Tuesday, February 23, 2010

Featured Post: What Are We Waiting For?

Online Banking is not secure, Verified by Visa is not Secure, SSL is not Secure, eCommerce is Not Secure...we need separate machines for online banking and browsing...so what are we waiting for?  Seriously.  Because if we are waiting for  Visa to start pushing "secure transactions" over "less secure" transactions, then

"I will see you in another lifetime brother..."

I could go on and on but I think I've made my point.  And what is that point exactly?   I can assure you that it's not one borne of frustration.  That was so last year.  This year it's almost laughable. How can supposed "leaders" in the financial institution be so damn stubborn that they continue on the same exact path achieving the same exact results. 

What do you call an entity that does the same thing over and over again expecting to get different result?  Insane?  What's insane is that it is so OBVIOUS that we need a hardware device to conduct secure financial transactions outside the browser space that my dog gets it.  

So, exactly what is it we waiting for?  It is TIME!

  • It is time...for "eCommerce transactions to be conducted on the only eCommerce enabled PCI Certified Device and replicate the "Card Present" environment conducted in a brick and mortar transaction.

  • It's time to secure online banking with the very same PCI Certified PIN Entry Device, by replicating the same process trusted by banks and their customers to withdraw cash from an unattended ATM.  Insert the card and enter the PIN. 

  • It is time to introduce a more secure way to protect consumers against the bad guys...it's time for the world's only PCI Certified PIN Entry Device designed exclusively for eCommerce.  It is time for HomeATM.

    NRF’s Retail Innovation & Marketing Conference to Light Up San Francisco

    City and County of San FranciscoNational Retail Foundations Innovation and Marketing Conference is in San Francisco this Year
    Washington, February 23, 2010 – As the retail industry continues to build upon the combined power of marketing, technology and ecommerce, the National Retail Federation will bring together some of the most forward-thinking executives in the industry for the inaugural Retail Innovation and Marketing Conference, March 2-4, 2010 in San Francisco. The event, held at the Westin St. Francis in San Francisco, will provide educational opportunities in areas such as cross-channel strategies, new approaches to marketing, social media, and branding.

    The Retail Innovation and Marketing Conference is powered by the Retail Advertising and Marketing Association, NRF’s division for marketing professionals, and Shop.org, NRF’s digital division.

    Opening the event, Williams-Sonoma Chief Marketing Officer Pat Connelly will discuss how the company, historically focused on traditional direct marketing, is embracing online/interactive channels to build integrated, innovative programs that are positioning the company for even greater success. Connelly’s keynote, “Cooking Up Marketing Innovation with Williams-Sonoma,” will occur Wednesday, March 3 at 8:30 a.m.*

    Other high-profile speakers and sessions include:

    How Macy’s Delivers Consistent & Creative Customer Experiences in all ChannelsWednesday, 3/3, 12:45 p.m. – 1:15 p.m.  Speaker: Peter Sachse, Chief Marketing Officer, Macy’s, Inc.

    With many shoppers browsing online and then buying in a store, learn how Macy’s uses technology to unify the power of their brand by interacting with consumers at many touch points.

    Driving ROI through Social SellingWednesday, 3/3, 4:05 p.m. – 4:25 p.m. Speaker: Julie Bornstein, Senior Vice President, Sephora Direct; Bridget Dolan, Vice President, Marketing and Business Development, Sephora.

    This session will explore mobile and social media outlets in regards to how they can fit in an overall retail strategy. Executives from Sephora will also detail how they are using a variety of these tools, including Facebook, Twitter, customer reviews and blogging, to drive conversions, customer loyalty and ROI.

    ‘Online to On-Shelf’: Building Next Generation Retail Demand the Dell Way – Keynote Address Thursday, 3/4, 8:45 a.m. – 9:30 a.m.  Speaker: Ronald Garriques, President, Communications Solutions, Dell

    Hear how the Dell brand has created a best-in-breed cross-channel global retail footprint by focusing on their loyal consumer base and optimizing new retail channels.

