Monday, February 8, 2010

A PIN for All Reasons - GreenSheet







The GreenSheet
is publishing a story on PIN Debit written by Scott Henry of Verifone.  In it they say:







  • A PIN pad for every countertop. (or laptop) Those words might be as effective an economic stimulus as anything else we have tried over the past year or so.

  • Losses for PIN debit were just 15 cents per card issued in 2008, compared to $1.81 for signature debit. (translation: Signature Debit is 12+ times more likely to to incur a loss)

  • PC-integrated PIN pads: Personal computer-based payment processing is attractive to a growing number of storefront merchants; especially appealing is a bundled solution that includes hardware and payment processing software.

  • Merchants who are missing out on the trend toward PIN debit are paying for it in additional interchange fees. According to a Federal Reserve report (PDF) on interchange published in May 2009, interchange fees for PIN debit "typically average 35 cents to 50 cents per transaction; interchange fees for a typical signature debit transaction are about 1.2 percent of the transaction value; and interchange fees for a typical credit card transaction for Visa and MasterCard are in the range of 1.5 to 2 percent of the transaction value."

  • PIN debit use was up 12.8 percent compared to the same period in 2008, while credit and signature debit were up just 5.8 percent. 

  • PIN debit is "preferred by 45 percent of consumers, while 35 percent prefer signature (20 percent have no preference).





Here's the article:



February 08, 2010
  •  Issue 10:02:01


A PIN for all reasons 

By Scott Henry

VeriFone


A





PIN pad for every countertop. Those words might be as effective an economic stimulus as anything else we have tried over the past year or so. Just about everyone - merchants, payments industry businesses and individual consumers - have felt pinched by the impact of the credit crunch.



For consumers, sky-high interest rates are prompting more and more cardholders to dump their credit cards in the drawer and rely increasingly on debit cards instead.



For example, the National Retail Federation released a survey in November 2009 that indicated 45 percent of consumers planned to use debit or check cards to pay for gifts this past holiday season. Those planning to use credit cards for similar purchases fell to 28 percent.



In May 2009, Visa Inc. reported that in the three months ending Dec. 31, 2008, spending volume on debit cards exceeded that of credit cards for the first time. By the end of June 2009, debit accounted for more than 70 percent of all Visa transactions.



Consumer choice



Not only is debit card use increasing at the expense of credit cards, but consumers are more often opting for PIN debit. First Data Corp.'s SpendTrend report for November 2009 showed that PIN debit use was up 12.8 percent compared to the same period in 2008, while credit and signature debit were up just 5.8 percent.



In the 2008 Study of Consumer Payment Preferences conducted by BAI Research and Hitachi Consulting, it was reported that PIN debit is "preferred by 45 percent of consumers, while 35 percent prefer signature (20 percent have no preference).



Those preferring PIN debit consider it more secure, faster and easier to use than signature. Consumers preferring signature debit do so for the security, lack of fees, their inability to remember a PIN and, in some cases, rewards programs."



Paying for steerage



Is it any wonder that consumers are often steered to signature debit when they check out at the grocery store? As the Boston Globe reported in late 2007, banks "prefer the credit option for debit cards because they make more money in fees.



For example, on a $200 transaction, a bank would make $1.99 if the customer chooses 'credit' and signs his or her name; according to one estimate that would be more than three times the 60 cents they make from customers who choose 'debit' and enter a PIN."
Merchants who are missing out on the trend toward PIN debit are paying for it in additional interchange fees. According to a Federal Reserve report (PDF) on interchange published in May 2009, interchange fees for PIN debit "typically average 35 cents to 50 cents per transaction; interchange fees for a typical signature debit transaction are about 1.2 percent of the transaction value; and interchange fees for a typical credit card transaction for Visa and MasterCard are in the range of 1.5 to 2 percent of the transaction value."


It may seem counterintuitive to tell merchants how they can lower their transaction fees, but remember, anything that helps merchants achieve greater profitability will increase loyalty and retention.



