Monday, November 2, 2009

TransCard and University National Bank Unite to Provide Prepaid Services to the Underserved

Chattanooga, Tenn., Nov. 2, 2009 -- TransCard ( )—a leading provider of electronic-payment and prepaid debit card solutions branded with MasterCard®, Discover®, STAR and PULSE associations—and University National Bank have signed a card program sponsorship agreement. The two companies will work together on prepaid programs and extend prepaid products and mobile bank accounts to those individuals who are normally beyond the reach of conventional financial institutions.

University National Bank was the first bank in Minnesota to be certified as a Community Development Financial Institution (CDFI)—an honor bestowed by the U.S. Treasury on fewer than 60 financial institutions across the nation. The bank focuses on financial services in the urban core, including specific initiatives targeted to the unbanked and underbanked. The bank’s mobile banking platform, provided by mobÄ“ inc., allows the bank to bring a large suite of financial services to a largely underserved market segment. The bank offers a Socially Responsible Deposit Fund (SRDF), which puts money to work in low- and moderate-income communities through the bank’s provision of loans to support small businesses, affordable housing development and non-profit organizations in these communities. University National Bank’s mission to be “The Leader in Improving Our Urban Community” dovetails with TransCard’s corporate values.

“Primarily, TransCard serves those individuals who are disenfranchised from traditional financial institutions, such as the under- and unbanked,” says Jerry Uffner, President of TransCard. “With University National Bank as a partner, we have chosen a financial institution that thinks outside of the box regarding how to customize products that meet the needs of those who have historically been left out. We can now reach a wider, more diverse audience of people who can use prepaid cards to manage their money more cost effectively.”

Prepaid cards are also a green payment solution that helps clients eliminate paper payments. TransCard’s all-electronic business model reduces the need to print paper checks, mail them, and distribute them across the country as well as decreases the waste produced by paper checks and paper pay stubs. In fact, according to, if a 1,000-employee company moved to a 100% electronic system, eliminating paper bills, statements and paystubs—in one year, 889 square feet of forest would be preserved from being destroyed and 6,477 pounds of carbon dioxide emissions would be prevented.

“TransCard and University National Bank have an organic synergy regarding concerns about underserved communities and the plight of our planet,” says Craig Fuller, TransCard’s CEO. “Our companies both value responsible entrepreneurship—allowing our collaboration to open up avenues of opportunity to those in need while positively impacting the environment. Our corporate visions could not be more perfectly aligned.”

University National Bank agrees that with TransCard, the two companies provide multiple, diverse opportunities to those who have been ignored by mainstream financial institutions.

“We are continually looking for new technologies and new offerings that we can take to the communities we serve,” says Jim Conrad, University National Bank President. “University National Bank, with the help of its partners mobÄ“ inc. and TransCard, is pleased to offer safe, convenient and affordable financial services to a largely underserved market.”

About University National Bank

University National Bank is a certified Community Development Financial Institution (CDFI) with a mission to be the “Leader in Improving Our Urban Community.” The bank focuses its lending in the urban core of Minneapolis and Saint Paul and offers deposit customers a Socially Responsible Deposit Fund (SRDF) option. When customers choose to participate in the SRDF, it offers them the chance to be an agent of change in our community. These deposits help fuel University National Bank’s support of affordable housing, small business development and community services offered through not-for-profit organizations.

For more information, visit .

About TransCard

TransCard ( ) provides custom, turnkey prepaid programs for corporate, non-profit and government organizations. TransCard is one of a few privately held core processors in the world, providing prepaid debit card solutions branded with MasterCard®, Discover®, STAR and PULSE associations. The company specializes in providing on-demand, customized, turnkey prepaid programs for clients using a sophisticated proprietary technology platform that was built in-house to meet the unique needs of clients in the prepaid space. Along with the most robust suite of value-added cardholder benefits—including mobile banking, online bill pay, free credit scores and a Personal Financial Management tool that budgets, tracks spending and has customizable widgets—in prepaid, TransCard offers 24/7/365, live, bilingual customer service and a check-free online account accessed through an easy-to-use website.