    33 Million People in the Room – Keynote Address

    Thursday, 3/4, 10:50 a.m. – 11:35 p.m.: Digital media expert, consultant and author Juliette Powell will present a unique perspective on the social media phenomenon and provide examples of companies that are achieving a strong positive ROI with a sprinkle of creativity and constant dedication to the social space.

    Also during the conference, RAMA and Shop.org will announce the winners of the Racie Awards during the Awards Reception and Dinner Gala, which honors retail’s most creative and innovative advertising and marketing campaigns. In addition to presenting the finalists with either a gold, silver or bronze award, attendees at the gala get to vote for the Best of the Best. The Awards Reception takes place March 3 at 6:00 p.m.  New to the Racie’s this year is the addition of eCommerce/Digital categories, including: Digital/In-Store Experience, Motion Design, Website Experience, Rich Media Online Advertising and Promotion, Social Commerce and Mobile Apps. The National Retail Federation is the world's largest retail trade association, with membership that comprises all retail formats and channels of distribution including department, specialty, discount, catalog, Internet, independent stores, chain restaurants, drug stores and grocery stores as well as the industry's key trading partners of retail goods and services. NRF represents an industry with more than 1.6 million U.S. retail establishments, more than 24 million employees - about one in five American workers - and 2008 sales of $4.6 trillion. As the industry umbrella group, NRF also represents more than 100 state, national and international retail associations. www.nrf.com.


    NRF is pleased to grant complimentary registration to editorial staff members of the press, as well as accredited retail analysts and bloggers. Click here to register online for the 2010 Retail Innovation and Marketing Conference, or call Kathy Grannis at (202) 626-8189

    * All sessions are listed in Pacific Time (PST)


    HomeATM Headline News through February 23rd

    The Bibliomancer's DreamImage by Prodromos Sarigianis via Flickr
    Researchers Show Off Smartphone Attacks

    eWeek After receiving the $600 phone, she discovered that it may have been stolen by the person who sold it to her, but thankfully, she can fall back on PayPal's ...

    Mobile phones become pocket banks in poor countries

    Economic Times "We are currently moving from a trial to a full launch in paying the Afghan national police," said Roshan's head of mobile commerce, Zahir Jhoja.

    Monitise's Lisa Stanton on How Mobile Is Changing the Payments Landscape

    As the first employee for Moneitse America, Lisa is well versed in the company's unwritten rule of thumb: any consumer, any network, any mobile device. What's next for Monitise? Will improvements in NFC and mobile money transfers change the payments landscape? Find out in our exclusive interview.

    Debit rules and other musings

    Back in 1985, only a handful of banks and merchants in about a half-dozen states offered or supported POS debit card options. What a difference 30 years can make. Although data detailing consumer usage in 2009 is not yet available, everyone now agrees that growth in debit card usage is a dominant trend. Read entire story

    UBS to deploy IBM secure banking USB device

    NetworkWorld.com ... said Avivah Litan, a vice president at Gartner. As criminals have found ways to defeat strong authentication methods such as one-time passwords,

    Is Google the Next Microsoft and Microsoft the Next Apple?

    This past week, two rather interesting events got me thinking about how Apple, Google and Microsoft seem to be changing places. Microsoft announced Windows Phone Series 7, and Google announced Buzz (also known as "Buzz Kill") into the market. Microsoft kind of pulled an Apple with this, in that it stepped away from the field and created something distinctly different and potentially more capable.


    Silicon Valley startup economy shifts into higher gear
    Just when it seemed America was emerging from the recession, Wall Street swooned again as January segued into February. But Silicon Valley's startup economy shifted into a higher gear. Read article »

    Credit Cards Cornering the Market for Online Purchases? Think Again!

