Mobile Payment Industry News

Tuesday, October 7, 2008

10 Tips to Secure Online Shopping that You Won't Need to Know!

Editor's Note: Before you read this story about 10 tips to prevent hackers from getting your card information when shopping online, I should let you know that ultimately, practicing these tips won't protect you. I will however, show you a simple and logical way to make your online transactions exponentially more secure...ultimately providing you and yours with the peace of mind so many online-shoppers lack, yet desire. Here's how...

Simply place an order for a HomeATM Personal Swiping Device, and you won't ever have to worry about the following 10 tips designed to "help" protect your identity when shopping online.

Even if you were to memorize and practice the art of using all 10 of these tips, you are NOT going to be protected when shopping online. You'll be more protected, but not fully protected. But there is a way to fully protect you when you shop online.

It's simple...compare the two choices:

Choice One (current method): Think about it. Does any part of your mind, intuition, thought process, knowledge, etc. think this is a safe way to purchase anything online? Then why would you enter your card information including your card number and expiration date into a box on a website and then worry hacker will see your data or break into the the retailers system in the future, steal your data and wipe out your bank account?

Choice Two (Our Way): For the cost of shipping and handling, we'll send you our SwipePIN device and you can process your purchases online the same way you do it in retail stores.

Simply take out your card and swipe it yourself in the safety of your own home. See the numbers on the PIN pad? Yes, it even allows you to further secure the transaction with your PIN. (all data is fully encrypted). You should be "SwipePIN your Slider"

This globally patented platform brings the Point of Sale device Home...where the Point of Sale occurs. Better yet, (and here's our direct response TV commercial pitch) "Try HomeATM's SwipePIN device at home FREE for 90 days...just pay shipping and handling ($5.00) and if you're not completely convinced it's the most secure way to make your online purchases, let us know and we'll deactivate it. Otherwise, use it to send us $5.00 dollars for a total cost of only $10.00! You can now shop online safely, securely with the knowledge that both your card and card reader are hack and skim free, respectively. (You can also rest assured it hasn't been tampered with)

Until you start using the SwipePIN method, consider these tips to reduce your risks. But remember, there's keyloggers, hijackers, screen scrapers, hacktivists, wardrivers and myriad other threats that these tips don't protect you against.

Ten Online shopping tips to protect your identity

This holiday season many online shoppers wanting to avoid the hassle of visiting crowded shopping malls will look to the web as a quick and easy to purchase gifts for friends and loved ones. Although the number of Canadians shopping online continues to grow, there are still many consumers who won't shop online for fear they could be victims of identity theft.

The truth is that identity theft is a relatively rare occurrence and most identity theft occurs in using low tech off-line methods therefore most experts agree that shopping online is very safe provided consumers use some common sense when shopping online.

To help make shopping online more safe and secure, Digital Home presents the following Ten Tips for Secure online holiday shopping:

1. Only provide personal information if you're on a secure Web site. Once you are logged in, make sure the Web address starts with "https"("s" means it's secure). For added safety, check for a site certificate before submitting information on a secure page. Confirm the owner of the certificate by clicking on the padlock icon at the bottom of most browsers. You should see the owner listed as well as the site address. This address should match the Web site address at the top of the page; if they do not match, you may be at a fraudulent Web site and should not enter personal data.

2. Never respond to emails asking you to "confirm" recent transactions after you shop. These likely are "phishing" scams sent to lure private information from you.

3. Maintain a paper trail. Print and save records of your online transactions, including the product description and price, the online confirmation/receipt, and copies of any email(s) you exchange with the seller.

4. Do not share your passwords with anyone and never provide your social insurance number, birth date, or mother's maiden name in an email.

5. Make sure all of your security software is up-to-date before you do your online shopping. That includes anti-virus software, anti-spyware, and firewalls.

6. Check a company's privacy policy before doing business with it. A company should allow you to know what personal information its Web site is collecting, why and how it will be used. If you can't find a privacy policy -- or if you can't understand it -- consider taking your business to another site that's more security-conscious and accommodating to customers.

7. Consider using a separate email account for your online shopping. You can set up a free email account online through several different services.

8. Check your bank and visa accounts regularly for any activity you did not initiate. This is especially needed during the busy holiday shopping season. You should be able to log on quickly and check to see if there is any unusual activity in your bank or credit card account that you did not initiate. If there is, contact your bank immediately.

9. Do business with companies you know and trust. Research a company before revealing personal or financial information online. Confirm an online seller's physical address and phone number in case you need to get in touch with them. If you get an email or pop-up message from the seller while you're browsing that asks for financial information, don't reply or click on the link in the message. Legitimate companies don't ask for this information via email or pop-ups.

10. Watch out for fake "look-alike" sites. Some con artists disguise their Web site as a well-known company's site. Check your browser's address bar to make sure you're always using the correct Web site address. If the Web site seems suspicious, leave it immediately and call the company.

