As a debate unfolds about the competing merits of PIN verses signature debit, a company called Acculynk has emerged as a pioneer in the use of PIN debit online. Acculynk's product, called PaySecure, gives consumers the option of using PIN debit when they make online purchases. Consumers who enter debit information on a Web site using PaySecure are shown a graphical PIN pad following the entry of their card information, and are given the option to have their transaction processed as PIN debit. Those who opt against it have their transaction processed as a signature debit and go directly to a purchase confirmation page; those who choose the PIN option enter their PIN by clicking their mouse on the graphical PIN pad.

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As social networking increases in popularity, retailers and financial institutions continue to look for ways to use the medium to expand their marketing and sales capabilities. In January 2010, POS solutions provider pcAmerica integrated the social networking initiative of nationwide frozen dessert chain Tasti D-Lite LLC into pcAmerica's loyalty program. This interface attaches the social networking habits of consumers to their in-store and loyalty activity and is designed to build brand, consumer awareness and sales for Tasti D-Lite.

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The Federal Reserve has undertaken research to get a better handle on numbers and values of checks and electronic payments moving through interbank payment systems. The 2010 Payments Study, the Fed's fourth such project since 2001, will consist of three separate research efforts to estimate the number, dollar value and composition of noncash payments by U.S. consumers and businesses, based on financial institution data reports.

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"Uncle Sam's finger in the payment pie: A legislative update," The Green Sheet, Dec. 14, 2009, issue 09:12:01, provided inaccurate information regarding when acquirers and other providers of credit and debit card settlement services must start keeping track of gross transaction totals, by individual merchant, for annual reports to the IRS. The article stated that records must be kept for 2010 and the first reports are due to the IRS early in 2011. In fact, the record keeping must begin in 2011, and the first reports will be due to the IRS in early 2012.

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A recent Javelin Strategy & Research webinar discussed the top 10 trends it expects will impact financial services in 2010. Among the topics explored in 10 Trends that Will Shape Banking, Payments and Security in 2010, several directly affect the payments industry. The first trend that blankets the entire financial services industry is regulation. Mark Schwanhausser, Senior Analyst, Multichannel Financial Services, at Javelin, said "the Reagan era of deregulation is over." Given the impact of serious problems within the banking sector, consumers increasingly distrust financial institutions, which has opened up financial services to regulation to restore confidence.

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In what seems to be a largely symbolic action that will have little impact on store sales, electronics retail chain Best Buy Inc. staged a boycott of Visa Inc.'s card acceptance fee structure by discontinuing its acceptance of Visa contactless payment cards. Analysts say Best Buy's decision is evidence of growing merchant discontentment over card acceptance rules. Best Buy began accepting Visa contactless cards in August 2007 and reportedly began phasing them out in October 2009. The retail giant continues to accept mag stripe Visa cards, as well as contactless cards from other brands.

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On Feb. 9 to 11, 2010, payments industry organizations will take part in a cyber attack simulation exercise designed to test the security of payment networks, educate organizations on system vulnerabilities and recommend improvements to better secure those networks. The exercise, dubbed the Cyber Attack against Payment Processes (CAPP), is being organized by the Financial Services Information Sharing and Analysis Center.

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The Center for Financial Services Innovation is offering scholarships to February 2010's Prepaid Expo USA in Las Vegas to representatives of nonprofit companies serving under- and unbanked consumers. CFSI, an affiliate of ShoreBank Corp. that works with banks, credit unions, technology vendors and other companies to serve the underbanked, launched its scholarship program on Jan. 6, 2010.

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The Consumer Research Center at the Federal Reserve Bank of Boston has produced an updated snapshot of data on consumer payment habits. The 2008 Survey of Consumer Payment Choice (SCPC) is the fourth in a series of data collection efforts undertaken by the Boston Fed beginning in 2003. A document made public by the center on Dec. 31, 2009, stated that the latest SCPC data is preliminary and subject to revisions. However, it highlights interesting trends in transition from paper to electronic payments.

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In December 2009, the Online Trust Alliance, a nonprofit organization representing more than 1 million businesses and 500 million consumers worldwide, submitted public comments supporting the Federal Trade Commission's goals to eliminate the abuse and theft of consumer data and redefine the term "consumer privacy" to raise levels of protection. The comments will be presented at the FTC's Roundtable in Berkeley, Calif., on Jan. 28, 2010. The OTA is dedicated to developing best practices and providing educational resources for merchants and financial institutions. The aim is to create a trusted global online ecosystem. Additionally, the OTA hopes to help eradicate e-mail and Internet fraud, abuse and cyber crime.

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