TransCard differentiates itself in the prepaid card industry by offering compliant solutions, real value, proprietary technology, mobile card management and stability. Its products include paycards, financial institution stored-value processing, gift reward cards, fleet services and retail program management. TransCard handles nearly $2 billion in electronic transactions annually and was featured as a “10 to Watch” by Intele-Card News.

The company was recently named as a 2009 Paybefore Awards Best-in-Category Winner for the Best Corporate-Funded Prepaid Card and the CEO, Craig Fuller, was recognized as one of the top five Rising Stars of Prepaid by Paybefore magazine—a respected prepaid industry publication.

Source: Company press release.

USAA to Implement MasterCard's IPS Debit System

News Release

Tristan Jordan MasterCard Worldwide +1 914 249 5724

USAA to Implement MasterCard IPS Processing Platform

Financial Institution to Exercise Platform’s Full Debit Issuer Processing Services

Purchase, NY, November 02, 2009
MasterCard Worldwide today announced that USAA Federal Savings Bank will implement MasterCard Integrated Processing Solutions™ (IPS), the company’s world-class debit processing platform. USAA will employ the full capabilities of the platform’s branded network and issuer processing services in support of signature and PIN debit, and ATM driving.

“We believe that the capabilities of MasterCard IPS will position USAA to address and adapt to the unique and changing payment needs of our members around the globe while offering the most advanced services,” said David Bohne, President, USAA Federal Savings Bank.

MasterCard IPS is designed to help financial institutions create differentiated products and services and expand their payment portfolios across multiple business channels with efficient administration and minimal infrastructure investment. Issuers will be able to save considerable time and resources when designing and deploying new products and services by simply providing data for the platform’s pre-determined parameters. With its proprietary Portfolio Viewer tool, IPS delivers a 360-degree view of aggregated cardholder intelligence across debit and prepaid products that can help issuers customize their offerings.

“By implementing the debit card processing capabilities of MasterCard IPS, USAA will be able to strengthen its ability to quickly deliver the innovative products and services critical to maintaining its competitive edge,” said Chris McWilton, President, U.S. Markets, MasterCard Worldwide. “USAA is widely known for its rigorous business standards and highest level of member service, and we believe this expanded relationship will increase the value it will deliver to its loyal customer base.”

With more than $31 billion in deposits as of Mar. 31, 2009, USAA Federal Savings Bank is the 23rd largest bank in the nation. USAA has been recognized by BusinessWeek for the past three years as a "Customer Service Champ," highlighting the association’s legendary commitment of providing highly competitive financial products for 7.2 million members.

USAA joins a growing list of issuers that have implemented MasterCard IPS. In May 2009, The Travelex Group, the world’s largest distributor of foreign currency prepaid cards, announced that it will implement the global prepaid transaction processing capabilities of MasterCard IPS to support new and existing consumer and corporate MasterCard Cash Passport™ cards. In December 2008, Swiss Bankers Prepaid Services Ltd. became the first financial institution to take advantage of the platform’s global prepaid transaction processing capabilities. This followed the announcement of a brand-exclusive MasterCard IPS implementation by Security Service Federal Credit Union, the 10th largest credit union in the United States. MasterCard IPS has been named to the “InfoWorld 100,” an award that recognizes information technology projects that use technology in smart, innovative and creative ways to meet business and technical objectives.

Global Payments Announces First Quarter Dividend

Atlanta, Nov. 2, 2009 -PIN Payments News Blog- Global Payments Inc. (NYSE: GPN), a leader in electronic transaction payment processing, announced today that its board of directors approved fiscal 2010 first quarter dividend of $0.02 per common share payable November 30, 2009 to shareholders of record as of November 16, 2009.

