The Truth Hurts (the Bottom Line)

The Star Tribune ran a story yesterday about a regional bank in Minneapolis (TCF) which is handing out pre-addressed postcards to their customers to send in to Congress opposing the the reduction of Interchange Fees for retailers. They insist that consumer pricing will go up if the bill passes.



This is a bad move. They are flirting with disaster.  The disaster they are flirting with is two-fold.  One, if I'm a business owner who is unhappy with Interchange, I go to another bank.  Interchange represented 22% of TCF Banks revenue last quarter.  TCF cannot exactly be considered a non-biased entity.  Fees would increase, but it would be the banks who would increase their fees to make up for the fees lost to a lower interchange. 

As a consumer, it's the following quote from TCF spokesman Jason Korstange which would have enticed me to go to another banking institution with my business. 

 "We're taking all the risk associated with whether or not these people have the money on these cards," said TCF spokesman Jason Korstange.

Say what Jason?  Obviously you are speaking about TCF debit card, as credit cards don't "have money on them."   So what exactly is the risk that TCF is taking?  Let's analyze:  There are two types of debit transactions.  PIN andSignature.  Certainly there is no risk if it is a PIN Debit transaction, because if there is no money, the transaction is declined.  No money, no transaction, no risk. 



Therefore It must be a "Signature Debit" transaction of which he speaks.   So let's investigate "all the risk." If it is a Signature Debit transaction and there is no money in the account, it "used to be" declined.  However, banks such as TCF realized that they could derive $38 Billion Dollars in overdraft charges by intentionally approving a non-sufficiently funded debit transaction and charge a $35 overdraft fee.  As the NY Times so aptly put it:

"Not many people would knowingly pay more than $35 for a cup of coffee. But far too many people are getting saddled — with no warning — with outsized bills for minor purchases, under a euphemistically labeled "overdraft protection program" that most major banks have adopted over the last 10 years.  Before that, most banks would simply have rejected debit transactions, without a fee, when the card holder’s account was empty. Now, they approve the purchase and tack on a hefty penalty for each transaction."

Of the two types of debit transactions, (PIN vs. Signature) one is 15 times more likely to result in a fraudulent transaction.  It's no coincidence that it happens to be the same one banks attach rewards in order to attract more users/customers.  Now why on earth would they want to attract more people to use a card that is 15 times more likely to result in a fraudulent transaction.  Two reasons: Higher Interchange Fees and Overdraft Charges. Interchange represented 22% of TCF Banks revenues last quarter, it would be interesting to find out how much "overdraft charges" earned TCF. 



So where's the risk associated with whether "these people" (sounds rather condescending) have money on these cards?  You can fool some of the people some of the time...but you're not even close with this one.  The only risk I see is that you will lose customers by insulting their intelligence.



Here's a snippet from Chris Serres of the Star Tribune, in Minneapolis

Sep. 5--If you walk into a TCF Financial Corp. branch these days, there's a good chance you'll be encouraged to sign up for a cause dear to the bank's bottom line.



In an unusual move, the Wayzata-based regional bank late last month began handing out thousands of postcards to its customers. The cards urge members of Congress to oppose legislation that could reduce the billions of dollars in so-called interchange fees that retailers pay to banks.



Along with the postcards -- pre-addressed to members of Congress -- TCF bank tellers are handing out a signed letter from the bank's CEO Bill Cooper, warning that consumers will end up footing the bill if retailers are able to avoid the fees. "If this legislation passes," Cooper warns, "your costs will go up."



Historically, the topic of interchange fees hasn't aroused much passion among consumers. Many people don't even realize that every time they swipe their plastic, stores pay an average of 1.8 percent of the purchase amount to the bank that issued the credit or debit card.



But with nearly $50 billion in fees at stake, companies on both sides of the debate are getting creative in an effort to influence Congress. 7-Eleven, home of the Slurpee, has been circulating placards of its own in support of the legislation and has a goal of collecting more than 1 million signatures. Though TCF has no such goals, the bank reportedly gathered 10,000 signed postcards in its branches within a week.



Three bills on the fees

There are currently three pieces of legislation related to interchange fees winding their way through Congress. None of them would eliminate the fees entirely but, taken together, they could severely limit the amount banks collect. A bill introduced earlier this summer would enable retailers to join together to negotiate with Visa and MasterCard, the credit card networks that set the interchange fees.



The income from interchange fees has grown dramatically in recent years as consumers use their plastic to pay for a much wider variety of items. Retailers also claim the card networks have raised their fees on certain cards. Last year, retailers paid $48 billion in interchange fees, up from $16.6 billion in 2001, according to the National Retail Federation.



The banks argue that such fees are necessary, because they incur significant risk when offering credit and debit cards. The banks also provide a service by ensuring the money flows to the retailer immediately with each card transaction. "We're taking all the risk associated with whether or not these people have the money on these cards," said TCF spokesman Jason Korstange.



A spokeswoman for the Electronic Payments Coalition, a trade group that has been leading the campaign against the legislation, said she is unaware of any financial institution other than TCF gathering signatures on the issue.



One reason is that TCF relies more on fee income than many of its rivals. TCF's interchange revenue from customer card transactions represented 22 percent of its revenue in the most recent quarter. That translates into about $25 million for the quarter.



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FIS and Metavante Receive DoJ Clearance to Proceed with Merger

Fidelity National Information Services, Inc. and Metavante Technologies, Inc., Receive Department of Justice Clearance to Proceed with Planned Merger

• Press Release


• Source: Fidelity National Information Services, Inc.