Security is a value-add



There's no doubt consumers today are more aware of card fraud issues than they were three or four years ago. Millions of cards have been replaced due to breaches of retailer and processor data centers, as well as payment networks.



PIN debit is inherently more secure than signature debit, which requires just a signature that few store clerks attempt to verify. According to the 2009 Debit Issuer Study, commissioned by Discover Financial Service's Pulse network, POS losses for PIN debit were just 15 cents per card issued in 2008, compared to $1.81 for signature debit. (Signature Debit is 12 times more likely to to incur a loss, yet Visa still pushes the less secure signature debit.)






Nevertheless, when you're selling PIN debit you need to be ready to answer questions about skimming incidents in which criminals have been able to surreptitiously obtain card data and associated PINs.



These incidents have been attributed to the compromise of pre-Visa PIN entry device (PED)-approved systems. Amazingly, there are still PIN pads in use that predate any security certification. As of July 1, 2010, these pre-Visa PED systems must be removed from service.



Today's Payment Card Industry (PCI) PED systems feature certified tamper prevention and tamper detection schemes designed to ensure that efforts to compromise systems will be immediately visible and unsuccessful. Merchants can use their new systems as a compelling marketing point to show customers that security is a priority.



PIN for any counter



There is no merchant scenario (except eCommerce, even though Visa, MasterCard, Discover, AMEX and JCB PCI Certified the PED manufactured by HomeATM) that cannot accommodate a PIN debit solution in this day and age.



PIN debit can easily be added by selling merchants PCI PED devices containing an internal PIN pad or by adding a secure PIN pad to an existing terminal. With security requirements becoming ever ore stringent, many merchants must upgrade their terminals anyway, so why not provide them with solutions that offer more flexibility and payment options?



Among those options are:

  • Terminal-driven PIN pad peripherals: Compact PIN pads that attach to existing payment terminals and take up little counter space are a quick and easy way to equip merchants for PIN acceptance.

  • Customer-activated PIN pads: Once seen only in supermarkets and high-end department stores, consumer-activated facing terminals that integrate with cash register systems are suited to high-traffic venues.

  • PC-integrated PIN pads: Personal computer-based payment processing is attractive to a growing number of storefront merchants; especially appealing is a bundled solution that includes hardware and payment processing software. (don't need payment processing software with HomeATM...just plug-in our PCI 2.0 Certified PED to any USB port and you are good to go)



PIN is In
(and only HomeATM can provide it for eCommerce)  Editor's Note:  If you're thinking, what about Acculynk, remember...Acculynk isn't really  a PIN Debit transaction.  It is simply an alternative payment designed for eCommerce.  Using Acculynk's payment scheme, the consumer must TYPE their debit card number into a box on a website in the browser, putting the user at risk.  A Genuine PIN Debit requires the card to be present because the magnetic stripe must be swiped and the PVV and PVKI must be captured by the card reader.  Because Acculynk's scheme requires the user to type in their PAN (primary account number) it is, by definition,  a "card not present" transaction.  This technically disqualifies/eliminates it as a genuine PIN debit transaction.  Card Not Present PIN Debit does not exist.  Therefore, ONLY HomeATM offers genuine PIN Debit for eCommerce merchants.  HomeATM is the only eCommerce solution in the world which instantly encrypts the the magnetic stripe data (including the Track 2 data) at the mag-head.  It is also the only eCommerce solution in the world which provides true end-to-end encryption for the PIN, using Derived Unique Key Per Transaction. (DUKPT)  



ISOs and merchant level salespeople able to offer merchants a variety of PIN-entry device options will ensure maximum adaptability and security. When you combine the cost savings associated with PIN debit with increasing card volume, given current consumer trends and the higher security standards for PIN debit transactions, you've got a winning formula for sales now and in the future.