Global Payments Inc. (NYSE:GPN) is a leading provider of electronic transaction processing services for consumers, merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi-national corporations located throughout the United States, Canada, Latin America, Europe, and the Asia-Pacific region. Global Payments offers a comprehensive line of processing solutions for credit and debit cards, business-to-business purchasing cards, gift cards, electronic check conversion and check guarantee, verification and recovery including electronic check services, as well as terminal management. The company also provides consumer money transfer services from the United States and Europe to destinations in Latin America, Morocco, and the Philippines. For more information about the company and its services, visit .

Source: Company press release.

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MasterCard Twitter Site Used as Spam Carrier

4:02 EST: Update: Confirmation by MasterCard they were spammed but they are not quite clear as to the "how" yet. The passwords were changed and a Tweet Apology has been issued...

MC Twitter

MasterCard's Twitter Site sent me this direct message. Looks like their Twitter Account has been infiltrated. Maybe not. Just didn't feel compelled to click the link. Maybe I'm missing out on how to make some real money!

Heartland Announces Results Tomorrow A.M.

Princeton, N.J., -- Heartland Payment Systems, Inc. (NYSE: HPY), a leading provider of credit/debit/prepaid card processing, payroll, check management and payments services, today announced that its results for the third quarter 2009 will be released before the market opens on Tuesday, November 3, 2009. A copy of the earnings release will be available on the investor relations portion of the Company's website at: .

Chairman & Chief Executive Officer Robert Carr and President & Chief Financial Officer Robert Baldwin will host a conference call beginning at 8:00 AM Eastern Time, Tuesday, November 3, 2009, to discuss third quarter 2009 results and conduct a question and answer session. Note that this is a new time.

Heartland Payment Systems invites all interested parties to listen to its conference call broadcast through a webcast on the Company's website. To access the call, please visit the Investor Relations portion of the Company's website at: . The webcast will be archived on the Company's website within two hours of the live call and will remain available through Wednesday, February 3, 2010.

You may also participate by calling (877) 741-4240 and providing the operator with Pin Number 5622444.

About Heartland Payment Systems

Heartland Payment Systems, Inc., a NYSE company trading under the symbol HPY, delivers credit/debit/prepaid card processing, payroll, check management and payments solutions to more than 250,000 business locations nationwide.

Heartland is the founding supporter of The Merchant Bill of Rights, a public advocacy initiative that educates merchants about fair credit and debit card processing practices. For more information, visit and .

Source: Company press release.

The ECR in Your Pocket


Title: The ECR in Your Pocket

Author: Hoffman, Karen Epper
Source: DIGITAL Transactions, v6 n9 p36(5) Publication Date: Sep 2009
URL of Publication:

The iPhone and other smart-phone lines are quickly becoming wireless POS devices, but the trend is young and will not take over the market in the near future. In recent months, various innovative new applications, processing gateways, and peripherals, have emerged that enable mobile merchants from pizza-delivery men to plumbers to accept card payments via smart phones such as the BlackBerry, the Palm Pre, or the iPhone. Therefore, the new applications and phones are steadily decreasing the need for these professionals to pay for and carry a separate, more costly purpose-built payment terminal. The effect on wireless-payment terminal manufacturers and mobile merchants themselves could be substantial, as the smart-phone revolution significantly broadens the market for mobile payment acceptance. This new payment option has seemingly originated from the confluence of more broadly available smart phones (which are actually more like ultra-portable computers now), inexpensive and plentiful data access, and a constantly growing, mobile workforce. Also a factor is the poor economy, which is driving many former salaried employees to start up their own independent businesses. One example is Intuit's GoPayment, which offers mobile merchants the ability to accept card payments over various smart phones via a mobile web browser or via a free downloadable application, with merchants using GoPayment paying a monthly service fee and standard interchange rates. Eric Kowalchyk, product manager for GoPayment, admits that his company's mobile point-of-sale strategy with GoPayment is part of a bigger initiative to reach out to millions of mobile businesses that already use products like Quicken's iPhone application and QuickBooks. Merchants cannot accept PIN-based debit card payments because mainstream cell phones lack a standards-compliant keypad, the issue of a PIN debit acceptance is major one and a bid downside for mobile merchants wanting increased versatility in card acceptance.

