.

2. A counterfeit (cloned) card won't work if you require two factor authentication for web purchases. Swipe (what you have) your card and Enter (what you know) your PIN. For those who argue that credit cards don't have PINs? Our patent pending "PIN Your Card" technology can assign PINs to credit cards.

3. CNP fraud would be eliminated by morphing the "Card Not Present" environment (i.e. the Internet) into a card present one. There is no difference between a consumer swiping their own card in the safety of their home vs. swiping their card at an unattended kiosk or gas pump.

In fact, there is NO DIFFERENCE between taking cash out of an ATM (Swipe Your Card, Enter Your PIN) and what HomeATM does. The banks seem to trust that the consumer is present when they authorize the spitting out of $20 bills. Want to take security one-step further? HomeATM has already engineered and has available an EMV version to our PCI 2.x Certified SafeTPIN.

Continue Reading

From Aite's Website:

Card Data Security: In Search of a Technology Solution

WhileEMV architecture could mitigate card fraud, it does not address allsecurity concerns and is not likely to be implemented in the near-term.

Boston, MA, July 2009– A new report from Aite Group, LLC reveals stakeholder perceptions ofcurrent card data security issues, an overview of theirresponsibilities and a look at what is required to fix card datasecurity. Based on in-person interviews conducted by Aite Group with 29heads of risk management and other bank executives, the report providesinsights from key decision-makers in the card payments risk andsecurity realm.

Thereis no arguing that card data security is a major concern tostakeholders, and one that urgently needs to be addressed, but the EMVroute is not a given for the United States. While many agree thatswitching the industry to EMV smartcard architecture would go a longway in mitigating card fraud, few see the transition occurring withinthe next few years, if at all.

"
Survey respondents believe the greatest threats to the card industry are malware, counterfeit card fraud and CNP fraud," says Nick Holland,senior analyst with Aite Group and author of this report. "Since a moveto EMV architecture would only address counterfeit card fraud, AiteGroup recommends the establishment of a pan-network panel to study cardsecurity issues and identify alternative technologies to reducevulnerabilities."

This 15-page Impact Notecontains 11 figures. Clients of Aite Group's Retail Banking service candownload the report by clicking on the icon to the right.

Aite Report, Card Security, Magnetic Stripe, HomeATM, Credit Card Fraud

Type Your Number, Click Your PIN, SHAZAM!

Acculynk has gotten Shazam to agree to a pilot for their Card Not Present PIN Debit application. Kudos to them. I must say that they have had a less arduous path than HomeATM because we replicate the brick and mortar "true" PIN Debit experience. You know, the one where you swipe your card and enter your PIN. You know...how you do it when you are at an ATM. It is our belief that a hardware device is "required" and we've had to undertake the arduous task of engineering and designing a low cost consumer based Point of Sale device and get it PCI 2.x certified.

Why did we have to do that? Because PIN Debit technology doesn't exist when the card is not swiped. A TRUE PIN Debit transaction MUST be swiped. Case in point, see if you can find a "Card Not Present" PIN Debit rate at either Visa or MasterCard's website.

Can't find it? Then it is an alternative payment. It's a verient of PIN Debit. The part that personally makes me uncomfortable is that Acculynk's system requires you to do business on the web by "typing" your card number into a box.

Until you "type" your number into a box, their technology won't know if it's a debit card so that the "pop-up" er..."floating" PIN Pad can appear on your screen. I've talked about the risks inherent with that in the past, so I won't go into it, but suffice it to say, that we at HomeATM thank Acculynk for their hard work in making specific inroads towards getting alternative PIN Debit on the web. It lays the foundation for the day financial institutions, merchants, etc. understand that "there is no substitute" for PIN Debit.

SHAZAM to Pilot Internet PIN Debit Technology

EFT network will partner with Acculynk to test Internet PIN debit service

DES MOINES, Iowa--(BUSINESS WIRE)--SHAZAM, an innovator of electronic funds transfer (EFT) services for 33 years, has agreed to test Acculynk’s PaySecure Internet PIN debit service. SHAZAM will conduct a pilot program where interested SHAZAM financial institutions can participate in testing the latest in Internet PIN debit technology. The pilot program will help gauge consumer acceptance of using a debit card with a PIN when making online purchases.