    EcommerceJunkie.com (blog) “Prepaid and gift cards are hitting stride in the online payments environment,” says Javelin analyst Elizabeth Robertson. Why is this, you ask? ...

    Marketing to the Ubiquitous Cellphone

    E-Commerce Times M-commerce has been slow to gain traction, but that's likely to change very soon. Opt-in plans that give loyal customers special attention can have handsome ...


    UBS has become the first bank to roll out IBM's Zone Trusted Information Channel (ZTIC) online banking security hardware to its customers. More on this story: http://www.finextra.com/news/fullstory.aspx?newsitemid=21118

    Payments Friction

    Wired Magazine has published an article titled "From Credit Card to PayPal: 3 Ways to Move Money" that graphically depicts the payments process for a) credit cards, b) iTunes and c) PayPal. Can you guess who's most "frictionless" - according to Wired?

    A Look at Global eCommerce and Declining Fraud Rates

    CyberSource reports that its 11th Annual Online Fraud Report shows that among U.S./Canadian merchants accepting international orders, 21% of their online orders came from abroad, up from 17% the year before and 8% in 2005. According to the company, "this steady growth is supported by dramatic progress in meeting the increased fraud challenge of international orders, with 50% lower fraud rates and 30% lower order rejection rates."

    Shopping and Search Merge: Google Shopper to Exponentially Grow M-Commerce

    TMC Net By TMCnet Special Guest “Google (News - Alert) Shopper,” a mobile application from the proprietors of nearly everyone's favorite search engine,


    180 Gas Stations in Utah Infiltrated by Skimming Devices

    Criminals Hide Payment-Card Skimmers Inside Gas Station Pumps  

    Wave of recent bank-card skimming incidents demonstrate how sophisticated the scam has become

    By Kelly Jackson Higgins


    Criminals hid bank card-skimming devices inside gas pumps -- in at least one case, even completely replacing the front panel of a pump -- in a recent wave of attacks that demonstrate a more sophisticated, insidious method of stealing money from unsuspecting victims filling up their gas tanks.

    Some 180 gas stations in Utah, from Salt Lake City to Provo, were reportedly found with these skimming devices sitting inside the gas pumps. The scam was first discovered when a California bank's fraud department discovered that multiple bank card victims reporting problems had all used the same gas pump at a 7-Eleven store in Utah.

    Continue Dark Reading


    Mocapay Unveils Secure Mobile Payments at Merchant POS

    Newly-Patented Technology Creates Single Solution to Conduct Secure Mobile Transactions in a Multi-Channel Environment

    DENVER--(BUSINESS WIRE)--Mocapay, a mobile experience platform, today, introduced the only mobile solution in the marketplace that enables secure, hardware infrastructure agnostic, mobile payments regardless of tender type and transaction location.

    “Our mobile payments platform ensures true anywhere, anytime mobile payments acceptance regardless of where the consumer wants to make a purchase or with which tender type the consumer chooses to use.”

    Mocapay’s “dynamic cryptogram” architecture, which recently received a U.S. patent, ensures every mobile payment transaction is executed simply and securely with a one-time use and perishable authorization code. Mocapay’s transaction-level, token-based, mobile payments solution ensures that no customer sensitive information is stored on a mobile handset or passed to the merchant point-of-sale (POS).

    The company was issued patent US 7,657,489 B2 on February 2, 2010 for this solution.

    “Security and merchant acceptance is a critical component of mobile payments and one of the seminal reasons behind the limited adoption of mobile payments in the United States,” said Kevin Grieve, CEO, Mocapay. “Our mobile payments platform ensures true anywhere, anytime mobile payments acceptance regardless of where the consumer wants to make a purchase or with which tender type the consumer chooses to use.”

    Mocapay offers its end-to-end mobile platform solution to merchant issuers of closed-loop loyalty, gift, and private-label credit, as well as financial institutions that issue open-loop prepaid, debit, and credit.