American Banker's Priceless Interview with Lloyd Constantine

Here's an excerpt from today's article in American Banker by Maria Aspen.  She speaks with Lloyd Constantine, about his new book, Priceless: The Case that Brought Down the Visa/MasterCard Bank Cartel.  

A polarizing figure from past battles between merchants and payments companies has returned to the interchange debate with harsh words — for both sides.

Lloyd Constantine, who maneuvered the card industry into paying the largest antitrust class-action settlement in history, has resurfaced six years later with a book about the case and some surprising criticism about other lawsuits that he sees as riding his coattails.

For example, don't look for his unequivocal support of a long-running merchants' suit alleging that interchange constitutes antitrust violations and price fixing.

"I'm not commenting on the ultimate merits of the cases, but they seem to be lawyer-driven cases. Our case was not a lawyer-driven case," Constantine, the lead attorney for Wal-Mart Stores Inc. and other merchants in the class action settled in 2003, said in an interview last week.

"They seem to be cases that had looked at our case and said, 'Look at those guys. Wow, they got rich.' I saw the process, I saw them running around the country, signing up clients — that's something that I've never done."

Constantine acknowledged the irony of such comments, having long been a target for similar accusations from payments industry members, especially after his suit was settled for $3 billion. (That included about $225 million in attorneys' fees.) The settlement, which also mandated the untying of debit card from credit card acceptance and a reduction in the interchange rates for signature-based debit, preceded a second round of lawsuits filed against Visa Inc., MasterCard Inc. and their bank customers.

His comments, and the book, "Priceless: The Case that Brought Down the Visa/MasterCard Bank Cartel," come as interchange has become an increasingly high-profile and mainstream issue, with advertising campaigns from merchants and networks alike, the public riled about the credit card industry in general and regulators and lawmakers looking into interchange.

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Quote of the Day

In an article written by Helen Martin for the Edinburgh Paper, she laments online banking.  She chooses one particular argument, that being money transfer.   The inherent problems with online banking and money transfer could be easily solved with HomeATM's device.  The sender AND the recipient both authorize the transaction, each on their own end.  No mistake about it.

"A few months ago while opening a new deposit account, I got the now customary spiel about how advantageous and convenient it would be to do my own banking online. I let the banking lady run through the script, then said: "There's one thing that really worries me.  If you make a mistake transferring my money, it's your fault and you pay it back. What happens, bearing in mind that I'm not a professional banker, if the mistake is mine?"

She looked puzzled. "You mean if you pay the money into the wrong account?" she asked. Exactly. There was a pause in the otherwise faultlessly persuasive pitch. Then she admitted: "I don't really know." End of conversation.

Only weeks later came the case of Clare Logie, a young woman who typed in the wrong digit (again, don't type...swipe...) and sent £2,000 who knows where. Her bank refused to tell her where it had gone, citing the Data Protection Act. The recipient's bank asked them nicely to give it back but they, within their rights, refused.  Here's the quote of the day!

"Online banking is the craziest, most ill-thought-out wheeze ever. Not for the bank, of course. It absolves them of any responsibility and a great deal of work. They don't give a hoot if we make a mistake and lose our savings. If they did, they would have worked out a recovery system before they set us adrift in an online financial sea without a life belt, in order to save themselves a buck. I apologize if I insult any online banking reader but anyone signing up to this has to be weak in the head or caught up in the mad, internet thrall of being able to do anything from the convenience of their home PC. The banks have done a "good" enough job of messing things up so far without us colluding with them in yet another disastrous ploy at our expense.

USB Sticks Contain Significant Security Flaw

According to MWR InfoSecurity, USB sticks have been found to contain a significant security flaw which could be exploited to break into millions of computers around the world.