“We are always seeking new and innovative ways for our community financial institutions to effectively compete in the market,” said Mike Hollinger, President and CEO of SHAZAM.

With the PaySecure software, consumers enter their PIN on a graphical PIN-pad at the merchant checkout, and only need their existing debit card and PIN to complete the transaction. (Editor's Note: They don't necessarily "need" their card, they just "need a card number"...which is then, once again, "typed" into a box on a merchant's website) There are no hardware devices, passwords, enrollment, or redirection to another website for payment. (see "Both Sides of the Mouth Syndrome) or "It's the Typing Stupid!"

“PaySecure is one of those rare emerging payment methods that satisfy the needs of consumers, merchants, and financial institutions,” said Ashish Bahl, CEO of Acculynk. “PaySecure helps issuers retain and grow their debit revenue stream, merchants decrease transaction processing expenses, and consumers reduce signature-based debit card fraud. We are pleased that SHAZAM recognizes the value PaySecure brings and has chosen to pilot our service.”

SHAZAM is the fifth EFT network to publicly announce an agreement with Acculynk. “Interest in PaySecure has only increased as consumer payment preferences shift to debit,” said Bahl. “External market factors have made our value proposition even more compelling, particularly to financial institutions, networks, and merchants seeking a way to leverage this growth in debit card usage.”

“As we’ve done for 33 years, SHAZAM will evaluate and support emerging technology that makes sense for community financial institutions,” stated Hollinger. “Their needs continue to be our primary focus.”

About SHAZAM

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 EFT services to more than 1,500 community financial institutions in 30 states. SHAZAM offers ATM processing, Visa® debit and Debit MasterCard® national debit products, card authorization services, merchant processing, automated clearing house (ACH) services, and information security solutions. SHAZAM is endorsed by 15 community financial institution trade organizations and bankers' banks. For more information, visit http://www.shazam.net/.

About Acculynk

Acculynk secures online transactions with a suite of software-only services that are backed by a powerful encryption and authentication framework protected by a family of issued and pending patents. Acculynk’s services provide greater security, reliability, convenience and return on investment for consumers, merchants, networks, issuers and acquirers. For more information, visit http://www.acculynk.com.

Monday, July 27, 2009

Visa Consolidates Marketing and Innovation into Global Sales!

Visa consolidates management functions

San Francisco, July 27, 2009--Joseph W. (Joe) Saunders, Chairman and Chief Executive Officer (CEO) of Visa Inc. (NYSE:V), today announced that he is reorganizing the company's executive management team's responsibilities to heighten organizational effectiveness and increase the pace of Visa's global alignment.

"We've come a long way since October of 2007 when we merged five independent Visa operating regions, Visa International and its global payment processing subsidiary, Inovant, into one company called Visa Inc. and very successfully took the company public," said Saunders. "Since the IPO, we've expanded our core debit and credit business, reduced operating costs by hundreds of millions of dollars, and heightened our focus on product innovation. We have met or exceeded most of the financial goals we established at the IPO, and continue to meet or exceed all our current financial guidance. As a growing and constantly evolving company, we will continually assess our management team structure and refine it as necessary to ensure that we continue to deliver value to clients and shareholders."

In the new structure, the company's global sales, client service, marketing, product development and innovation functions will be consolidated, effective immediately, under the leadership of John M. Partridge, Chief Operating Officer. With these critical business units more closely aligned, Visa will achieve greater integration, operating efficiencies and increased speed to market in delivering new products to clients.

John C. (Hans) Morris, will step down as President, Visa Inc. He will remain with the company until the end of the year in a different capacity working with Mr. Saunders and helping to ensure a seamless transition to the new structure. Morris joined the newly formed Visa Inc. in 2007 and played a central role in the company's successful IPO in 2008. Since then he has enhanced Visa's client-facing operations, assisting the company in adopting more rigorous customer-centric models required by public companies, led its coordination with Visa Europe and played a significant role with many of Visa's key client relationships.

"Hans played an important role as we created Visa Inc., executed the IPO and transitioned Visa to a high performing public company," said Mr. Saunders. "We've benefitted from his energy, insight and counsel."