    The company provides issuers three methods to utilize its patented mobile payments solution: out-of-the-box, Software-as-a-Service (SaaS) platform, or white-label, issuer-branded wallet and SaaS platform, or technology licensing giving issuers various solutions to match their business needs.

    Mocapay’s platform simplifies deployment and support by offering a single solution for multi-channel and multi-location mobile payment acceptance. The company offers issuers, depending upon tender type, three-modes of mobile connectivity: SMS/text, Internet/browser enabled phones (WAP), and handset Apps (iPhone, Android, and soon-to-be-released Blackberry). The solution can also be deployed by merchants for their own merchant-branded mobile loyalty and gift programs and used to accept funds from financial institutions that issue mobile open-loop tender.

    Mocapay works with all the major U.S. carriers further extending its consumer reach and has integrated its product with most of the major POS vendors.

    As a mobile SaaS solution, Mocapay is downloaded onto the merchant’s existing POS system preserving the merchant’s current in-store, POS hardware and providing forward compatibility with future POS configurations. The Mocapay platform also has an embedded messaging engine enabling issuers to communicate to their consumers before, during, and after a payment transaction.

    About Mocapay

    Mocapay is an end-to-end, mobile payments and experience platform for innovative issuers. The platform addresses merchants’ need for a new channel that will broaden their loyalty and gift programs by mobilizing sales and marketing to reach customers anytime, not just at the point of sale, encourage purchases and build a stronger brand affinity. For innovative financial institution issuers, Mocapay reduces the implementation time, support complexity and costs associated with secure mobile payments increasing and accelerating consumer and merchant adoption. Based in Denver, Mocapay is a privately held, venture funded company founded in 2006. For more information, visit www.mocapay.com.


    UBS Rolls Out IBM's ZTIC Online Banking "Hardware"

    The trend towards using "hardware" to protect online banking and online banking transactions is gaining momentum.  Now UBS has announced it is rolling out IBM's ZTIC Hardware Device for online banking.  Europe saw a 31% increase (from 22% to 29% see chart below) in the number of customers who use a card reader for online banking authentication. 

    HomeATM provides the only PCI 2.0 Certified PIN Entry Device designed for both online banking authentication AND conducting secure online transactions.  In addition our device enables real-time P2P money transfers.  (ANY bankcard to ANY bankcard)  Below is a YouTube Video of the ZTIC (Zone Trusted Information Channel) hardware device.  HomeATM uses a trusted channel as well.  The Existing Bank Rails. 

    IronKey Unveils Trusted Access Solution to Protect Corporate Banking Customers Against Sophisticated Fraud and Malware Attacks

    IronKey Extends Trusted Virtual Computing Platform to Protect Corporate Banking Customers

    LOS ALTOS, Calif., Feb. 23 /PRNewswire/ -- To help address the serious dangers posed by ever more sophisticated malicious software ("malware") that is infecting the computers of users of corporate online banking services, IronKey, the leader in secure and managed portable computing solutions, today announced its Trusted Access for Banking solution. This new product is an application and services suite that leverages the capabilities of IronKey's Trusted Computing Environment platform to allow banks to provide identity protection, strong authentication and fraud protection at the endpoint for corporate banking customers.

    The computer security industry is discovering increased numbers of malicious software variants that are designed to steal identity credentials and perform fraudulent transactions from the computers of infected banking users. A recent Symantec report states there are 70,330 unique variants of the Zeus banking Trojan malware, with the true absolute figure to be much higher, making it hard to detect, and one of the top risks to users of online corporate banking services.

    "Organized cyber crime rings have begun to shift away from massive phishing attacks against individual commercial banking customers, and instead are targeting bigger players including corporate banks," said David Jevans, CEO of IronKey. "We are committed to helping our corporate banking customers protect their customers against these threats. The IronKey solution isolates access to the online corporate banking system from the host PC, creating a trusted virtual computing environment and protecting commercial banking customers from current and next-generation malware and fraud schemes."