• PIN Payments Blog
  
  

JACKSONVILLE, Fla. and MILWAUKEE, Sept. 3 /PRNewswire-FirstCall/ -- Fidelity National Information Services, Inc. (NYSE: FIS - News) and Metavante Technologies, Inc. (NYSE: MV - News) today announced that the companies have received clearance from the U.S. Department of Justice to complete their proposed merger without conditions. Completion of the merger remains subject to receipt of FIS and Metavante shareholder approvals, and other customary closing conditions.





FIS will hold a special meeting of its shareholders on September 4, 2009 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 also hold a special meeting of its shareholders on September 4, 2009 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.



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 - News), 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 - News) 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.

	Heartbreak over Heartland: Why Prosecution for Data Breaches Isn't Enough
	By ANITA RAMASASTRY
	Friday, September 4, 2009

Debit card users often feel safe because their cards are PIN-protected. But recent events show that, like credit cards, debit cards can be compromised, when the databases of large retail merchants or card processors are hacked.(Editor's Note:  Clarification...she's talking about the PAN, (Primary Account Number)  not the PIN.  Like Credit Cards, "Signature Debit Cards can be easily hacked.   All you need is the PAN.  The PIN provides an additional layer of security, which is why Signature Debit cards are 15 times more likely to be fraudulent than PIN Debit Cards)




In late August, the U.S. Department of Justice issued indictments in what is, to date, the largest data breach in the United States – with over 130 million credit and debit card numbers compromised. (Editor's Note:  When PIN"s get hacked, there will be an exponentially greater fuss)  Albert Gonzalez, 28, of Miami, Florida, and two unnamed co-conspirators allegedly used an intricate hacking techniques to break past computer firewalls and gain access to this confidential information, as well as to intercept packets of data that were being transmitted in real time.

When a credit or debit card is used, the card numbers are stored  (Editor's Note:  Therein lies the problem...if merchants didn't "store it" or "handle it" as is the case with a HomeATM transaction, the hackers have nothing to hack) so that the information can be transmitted back to your bank for withdrawal of funds or billing to your statement. Companies are required by various regulations and industry rules to have security measures that will safeguard sensitive customer data. However, hackers can and will try to outsmart the best security measures. (Outsmart this:  With no data stored or handled, what can hackers hope to achieve?)

In this column, I will discuss the recent security breach and some of its implications and costs. While the arrest of the alleged hacker is important, it remains to be seen whether this action will be an effective deterrent to others. Moreover, after-the-fact arrests are not enough: There needs to be a renewed focus on security standards within the card industry.  (Editor's Note:  When it comes to eCommerce, fraud is exponentially worse.  Card NOT Present Fraud is the leader.  So, if you want to eliminate Card NOT Present fraud, you must eliminate the "Card NOT Present" environment.  How do you do that?  It's simple  Swipe vs. Type and voilla! you've got yourself a "Card Present" transaction.   Make Sense?  You bet it does.)  



The Recent Indictment



In late August, the Acting U.S. Attorney for New Jersey announced an indictment against Gonzales and his two unidentified co-conspirators. The three are charged with a scheme involving five corporate data breaches, including the single largest reported data breach in U.S. history. The scheme is believed to constitute the largest hacking and identity theft case Justice has ever prosecuted.



According to the indictment, 130 million credit and debit card numbers, together with account information, were stolen from Heartland Payment Systems, Inc., based in Princeton, N.J.; 7-Eleven, Inc.; Hannaford Brothers Co., which operates grocery stores in Maine and Massachusetts; and two other, unidentified corporations.



Between October 2006 and May 2008, Gonzalez is alleged to have acted with his two coconspirators to select large corporations, and identify security vulnerabilities, both by in-person observation and by online investigation. For example, according to the indictment, Gonzalez and an individual identified only as "P.T." would visit the retail locations of their potential victim companies, seeking to identify the type of checkout machines and card readers they used.



The indictment alleges that, after this reconnaissance was completed, the three conspirators would upload information to servers – which served as hacking platforms – that were located in New Jersey and several foreign countries. The three conspirators allegedly used the servers first to store information critical to their hacking schemes, and then to launch their attacks. Through these attacks, the indictment alleges, they installed "sniffers" that conducted real-time interception of credit and debit card data being processed by the corporate victims' servers.



As noted above, the results were staggering: Reportedly, more than 130 million card numbers were stolen.



Is Our Data Secure? (Editor's Answer:  Not until it is no longer stored, handled and if it's end-to-end-encrypted during tranmission)





We have a strong legal structure that kicks in after an infraction; both federal regulations and card industry rules provide consumers with great protections if someone steals their card or card numbers. (Editor's Note:  I would  eliminate the word "great")

But it is still a headache (I would replace "headache" with "extremely inconvenient")  for the consumer to report false charges and get them erased, make sure money fraudulently transferred from bank accounts is replaced, and procure replacement cards. Moreover, such breaches are costly to companies and banks, and the costs get passed on to cardholders in the form of higher fees, interest rates and the like.

That raises a pressing question: Can more be done to prevent this kind of hacking activity?

Editor's Note:  In a word, YES.

Continue Reading

Tim Hortons Adds MasterCard PayPass for U.S. Stores

Following the announcement that Whataburger has added MasterCard PayPass at its U.S. locations, MasterCard Worldwide has announced that Tim Hortons is now accepting MasterCard PayPass at its more than 400 U.S. locations.

