Category: Smart Cards

Security, Smart Cards5 Comments

6 years is too long for elimination of mag strip debit cards

Colin Henderson

We were just hit today with a case of fraud that affected my family personally, and it just validates my view that the security of our payments networks is a problem being swept under the carpet.  Every day, all banks contact thousands of customers to cancel their debit card because it was or may have been compromised.  This is a well kept secret, and has not made mainstream press yet. In our situation we actually were the card compromised, and I know enough about the card usage to narrow down the location of the compromise which is why this one … Continue reading 6 years is too long for elimination of mag strip debit cards

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Consumers still need convincing on smart cards

Colin Henderson

Fewer than half of consumers would  switch to smart cards according to a “survey” by  terminal makers Ingenico. They arrive at the conclusion based on surveying people using the cards. There is an enormous gap between use of cards, and the benefits of the cards.  The simple truth is that people do not associate any benefits with the switch to the smarter cards. Convenience to drive contactless uptake, but consumers still need convincing | finextra Convenience, rather than security, will be the driving force behind the UK adopting new payment methods, according to a survey of 1000 British consumers conducted … Continue reading Consumers still need convincing on smart cards

Smart Cards

The smart card olympics commence

Colin Henderson

The branding olympics are underway now. G&D announce they are supplying a commerative Olympic smart card for Chinese Banks. Smart Cards for Olympics The Bank of China and the China Everbright Bank are offering their customers special Visa Olympic-edition credit cards. China Mobile is marketing a gift box containing six prepaid telephone cards, which is the fourth set of commemorative cards for 2008 Beijing Olympic Games launched by China Mobile. The Olympic smart cards are supplied by Giesecke & Devrient (G&D), a leading provider of smart card solutions. Continue reading The smart card olympics commence

Smart Cards

Holland – debit cards eating up smaller transactions

Colin Henderson

 Some stats from Linkdump indicating that debit cards are achieving scale in the smaller payments, that some had hoped stored value smart cards could achieve. … the debit-card eats up the low value segment Source: Linkdump on Payments: Debit card moves in on low-value payments   Technorati tags: smart+cards, debit+cards, Holland Continue reading Holland – debit cards eating up smaller transactions

Smart Cards

Finextra: Bank of America begins contactless m-payments trial

Colin Henderson

This is a smart move by Bank of America to start testing contactless cell phone payment now.  This is a smart card in a cell phone.  Its quite prevalent now in Japan, but this is the first instance I am aware of in North America.  Many Customers will like this. Around 500 staff at the bank’s offices in Wilmington, Delaware are expected to take part in the pilot and will use their mobile phones to pay for purchases at vending machines, in a cafeteria and at an internal convenience shop. Source: Finextra: Bank of America begins contactless m-payments trial   … Continue reading Finextra: Bank of America begins contactless m-payments trial

Security, Smart Cards

Did Barclays err in going with card readers for two-factor security?

Colin Henderson

In a follow up to the earlier announcement from Barclays, David on Zdnet questions if consumers will accept the solution.  I agree with that assessment. » Did Barclays err in going with card readers for two-factor security? | Between the Lines | ZDNet.com Are you supposed to bring a bulky card reader with you everywhere you go? In contrast, RSA makes versions of its securID solution that fit on your keychain. Think I’m crazy about the sort of mobility that people want out of their online banking? As I earlier noted: Relevance to Bankwatch:While this will buy some time, it … Continue reading Did Barclays err in going with card readers for two-factor security?

Smart Cards1 Comment

Update on click fraud

Colin Henderson

Good article at Wired which describes the issue in clear detail. It goes on to conclude as I did earlier, that the real solution is participate in cost per action. Wired News: Google’s Click-Fraud Crackdown Google is testing a new advertising model to deal with click fraud: cost-per-action ads. Advertisers don’t pay unless the customer performs a certain action: buys a product, fills out a survey, whatever.It’s a hard model to make work — Google would become more of a partner in the final sale instead of an indifferent displayer of advertising — but it’s the right security response to … Continue reading Update on click fraud

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Smart Card Group Tackling Contactless EMV

Colin Henderson

US, which has resisted adoption of smart cards/ chip cards, may win out with the potential to go straight to contactless cards.  The rest of the world will be left with expensive old style “dip” acquiring terminals, and ATM’s. Card Technology, The Smart Card News Source Representatives from EMVCo., the organization that maintains the standard, are meeting in Japan to better define the business requirements for a global standard covering contactless payments made with EMV-compliant cards. “We’re hoping to have a fully stable position by the end of this year,” Simon Pugh, senior vice president of MasterCard Worldwide’s advanced payment … Continue reading Smart Card Group Tackling Contactless EMV

Smart Cards, Wireless

More on contactless and mobile chip evolution

Colin Henderson

If you need to know where this is all going, then look to Japan & South Korea.

Japan, South Korea lead world in contactless payments : Contactless News

In Japan, FeliCa has created innovative businesses such as Suica (East Japan Railways’ transit card) and Edy (BitWallet’s e-money service), through which credit card and financial services, transportation and mobile service companies have aggressively adopted FeliCa-based smartcard payment solutions.

Furthermore, FeliCa has been installed in mobile handsets, so called ‘Osaifu-Keitai’ and ‘Mobile FeliCa’, allowing them to be used in a wide variety of contexts: as credit card, pre-paid e-money, transit card, and as identification for entrance management.

Continue reading “More on contactless and mobile chip evolution”

Smart Cards, Wireless

Just when we thought we had chip cards figured out … doh!!

Colin Henderson

Every bank is somewhere on the pace of conversion to chip /smart cards, even if they are just thinking about it.  Well, we had better be including the conversion to contactless in that plan as phase 2, and using a cell phone as phase 3;  according to ABI Research and others I have seen lately. Contactless Payment To Shift from Cards to Cell Phones, Says ABI Research | Tekrati Research News “Contactless commerce is on a steep growth curve, but cards are only an intermediate step,” says Erik Michielsen, director of ABI Research’s RFID and M2M practice. “By 2010, more … Continue reading Just when we thought we had chip cards figured out … doh!!