Finally and perhaps the most important piece of common sense when shopping online is one that is true when shopping offline - Never let anyone see your card numbers and never hand your card over.

US Consumer Payments Study: PIN Debit Continues to Gain in Popularity

Hitachi Consulting: News Article

Electronic Payments Now Account for Majority of Consumer Payments

DALLAS - Oct. 6, 2008 - Consumers are increasingly using electronic payments at the expense of cash and checks, according to a new nationwide consumer payment preferences study conducted by BAI and Hitachi Consulting. The research was sponsored by First Data Corporation and its STAR® Network, Harland Clarke, MasterCard Worldwide, Metavante, and PULSE.

The 2008 Study of Consumer Payment Preferences found that 63 percent of all consumer purchases are made using electronic payment methods. Electronic payments now account for the majority of payments across all three major payment venues-including bill payment. Internet payments have always been predominantly electronic, almost by default. For in-store payments, the balance between paper and electronic payments shifted in 2003, leaving bill payment as the last bastion of paper-based payments. This is no longer the case, however, as paper-based payments' share of bill payments shrank from 55 percent in 2005 to 38 percent in 2008.

"Bill payment has historically been a stronghold for checks," said Ajay Nagarkatte, managing director of Syndicated Research at BAI. "But increases in the adoption and usage of online bill payment over the past three years have significantly eroded the number of paper checks being mailed to pay bills."

Retail store purchases account for the majority of consumer payments. For in-store purchases, the migration to electronic payments continues to be driven by the increasing popularity of card-based payments, particularly debit. PIN and signature debit now account for 37 percent of consumers' in-store purchases, up from 21 percent in 1999.

Checks and now cash are giving way to card-based payments at the point of sale. Checks' share of in-store purchases has declined from 18 percent in 1999 to 8 percent in 2008, and after holding relatively steady for the past several years, cash has dropped to 29 percent. Contrary to robust forecasts, gift/prepaid card's share of purchases has not increased significantly over the past three years.

Looking forward, electronic payments will likely continue to erode the share of payments made using paper-based methods. As one young consumer observed when answering the survey, "paper is old school!", and over the next two years, consumers expect to increase their use of debit and decrease their use of checks and gift/prepaid cards.

"I expect the shift from paper to electronic payments to continue as consumers increase their use of cards and new forms of electronic payments gain traction," said Chris Allen, director of consulting services in the Financial Services Practice at Hitachi Consulting. "Although the proliferation of payment methods increases the complexity of managing payments, it also creates opportunities for financial institutions and payment service providers. There are a lot of changes taking place, and it's an exciting time to be in the industry."

About the Study

The 2008 Study of Consumer Payment Preferences is the definitive guide to how consumers pay in different venues, why, and how their payment habits are likely to evolve going forward. The study provides insights into consumer behavior and preferences across three important payment venues: retail point-of-sale (in-stores), Internet purchases, and bill payments. Findings from the 2008 Study are based on an online survey administered by Harris Interactive, and completed by a nationally representative sample of 3,308 U.S. consumers in June 2008. The sampling error for the national sample was +/- 1.7 percent at a 95 percent confidence interval.

This study is the fifth in a series of studies tracking consumers' payment habits, preferences and their migration from paper to electronic payments, and is a follow on to studies conducted in 1999, 2001, 2003, and 2005 by Dove Consulting (which was acquired by Hitachi Consulting in 2005) in conjunction with the American Bankers Association. To inquire about purchasing the study, please call Chris Allen, director of consulting services, Payment Strategy Group, Hitachi Consulting, at 617-753-9250 or Ajay Nagarkatte, managing director, Syndicated Research, BAI, at 312-683-2486.

Finextra: Americans shun paper for e-payments - survey

Nearly two thirds of all US consumer payments are now made electronically as Americans increasingly turn away from cash and cheques, according to research from BAI and Hitachi Consulting.

A poll of 3308 US consumers - sponsored by First Data, Harland Clarke, MasterCard, Metavante and Pulse - found electronic payments are now the majority across all three major venues - bill, Internet and in-store.

Until recently bill payments were the last bastion of cash and cheques - with the two forms of payment accounting for 55% of total bill payments in 2005 - but this has slipped to 38% in 2008.

"Bill payment has historically been a stronghold for cheques," says Ajay Nagarkatte, MD of syndicated research at BAI. "But increases in the adoption and usage of online bill payment over the past three years have significantly eroded the number of paper cheques being mailed to pay bills."

PIN and signature debit cards continue to gain in popularity for in-store payments, accounting for 37% of purchases in 2008, compared to 21% in 1999.

In contrast, the use of cheques to pay for in-store purchases has declined from 18% in 1999 to eight per cent in 2008. After holding relatively steady for the past few years, the use of cash has now dropped to 29%.

However, the survey shows that contrary to robust forecasts, gift and pre-paid cards have not seen a significant increase in take up over the last three years.

Chris Allen, director, consulting services, financial services practice, Hitachi Consulting, says: "I expect the shift from paper to electronic payments to continue as consumers increase their use of cards and new forms of electronic payments gain traction."