In addition to accepting traditional magnetic-stripe cards, Tim Hortons now enables its U.S. customers to make their purchases by simply tapping their MasterCard PayPass card or device at checkout, for faster transactions, greater payment flexibility and less time spent waiting in line.



Tim Hortons first began accepting MasterCard PayPass in many of its 3,000 stores in Canada.

With MasterCard PayPass, Tim Hortons customers simply tap their PayPass-enabled MasterCard card or device on a PayPass-accepting reader at check-out.



MasterCard PayPass also does not require customers to sign receipts for purchases under $25, further speeding up the transaction.



Continue Reading at QSRWeb

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Need More (on) Cynergy?

Cynergy Is an Example of Economic Stresses on ISOs, Experts Say - Digital Transaction News





Tuesday’s news that Cynergy Data was filing for bankruptcy and planning to sell its assets (PIN Debit Payments Blog: Cynergy Data Files for Chapter 11) serves as perhaps an extreme example of the fierce toll the recession is taking on independent sales organizations, observers say. Indeed, some say the ravages of reduced payment volumes, failed merchants, and squeezed margins could well shutter more ISOs, or send more into bankruptcy protection, before the year is out. “I think we’re going to see more going down,” says Richard W. Noble, chief executive of BCC Merchant Solutions, a North Kansas City, Mo.-based ISO



Fourteen-year-old Cynergy Data blamed a weak economy and an “unsustainable debt load “ for its decision to seek Chapter 11 protection and sell its assets to The ComVest Group, a private-equity firm with controlling interests in other ISOs, including Pipeline Data Inc., Cardaccept Inc., AirCharge.com, SecurePay.com, and Northern Merchant Services Inc. (Digital Transactions News, Sept. 1). ComVest’s managing partner is Pete Kight, the founder and long-time chief executive of CheckFree Corp., now part of Fiserv Inc.



Continue Reading at DTN

MoneyGram International Introduces Text Message Receive Notice

MoneyGram International has announced that members of its MoneyGram Rewards program can now be notified via SMS text message that a money transfer transaction has been picked up by the receiver. SMS Receive Notice has been launched in the U.S., France, Germany and Spain.



The MoneyGram Rewards program provides members with discounts on money transfers, as well as services designed to empower them with "bank-like" control over their money transfer activity, including a personalized card for expediting transfers, quarterly statements, email notifications when transfers are received, and the ability to manage their account and profile online. To receive text message notifications, customers must enroll in the MoneyGram Rewards program online, or ask a MoneyGram service agent to enroll them at the time of a transaction...



Continue Reading at Colloquoy

BlackBerry Secures Biz Transactions with certgate

From Net-Security.org

Secure business transactions using BlackBerry devices

Posted on 04 September 2009.

Certgate in cooperation with the informatics centre of the (mutual) savings bank organization SIZ extended secure mobile business transactions to BlackBerry devices. certgate SmartCard microSD with its built-in cryptographic chip enables Distributed Electronic Signature (DES) with EBICS through a secure SSL connection. As a result, more decision makers frequently traveling for business can now authorize urgent financial transactions in a secure fashion away from their desks.





Technical details:



The personal key needed for a secure electronic signature is stored on certgate SmartCard microSD. The EBICS remote server connection is SSL-encrypted. Users download all orders ready for signing through a secure connection with their mobile devices. They then select a transaction to be signed, create a valid electronic signature and return the encrypted document. The bank's EBICS server indicates to the authorized user the number of required signatures and how many have been given.



EBICS and electronic signature:



EBICS (Electronic Banking Internet Communication Standard) is a standard in German banking business supporting internet-based communication for electronic banking. EBICS transactions provide the basis for transfer of encrypted orders to the bank-specific target system. Transferred data must be signed by one or more authorized individuals according to a pre-defined signature category. certgate SmartCard microSD PKI is suited for use as a signature card with EBICS and meets the high standards of the German Signature Law (SigG).

Reality Check: Web Threats (Video)

Reality Check: Emerging Information Security Threats sponsored by TippingPoint

Premiered:  26 Aug 2009 Language:  English ABSTRACT: In this video, security expert Lenny Zeltser explores today's emerging Internet security threats to help organizations fine-tune their defenses. Lenny examines attack patterns that have included the use of email as a gateway for fraud, the mighty power of network bots, the fertile ecosystem for web-based attacks, and the increased precision of modern attacks. The presentation presents lots of real-world examples of cyber attacks, and discusses the financial incentives behind the malicious activities that occur on the Internet. This timely talk will cover: What is driving modern-day attackers to large-scale and targeted attacks Which recent breaches exemplify threat categories organizations need to track The approaches Internet criminals employ to trick victims and bypass defenses Whether you should adjust security architecture to match today's threat landscape

Speaker Lenny Zeltser Security Consulting Manager, Savvis Lenny Zeltser leads a security consulting team at Savvis. He is also a board of directors member at SANS Technology Institute, a SANS faculty member, and an incident handler at the SANS Internet Storm Center. Lenny frequently speaks on information security and related business topics at conferences and private events, writes articles, and has co-authored several books. Lenny is one of the few individuals in the world who has earned the highly regarded GIAC Security Expert (GSE) designation. He also holds the CISSP certification. Lenny has an MBA degree from MIT Sloan and a computer science degree from the University of Pennsylvania. For more information about his projects, see www.zeltser.com.