Scott Henry is Director, North America Product Marketing, for VeriFone. He can be contacted at scott_henry@verifone.com










Jack Henry & Associates Increases the Quarterly Dividend on Its Common Stock by 12 Percent to $.095 per Share

Image representing Jack Henry & Associates as ...Image via CrunchBase

MONETT, Mo., Feb. 8 /PRNewswire-FirstCall/ -- Jack Henry & Associates, Inc. (Nasdaq: JKHY) today announced that its Board of Directors has increased the quarterly cash dividend by 12 percent to $.095 per share. The cash dividend on its common stock, par value $.01 per share, is payable on March 9, 2010, to stockholders of record as of February 24, 2010. At February 2, 2010, there were 84,500,457 shares of the common stock outstanding.



Kevin D. Williams, CFO of Jack Henry & Associates, stated, "This increase in our dividend is reflective of our ongoing commitment to generate a return on our stockholders' investment. We established our dividend policy in 1990, and our dividend has increased every year since its inceptions. Our announcement of this dividend increase during our third fiscal quarter is consistent with previous years."



Jack Henry & Associates, Inc. (NASDAQ: JKHY) is a leading provider of computer systems and ATM/debit card/ACH transaction processing services primarily for financial services organizations. Its technology solutions serve more than 11,800 customers nationwide, and are marketed and supported through three primary brands. Jack Henry Banking supports banks ranging from de novo to mid-tier institutions with information processing solutions. Symitar™ is the leading provider of information processing solutions for credit unions of all sizes. ProfitStars® provides highly specialized products and services that enable financial institutions of every asset size and charter, and diverse corporate entities to mitigate and control risks, optimize revenue and growth opportunities, and contain costs. Additional information is available at www.jackhenry.com.



SOURCE Jack Henry & Associates, Inc.



RELATED LINKS



http://www.jackhenry.com





In Defense of Animals Enlists Tempo Debit Card Platform

SOURCE: Tempo Payments, Inc.



Affinity Debit Card Program Generates Revenue From Everyday Purchases for Helping Animals





SAN MATEO, CA--(Marketwire - February 8, 2010) - Tempo announced today that In Defense of Animals (IDA), an international, non-profit animal protection organization based in California, is offering contributors an affinity debit card powered by Tempo.



Every time In Defense of Animals debit cards are used to make a purchase, IDA will receive a portion of standard card transaction fees. The cards can be used anywhere Debit MasterCard cards are accepted and also provide cash-back and ATM withdrawal access to the cardholders' existing checking accounts.



"It's a painless, great way to help IDA raise much needed funds for our chimpanzee sanctuary in Cameroon, Africa; our veterinary clinics and ambulance service for the thousands of street animals of Mumbai, India; and for our investigative and sanctuary work in rural Mississippi," said IDA founder and President Elliot M. Katz, DVM.



Tempo technology makes it easy for organizations to offer affinity debit cards and provides a web portal for consumers to apply for and activate cards, as well as track purchases and rewards. The cards are issued by Tempo partner First Bank & Trust of Brookings, SD, part of Fishback Financial Corporation.



"IDA's affinity Debit MasterCard empowers supporters to link their existing checking accounts to such a noble cause as helping animals," said Tempo CEO Mike Grossman. "Using software-as-a-service technology, Tempo provides a speedy and cost-effective way to enable this type of affinity program and make it easy for consumers to apply, activate cards and track purchases online."



Tempo-enabled debit cards are affinity partner-branded, generate valuable cardholder rewards, and can be used for online and offline purchases and ATM withdrawals. Working with First Bank & Trust, Tempo manages all aspects of card issuance, including risk management, application processing, card fulfillment, authorization and settlement.



Other non-profits that are offering Tempo-powered affinity debit card programs include the Breast Cancer Fund, Greenpeace, Surfrider Foundation and World Emergency Relief.