Earlier this year a US study released by TowerGroup forecasted a continuing decline in cheque volumes - from 22.1 billion items in 2006 to 17.9 billion by the end of 2009 - as consumers turn to electronic payments.

Figures from TowerGroup and the Federal Reserve show that cheques have lost their dominance in the US payments market, shrinking from a 46% share of total non-cash payment volume in 2003 to 31% in 2006.

TowerGroup says this fall has been driven by a desire among consumers to be able to pay bills and make purchases in faster and more convenient ways.

Amazon to Bill Me Later...And Your Done?

Editor's Note: My initial thought on this deal was that the founder and shareholders of Bill Me Later bailed because of the upcoming consumer credit crisis. In today's economic climate, if they adjust the amount of credit it offers customers the way credit card companies are, then eBay chose very unwisely with this buy. I'm reading articles all over the Internet about credit card companies lowering credit limits, raising interest rates, etc. etc. I think that Bill Me Later got the best of this deal. (Look in "related articles" below for the one from TechCrunch)

Will Amazon Ditch Bill Me Later After eBay Takes Over?

Yesterday eBay said it would spend $945 million to buy online payment company Bill Me Later, but the folks over at Amazon.com aren’t likely to welcome eBay as Bill Me Later’s new corporate overlords. Amazon holds an equity stake in the payment processing company and is its top customer — with competitor eBay moving to buy it, Amazon has some thinking to do.

Amazon doesn’t have a board seat at Bill Me Later, and as such was probably not involved in the acquisition talks. The question now is whether it will continue to offer Bill Me Later as a payment option. As far as merchants go, Bill Me Later is cheaper than credit cards. But so far Amazon.com, which previously scorned PayPal because of its ties to eBay, has been non-committal about its plans. It said in a statement, “Currently, Bill Me Later is still available as a payment option on our site, but I can’t speculate as to whether we’ll continue to offer them going forward.”

From a payments perspective, eBay has chosen wisely with this buy. PayPal is a debit-oriented program, while Bill Me Later caters to those who are shy about using their credit cards online but don’t want to deal with the hassle of PayPal by offering them credit after they enter their information. While that may seem downright foolish in this economic environment, Bill Me Later investor Mike Kwatinetz of Azure Capital Partners says the company is able to quickly adjust the amount of credit it offers customers.

PayPal has the largest number of the top online retailers using its service, but Bill Me Later has an opportunity to process more transactions, according to data issued last month by research firm Cowen & Co. PayPal’s penetration rate of the top 300 U.S. e-commerce companies rose to 35 percent as of September from 28 percent at the end of last year, but Bill Me Later has $31.6 billion in addressable sales, compared to $26.1 billion for PayPal. Bill Me Later’s top customers (other than Amazon) include OfficeMax, Apple, Newegg, and QVC. Underscoring Amazon’s eBay aversion? All of those merchants also accept PayPal.

Monday, October 6, 2008

Online Shopping/Online Debit...What's the Alternative?

Editor's Note: This article by Alex Rampell from E-Commerce times is subtitled "Expert Advice" but I should think that the idea of Internet Retailers offering a more secure transaction at a lower cost, would be labeled "Common Sense."

Here's some expert advice: Stop calling platforms such as HomeATM's globally patented PIN Debit and Credit offering, an alternative payment. Alternative to what? Paying Visa and MasterCard's exorbitant fees?

In the bricks and mortar world, PIN Debit is labeled as the fastest growing, most secure and most preferred payment platform outside of cash. (Gartner Research)

So where's the logic in calling "the fastest growing most preferred payment method " an alternative payment method? The fact is, PIN debit being labeled as an "alternative" payment platform would be akin to calling online shopping. "alternative shopping." I base this on the fact that the only truly alternative name for PIN debit is "online debit."

So to call HomeATM, which provides online debit online, an alternative payment platform is, at best, a misnomer. In the face of the Duopoly known as Visa and MasterCard, anything other than using their platforms somehow got labeled as an "alternative payment." I say au contraire...

In the here and the now, there's no better alternative for online shopping than using online debit. I say, provide consumers with HomeATM's SwipePIN device in the future and "card not present" transactions become a thing of the past. The point I'm making is that the card IS present, at the point of sale. It's the ability to be SwipePIN at home that's missing. So bring the POS device to the point of sale...bring it home. There's no place like home...atm.

Here's the article:

"As consumers tighten their budgets, some e-commerce retailers may feel the pinch. To avoid being buried under a mountain of abandoned shopping carts, online vendors should consider offering alternative payment options that give the buyer more convenience, flexibility and security, writes TrialPay CEO Alex Rampell.

The U.S. economy has entered a vicious cycle where housing, employment and financial troubles are forcing consumers to tighten their purse strings and closely evaluate their every purchase. Retailers are also feeling the grip of a tightening economy as they compete aggressively for a diminishing number of buyers' dollars.