Mercator Advisory Group New Research on Open-Loop Prepaid Card Market

Sixth Annual Network Branded Prepaid Market Assessment

New Research Report Examines Growth of  Open-Loop Prepaid Card Market

Boston, MA. - September 3, 2009 -- Despite a poor fourth quarter that began to feel the impact of today's recession, the growth of the prepaid industry in 2008 continued to show great vitality. When the prepaid market is evaluated on a segment-by-segment basis, it becomes clear that there are far more markets that are expanding or thriving in this economy than there are segments experiencing negative growth.



The 6th Annual Network Branded Prepaid Market Assessment is the first of our annual trilogy of closely followed prepaid benchmark reports (Open, Closed, Forecast) that provide a thorough analysis and documentation of the growth and development of the Prepaid Industry. It benchmarks the spending, growth, and market dynamics for all Network Branded Prepaid Solutions. This includes a review of the dollars loaded on Network Branded Prepaid products in 22 different market segments.

This year's network branded report is unique because Mercator received data from our benchmark surveys and interviews with processors and issuers that represent a majority of the Open Loop market. The additional information we gained provided greater transparency regarding the development of the market and also enabled more accurate estimation of market size data at the segment level. This permitted Mercator to adjust its historical data to better reflect the robust growth of the open prepaid marketplace. These adjustments provide the fairest and most accurate possible assessment of the scale of the Open Loop market and support our continued goal of delivering to Mercator Advisory Group members the only consistent data set that measures the growth and dynamics of the prepaid industry.



"Mercator Advisory Group believes the prepaid industry will continue to show growth in 2009. However, being in the right channel with the right product is becoming critical to the growth of prepaid products and represents a significant volume opportunity for issuers," Tim Sloane, Vice President of Client Services and Director of Mercator Advisory Group's Prepaid Advisory Service and author of the report comments. "It is clear to Mercator that no other payments market is riding out the current economic downturn as effectively as prepaid and I can't think on any better payments market to be in during a recession."



The 6th Annual Network Branded Prepaid Market Assessment also includes a special section on the utilization of Restricted Authorization Network (RAN) technology. In conducting our surveys, Mercator discovered an increasing use of the technology to enhance card programs. RAN is typically used to create an infrastructure that lowers costs and delivers added revenue to prepaid programs by steering consumers to specific merchants.



Highlights of the report include:

• The total load for all 33 prepaid segments in 2008 (Open & Closed) was $247.7 billion, a $27.8 billion increase over the $220.27 billion load in 2007 - an increase of 12.4 percent.
  
  
  
  


• Network Branded solutions had $60.42 billion loaded in 2008, an increase of 48.6% increase from the previous year.
  
  
  
  


• Open Loop gift cards continue to penetrate the sale of Closed Loop gift cards. The 2008 shake-up of the retail industry provided added traction for this segment, which saw a 54.3 percent increase.
  
  
  
  


• Social Security, now out of the pilot phase and being fully rolled out, hit $1.48 billion in loads in 2008, making it a significant new government program.
  
  
  
  


• Despite continued challenges to get consumers to reload the products, the Money & Financial Services (GPR) segment continues to show solid growth with more companies moving away from bare bone products to more sophisticated offerings that include features such as lines of credit.

HIPPA Compliant Online Payments

Surprise, Ariz., Sept. 3, 2009 -- To the delight of environmentalists, new online registration and payment services allow patients to communicate with physicians in a paperless environment. ePatientHistory.com and ePatientPayments.com recently signed Edward Rueda as a sales representative to bring their convenient online services to practitioners in Arizona.



With HIPAA regulations in effect and malpractice insurance at an all-time high, medical providers are facing the challenge of finding affordable, yet fully functional and compliant practice management solutions. Studies show that 90 percent of patients in most practices can use online registration, with elderly patients slightly slower but more accurate than young people.



ePatientHistory.com is the ideal solution for allowing patients to enter their health information on a HIPAA compliant web-based portal from home before an office visit. Not to mention online bill paying saves time and money by reducing paper, postage and administrative costs. With a click of a mouse, patients can access ePatientPayments for convenient online, on-time payments using secure PayPal technology.



From their Website:

Click link, enter (a.k.a. "type") payment information

Initiating a payment plan is fast, easy and FREE for patients. Patients receiving custom payment plans establish their account password, then enter (a.k.a. "type)  their payment information only once. A PayPal account is NOT required and, since payment plans are recurring for a set number of billing cycles, your patient does not have to remember to make a payment after initiating the plan. Patients paying-on-account simply enter their account number and payment amount for quick, convenient remittance from monthly statements you issue.





Source: Company press release.

Introducing eBillMe Walk-In

Rye Brook, N.Y., Sept. 3, 2009 -- There are 28 million Americans without a bank account and another 44 million Americans considered ‘underbanked” according to the FDIC. Today eBillme™, the online payment option that already enables consumers and small businesses to use online banking to pay securely with cash, has introduced eBillme Walk-In, a new way for consumers to shop online and pay with cash, without having a credit card or even a bank account. The company has partnered with providers including MoneyGram International (NYSE:MGI) to assemble the largest network of U.S. based walk-in locations with the lowest transaction fee.



“Millions of consumers use the Internet to browse but aren’t able to shop online because of limited credit and banking access,” says Marwan Forzley, President and CEO of eBillme. “We want every consumer to be able to pay securely with cash and benefit from the eBillme platform, which includes a rewards program and buyer protection features giving consumers all the perks of credit cards without getting into debt or incurring extra fees. For merchants, eBillme Walk-In offers an opportunity to reach a new consumer market and increase sales.”