    IronKey Trusted Access for Banking is a purpose-built application of the IronKey multifunction security device. Corporate banking customers simply plug it into a computer, and enter their device password. Once the IronKey device is successfully unlocked, its virtualized operating system automatically runs, and a secure Web browser launches and goes directly to the bank's website. It incorporates a locked down Web browser that is protected against malware from the host PC, and may also be configured to allow users to visit only specific websites.

    Zeus/Zbot is different than other Trojans because it gives hackers the ability to alter a Web input rendered by the victim's browser to display its own content, mimicking a bank's Web page form as a legitimate bank website. When the unsuspecting user completes the additional fields on the form, these private credentials are sent directly to the criminal. It can even be customized to steal information from banks in a specific geographic region.

    IronKey prevents these types of man-in-the-browser attacks, and enables a trusted virtualized environment protected from malware-infected host computers. The IronKey system conducts an anti-malware scan of the host computer before enabling the secure environment, and even provides the option to boot a host operating system from the IronKey device to protect against threats on infected host computers. The IronKey solution is available with an integrated RSA SecurID® software token that generates one-time passwords, and as a result, provides a single device that serves as both a secure banking platform and a mechanism for two-factor authentication. IronKey Trusted Access for Banking has a SaaS or software centralized management capabilities for policy control and reporting.

    "Corporate resources are at very high risk as fraudsters combine increasingly sophisticated malware and manipulative attack vectors with an evolving ability to monetize stolen information," said Tom Corn, vice president of product marketing at RSA, The Security Division of EMC. "It has come to the point where we advise organizations that are taking additional measures to prevent online threats to first assume that all of their computers are compromised. By teaming up with IronKey, we can provide these organizations with increased layers of protection that not only reduce complexity but also increase confidence that identities, information and infrastructure are better protected."

    The IronKey Trusted Access for Banking solution is available in March and can be seen in action at the RSA show March, 1-5 in San Francisco, CA, in the IronKey booth #2333.

    Social Media Destinations and Resources:

    About IronKey:

    IronKey is the global leader in providing secure and managed portable storage, authentication, and trusted virtual computing solutions for mobile workers. IronKey multifunction portable security devices, management software and associated services are designed to meet the security, performance, and privacy standards of the most demanding enterprise and government customers. IronKey solutions range from IronKey Basic, the world's most secure USB flash drive, to the IronKey Enterprise Virtual Desktop solution for carrying a secure operating system and virtual desktop environment on a pocket-sized device. IronKey works with industry leaders in virtualization, storage and security, including Lockheed Martin, McAfee, MokaFive, RSA, RingCube and VeriSign to extend the applications of its secure mobile computing platform. IronKey products are FIPS 140-2, Level 3 validated. Thousands of customers use IronKey, including Fortune 500 companies, enterprise organizations in financial services, healthcare and legal markets, as well as government agencies, including FEMA, NATO and DHS. For more information, please visit www.IronKey.com.

    RSA and SecurID are either registered trademarks or trademarks of RSA Security, Inc. in the U.S. and/or other countries. EMC is a registered trademark of EMC Corporation. All other trade names and trademarks are the property of their respective holders.

    SOURCE IronKey


    Discover® Card Ranked Tops in Customer Loyalty for 13th Consecutive Year

    Award Recognizes Ability to Engage Consumers and Create Loyal Customers

    RIVERWOODS, Ill.--(BUSINESS WIRE)--When it comes to customer loyalty, the Discover brand remains on top of the credit card category for the 13th consecutive year, finishing in a tie for No. 1 in the 2010 Brand Keys Customer Loyalty Engagement Index®.

    “Discover has evolved from a credit card business to a direct banking and payment services company by maintaining its focus on serving our customers,” said Carlos Minetti, executive vice president of cardmember services and consumer banking. “Trust in our brand transcends across multiple credit and non-credit products, so a loyal Discover cardmember knows they will get the same great service and rewards from us regardless of whether they are making a purchase, opening an online savings account or investing in a certificate of deposit.”