In response, innovators in e-commerce have introduced creative marketing models and alternative payment systems that offer more security than credit cards, no interest, and free products or purchase incentives. These methods are especially attractive to online merchants because they actually increase a customer's willingness to buy and create new revenue streams.

PayPal was a pioneer in this space, and its $12 billion valuation shows just how valuable alternative payment methods are. The current success of some companies' innovative marketing models, as well as firms like Bill Me Later and TrialPay, indicate that alternative payment platforms will soon become a mainstream player in the multi-billion dollar payments industry.

Integrating Alternative Payment Options

Any company that conducts business online should consider integrating alternative payment platforms. With unlimited earnings potential, minimal integration costs, and lower rates and more perks than credit cards, these alternative options attract tens of thousands of top-tier merchants across virtually all industries. In fact, a recent survey conducted by First Annapolis Consulting found that, of 83 mid-sized e-commerce retailers, 41 percent accept alternative payments.

Unlike traditional ways to pay, alternative payment models create new revenue streams. They generate sales from transactions that otherwise would have resulted in abandoned shopping carts, unfulfilled subscription renewals or sign-ups for free trials. They allow online marketers to evolve with the demands of today's discerning consumer. And they offer no-brainer, cost-per-acquisition opportunities to attract valuable advertising dollars.

The current state of the economy has encouraged widespread adoption of alternative payment platforms by online retailers and shoppers alike. However, the relevance and popularity of these payment methods extend beyond a down economy. The multi-billion dollar payments industry is undergoing a transformation, and soon these "alternative" payment methods will be considered mainstream competition for credit cards and even cash. Just as the Internet has changed the way people shop, innovative payment methods are changing the way people pay."

eBay Pays Now for Bill Me Later

Image via CrunchBaseImage via CrunchBase

Ebay announced two acquisitions—spending over $1.3 billion altogether—this morning designed to shore up its other parts of its business in the face of declining profits and stagnant traffic at its primary online auction site. The company also finally addressed layoff rumors and said that it is indeed cutting 10 percent of its 15,000-person workforce. The company said about 1,000 full-time jobs will be affected, in addition to several hundred temporary workers and the elimination of open positions. The two acquisitions and the layoffs were summarized in a single release, with two others containing additional details.

The San Jose, CA,-based company says it has struck a definitive agreement to acquire Pay Pal rival Bill Me Later for approximately $820 million in cash and about $125 million worth of outstanding options, net of option exercise proceeds. The company will be combined with PayPal, which eBay already owns. The deal is expected to be completed by the end of the year. Click here for the Bean Investor Deck

Danish acquisitions: As part of its goal to increase its online classifieds holdings, eBay has turned to Denmark to buy Den Bla Avis and BilBasen for $390 million (about 2.1 billion Danish Kroner). The prices for the two weren’t broken out individually. eBay, which has a minority stake in Craigslist—the two are currently in the midst of a wide-ranging legal battle—has indicated that it wants to expand its focus on the online classifieds business. Den Bla Avis and BilBasen is added to eBay’s global portfolio of such sites, including the Netherlands’ Marktplaats, Spain’s LoQUo, the U.K.’s Gumtree, Germany’s mobile.de and Kijiji, which is stronger in Europe, but has been working on building up its U.S. presence lately as a competitor to Craigslist.

Saturday, October 4, 2008

CashBack in Hard Economic Times? That Works!

Microsoft Cashback Working, Says Hitwise - BusinessWeek

It does pay to buy clicks, it seems!

Hitwise says it’s seeing an increasing trend in the share of visits to Microsoft Live Search coming from its Cashback program. With Cashback, people get money back for clicking on and buying products offered under the Cashback name.

MSN Cashback represented 3.75% of the traffic to Live.com 11 weeks ago.

It was at 6.29% last week. This rise in Cashback’s traffic underscores the interest in the
program, which is likely to be getting a boost from shoppers looking to
save money and stretch their budgets given the current economic climate.

MSN Cashback on its own ranked #12 within a category of the top 50
search engines for the week ending Sept. 27, 2008. Not bad for a
shopping search/rebate program!

Other tidbits:
About 55% of the traffic are women.
Nearly half of the visitors were between the ages of 25 to 44
22% were 25 to 34
27% were 35 to 44.
And the majority of the visitors have a household income of under $100k.

Friday, October 3, 2008

VC's Take Notice of Alternative Payment Demand

Editor's Note: Both this and the previous post talk about RevolutionMoney and PayPal's P2P Money Transfer platforms. I know I haven't talked a lot about it on the blog, as we're working hard to bring the more secure and thus lower interchange fees of PIN Debit and Credit to the web, but...

HomeATM's Personal Swiping Device can be used to send money to anyone anywhere in the world...more securely and for less money than Western Union, PayPal, (see previous blog post) Visa, MasterCard and (I suspect but have yet to acquire the numbers for) Revolution Money. Frankly, I believe it to be not only the most secure and least cost intensive, but also the easiest way to send money from one party to another. I'll touch about this more in the near future, but with the RM and PP articles being posted back2back I thought I'd talk a little P2P B4 you read the post... JBF

More later on HomeATM's Person to Person Money Transfer service...