Upon selecting eBillme Walk-In, online shoppers will be sent an eBill which can now be paid using online banking or by presenting the eBill to a participating location. A locator is available to show consumers the nearest walk-in location based on their address. Consumers can simply take their printed eBill to one of the over 75,000 walk-in locations across the U.S., including MoneyGram’s nearly 40,000 agent locations.

“We are very excited to introduce eBillme Walk-In to our customers,” says Jeff Wisot, vice president of marketing at Buy.com. “The new offering makes eCommerce more accessible and gives Buy.com shoppers another way to pay for their online purchases with cash. It also gives us an opportunity to attract a new demographic of shoppers.”



“At a time when credit card debt is burdening so many consumers, paying with cash is the appealing alternative,” says Greg Waltz, MoneyGram’s vice president and general manager of Payment Products. “We have partnered with eBillme to extend its cash checkout solution to consumers without banking and credit access, bringing them the conveniences of shopping online.”



eBillme, now offered by over 800 online merchants, is the most secure way to pay online. When shoppers choose the option at checkout, their order is confirmed with an eBill sent to their e-mail address. The transaction occurs securely, bank to bank, with no personal or financial information required or transmitted over the Internet. And with buyer protection features including a satisfaction guarantee, best price guarantee, in-transit protection, and fraud protection, consumers can shop with confidence knowing their eBillme transaction is guaranteed and protected.



ABOUT eBillme



eBillme™ is the only online payment solution that extends the convenience of online banking to the merchant’s checkout process. The service enhances security for online shoppers, and enables merchants to increase sales while reducing transaction costs. No financial data is exposed and the payment transaction is securely transferred from the customer’s bank to the retailer’s bank. Consumers can shop online, by catalog or through call centers, and pay for their purchases at their bank, credit union, or bill pay portal using the security and convenience of online banking. For more information, please visit www.eBillme.com or eBillme’s Online Debt-Free Shopping Mall.



Source: Company press release.

That Was Easy! (TJX/Heartland Breach)

The Last WatchDog's Byron Acohido has written an excellent post on how easily SoupNazi (Albert Gonzalez) was able to breach both TJX and Heartland.  Albert Gonzalez pleaded guilty and will be sentenced  later this month...Here' s an excerpt:  

"Gonzalez and cohorts allegedly used mundane hacking techniques to extract some 94 million records from TJX, parent of TJ Maxx and Marshalls, over the course of at least eight months, and 130 million records from Heartland over 14 months.

“They stayed inside the network chucking stuff out of the window, and nobody noticed, much less tried to stop them,” says Lloyd."

Continue Reading at "The Last WatchDog"

Is Online Banking Dangerous? Bank on It

Does Web 2.0 need Security Web 2.0?



Editor's Note"  Is that a rhetorical question or are they being sarcastic?  No, let's keep typing.  "Enter" at your own risk!



Web 2.0, the second wave of web development and design, is thriving, and so too are applications that take advantage of this technology.



Michael Shema, Qualys Inc Published: 5:00PM BST 03 Sep 2009



Interactive sites like LinkedIn, Twitter and even company websites are becoming ever more popular, and yet, many IT departments are unprepared for the associated new and emerging threats. As more and more companies take to the web to conduct business, the opportunity for attack is significantly increased and organisations need to re-adjust their security practices for the Web 2.0 world.



Traditionally, potential security breaches, or vulnerabilities, target personal and business information that is created and stored in certain Web 2.0 applications, such as Google Docs and Mobile Me.



Using sophisticated JavaScript programs developed specifically to capture data, hackers can redirect users to a perfect copy of the site they are expecting to see.  (Web Site Cloning 101)

Then, when log in details are entered (a.k.a. TYPED!) they are unknowingly... (Editor's Note: Unknowingly? Know this: When you TYPE/Enter log-in details, you are putting yourself in danger. Period.  What's more to know? Read the signs) ...sent to the attacker, providing them with the information they need to access sensitive business information.



(a.k.a. access/wipe out your bank account, steal your credit/debit card numbers, etc. etc. etc. "Do Not Type...Do Not Enter!

Continue Reading at Telegraph.co UK

Touche Couche-Tard!

Fees prompt Couche-Tard to ponder its own credit card



The Star is reporting that Couche-Tard is considering offering it's own credit card brand in response to high Interchange Fees. 



Wonder if Couche-Tard will call it "The Touche-Card

LAVAL, Que.–Convenience store operator Alimentation Couche-Tard says it may launch a credit card with other Canadian and American retailers to bypass financial institutions and their high card fees.

Chief executive Alain Bouchard disclosed the potential venture following the company's annual meeting yesterday.

Raymond Pare, chief financial officer, wouldn't give any details on plans to create a credit card that would compete with what he called the "duopoly" of Visa and Master-Card, but said it would most likely include a "good group of businesses" that would partner and create a common card with "normal rates."

Couche-Tard and others have denounced for years the fees charged by companies such as Visa, MasterCard and American Express.  The company says the fees account for between 1.75 and 2 per cent of the value of transactions in U.S. and Canadian gas stations and convenience stores, compared with just 0.5 per cent in Australia where the fees are regulated.