The flaw could allow the creation of USB sticks that "interrogate a computer and download the contents".The researches added that such devices are just months away from development, and are likely to be used by malevolent and sophisticated criminals to steal the contents of entire hard drives.

"What millions of us have seen in countless James Bond and other spy thrillers around the world has now taken a step closer to being realized," said Alex Fidgen, commercial director at MWR InfoSecurity.  "The bad guy plugging a small device into the system and removing sensitive data is no longer theoretical."

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Fiserv is Number One on FinTech 100 Ranking of Top Technology Companies

Fiserv, Inc., today announced that IDC Financial Insights, a leading independent and global provider of research-based advisory and consulting services, American Banker and Bank Technology News have once again ranked Fiserv as the No. 1 company on the FinTech 100 for 2009, an annual international listing of the top technology vendors from the financial services industry. Fiserv has been a top leader in this survey every year of the survey's existence, earning the No. 1 position five of the last six years.

Fiserv is Number One on FinTech 100 Ranking of Top Technology Companies

- Repeats top position for fifth time in six years since list inception -

Brookfield, Wis., November 2, 2009 -PIN Payments News Blog - Fiserv, Inc. (NASDAQ: FISV), the leading global provider of financial services technology solutions, today announced that IDC Financial Insights, a leading independent and global provider of research-based advisory and consulting services, American Banker and Bank Technology News have once again ranked Fiserv as the No. 1 company on the FinTech 100 for 2009, an annual international listing of the top technology vendors from the financial services industry. Fiserv has been a top leader in this survey every year of the survey's existence, earning the No. 1 position five of the last six years.

"Fiserv embarked on a journey of transformation three years ago, with the objective to focus on providing the financial services industry with best-in-class technology solutions. Even in the midst of a challenging economy, Fiserv is emerging stronger and more innovative than ever before," said Jeffery Yabuki, Fiserv President and Chief Executive Officer. "This prestigious achievement is a testament to the quality and commitment of our 20,000 associates who earn client trust every day."

Nearly two years ago, Fiserv completed its largest acquisition ever, CheckFree Corp., the market leader in online banking, electronic bill payment and presentment, and in February re-launched Fiserv with a new one Fiserv structure, go-to-market strategy and brand.

"One of our important objectives is to help our clients win in the digital transformation of financial services," added Yabuki. "The technology landscape will change dramatically over the next five years. Consumers in every geography will have an unprecedented level of empowerment to connect with financial services providers, and how and where they make payments with channels such as online, mobile, person-to-person, in addition to more traditional forms of banking. There will also be -changing models in how these services are delivered to banks, credit unions and brokerage firms. Fiserv sees significant growth opportunities as financial institutions look to outsource some aspects of their technology, as innovative partners are engaged from research and development through implementation to fill the needs of these consumers," explained Yabuki.

"Fiserv is a perennial leader in the FinTech 100. This has been a challenging year for many of the companies we have been tracking, but we have observed that financial services technology providers can lead the industry forward by ever seeking efficiency and ways to monitor and reduce, yet still remain flexible to evolve and plan for the marketplace and its shifting delivery channels in order to survive and thrive," said Jeanne Capachin, research vice president of global banking for IDC Financial Insights.

Introduced in 2004, the FinTech 100 is the world's only ranking of technology providers in the financial services industry, comprising the top vertical technology vendors that derive more than a third of their revenue from sales to financial services industry clients. For more information about the rankings, visit To view the FinTech Special report, visit

About Fiserv

Fiserv, Inc. (NASDAQ: FISV) is the leading global provider of information management and electronic commerce systems for the financial services industry, driving innovation that transforms experiences for financial institutions and their customers. Ranked No. 1 on the FinTech 100 survey of top technology partners to the financial services industry, Fiserv celebrates its 25th year in 2009. For more information, visit

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ACCEL/Exchange from Fiserv is the First Payments Network to Roll-out Secure Internet PIN Debit Transactions

Fiserv, Inc., today announced that its ACCEL/Exchange Network will begin processing and offering secure Internet Personal Identification Number (PIN) debit transactions in November 2009, making it the first payments network to do so. The new solution is the result of a partnership with Acculynk, provider of the first software-only service in the U.S. that enables PIN debit payments online.

