Payments

Dynamic Currency Conversion

Colin Henderson

I learned new term today, and captured it here for posterity.  It seems there is much discussion on this and the business case for it. Payments News: Nova Introduces Dynamic Currency Conversion – March 14, 2005 Dynamic Currency Conversion allows international cardholders in the U.S. the option to have their purchases instantly converted at checkout into their local currency. Currency conversion is calculated at a competitive exchange rate, and the U.S. dollar amount, conversion rate, and home currency amount are all printed on the receipt. Merchants, MSP’s and other NOVA partners have the opportunity to share in the revenue generated … Continue reading Dynamic Currency Conversion

Security

RSA acquires PassMark Security

Colin Henderson

RSA has simplified the decision process for Banks entering the two factor game, by now acquiring PassMark, for US $44.7 million. They had already acquired Cyota. This leaves Digital Envoy and their product suite. In addition, DE have their own problems in a lawsuit with Google. RSA Security – Press Release – RSA Security Acquires PassMark Security; Extends Leadership in Protecting Online Identities and Transactions RSA Security Inc. (NASDAQ: RSAS) today announced that it has acquired PassMark Security, Inc. A privately held company based in Menlo Park, PassMark delivers robust software-based authentication to millions of users worldwide, through some of … Continue reading RSA acquires PassMark Security

Payments, Smart Cards, US

Up to 25 Million US Mobile Phones Could Also be Mobile Wallets by 2011

Colin Henderson

Up to 25 Million US Mobile Phones Could Also be Mobile Wallets by 2011 As many as 25 million wireless phone subscribers in North America could be using their mobile phones as mobile wallets by 2011 The business model is more versatile than that proposed and failed in the 90's. Unlike M-commerce, the mobile transaction concept touted in the 1990s that never took hold, the mobile wallet is a much more versatile application that includes elements of mobile transactions, as well as other items one may find in a wallet, such as membership cards, loyalty cards, and other forms of … Continue reading Up to 25 Million US Mobile Phones Could Also be Mobile Wallets by 2011

Web/Tech

The Slippery Nature of ‘Strategic’ IT

Colin Henderson

McAfee makes a clear argument that strategic IT doesn't have to be advanced or sexy, using the Spanish clothing store Zara as an example. Its how you use the right tools that is the key. Andrew McAfee The IT that facilitates such tight synchronization, however, is simple to the point of being primitive. For example: Point-of-sale terminals in stores run on DOS and are not networked One terminal has a dial-up modem, which is used to transfer files (via the ftp protocol) to and from headquarters The same modem is used to transmit digital order forms to and from PDAs, … Continue reading The Slippery Nature of ‘Strategic’ IT

Security

UK Banks wait on the sidelines relative to mass two factor authentication

Colin Henderson

While its true these banks are taking a wait and see approach to new two factor autnetication software such as PassMark, or Digital Envoy, I believe the reason is not as suggested in this article. Banks tread warily over two-factor security But the need to introduce such additional security is still not clear-cut for banks, as they balance their reputation and customer convenience against the risk of fraud that is posed by their existing security arrangements. And, for now, the number of UK banks adopting a wait-and-see approach far outstrips those taking decisive action, with Abbey, Barclays, the Co-operative Bank, … Continue reading UK Banks wait on the sidelines relative to mass two factor authentication

Security, US

American Express and Chase log in is not secure

Colin Henderson

In an unbelievable story from SANS, they note that American Express and Chase log in is not secure.  I looked at those sites myself and its true.  Recently in the interests of customer usability, banks in the US have taken to offerring log in from the home page, and how they implement this is critical.

Major banking sites insecure, researcher warns – Computerworld

At issue are the user log-in areas on sites like Chase.com and Americanexpress.com that ask customers to submit their ID and password information. Although these forms may be encrypted, they do not use authentication technology to prove they are genuine, according to Johannes Ullrich, chief research officer at the SANS Institute.

Continue reading “American Express and Chase log in is not secure”

AI

City’s bank card system collapses

Colin Henderson

Something we take for granted in the West hit Shanghai as their debit card system collapsed. City's bank card system collapses SHANGHAI'S major department stores, restaurants and some automatic teller machines failed to accept bank cards since noon today because of a network breakdown at China Unionpay, the country's integrated system for bank cards transactions. While the card base is enormous, the ATM base is smaller than I'd expect. China has issued more than 920 million bank cards, including debit cards and credit cards since the end of last year, up 142 percent from 2002, the year when China Unionpay … Continue reading City’s bank card system collapses

US

The biggest cyber-heist of customer debit-card numbers to date

Colin Henderson

In what was earlier referred to as the Citibank ATM fraud, the sheer scale of this fraud is only now coming to light. Banks scramble after cyber-breach | Chicago Tribune Exact figures are unknown — some banks have reported numbers; others have not. It is thought that at least 350,000 accounts across the country were defrauded, involving more than $10 million in losses, according to some experts.…. “In terms of financial damage, this is definitely the biggest documented case of debit-card fraud we know of,” said Avivah Litan, a banking analyst and online-fraud expert for Gartner Inc., an information-technology research … Continue reading The biggest cyber-heist of customer debit-card numbers to date

Payments, US

Interchange fees are under pressure

Colin Henderson

As merchants complain, and consumers begin to realise the extra charge they are in fact paying to subsidise the interchange fees, its only a matter of time before alternatives arise.

Transaction Processing | Interchange wars: Merchants tug networks for change | ATM Marketplace Research

BY Missy Baxter, contributor • Consumer advocates say rising interchange fees are a serious problem, costing cardholders and merchants a total of at least $25 billion each year. Last month, dozens of protestors demonstrated against rising interchange fees outside the Javits Center in New York during the National Retail Federation’s annual convention.

Recently we saw rumours of Bank of America opting out, by creating their own network.  With Banks of that scale this alternative becomes more viable.  Now we see the Fed stating they will stay out of it, meaning they won’t regulate.

Relevance to Bankwatch:
Interchange fees and the financial model for payments will be a new frontier for banks to re-invent aspects of their business.

Continue reading “Interchange fees are under pressure”

US

NACHA’s payment pilot to launch in early ’07

Colin Henderson

Pilot timing details are becoming clearer. NACHA’s payment pilot to launch in early ’07 | ATM Marketplace News NACHA’s long-expected pilot project to test Internet payments to retailers and billers is expected to launch early next year. The pilot will run for 12 months. NACHA officials expect to sign most participating banks, merchants and billers by Aug. 30, 2006, though the pilot will accept additional participants after that date. Continue reading NACHA’s payment pilot to launch in early ’07