Continue Reading

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TJX Finally Closes Book on Breach with $525k Settlement

FRAMINGHAM – TJX Cos. has settled with the remaining financial institutions that hadn’t previously agreed to settle claims against the Framingham-based retailer for a data breach that took place in 2005 and 2006.



TJX said on Wednesday that it paid $525,000 to AmeriFirst Bank, HarborOne Credit Union, SELCO Community Credit Union and Trustco Bank, primarily to reimburse them for a portion of their legal expenses in the class action suit against TJX.



The retailer, which settled the case with most of the financial institutions in December 2007, denied any wrongdoing.



In hindsight, I bet that Alex Gonzalez, a.k.a. "SoupNazi" would've taken half that amount for a one-year contract as a consultant to TJX...where he could have exposed the inherent weakness he exploited.  But he decided to go another route...  

Coinstar Signs Agreement wiith SVS

Coinstar E-Payment Services Signs Agreement with Stored Value Solutions

SVS to Provide Instant Issue MasterCard® Prepaid Gift Cards

LOUISVILLE, Ky.--(BUSINESS WIRE)--Stored Value Solutions (SVS), a leading provider of custom gift card solutions for prepaid cards, announced today an agreement to provide MasterCard® prepaid gift cards to Coinstar E-Payment Services, a subsidiary of Coinstar Inc., a multi-national company offering a wide range of front-of-store solutions. The new agreement will focus on supplying MasterCard® prepaid gift cards at retail outlets across the country.



With the SVS prepaid solution, customers can load cash onto a MasterCard® prepaid card and have the freedom to shop anywhere Debit MasterCard is accepted, including online, with no credit checks and no late fees.

“We are excited to expand our partnership with Coinstar to include prepaid branded products,” said Ralph Rolen, executive vice president and general manager of SVS. “The addition of the instant issue MasterCard prepaid card will strengthen Coinstar’s current versatile product offering.”



About Coinstar, Inc.



Coinstar, Inc. (NASDAQ: CSTR) is a leading provider of automated retail solutions offering convenient products and services that make life easier for consumers and drive incremental traffic and revenue for its retailers. The company’s core automated retail businesses are self-service coin counting and self-service DVD rental. Other Coinstar products and services found at the retail front-end include e-payment products such as gift cards, prepaid products; money transfer services; and entertainment products and services, including skill crane machines and bulk vending. The Company's products and services can be found at supermarkets, drug stores, mass merchants, financial institutions, convenience stores, restaurants and money transfer agents. www.coinstar.com



About Stored Value Solutions



Stored Value Solutions provides custom gift card solutions for prepaid cards, loyalty and B2B applications for a diverse set of clients including retailers, airlines, casinos and e-tailers. As a leading provider of magnetic stripe gift cards, Stored Value Solutions serves six of the top ten U.S. retailers and annually processes over 1 billion transactions for 600 clients. Stored Value Solutions is based in Louisville, KY and is owned by Minneapolis-based Ceridian Corporation. www.storedvalue.com



About Ceridian



Ceridian is a global business services organization that offers a comprehensive range of innovative solutions. From human resources and benefits to accredited employee assistance, work-life and health and productivity services, Ceridian helps organizations maximize their human, financial and technology resources. As a leader in payroll outsourcing, gift cards and controlled spending, Ceridian is also a driving force in payment innovation. Whether partnering to improve employee productivity, save money or minimize financial risks, Ceridian's business is to help organizations stay focused on their business. www.ceridian.com



MasterCard is a registered trademark of MasterCard International Incorporated.

Walmart, Launches Electronic Pay Program

Walmart Launches Associate Electronic Pay Program with MasterCard and First Data

Provides Easy Access to Pay and Reduces Use of Paper Paychecks



BENTONVILLE, Ark., Sept. 3 /PRNewswire-FirstCall/ -- Walmart, MasterCard

Worldwide and First Data today announced a new, more sustainable payroll

program designed to reduce the number of paper paychecks and pay stubs

distributed each year to Walmart and Sam's Club associates in the U.S. In

order to benefit both associates and the environment, the electronic pay

program will include the deployment of the Money Network(TM) MasterCard

Paycard(R) and electronic pay stubs, which will cut down on paper consumption

and provide associates easier access to their wages.



"Electronic payroll is the right choice for our associates, our company and

the environment," said Tom Schoewe, executive vice-president and CFO, Wal-Mart

Stores, Inc. "It provides our associates with fast, convenient and safe access

to their pay. The program's ability to reduce paper usage is right in line

with Walmart's commitment to eliminate waste wherever we can."



Walmart associates may receive their pay either by direct deposit or through

the First Data Money Network program and may access their wages through the

Money Network MasterCard Paycard(R) or Money Network(TM) Checks. The program

will provide a more flexible way for associates to get immediate access to

their full wages on payday even during natural disasters such as blizzards,

hurricanes and floods. Associates will not need to come in on their day off or

while on vacation to receive their pay, and they will have the convenience of

receiving cash fee-free at any Walmart or Sam's Club register. The new

electronic pay program will be rolled out to all U.S. associates in September.





"We have worked closely with Walmart and First Data to develop a customized

program that will simplify the payroll process and support environmental

sustainability," said Chris McWilton, president, U.S. Markets, MasterCard

Worldwide. "We are excited that we are able to support Walmart's vision for

truly responsible and sustainable business operations by providing Walmart and

Sam's Club associates with the benefits of immediacy, security, simplicity and

efficiency offered by paperless wages." MasterCard will be the exclusive brand

for the card, which can be used anywhere Debit MasterCard is accepted,

including ATMs.