About Visa Inc.

Visa Inc. operates the world's largest retail electronic payments network providing processing services and payment product platforms. This includes consumer credit, debit, prepaid and commercial payments, which are offered under the Visa, Visa Electron, Interlink and PLUS brands. Visa enjoys unsurpassed acceptance around the world, and Visa/PLUS is one of the world's largest global ATM networks, offering cash access in local currency in more than 170 countries. For more information, visit www.corporate.visa.com .

Source: Company press release.

Danger Zone: Web Use & Risk to Business

Web Use and the Risk to Business

Metavante & Temenos End Core Banking Development Partnership

Bank Technology News | July 2009
By John Adams

Bank Tech News writes that Fidelity National Information Services needs a plan if they are to acquire Metavante

"One piece of awkward fallout from Fidelity National Information Services’ planned $3 billion takeover of Metavante was removed last week when Temenos and Metavante agreed to end their core banking development partnership. Metavante will retain a license to use the customer information management components of Temenos’ core system, and the two firms will jointly market Temenos T24 product in the U.S.

Temenos first cried foul when Metavante in March tried to unilaterally terminate the Temenos partnership, signed by the two firms two years ago to develop and sell a core banking platform in the U.S. Temenos said the agreement was binding to successors in the case of an acquisition. Last week, Temenos lauded the new agreement as “amicable” and said it resolved “all issues associated with the agreement.”

What analysts say is still unresolved is the future of Metavante’s core banking strategy if and when the Fidelity acquisition closes, given Metavante initially entered into the agreement with Temenos to bolster Metavante’s ability to providing a robust platform to American banks via a partnership."

“If I were a Metavante IBS customer, I’d want direction from Fidelity on the future of my platform,” says Bart Narter, an svp in Celent’s banking group. “Fidelity needs to come up with some sort of plan.”

FIS, Fidelity National Information Services, Metavante, Temenos

Fidelity and Metavante to Hold Special Shareholder Meetings

Fidelity National Information Services, Inc. and Metavante Technologies, Inc. to Hold Special Shareholders Meetings

JACKSONVILLE, Fla. and MILWAUKEE, July (HomeATM Blog.com) -- Fidelity National Information Services, Inc. (NYSE: FIS) and Metavante Technologies, Inc. (NYSE: MV) today announced that each company will hold a special meeting of its shareholders on September 4, 2009.

FIS will hold a special meeting of its shareholders to vote on the issuance of FIS common stock in connection with the merger of Metavante into a wholly owned subsidiary of FIS, and to vote on the issuance of approximately 16 million shares of FIS common stock to affiliates of Thomas H. Lee Partners, L.P. and Fidelity National Financial, Inc. in connection with the equity investments in FIS to be made by those parties coincidentally with the completion of the merger. FIS shareholders of record as of June 29, 2009 will be entitled to vote at the special meeting. Metavante will hold a special meeting of its shareholders to vote on the approval of the merger agreement. Metavante shareholders of record as of June 29, 2009 will be entitled to vote at the special meeting.

The Registration Statement filed by FIS with the Securities and Exchange Commission has been declared effective and FIS and Metavante expect to mail the joint proxy statement/prospectus relating to the shareholders meetings to their respective shareholders in the next week.

Completion of the merger remains subject to antitrust clearance in the United States, receipt of FIS and Metavante shareholder approvals, and other customary closing conditions. FIS and Metavante expect the merger to close during the fourth quarter of 2009.

About Fidelity National Information Services, Inc.

Fidelity National Information Services, Inc. (NYSE: FIS), a member of the S&P 500 Index, is a leading provider of core processing for financial institutions; card issuer and transaction processing services; and outsourcing services to financial institutions and retailers. FIS has processing and technology relationships with 40 of the top 50 global banks, including nine of the top 10. FIS is a member of the S&P 500 Index and has been ranked the number one banking technology provider in the world by American Banker and the research firm Financial Insights in the annual FinTech 100 rankings. Headquartered in Jacksonville, Fla., FIS maintains a strong global presence, serving more than 14,000 financial institutions in more than 90 countries worldwide. For more information on FIS, please visit www.fidelityinfoservices.com.