About In Defense of Animals



Founded in 1983 by veterinarian Elliot M. Katz, IDA is an international non-profit organization with a distinguished record for challenging the exploitation and abuse of animals by protecting their rights, welfare and habitats. IDA fights to elevate the status of animals beyond that of mere property, commodities, objects, or things to be bought, sold, and discarded at an "owner's" whim. IDA operates the Project Hope sanctuary in rural Mississippi, the Sanaga-Yong Chimpanzee Rescue Center in Cameroon, Africa, and its animal rescue centers in Mumbai, India. Working with grassroots organizations, and initiating litigation, research and investigations, IDA is on the cutting edge of animal rescue, protection and advocacy around the world. www.idausa.org



About Tempo



Tempo is the leader in enabling organizations to quickly and easily offer affinity and co-branded debit cards to their customers, contributors and members. The open loop cards are rewards-based, partner-branded, and linked to the consumer's existing checking account. Tempo provides its affinity partners with a Web-based platform that makes it easy to launch and market co-branded debit programs. The partners benefit by generating new revenue, and building loyalty through the delivery of enhanced cardholder value. Tempo is privately held and is headquartered in San Mateo, CA. For additional information, visit www.tempo.com. These cards are issued by First Bank & Trust, Brookings, SD, pursuant to a license by MasterCard® International Incorporated. MasterCard is a registered trademark of MasterCard International Incorporated. First Bank & Trust is a member of the FDIC and part of the Fishback Financial Corporation.





PCI Security Standards Council Deploys Translations.com's GlobalLink(TM) Technology To Translate Global Website

NEW YORK, Feb 08, 2010 (BUSINESS WIRE) -- Translations.com, the world's largest privately held provider of translation services and language management technologies, today announced the successful localization of www.PCISecurityStandards.org into French, Spanish, Chinese, Japanese, Portuguese, Italian, and German.



Founded in 2006 by American Express, Discover Financial Services, JCB International, MasterCard Worldwide, and Visa Inc., the PCI Security Standards Council is responsible for the development, management, education, and awareness of the PCI Data Security Standards, which are designed to ensure the security of cardholder data worldwide. The PCI Security Standards Council has over 600 Participating Organization companies worldwide. Bob Russo, general manager of the PCI Security Standards Council, explained, "As a global organization focused on securing payment card data, it is critical we provide our stakeholders worldwide with the resources they need to meet this goal, in their own language."



Translations.com's GlobalLink(TM) technology offers companies both hosted and installed options for launching and automatically maintaining translated websites with minimal IT involvement. By combining GlobalLink OneLink with Translations.com's language services, PCI was able to localize its website and related documents into 8 languages in only 2 months with a completely hosted solution. When PCI makes updates to the English website in the future, GlobalLink will automatically detect and route new content to Translations.com for localization by professional human translators, then insert the completed translations back into the proper location on the global websites.



"As we continue to develop PCI Security Standards and produce new resources for our stakeholders, it was critical for us to partner with a company who could help us manage our dynamic multilingual site in a cost effective and timely manner," added Russo.



Translations.com CEO Phil Shawe said, "By making their website and standards information accessible to stakeholders in a range of languages, the PCI Security Standards Council has made a significant step forward in its mission to secure payment card data worldwide. We applaud the Council for its efforts and look forward to supporting their ongoing global initiatives for years to come."



About PCI Security Standards Council



The mission of the PCI Security Standards Council is to enhance payment account security by driving education and awareness of the PCI Data Security Standard and other standards that increase payment data security.



The PCI Security Standards Council was formed by the major payment card brands American Express, Discover Financial Services, JCB International, MasterCard Worldwide and Visa Inc. to provide a transparent forum in which all stakeholders can provide input into the ongoing development, enhancement and dissemination of the PCI Data Security Standard (DSS), PIN Transaction Security Requirements (PTS) and the Payment Application Data Security Standard (PA-DSS). Merchants, banks, processors and other vendors are encouraged to join as participating organizations.



About Translations.com



Translations.com is a leading provider of software, website, and enterprise-wide localization services, as well as localization-related technology products. Translations.com solutions allow customers to conduct business more effectively in international markets. The company has a global presence on four continents and services a variety of clients with dedicated practice groups for every major industry. Translations.com is part of the TransPerfect family of companies. For more information, please visit www.translations.com or www.transperfect.com.



SOURCE: Translations.com Translations.com

Jacquelyn Lane, +1 619.696.9000

mediainquiry@translations.com















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