First Data will provide the processing and reload network for the program as

part of First Data's Money Network(R) Payroll Distribution Service. "Walmart

is raising the bar for employers everywhere by providing associates who don't

have bank accounts with immediate access to funds on payday, without fee or

discount, and access to cash at thousands of locations across the country,"

said Ed Labry, president, Retail and Alliance Services, First Data.

"Associates may also write Money Network Checks payable to themselves or use

them to pay bills, just like any other check." Associate funds in the Money

Network program are FDIC-insured.



Walmart's Sustainability Commitment As part of its company-wide sustainability

goals, Walmart is committed to being supplied 100 percent by renewable energy,

creating zero waste and selling environmentally-friendly products. The company

is moving toward these goals by using sustainable sourcing practices including

energy efficiency, waste reduction, renewable energy and lifecycle management.

These initiatives are making Walmart a more sustainable company and helping

create a favorable environment for green job creation.



About Walmart Stores, Inc.



Wal-Mart Stores, Inc. (NYSE: WMT), or "Walmart," serves customers and members

more than 200 million times per week at more than 8,000 retail units under 53

different banners in 15 countries. With fiscal year 2009 sales of $401

billion, Walmart employs more than 2.1 million associates worldwide. A leader

in sustainability, corporate philanthropy and employment opportunity, Walmart

ranked first among retailers in Fortune Magazine's 2009 Most Admired Companies

survey. Additional information about Walmart can be found by visiting

www.Walmartstores.com. Online merchandise sales are available at

www.Walmart.com and www.samsclub.com.



About MasterCard Worldwide



MasterCard Worldwide advances global commerce by providing a critical economic

link among financial institutions, businesses, cardholders and merchants

worldwide. As a franchisor, processor and advisor, MasterCard develops and

markets payment solutions, processes approximately 21 billion transactions

each year, and provides industry-leading analysis and consulting services to

financial-institution customers and merchants. Powered by the MasterCard

Worldwide Network and through its family of brands, including MasterCard(R),

Maestro(R) and Cirrus(R), MasterCard serves consumers and businesses in more

than 210 countries and territories. For more information go to

www.mastercard.com.



About First Data



First Data powers the global economy by making it easy, fast and secure for

people and businesses to buy goods and services using virtually any form of

electronic payment. Whether the choice of payment is a gift card, a credit or

debit card or a check, First Data securely processes the transaction and

harnesses the power of the data to deliver intelligence and insight for

millions of merchant locations and thousands of card issuers in 36 countries.

First Data's Money Network Payroll Distribution Service delivers the benefits

of paperless pay, while at the same time reducing administrative costs for

employers. For more information, visit www.firstdata.com.



Media Contacts:



Michelle Bradford, Walmart, Tel +479 204 6696, michelle.bradfordO@Wal-mart.com



Sarah Ely, MasterCard Worldwide, Tel. + 914 249 6714, sarah_ely@mastercard.com



Glen Turpin, First Data, Tel +303 967 6552, glen.turpin@firstdata.com



SOURCE Wal-Mart Stores, Inc.



Michelle Bradford of Walmart +1-479-204-6696, michelle.bradfordO@Wal-mart.com;

or Sarah Ely of MasterCard Worldwide, +1-914-249-6714,

sarah_ely@mastercard.com; or Glen Turpin of First Data, +1-303-967-6552,

glen.turpin@firstdata.com

Lloyd Constantine's New Book is "Priceless"

From: Payments News 

Priceless: The Case that Brought Down the Visa/MasterCard Bank Cartel

Attorney Lloyd Constantine of Constantine Cannon has a new book coming out in early October titled "Priceless: The Case that Brought Down the Visa/MasterCard Bank Cartel".

From the advance material on the book:

Priceless offers readers an insider’s telling of the case that ended with the breakup of the Visa/Mastercard credit cartel and a $3.4 Billion settlement. Lloyd Constantine, founder of Constantine and Partners, the small boutique antitrust firm that could, and lead counsel on the Visa/Mastercard case, takes no prisoners as he tells his side of what happened in this very public lawsuit whose outcome continues to affect economics today."

Priceless is now available for pre-order from Amazon.com.

Interac and PULSE Reach ABM Agreement

INTERAC(R) and PULSE(R) collaborate to provide cash access in Canada for Diners Club, Discover and PULSE cardholders

TORONTO, Aug. 31 /CNW/ - INTERAC and PULSE today announced an agreement
to provide Diners Club, Discover and PULSE cardholders the ability to withdraw
money from ABMs of participating Acquirers in Canada.

"The agreement with PULSE builds on INTERAC's commitment to expand
international use of the payment network through relationships with other
networks," said Mark O'Connell, President and CEO, Acxsys Corporation,
architects of the INTERAC network.

Similar to INTERAC's Cross Border service, the PULSE and INTERAC
connection eliminates network setup and ongoing costs for Canadian Acquirers.

"We are pleased to be collaborating with INTERAC to expand cash access
for Diners Club, Discover and PULSE cards in Canada," said Dave Schneider,
PULSE President. "Increasing acceptance around the world is a key priority for
Discover Financial Services and this agreement supports that goal."
 
PULSE, one of the largest ATM/debit networks in the United States, is
part of Discover Financial Services. The relationship with PULSE is expected
to drive incremental transaction volume for Canadian Acquirers.