Image representing Revolution Money as depicte...

Image via CrunchBase

Revolution Money piles up cash to start credit revolution - Tampa Bay Business Journal:

ST. PETERSBURG — Revolution Money Inc. has raised more than $80 million in capital, including $20 million over the summer, as the startup firm strives to make its mark in the payments industry.

The money is funding operations, customer growth and technology development, said Darren Thompson, CFO at Revolution Money, a fast-growing firm that in one year has expanded to more than 100 employees, 85 percent of them at its downtown headquarters.

Revolution Money says its RevolutionCard credit card and MoneyExchange online person-to-person money transfer product cost less and provide greater security than better-known brands such as MasterCard, Visa and PayPal.

Investor interest has been piqued because there’s strong demand for cheaper payment methods in a cost-conscious and credit-crunched economy, said Adil Moussa, an analyst at Aite Group LLC. “I’m not surprised by how they [raised capital] because there is so much demand for alternative payments,” Moussa said.

Editor's Note: Want to see (according to TechCrunch) 50 companies most likely to survive the economic downturn? Then click here. Keep in mind, it's in "money raised" order, which doesn't mean a thing considering that biometric payment processor Pay By Touch...raised enough money to be SECOND on TechCrunchies Top 50 list...(if they were still in existence).

PayPal Launches Digital Ad Campaign for P2P Money Transfer

Marketing News: PayPal launches digital campaign - Marketing Week

PayPal, the online payment system, is launching a digital ad campaign to attract more customers to its person-to-person money transfer service. It will target men's magazine websites such as FHM, Nuts and Zoo.

The viral campaign called "I'm not a charity" includes email, a microsite and online ads developed by Tullo Marshall Warren (TMW). The ads take a comic approach with headlines such as "£10 means nothing to you, but it could mean the world to little John".

The ads will feature in men's magazine sites and also target younger audiences with emails, encouraging recipients to send funny customized appeals to their indebted friends for a repayment.

The email receivers can upload their images and develop their own campaign addressed to their indebted friend. The online ads are in the form of a poster pasted on a tattered cardboard with bold graphics.

Just Say No to Double-Dipping!

PayPal Double-Dips with Billing Glitch; eBay Credits Coming?

By Ina Steiner
AuctionBytes.com

Some PayPal members discovered the online-payment service had "double-dipped" their accounts. PayPal waited until October 1st to post the problem on its Announcement Board, explaining that some PayPal Debit Card transactions that were initiated on September 26th were debited twice due to a processing error. "We have begun processing the corrections for the duplicate payments and they should appear in your PayPal account in the next few days. We apologize for any inconvenience this may have caused and are working to resolve this issue as soon as possible."

PayPal spokesperson Michael Oldenburg said the company would be communicating with affected customers individually by email and was working to correct the duplicate payments in the next few days. He declined to reveal how many accounts were affected by the glitch.

Meanwhile, sellers have been wondering whether eBay has issued credits yet for a glitch that caused items listed or revised on eBay between September 17 - 19 not to appear eBay Search. eBay announced the credit on its Systems Announcement Board and subsequently removed the post. Some sellers complain that they've been unable to reference it when speaking to eBay customer service representatives, some of whom are reportedly unaware that eBay promised the credits. eBay has not responded to inquiries about the credits.

Meanwhile, eBay Australia announced that buyers are having trouble redeeming vouchers.

Thursday, October 2, 2008

HomeATM CEO Appointed to Heart Health Advisory Board

Heart Health Inc. Appoints Innovator with 25 Patents to Advisory Board

Heart Health Inc. Appoints Innovator with 25 Patents to Advisory Board

(Marketwire Via Acquire Media NewsEdge) MONTREAL, QUEBEC, October 2 / MARKET WIRE/ --

Heart Health Inc. (OTCPK: HHEL) is pleased to announce that the Company has appointed Kenneth G. Mages, the founder and CEO of HomeATM Payments and a contributing developer of the Heart Health Monitor (HHM), to its advisory board.

He will assist the company with research and development, writing patents, and developing new applications for the HHM as it moves toward FDA approval.

Mr. Mages graduated from the University of Illinois with a B.A. in Business Administration and Computer Science in 1978. He has more than 25 years of experience in leadership positions serving as CEO HomeATM and KGM Graphics Inc., CTO of Planetportal.com, and Director of BioBank LLC before it became HomeATM. He has contributed to the filings of 25 patents, including one for a method to enable secure transmission of PINs over the internet, and another for a DOS-based system to digitize artwork for the comic industry.

"We are honored to have Mr. Mages join our advisory board. Fundamentally, as a contributing developer of the HHM, his expertise will help us move forward with its design, and his vast experiences in diverse leadership roles will be an enormous asset in our abilities to achieve our ultimate goal of revolutionizing the heart monitoring industry," stated Michael Kron, Chairman and CEO of Heart Health, Inc.

