Green Sheet

NEWS

Card fraud migrating to non-EMV countries

As several countries, especially in Latin America and Asia Pacific, implement EMV (Europay, MasterCard and Visa), card-related fraud is shifting to neighboring states using less secure mag stripe cards, according to a report from Frost & Sullivan.

With implementations of chip and PIN in the U.K. and dynamic data authentication in France, fraud is migrating to Germany and Italy. Singapore and Indonesia also face increased fraud and are considering EMV-compliant card technology.

Coupled with the growth of wireless communications, this creates a demand for reliable, wireless POS systems. The report estimates the world POS terminal market using electronic funds transfer, which earned $1.3 billion in 2005, will reach $2 billion in 2011.

Report identifies cross-border payment trends

Cross-border payments represent 8% of commercial payment volume, which was estimated to be $86 trillion in 2004, according to a white paper released by Visa International. Analysts estimate the volume of cross-border payments will increase at a compound annual rate of 10.2% globally.

Entitled, "The Inefficiencies of Cross-Border Payments: How Current Forces Are Shaping the Future," the paper identifies five trends impacting cross-border payments:

• Transnational systems for settling local payments in foreign currency are driving implementation of straight-through processing standards for transfers between banks.
• Government mandates and regulation influence how payments are made and what fees can be charged.
• Payment systems are becoming more efficient at managing credit and liquidity risks.
• Consolidations have reshaped the global payment landscape. Large banks route payments through internal global networks across countries. Such networks may not differentiate between domestic and cross-border payments.
• Outsourcing payment and securities clearing to a third party has grown. Absence of regulation causes concern, because nonbank service firms are not supervised by government agencies.

Merchant coalition runs ads critical of interchange

The Merchants Payments Coalition apparently wants to reach lawmakers with print and radio ads placed in the Capitol Hill media. The alliance of nearly 30 merchant trade associations was formed to address bankcard interchange fees.

"Turns out it wasn't the Grinch who stole Christmas after all," stated an ad appearing in newspapers in January. The ad continued: "The credit card companies took a bite out of every present you bought with their cards," according to the MPC.

Software vendors found PCI Security Vendor Alliance

Several data security firms founded the Payment Card Industry (PCI) Security Vendor Alliance. The PCI SVA will assist the payment card industry and the PCI Security Standards Council in educating businesses on the requirements of the Data Security Standard.

Founding members of PCI SVA ( www.pcialliance.org) are ConfigureSoft Inc., Cyber-Ark Inc., Modulo Security, Proginet Inc., Protegrity USA Inc., Reflex Security Inc., SafeNet Inc. and VeriSign.

ANNOUNCEMENTS

NCHA reports 15% increase in volume

The National Clearing House reported December image exchange volume of 670 million items, a 15% increase in items over November 2006.

International MSP enters U.S. market

ImGlobal Payments, which serves Internet and MO/TO merchants in Europe, expanded its services to the United States. The ISO/MSP provides multicurrency processing capabilities.

Georgia-based firm among the best places to work

Synovus has been named No. 98 on http://www.timeinc.net/fortune/information/contactfortune" target="_blank">Fortune magazine's list of "The 100 Best Companies to Work for in America." Synovus has been named to the list for the past decade.

UBC adds Spanish to DialPay service

United Bank Card Inc. has made its DialPay service available in Spanish. DialPay simultaneously authorizes and settles transactions over the phone.

ViVOtech is most recognized contactless vendor

ViVOtech Inc. was recognized by retailers as the top contactless technology vendor, according to a report by the Aberdeen Group. Selected by 24% of retailers, the company placed second. MasterCard Worldwide was the most familiar name in contactless solutions.

Rewards programs expanding

Financial institutions (FIs) and large retailers are expanding rewards programs beyond the general-purpose and private-label credit card arenas, according to a new report from Aite Group.

Competition among FIs and merchants is spurring demand for loyalty consulting, technology and other services. "Loyalty & Rewards: A Market Overview" profiles 20 vendors of loyalty and reward services.

Sanford Brown receives national Stevie award

Sanford Brown, Chief Sales Officer at Heartland Payment Systems, received a Selling Power magazine Stevie award, which named him National Vice President of Sales of the Year.

S1 divisions take on brand status

Three divisions of S1 Corp., a provider of customer-interaction software, established individualized branding. Postilion, S1 Enterprise and Full Service Banking Solutions launched independent Web sites: www.postilion.com, www.s1enterprise.com and www.fsb-solutions.com, respectively.

DTI launches Click to Go for online ordering

Direct Technology Innovations launched the Click to Go online ordering program, opening a new revenue stream for quick-service restaurants with a home-page menu.

Prepaid card network uses SMS

Sapphire Mobile Systems launched its Phire mobile banking and payment network. Currently in trials, the network lets banks and prepaid debit card issuers give their customers account access through a short message service.

Free network security scans offered

Corporate network security services provider Perimeter eSecurity will provide free vulnerability scans through March 2, 2007. Such scans can provide a paper trail, demonstrating efforts to protect customer data.

NCR plans spinoff of Teradata

NCR Corp. announced its intention to separate into two independent, publicly traded companies through the spinoff of the company's Teradata data-warehousing business.