    The annual ranking from Brand Keys, Inc., a New York-based research consultancy, this year probed customers' relationships with more than 518 brands in 71 categories.

    “The past year has been a trying time for financial service companies. The Customer Loyalty Award is proof that the Discover Financial Services' brand and the brand management team are able to best meet or exceed the very high expectations consumers hold in this category,” said Robert Passikoff, Ph.D., founder and president of Brand Keys. “This is the 13th consecutive year Discover has been able to provide truly resonating financial products and services to their customers, and their loyalty is the ultimate accolade.”

    Brand Keys’ methodology combines psychological assessments and statistical analyses to probe the connection between brand and consumer.

    “At Discover, listening to customers and investing in what is relevant to them is key,” said Harit Talwar, executive vice president of card programs and chief marketing officer for Discover. “We breed loyalty into the Discover brand through rewards and customer advocacy, and we provide industry-leading products, services, and tools that help consumers find meaningful solutions to their needs.”

    In addition to credit cards and direct banking products like certificates of deposit, money market accounts and online savings accounts, Discover offers an array of tools to help its customers spend smarter and manage debt better on the Financial Education Resources page of the company’s Web site.

    About Discover

    Discover Financial Services (NYSE: DFS) is a direct banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company operates the Discover card, America's cash rewards pioneer, and offers personal and student loans, online savings accounts, certificates of deposit and money market accounts through its Discover Bank subsidiary. Its payment businesses consist of Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club International, a global payments network with acceptance in more than 185 countries and territories. For more information, visit www.discoverfinancial.com. .

    Accertify Expands into UK/EU Market

    Industry's Most Complete Solution for Combating Online Fraud and Transaction Risk Now Available to UK and European Merchants

    Leading U.S. Fraud Prevention Service Provider Expands into UK/EU Market Filling Much Needed Void in Previously Offered Tools

    CHICAGO and LONDON, Feb. 23 /PRNewswire/ -- Accertify, a leading provider of enterprise-wide transaction screening solutions, today announced that its industry-leading Interceptas platform is now available in the United Kingdom and European Union. Fraud and business development experts Andy Lee and Neil Caldwell have joined Accertify, based in the U.K.

    In the U.S., Interceptas® is setting the industry standard as the most comprehensive transaction screening solution available. The platform is flexible enough to screen any type of payment transaction or other account activity through web, call center, point-of-sale and mobile channels.

    In a matter of months, Accertify clients have experienced reductions in fraud of as much as 73 percent, reductions in manual reviews of 50 percent and improvements in customer service and customer service costs.

    "Accertify has quickly become the premier provider of transaction screening and online fraud prevention solutions in the U.S. We've now signed a large, U.K.-based customer and aim to accomplish the same goal here by helping merchants combat the growing fraud challenge," Lee said. "Based on my 10 years of experience in fighting fraud, Accertify's platform is the best solution available worldwide. Its comprehensive, integrated approach, coupled with its advanced data management capabilities and flexible design, gives it a real edge in the European market."

    After more than doubling its client base last year, Accertify protects a growing array of industry leaders and global brand names in the airline, retail, social networking, event ticketing, electronics, online gaming, digital downloads, money transfer and other industries.

    "Accertify is growing exponentially in the U.S. and it's very exciting to be launching Interceptas into the European market," Caldwell said.

    "Managing online fraud continues to be a significant and growing cost for European merchants and the introduction of Chip and PIN has driven more fraud to the web. But until now, European merchants have had few choices available for online fraud prevention," Caldwell said. "With Accertify's expansion here, they now have access to the industry's most advanced and effective fraud-fighting platform. They are going to be amazed when they see what Accertify has to offer."