Heart Health Inc. continues to move forward with the development and marketing of its GSM and USB enabled Heart Health Monitor. This device will allow patients to instantaneously e-mail or print their EKG results, enabling a trained medical professional to make a quicker diagnosis of the user's heart condition.

About Heart Health, Inc.:

Heart Health, Inc. is a holding company focused on the development and marketing of innovative, cardiovascular medical device products. The Company intends to revolutionize the way in which people monitor the health of their hearts using newly acquired products such as the Heart Health Monitor.

Safe Harbor Act: This release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involves risks and uncertainties including, but not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment, or human resources, the effect of economic business conditions, and the ability to attract and retain skilled personnel. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

Contacts:
Heart Health Inc.
Investor Relations
1-866-THE-APPL(E)

U.K. Blames Abroad for Increased Fraud

Some people say there's a woman to blame, but I know...it's my own damn fault
- Jimmy Buffet

"PIN's Blame Abroad...They're Not Smart...Oui Are"

After 3 years of dismal results from the highly heralded Chip and PIN platform, which embeds circuits (Smart card) onto the card, is this the beginning of a propaganda-laced campaign by APACS aimed at deflecting criticism off their (what might be aptly renamed "Phish and Chip") program?

According to every published article I've read, the common denominator is "It's not their fault...it's the countries that haven't followed their lead and incorporated a Chip and PIN system". So they're waiting for everyone else to "get smart" cards and then it'll be OK. Unfortunately for APACS, the US has absolutely no designs on incorporating that system, thus it looks like APAC'SOL. "Sorry about that chief"...

Here's a collage of information from various UK media outlets spewing their spin on the failed ability of Chip and PIN to reduce fraud.

To see APACS report click here

According to APACS, fraud losses for debit and credit cards increased to £307 million in the UK - compared to £267 million over the same period last year. This is a 13 percent rise.

The total amount lost to the fraudsters reached a record £301.7 million in the first half of the year - more than before chip and pin security was introduced in 2006. £121.2million - or 40 per cent of the total - involved fraud committed on cloned or stolen UK cards using cash machines abroad, a 190 per cent rise in just three years.

The figures were boosted in particular by overseas fraud, which made up 40 percent of the total. Phone, internet and mail order scams were another pressure point, fraud from which rose 18 percent to £162 million.

While card fraud fell from £219.5million in 2005 to £209million in the first half of 2006 following the start of chip and pin, it rose to £263.6million in 2007.

Although the banking industry insisted that card fraud would have continued to rise sharply if chip and pin had not been introduced, in reality it has provided only a temporary halt, with fraudsters finding new - and more lucrative - ways to operate.

Last month, police warned that many gangs have installed fake chip and PIN readers in small shops and petrol stations to record the information on a credit card's magnetic stripe. A security camera then notes the customer's PIN before the card is cloned and used at a cash machine, usually abroad. Police suspect the money raised is not only fueling the activities of international criminal gangs involved in drug running and prostitution, but also terrorism

However, Sandra Quinn, of APACS, insisted: 'Criminals continue to target those areas where we do not currently have the security benefits of chip and pin, causing increases in fraud abroad and phone, internet and mail order shopping fraud.

"Fraud abroad will be more difficult for criminals to commit as more countries roll-out chip and pin. (Last I heard, the US isn't going to spend the billions of dollars needed to roll out that program, so I would translate that as "Fraud abroad will continue to be easy for criminals...)

"To help tackle online fraud, we urge shoppers to protect their computer with anti-virus software, only use secure websites and use systems that make cards more secure when shopping online."

Nice System for ATM and Debit Fraud

TEXT-Nice System's Actimize gets deal with MasterCard | Markets | Markets News | Reuters

Actimize, a leading provider of transactional risk management software for the financial services industry and a NICE Systems (NASDAQ:NICE) company, today announced that MasterCard is using the Actimize technology to augment its ATM and Debit fraud detection capabilities for issuers.

Actimize recently enhanced its debit fraud solution by acquiring proven analytic models used today by MasterCard in its Fraud Monitor service, a real-time risk scoring and fraud prevention service for PIN-based transactions offered by MasterCard to its customers.

The technology is proven to fight ATM and debit fraud effectively across multiple card brands and geographies and used and tested by clients such as MasterCard and other card issuers.

The Actimize fraud detection analytics are unique in that their multi-dimensional profiles can be created and updated in real time to detect suspicious activities at the card, device, account level and many other dimensions.

"MasterCard, the industry's security innovator and a global debit card leader, values our new relationship with Actimize in delivering value-added real-time risk scoring and fraud prevention solutions to our customers," says Bruce Rutherford, Group Head, MasterCard. "We have already received affirmation of the value of this solution from our customers who use this technology and we are looking forward to further evolving the technology and models."