"This collaboration demonstrates our commitment to serving the needs of
our clients by bringing them innovative services to support and grow their
businesses," said O'Connell. "The agreement will allow Canadian Acquirers to
evolve their ABM service offerings by extending their services to additional
cardholders travelling in Canada."

Access to the service was initiated for Diners Club cards in July. ABM
acceptance for Discover and PULSE cards on the INTERAC network is scheduled
for October 2009.

    About Acxsys Corporation

Acxsys Corporation, comprised of eight large financial institutions as
shareholders, is headquartered in Toronto, Ontario. Acxsys specializes in the
development and operation of new payment service opportunities as well as
consulting and management services in the field of electronic payments. The
Corporation's shareholders are the architects of Canada's national network for
shared electronic financial services: INTERAC Direct Payment, Canada's
national debit card service and INTERAC Shared Cash Dispensing Service for
cash withdrawals at Automated Banking Machines. For more information, please
visit www.acxsys.ca.

    About PULSE

PULSE is one of the leading ATM/debit networks in the U.S., currently
serving more than 4,500 banks, credit unions and savings institutions across
the United States. PULSE is owned by Discover Financial Services (NYSE: DFS).
The network links cardholders with more than 289,000 ATMs, as well as POS
terminals at retail locations throughout the U.S. The company is also a valued
resource for industry research related to electronic payments and is committed
to providing its participants with education on evolving products, services
and trends in the payments industry. For more information, visit
www.pulsenetwork.com.

For further information: Tina Romano, Interac Association, Acxsys
Corporation, (416) 869-5062, tromano@interac.ca; Steve Sievert, PULSE, (832)
214-0111 or (800) 420-2122, ssievert@pulsenetwork.com

Best Practices for Promoting Consumer Use of Contactless Payments ID'd

New Smart Card Alliance Research Identifies Best Practices

for Promoting Consumer Use of Contactless Payments



PRINCETON JUNCTION, N.J., September 3, 2009 – New Smart Card Alliance Contactless and Mobile Payments Council research has identified issuer and merchant best practices for driving consumer use of contactless payments. The Council presents its research in a new white paper, “Issuer and Merchant Best Practices: Promoting Contactless Payments Usage and Acceptance,” available for download at: http://www.smartcardalliance.org/pages/publications-issuer-and-merchant-best-practices-promoting-contactless-payments-usage-and-acceptance. 

“Over the past five years, contactless payment has had the fastest deployment and acceptance of any emerging payments technology in recent memory,” said Randy Vanderhoof, executive director of the Smart Card Alliance.  “Though acceptance continues to rise, we need to look at the next steps in advancing the technology. The goal of this white paper is to outline the best practices necessary for the industry to move past the early adoption phase and prepare the payment infrastructure for the next innovation in proximity payments – NFC-enabled mobile phones.”

The Council studied the effectiveness of certain issuer and merchant activities in marketing, promotion, and consumer and employee awareness in order to determine the best practices for promoting consumer awareness and use of contactless payments.  Some best practices detailed in the white paper include: providing basic information on benefits and on how and where to use the cards; targeting cardholders by demographics; creating “buzz;” identifying champions for contactless benefits; creating incentives; using multiple communication vehicles to deliver key messages; and many more.

“The white paper also includes best practices for other industry stakeholders.  It is our view that all members of the ecosystem – including acquirers, processors, vendors, payment brands, and industry associations – need to be engaged and coordinated to play a role in making contactless payments a success,” added Vanderhoof 

Participants involved in the development of this white paper and in the issuer survey included: Collis America, Cubic, Discover Financial Services, First Data Corporation, Giesecke & Devrient, IBM, INSIDE Contactless, MasterCard Worldwide, Oberthur Technologies, VeriFone, and ViVOtech.

About the Smart Card Alliance Contactless and Mobile Payments Council Research

Since mid-2005, leading financial issuers have placed tens of millions of contactless credit and debit cards and devices into the hands of consumers worldwide, while over 153,000 merchant locations accept the technology. 

In early 2009, the Council's Consumer Work Group conducted a series of interviews with contactless credit and debit card issuers and payment brands to understand what programs issuers had instituted to drive consumer usage and awareness and which programs were the most successful.  This white paper reports the research findings and describes the best practices that issuers found to be most effective.

About the Smart Card Alliance Contactless and Mobile Payments Council



The Contactless and Mobile Payments Council is one of several Smart Card Alliance technology and industry councils. The Council was formed to focus on facilitating the adoption of contactless and mobile payments in the U.S. through education programs for consumers, merchants and issuers. The group is bringing together financial payments industry leaders, merchants and suppliers. The Council’s primary goal is to inform and educate the market about the value of contactless and mobile payment and work to address misconceptions about the capabilities and security of contactless technology. Council participation is open to any Smart Card Alliance member who wishes to contribute to the Council projects.



About the Smart Card Alliance



The Smart Card Alliance is a not-for-profit, multi-industry association working to stimulate the understanding, adoption, use and widespread application of smart card technology.





Through specific projects such as education programs, market research, advocacy, industry relations and open forums, the Alliance keeps its members connected to industry leaders and innovative thought. The Alliance is the single industry voice for smart cards, leading industry discussion on the impact and value of smart cards in the U.S. and Latin America. For more information please visit http://www.smartcardalliance.org.

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Contact: Deb Montner, Montner & Associates Tech PR Agency, 203-226-9290, dmontner@montner.com