ACCEL/Exchange from Fiserv is the First Payments Network to Roll-out Secure Internet PIN Debit Transactions

- Pilot's overwhelming success positions new solution for roll-out in 4th Quarter 2009 -

Brookfield, Wis., November 2, 2009 -PIN Payments News Blog - BAI RDC Booth #417 - Fiserv, Inc. (NASDAQ: FISV), the leading global provider of financial services technology solutions, today announced that its ACCEL/Exchange Network will begin processing and offering secure Internet Personal Identification Number (PIN) debit transactions in November 2009, making it the first payments network to do so. The new solution is the result of a partnership with Acculynk, provider of the first software-only service in the U.S. that enables PIN debit payments online.

ACCEL/Exchange, Fiserv's premier payments network that delivers anytime, anywhere funds and payments access to its 2,500-plus members and their cardholders, recently completed a joint pilot program with Acculynk and its PaySecure product. The pilot which began in March 2009 was initiated to validate successful and accurate processing of secure Internet PIN debit transaction activity.

"The pilot was an overwhelming success," said Michael Kelly, general manager of ACCEL/Exchange from Fiserv. "We received some very positive comments from the participants, representing member financial institutions, cardholders and several significant online merchants. Our focus is on providing payment solutions to our members that keep them in the transaction payment chain, unlike other alternative payment channels. Secure Internet PIN debit accomplishes that--and more--while delivering another safe, reliable, and convenient payment solution from ACCEL/Exchange."

Consumers who have been using their debit card and PIN at the grocery store and to fill up their gas tank, will now have an intuitive, easy-to-use and secure way to use their debit card and PIN online without having to be redirected to another site.

"The Fiserv solution made it easy for us to add secure online debit card transactions to our portfolio," said pilot participant Jeff Gegen, vice president of Bank Operations at Baker Boyer Bank, and chairman of the ACCEL/Exchange Network Advisory Council. "The interface is easy to use and is similar to PIN entry at standard brick-and-mortar point of sale (POS) terminals. Unlike other payment methods, PaySecure doesn't require registration or the redirection to another website that can lengthen the amount of time and increase the complexity of making online payments. No change in consumer behavior or training is required to use the service, and that translates into a very positive cardholder experience."

Pilot results from Fiserv show that more than 50 percent of consumers will use Internet PIN debit when presented to them as a payment option for their online purchases. "This high level of usage, with minimal education and marketing, and no costly incentives, demonstrates that consumers understand the concept of using PIN debit online, and will use their PIN with PaySecure," said Ashish Bahl, Acculynk CEO.

"The value proposition for the majority of alternative payment methods and card verification services is security--few claim to be the most convenient payment method available," continued Bahl. "With PaySecure, consumers get an extra layer of security for their transaction in just a few seconds, using a PIN they already know."

According to a March 2009 research study conducted by Javelin Strategy and Research, 79 percent of consumers surveyed said they would feel more secure using their debit card online with a PIN than using their debit card without a PIN.

According to Fiserv's Kelly,"The pilot clearly demonstrated that this solution should be a successful new entrant in the Internet payments market. We are pleased with the solution's universal acceptance. In fact, we're already getting inquiries from members about its availability and requests to make the service available to cardholders as soon as possible. We are enabling our members to be among the first to market with Internet PIN debit capability, which should help them grow transactions per card and per household. The competitive advantages of this service for our members include the potential for reduced fraud, ease of implementation, and immediate consumer adoption. We've already seen a 30 percent growth in debit transaction volume this year, and we're confident that Internet PIN debit has the potential to have a positive effect on our members' transaction growth and associated profitability."