Amir Orad, EVP and CMO of Actimize, said, "Our strategy is to offer a unique combination of the best ATM and debit fraud analytical solution with a proven scalable enterprise fraud platform. The fact that our technology has been selected by MasterCard and offered to their members worldwide means a lot to us and our customers."

As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes over 18 billion transactions each year, and provides industry-leading analysis and consulting services to financial institution customers and merchants.

Insider Traiting

Image representing Associated Press as depicte...

Image via CrunchBase

The Associated Press: Outsourcing aids many data thefts, Verizon says

By PETER SVENSSON – 11 hours ago

NEW YORK (AP) — The reliance of restaurant chains and retail stores on outside companies to handle credit-card processing and other information-technology functions is partly to blame for a rash of consumer data breaches over the last few years, according to data sleuths at Verizon Communications Inc.

Even a chain with thousands of restaurants might have only 100 employees in information technology, so it uses outside vendors for many IT functions, said Bryan Sartin, director of the investigative response team at Verizon Business.

"What happens is there's a lack of accountability on the third party," Sartin said.

Verizon's unit investigates a quarter to a third of the big, publicly announced data breaches that occur each year, and hundreds of smaller cases.

In recent years, restaurant and retail businesses have accounted for more than half of Verizon's 230 to 250 cases per year, according to a report Verizon was set to issue Thursday. It often finds that insiders at service vendors are part of the heists.

Organized data-stealing gangs "go to the call centers, the Web development companies, the content development companies, the business partners, the people who pick up the backup tapes," Sartin said. "They say ... if you hate your boss and you're in financial straits, we're your solution. Give us access to your customers. Better yet, give us your data."

In a typical case Sartin was involved in, the team was approached by a large oil company in Canada, with thousands of gas stations. Customers were finding spurious charges on their credit cards after using them at the stations.

The team soon figured out that someone at a technology vendor was responsible, but couldn't pin it down. So the investigators set a trap in the system, to see who accessed customer data.

"The trap went off on Saturday morning," Sartin said. "Hackers always think nobody's looking on Saturday mornings."

A police car headed to the vendor's office, and the culprit turned out to be a 21-year-old who supported the software that operated the gas pumps. He had sold lists of customer data to organized crime.

Many breaches don't happen through outsourcing. In one of the largest cases in recent years, the gang that stole 41 million credit and debit card numbers from chains including TJX Cos. obtained access through unsecured wireless networks, not through subcontractors' systems.

Still, Verizon's report advises companies to keep a tighter rein on contractors, including by limiting partners' access to only the data they need.

e-Commerce Expanding into Bricks and Mortar?

Using e-Commerce to Expand In Store Sales

In an article in eMarketer, they talk about the fact that the loss of sales due to "stockouts" has reached $93 Billion dollars and some retailers have responded with an e-commerce element inside their bricks and mortar locations. When you consider the cost of inventory, the cost of rent, the cost of build-outs, the cost of advertising "special occasions" or "blowout sales" then combine that with the fact that it's e-commerce driving the growth of major retailers, I would look for a different retail landscape within 10 years. Maybe this is the start...

Some retailers are providing in-store kiosks and wireless devices to let shoppers access a store's Website for product information or to place an online order, according to AMR Research.

"But the price listed on your Website was lower!"

Statements like this may not be heard in retail stores for much longer. Some stores have maintained Web-exclusive pricing or acted as if consumers never researched on the Internet before making a trip to pick up their products.

Yet nearly six out of 10 consumers in the US now use the Internet as their first choice for researching items purchased in a store, according to Nielsen Online, and smart retailers are bringing the e-commerce element to brick-and-mortar.

More than four out of 10 retailers surveyed said they offered such services, and nearly three-quarters said they planned to do so by 2010. Store kiosks can save the sale for retailers by creating "an endless aisle of products" when the store is out of stock or space limitations prevent the retailer from displaying its full selection.

The loss of sales to competitors due to stockouts measures $93 billion, according to the 2008 "Store Systems Study" produced by RIS News and research partner IHL Group. Another application of store kiosks is to provide customers with supplementary product information available from the retailer's Website.

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Monday, September 29, 2008

Is There a PayPal Killer in the House...Home...HomeATM?

Late last week, in a post entitled: Consumers Safer When Left to Their Own Devices, I talked about the simplicity, security and safety of HomeATM's ePayment Solution.

Simply put, HomeATM Provides Online Shoppers With the Ability to Swipe and Process Their Own Credit/Debit Cards, with Their Own Point of Sale (POS) Device Within the Friendly Confines of Their Own Home. My point is this: When online shopping, the "Point" Of Sale is where the consumer is...at home. Therefore, that's where the "SwipePIN" device should be. No home should be without one if they intend to shop and buy online.

Assuming an online shopper desires (and they do) a secure transaction, then typing in their Personal Account Numbers (PAN) is not a good idea...period. Consumers wouldn't write down their account numbers when going to a bricks and mortal retail store, so why do we think it prudent to do it when visiting a virtual one online?