About Metavante

Metavante Technologies, Inc. (NYSE: MV) is the parent company of Metavante Corporation. Metavante Corporation delivers banking and payments technologies to approximately 8,000 financial services firms and businesses worldwide. Metavante products and services drive account processing for deposit, loan and trust systems, image-based and conventional check processing, electronic funds transfer, consumer healthcare payments, electronic presentment and payment, outsourcing, and payment network solutions including the NYCE Network, a leading ATM/PIN debit network. Metavante (www.metavante.com) is headquartered in Milwaukee. Metavante and NYCE are registered trademarks of Metavante Corporation, which is the principal subsidiary of Metavante Technologies, Inc.

Forward Looking Statements

This press release contains statements related to FIS' and Metavante's future plans and expectations, and, as such, constitutes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to known and unknown events, risks, uncertainties and other factors that, individually or in the aggregate, may cause actual results to be different from those expressed within this press release. The material risks and uncertainties that could cause actual results to differ materially from current expectations include, without limitation, the following: (i) effect of governmental regulations, including the possibility that there are unexpected delays in obtaining regulatory approvals; (ii) the failure to obtain approval of FIS' and Metavante's shareholders; and (iii) other risks detailed from time to time in the reports and filings made by FIS and Metavante with the Securities and Exchange Commission ("SEC") that are available on the SEC's web site located at www.sec.gov. Readers are strongly urged to read the full cautionary statements contained in those materials. We assume no obligation to update any forward-looking statements to reflect events that occur or circumstances that exist after the date on which they were made.

Additional Information and Where to Find It

In connection with the proposed transactions, FIS has filed with the SEC a Registration Statement on Form S-4, which includes a joint proxy statement of FIS and Metavante that also constitutes a prospectus of FIS. The Registration Statement has been declared effective by the SEC and FIS and Metavante expect to mail the final joint proxy statement/prospectus to their respective shareholders in the next week. Investors and security holders are urged to read these documents and any other relevant documents filed with the SEC, as well as any amendments or supplements to those documents, because they contain important information about FIS, Metavante and the proposed transactions.

Investors and security holders may obtain these documents (and any other documents filed by FIS or Metavante with the SEC) free of charge at the SEC's website at www.sec.gov. In addition, the documents filed with the SEC by FIS may be obtained free of charge by directing such request to: Investor Relations, 601 Riverside Drive, Jacksonville, FL 32204, or from FIS' Investor Relations page on its corporate website at www.fidelityinfoservices.com. The documents filed with the SEC by Metavante may be obtained free of charge by directing such request to: Investor Relations, 4900 West Brown Deer Road, Milwaukee, WI 53223 or from Metavante's Investor Relations page on its corporate website at www.metavante.com.

Participants in the Solicitation

FIS, Metavante and their respective executive officers, directors and certain other members of management and employees may be deemed to be participants in the solicitation of proxies from the shareholders of Metavante and FIS in favor of the proposed transactions. Information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of the shareholders in connection with the proposed transactions is set forth in the joint proxy statement/prospectus. Information about the executive officers and directors of FIS and their ownership of FIS common stock is set forth in the proxy statement for FIS' 2009 Annual Meeting of Shareholders, which was filed with the SEC on April 15, 2009. Information about the executive officers and directors of Metavante and their ownership of Metavante common stock is set forth in Metavante's Annual Report on Form 10-K for the year ended December 31, 2008, which was filed with the SEC on February 20, 2009, as amended by the Annual Report on Form 10-K/A (Amendment No. 1) for the year ended December 31, 2008, which was filed with the SEC on April 30, 2009.

SOURCE Fidelity National Information Services, Inc.

American Express 2Q Net Income Falls 48%

News Alert from The Wall Street Journal

American Express reported second-quarter net fell 48% to $337 million, while revenue dropped 18% to $6.09 billion. AmEx said its loan-loss provisions totaled $1.6 billion, compared with $1.8 billion, reflecting lower average cardmember receivables and loans.

"Given the cutbacks in discretionary spending among affluent consumers, small businesses and corporations, our overall level of billed business is performing well relative to most of the other major card issuers," said CEO Kenneth I. Chenault in a press release.