PARTNERSHIPS

TSYS signs NPC

TSYS signed a multiyear agreement to provide transaction processing services to National Processing Co. Iron Triangle Payment Systems purchased NPC in October 2006 and rebranded itself as NPC.

Credit union, bank sign with Ruesch International

Randolph-Brooks Federal Credit Union will utilize the Global PayLink system from Ruesch International Inc. to process cross-border transactions and currency trading.

First National Community Bank will also use Ruesch's products to service the cross-border transaction and payment needs of its commercial customers.

TSC to market PaySpot prepaid products

PaySpot Inc., a subsidiary of Euronet Worldwide, signed a multiyear agreement with TSC Group. Under the agreement, PaySpot's prepaid products and services will be promoted to TSC's merchant base.

Spartan Stores accept PayPass

All Spartan Stores in Michigan and northwest Ohio operating under the banners Family Fare, D&W, Glen's, Pharm and Quick Stop will accept PayPass, MasterCard's contactless product.

Sandwich chain picks NCR POS hardware

Chicago-based Potbelly Sandwich Works deployed RealPOS 70 terminals, receipt printers and cash drawers from NCR at its 33 locations.

Market Hardware partners with PaySimple

PaySimple will provide e-commerce capability for all Web sites created by Market Hardware, a provider of industry-specific Web sites for small businesses. The partnership gives Market Hardware's clients the ability to accept credit card and automated clearing house payments with an online form.

POSLynx220 deployed in Hot Spots stores

Jordan Oil deployed the POSLynx220 from Precidia Technologies Inc. at its Hot Spots convenience stores throughout the southeastern United States. The Internet-protocol (IP) router connects Jordan Oil's existing payment terminals, check readers and ATMs to an IP network for faster transactions and remote management of store equipment.

Credit union chooses ATM processor

BECU, the fourth largest credit union in the United States, selected CO-OP Financial Services for ATM processing and signature debit services. BECU also extended its contract with CO-OP Network, which provides surcharge-free ATM access for the credit union's 465,000 members.

NOVA signs with IBB, certifies MagTek scanner

NOVA Information Systems will provide processing services for the 5,800 merchants of Independent Bankers Bank's network. The card processing volume from this agreement exceeds $600 million annually.

In addition, NOVA has certified MagTek Inc.'s Excella check scanner, deploying it as the cornerstone component in its Electronic Check Solution for multilane retailers.

Comdata teams with Xign

Xign Corp., the operator of a settlement network for business, announced a partnership with Comdata Corp. Comdata will promote MasterCard e-P3 powered by Xign, providing a secure platform for the delivery of MasterCard payments to vendors for electronic settlement.

WRG partners with FTS

ATM product and service provider WRG Services Inc. and Financial Transaction Services announced a credit card processing partnership in which FTS will provide additional services to enhance WRG's line of financial solutions.

Duncan, Peppercoin create card-based parking meters

The City of Detroit replaced on-street parking meters with 175 multispace pay stations that accept credit and debit cards. The stations are made by Duncan Solutions Inc., which partnered with Peppercoin Inc. to enable the stations to process card payments.

GP Europe launches prepaid card service

Global Payments Europe, in cooperation with the Czech retail chain Globus ER, launched GP mobile, a prepaid phone-card reloading service via POS terminals.

APPOINTMENTS

New Edge names new president

New Edge Networks named Linda Beck its President. General Manager of EarthLink Business Solutions, Beck had been Interim President of New Edge, a wholly owned EarthLink subsidiary, since August 2006.

Lambrix and Distler join EVO

EVO Merchant Services appointed two executives to its senior management team: Kevin Lambrix is Senior Vice President of Finance and Business Development, and Gene Distler Jr. is Vice President of Strategic Relationships.

Lambrix developed a niche in the electronic payment processing industry through acquisition financing and other strategic needs of super ISOs. Distler has eight years of senior management experience, most recently with AmbironTrustWave and Global Payments Inc.

Apriva adds two to D.C. office

Apriva added two executives to its Government Solutions Division: Scott Rover, Director of Government Sales, and Rich Matthews, Sales Engineer. Rover was formerly of Rover Networks and GTSI Corp.

Moneris appoints Radest Senior VP

Joseph Radest joined Moneris Solutions as Senior Vice President, Financial Institutions Channels. Radest most recently served as Vice President and Director of Business Alliances for Global Payments.

BOTTOM LINES

• The National Retail Federation predicted retail industry sales (excluding autos, gas stations and restaurants) will increase 4.8% in 2007. Retail sales increased 6.3% in 2006.
• Among shoppers buying gift cards this past holiday season, each bought an average of 4.5 cards, according to a survey of 7,700 consumers conducted by BIGresearch LLC on behalf of the NRF. Just over half (56%) of respondents reported buying gift cards.
• In a survey conducted by RSA Security Inc. of 1,678 adults in eight countries, 69% of account holders said they believe financial institutions (FIs) should replace username-and-password logins with stronger authentication for online banking. In addition, 73% said they would like their FIs to use risk-based authentication.