In recent past, we would "hand over" our credit and debit cards, but those days are over as now, those very same cards don't leave our hands. "We swipe our cards ourselves." The reasons for doing so are fraud/security related, so, if consumers want a more secure online transaction, then why wouldn't they do the same thing online? Fact is, they would.

Once a consumer is armed with a personal swiping device which never leaves the safety of their home they've protected themselves against keylogging, screen-scraping, wardriving, skimming and myriad other methods used by hackers to intercept online transactions. PIN Debit, (Swipe and Enter PIN) is the most secure way to purchase online, which is why it offers internet retailers the lowest possible Interchange Rate available. Oh, and did I mention that HomeATM offers about the easiest way in the world to securely send money to anyone anywhere in the world?

Here's an article from BusinessWeek talking about alternative payment methods, and which one might be a "PayPal Killer." The suggestions provided for alternative payments companies have all been met or exceeded by HomeATM's Swipe at Home Solution.

Despite the acceptance of credit cards and services like PayPal, the issue of getting money from one person to another online still offers opportunities for innovation.

Venture firms are continuing to fund startups that hope to offer better ways to pay online, while the growth of Software as a Service (SaaS) in the enterprise has led to a need for new tools in corporate billing management. Further out, buying items over a mobile phone presents a multibillion-dollar opportunity—if someone can make it easy.

Despite the early-mover advantage PayPal has, and the presence of rival offerings from Internet giant Google (GOOG), there are plenty of retailers who only accept credit cards for online purchases. That eliminates their ability to sell to those without credit and those concerned with security online.

There are a few ways rival online payment services can find success against PayPal, wrote Jim Friedland, an analyst at Cowan & Co. earlier this week, citing a few examples: providing a neutral independent platform (PayPal is owned by Web retailer eBay (EBAY)), extending credit to shoppers, and offering lower transaction fees.

Editor's Note: So the few ways rival payment services can find success against PayPal would be to:

Create the ability to sell to those without credit cards
Provide a more secure transaction
Offer lower transaction fees
Make it easy.

HomeATM covers all four bases at once:

Those without credit cards have an ATM card or debit card, so credit isn't necessarily needed. Swiping the card provides a highly secure transaction, (covered) and entering the PIN provides dual authentication, which is why Card Present PIN Authenticated transaction fees are significantly lower than the more risky Card Not Present (CNP) rates, (covered) and HomeATM does it with the same methodology consumers are accustomed to utilizing at a retail location...by swiping their card into a POS device. Easy as 1-2-3-4. The article continues...

And startups are still searching for other opportunities online. Just last week online bill pay startup eBillMe raised $12 million from Canaan Partners and New Celtic Ventures. The company offers vendors an alternative to credit cards by allowing shoppers to receive a bill at their online banking portal. This allows shoppers to avoid putting their personal information on the merchant's site and allows for a cash, rather than credit, transaction.

Mobile Payments to Climb

But online sales are no longer limited to the PC. U.S. consumers are starting to use their mobile phones to make purchases, and this could be a growing market in the years to come. But there are challenges ahead. Bigger players such as PayPal and credit-card companies already offer mobile-payment products, and the current U.S. market for mobile-pay services is still small.

Only 1.5 percent of U.S. consumers have ever used their mobile phones to make a payment, but almost 50 percent are aware that they can do so, according to a survey released this week. The research, commissioned by financial firm Mercatus, predicts that with better services and customer education the percentage of people who will make payments from their mobile phones is likely to grow in five years to 15 percent among those age 18 to 30.The growing use of smartphones and shopping sites optimized for mobiles require payment options that are easier than keying in a 16-digit credit-card number. Startups such as angel-backed Billing Revolution and Zong, which launched earlier this month after raising more than $12 million in venture capital, are tackling the problem of buying on your mobile phone. Zong sends purchase information to carriers, which then bill subscribers for their purchases, while Billing Revolution offers a mobile credit-card processing platform. In April, Obopay scored $20 million for its money-transfer-via-mobile efforts.

Enterprise Customers Are an Opportunity

While the opportunity in mobile is still just cresting the horizon, enterprise customers provide an immediate opportunity for startups seeking to streamline transactions. In March, two startups offering an online billing platform for companies delivering SaaS products raised money. Zuora brought in $6.5 million in first-round funding led by Benchmark Capital for its platform. Rival Vindicia announced a $5.6 million round led by DCM and Leader Ventures.

These companies aim to make it easier for SaaS vendors to track and bill all of their customers. They also help customers track and manage multiple software services they might be buying—a task akin to managing household bills from tens or even hundreds of service providers. Tim McAdam, a general partner with Trinity Ventures, says these sorts of billing platforms and ways to track payments still represent a big category and no one has mastered it yet.

With everyone searching for ways to make money online that don't revolve around advertising, offering seamless but secure online payments will go a long way in enabling alternative business models.

Provided by GigaOm