MasterCard Could See Double Digit Growth

Put It on MasterCard - Barrons.com

Put It on MasterCard
By BILL ALPERT | Double-digit growth should soon resume for the plastic powerhouse.

MASTERCARD IS OUTNUMBERED BY VISA in most every way.

Visa handles 60% of the world's card swipes, MasterCard about 30%.

Editor's Note: There is however, an opportunity for MasterCard to change that, Consider that there are ZERO card swipes being done on the web.

Visa carries more debit-card transactions. Editor's Note: MC can change that too...

And even after a recent bounce in both stocks, Visa shares go for about 19 times the earnings forecast for 2010 (ignoring some noncash expenses), while MasterCard trades at 15 times its anticipated earnings.

The numbers are what they are. Except, perhaps, the last one: MasterCard's valuation discount. A swelling chorus on Wall Street says MasterCard is underrated and may be the better play in an economic recovery. Editor's Note: MasterCard has played the "security card" (click here)

JPMorgan analyst Tien-tsin Huang, for instance, argues that the Purchase, N.Y.-based bank-card network merits at least a 16 times price/earnings multiple of his 2010 forecast of $12.25 a share in cash earnings. Such a re-rating seems to have taken place in recent weeks, with MasterCard shares (ticker: MA) moving from $157 to 185.

They could go above 200.

Continue Reading at Barron's

MasterCard vs. Visa

Worldwide, 58% of SMB's Infected by Web Threats

PandaSecurity announced its worldwide barometer on the status of security atsmall and medium-sized businesses (SMBs). According to the study, whichsurveyed 5,760 companies worldwide, 44 percent of the more than 1,400US respondents have recently been infected by Internet threats.

Worldwide, 58 percent were affected, with Brazil showing the highestinfection rate at 86 percent. Only 8 percent of SMBs in Germanyreported infections.

US SMBs cited that, of any threat, viruses affected their companies themost, at 41 percent, and they ranked spyware second, at 26 percent.Worldwide, viruses also ranked first, with 55 percent of respondentsnaming them the most potent threat to their businesses. Ten percent ofSMBs in the US were affected to the point of having to stop production,with a worldwide average of 30 percent.

While 97 percent of US SMBs surveyed have installed antivirus and 95percent claim their security systems are up to date, many SMBs stilllack common security protection. Twenty-nine percent of respondentsdisclosed they have no antispam in place, 22 percent no antispyware and16 percent no firewall.

Continue Reading

Security Over Convenience? RBI Steps to the Plate

The Economic Times

Added security call may hit online biz
27 Jul 2009, 0012 hrs IST, Harsimran Singh, ET Bureau

NEW DELHI: The new Reserve Bank of India (RBI) guidelines, which becomes effective from August 1, to provide a third-factor identification for all online transactions may trigger a 25-30% decline in daily business.

The mandatory third verification is in addition to the card number and the three- or four-digit card verification value (CVV) number that appears on the back of a credit card.

The new norm will introduce a third screen to the processing steps and will make the online transaction longer in a country where low bandwidth has already made e-commerce a time-consuming and tedious process.

It could potentially throw the $2-billion B2C commerce out of gear. Says Jankiraman Murugavel, founder CEO of BharatMatrimony.com: “As it is the internet speed in India is dismally low. It takes a lot of time to complete a transaction. With this move, an additional third screen will be created which might drop transactions further.”

The RBI has asked banks to provide credit card users with an additional authentication / validation password for all online card transactions.

RBI’s purpose behind these guidelines is to enhance the security of online transactions, so as to reduce online credit / debit card fraud.

Editor's Note: If the purpose is to enhance the security of online transactions I think I've got a better idea. We are the only company in "two hemispheres" that offers an eCommerce solution which Tripe DES, DUKPT encrypts the cardholder data... (including the Track 2 data) so, when it comes to enhancing security of online transactions, we are the "Grand Slam Dunk" (and yes...morphing sports metaphors IS allowed on this blog).

End to End Encryption is a "buzz word" these days, but HomeATM engineered, designed and manufactured our eCommerce PCI 2.x "certified" and

Continue Reading

Wednesday, July 29, 2009

Barclays suffers internet glitch

Tuesday, July 28, 2009

Monday, July 27, 2009

Disqus for ePayment News