    Lee, European Director of Professional Services, is a skilled KYC and fraud specialist with expertise in the end-to-end process design and management of Pan European KYC and fraud management strategies, including prevention, detection, investigation and analysis. His experience spans the retail, telecommunications and banking sectors. He has developed and directed fraud prevention departments for online retailers and financial services organizations, including Ivobank and Lastminute.com, where he designed the KYC and fraud and risk strategy and led high-performance teams.

    Caldwell, European Business Development Director, has broad experience in financial services, e-wallet functionality, prepaid programs, Pan-European product launches, international business development, KYC, anti money laundering and fraud/risk decisioning.

    For more information or to schedule a demonstration, merchants should contact Andy Lee at
    alee@accertify.com or Neil Caldwell at +447940 429559 or ncaldwell@accertify.com .

    About Accertify

    Accertify Inc. is a leader in providing e-commerce companies with software, tools and strategies for preventing online fraud and mitigating enterprise-wide risks.  Our Interceptas platform integrates every component of fraud prevention, applies state-of-the-art automation to each step in process and offers advanced capabilities for managing fraud data.  Built with a merchant's perspective, Interceptas delivers unparalleled flexibility in preventing various types of criminal behavior, including fraud related to card-not-present purchases, online scams and policy abuse, merchandise returns and exchanges and other data management challenges.  Accertify is committed to providing online companies with the most cost-effective solution to fraud available.  For more information, visit www.accertify.com.

    SOURCE Accertify


    New Overdraft Rules for Debit and ATM Cards

    New Federal Reserve rules give debit and ATM card users additional options regarding overdrafts. In the coming months, banks, credit unions, and other financial institutions must offer you the ability to make decisions about overdraft services for transactions made with your debit or ATM cards.

    Expect your bank to send you an explanation of its overdraft services; here is an example (38 KB PDF). Here are some key things you need to consider when reading the notice:

    The basic facts

    Types of overdraft services. An overdraft occurs when you make a purchase or ATM transaction but don't have enough money in your account to pay for it. For a fee, your bank's overdraft services will cover you when you become overdrawn. This fee can apply to each time you overdraw your account.

    Generally, there are two types of overdraft services:

    • Standard overdraft services. Your bank will cover your transaction for a flat fee of about $20-30 each time you overdraw your account. For example, if you make a purchase with your debit card for $150 but only have $100 in your account, your account will be overdrawn by $50 and your bank will charge you a fee. If you then make an ATM withdrawal for $50, your account will be overdrawn by $100 and you will be charged another fee. In this example, if the fee your bank charges for overdraft services is $30, you will pay a total of $60 in fees.

    • Overdraft protection plans. Your bank may offer a line of credit or a link to your savings account to cover transactions when you overdraw your account. Banks typically charge a fee each time you overdraw your account, but overdraft protection plans may be less expensive than standard overdraft services.

    The new rules

    • You choose. In the past, some banks automatically enrolled you in their standard overdraft services for all types of transactions when you opened an account. Under the new rules, your bank must first get your permission to apply these services to everyday debit card and ATM transactions before you can be charged overdraft fees. To grant this permission, you will need to respond to the notice and opt in (agree).

    • Existing accounts. If you do not opt in (agree), beginning August 15, 2010, your bank's standard overdraft services won't apply to your everyday debit card and ATM transactions. These transactions typically will be declined when you don't have enough money in your account, but you will not be charged overdraft fees.

    • New accounts. If you open a new account on or after July 1, 2010, your bank cannot charge you overdraft fees for everyday debit card and ATM transactions unless you opt in. If you open a new account before July 1, 2010, your bank will treat you as an existing account holder: you will receive a notice about your bank's overdraft services and will have to decide if you want them for everyday debit card and ATM transactions.

    • Flexibility. Whatever your decision, the new overdraft rules give you flexibility. If you opt in, you can cancel at any time. If you do not opt in, you can do so later.