To see a demonstration of a secure Internet PIN debit transaction, please visit the ACCEL/Exchange Network website at

About Acculynk

Acculynk is a leading technology provider with a suite of software-only services that secure online transactions. Backed by a powerful encryption and authentication framework protected by a family of issued and pending patents, Acculynk's services provide greater security, reliability, convenience and return on investment for consumers, merchants, networks, issuers and acquirers. Acculynk is headquartered in Atlanta, Georgia, with a management team that brings extensive experience in the financial, network, security and payment processing industries. For more information, visit

About Fiserv

Fiserv, Inc. (NASDAQ: FISV) is the leading global provider of information management and electronic commerce systems for the financial services industry, driving innovation that transforms experiences for financial institutions and their customers. Ranked No. 1 on the FinTech 100 survey of top technology partners to the financial services industry, Fiserv celebrates its 25th year in 2009. For more information, visit


Visa to Drop Signatures on Credit Cards by 2013

Well that's certainly interesting. Wonder what that does for the future of "signature" debit. Interestingly, Visa also vetted online banking and established a 2012 "mandate" by announcing a requirement by banks to ensure cardholders have a Verified by Visa password for online banking.

According to IT News/Australia, Visa today announced it would mandate a move to chip and PIN technology for all Australian Visa cardholders over the next four years, with signatures no longer accepted at the check-out by 2013. The overhaul would see more than 14 million Visa cards upgraded by April 1, 2013.

According to Visa about five million (37 percent) of Australian-issued cards are already embedded with the chips.

Visa will also require issuers (i.e. banks) to ensure cardholders are enrolled to have a Verified by Visa password for doing online banking transactions by April 1, 2012. 

Chris Clark, general manager for Visa Australia and New Zealand said Visa would ensure all cardholders have a Verified by Visa password.

"We're saying all cardholders have to have a password," Clark said. "They must be enrolled. "If they don't get enrolled, the liability for a fraudulent transaction falls onto them," Clark said.

But the Verified by Visa password would not be mandatory for online merchants, such as eBay, to implement. Visa's policy would still allow for the three digit CVV2 "security code" to stay in place.

Clark said that current magnetic cards were "easy" to skim and that chip technology would prevent skimmers from duplicating cards. He said credit card data has usually been contained on the magnetic strip of the card. "And it's that stripe which is really, really easy - well... not easy - but that stripe can be compromised by card skimming".

Clark said chip technology would not be as easy to duplicate. (Editor's Note:  HomeATM has a Chip and PIN flavor)

"To date, after I think over 20 years, the chips have not been able to be corrupted because they store what's called dynamic data," Clark said. "So every time you do a transaction, that chip interacts with a special terminal and it creates a dynamic authentication code whereas with a traditional or magnetic stripe transaction, where it's swiped, it's just the same old static authentication".

Clark also said Visa was looking at more ways to secure credit cards. He said this included making dynamic online passwords, having an SMS every time you wanted to do an online transaction and having a type of token authentication or a card that plugged into your PC.   Editor's Note: We have the obvious solution... the one V/MC has been using for decades in brick and mortar locations.  You know the one.  Instead of the merchant having the device, we bring the device to the consumer.  But that creates some problems for Visa and MasterCard.   One problem is that "card present" transactions have a significantly lower interchange rate because they are significantly more secure...and if not for that significantly lower interchange fee, you might have seen them pushing the only 2.x certified credit and debit card terminal designed for eCommerce use.   It seems to me that it would also make complete sense to push our PIN Entry Device for online transactions...but alas, we run into the same problem there..."PIN Debit Interchange" is significantly lower (again, because it's more secure) than signature debit.

The dilemma facing Visa and MasterCard is a "money for nothin" for higher interchange feed...nothing being the level of security when it comes to online transactions. Higher security = Lower interchange. 

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