    • Checks and automatic bill payments. The new rules do not cover checks or automatic bill payments that you may have set up for paying bills such as your mortgage, rent, or utilities. Your bank may still automatically enroll you in their standard overdraft services for these types of transactions. If you do not want your bank's standard overdraft services in these instances, talk to your bank; you may or may not have the option to cancel.

    Useful terms...

    • everyday debit card transactions

      purchases made with your debit card on a day-to-day basis (excludes all checks and automatic bill payments)

    • overdraft

      an overdraft occurs when you write a check, make an ATM transaction, use your debit card to make a purchase, or make an automatic bill payment or other electronic payment for an amount greater than the balance in your checking account

    • opt in

      giving your bank permission to include you in a particular service

    • opt out

      declining a particular service offered by your bank

    Other Resources..

    More of this series..


    Tapping into Transaction Data for Cost Effective Debit Rewards Systems

    Cardlytics President, IDC Financial Insights Practice Director Lead BAI Webinar On Tapping into Transaction Data for Cost Effective Debit Rewards Systems

    What: Consumers are moving away from the “buy now, pay later mentality” and towards increased savings and fiscal responsibility. This trend, combined with tightened credit availability with increasing rates results in vast numbers of bank customers who are putting down their credit cards and making everyday purchases with debit cards.

    However, the thin profit margins that banks earn from shrinking debit interchange fees lead financial institutions to view their debit programs as cost centers. The result is rewards that underperform when compared to similar programs for credit cards, limiting their impact on customer loyalty and retention.

    Lynne Laube, president of Atlanta-based Cardlytics and Aaron McPherson, practice director at IDC Financial Insights will host a Bank Administration Institute (BAI) Webinar that discusses the tactics and strategies of utilizing transaction data to enable institutions of all sizes to turn their debit programs into profit centers.

    Before joining Cardlytics, Laube held numerous leadership positions at McLean, Va.-based Capital One. Laube established the company’s payments business, which launched decoupled debit and prepaid product lines that are used by nearly every institution that offers debit services. Throughout her 13 years at Capital One, Laube developed and executed formation growth strategies for the company’s domestic and international operations as well as its core U.S. credit card business.

    McPherson is responsible for the strategic direction of research in payments and security. In this role, he writes and consults with clients on a wide array of subjects, including the future development of payment systems along with security and fraud. McPherson is particularly well versed in the areas of enterprise payments, rewards programs, financial supply chain management, check image exchange and information security.

    The Webinar will take place on Thursday, Feb. 25, from 2pm until 3pm EST.

    To speak with Laube or McPherson, contact Alex Shorter at 678-781-7207 or alex@williammills.com. Visit BAI’s Web site at http://www.bai.org to register for the event.

    About Cardlytics

    Through a highly relevant, "market-of-one" approach, Cardlytics unites banks and merchants to provide rich rewards to customers based on their individual purchase behavior. Its technology tracks consumers’ actual purchases, providing the first digital channel that can guarantee offline sales and help consumers realize savings of hundreds of dollars per year on the products they purchase every day. The rewards improve consumers’ banking behavior by increasing usage, reducing attrition and strengthening engagement with online banking. Cardlytics’ multi-channel approach includes online banking, SMS, e-mail, mobile, online-mall and social networks. For more information about Cardlytics, visit www.cardlytics.com.

    About IDC Financial Insights

    IDC Financial Insights provides independent research, custom consulting, and detailed multiclient studies on the technology issues and challenges facing the financial services industry. Its global research covers topics of strategic importance to corporate and retail banks, insurance carriers, and asset management, securities, and brokerage firms. In addition to the United States, local practices in Asia/Pacific, Canada, Europe, and Latin America add in-depth regional viewpoints. IDC Financial Insights is headquartered in Framingham, Massachusetts, USA. IDC is the premier global provider of market intelligence, advisory services, and events for the information technology market. IDC is a subsidiary of IDG, the world’s leading technology, media, research, and events company. For more information, please visit www.idc-fi.com, email info@idc-fi.com.

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