Wednesday, January 26, 2011

Apple Adding NFC Payment Features to iPhone and iPad

From Fierce Wireless:  Apple (NASDAQ:AAPL) will embed Near Field Communications-based mobile payment services into the next iteration of its iPhone and iPad devices, enabling consumers to make retail purchases by swiping their smartphone or tablet in front of a point-of-sale digital reader unit. Citing sources including Richard Doherty, director of consulting firm Envisioneering Group, Bloomberg reports that Apple engineers are presently at work on the m-payment initiative; Crone Consulting founder and CEO Richard Crone adds the service likely will leverage Apple customer information already on file, e.g. credit card account numbers, iTunes gift card balances and bank data.

Read more: Apple adding mobile wallet services to iPhone and iPad - FierceMobileContent 

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Acculynk Bringing PIN Entry Solution to Mobile Payments

Acculynk has announced that it is bringing its PaySecure Internet PIN debit system to smart phones early this year. The Atlanta-based company says PaySecure Mobile will enable consumers to authenticate their mobile transactions by entering their bank-issued PIN on Acculynk’s graphical, scrambling PIN-pad, which has been specially designed for mobile smart phone platforms.  Acculynk first introduced PaySecure for PIN debit payments on the Internet in 2009, but the growing prevalence of mobile transactions coupled with merchant demand prompted Acculynk to extend the program to smart phones, says the company. “We were approached by major merchants last year wanting to know how PaySecure would fit with their developing mobile channels, so we started work on a mobile application,” said Ashish Bahl, CEO of Acculynk. “After several months of development, we’ll be ready to launch PaySecure mobile in Q1 2011, allowing our merchants and partners to benefit from higher security in not just one but two major purchasing channels.” PaySecure Mobile is built on the same encryption and authentication platform Acculynk uses for its Internet PIN debit product, which today is supported by 9 U.S. EFT networks and implemented on over 1,000 U.S. merchant websites. Acculynk says it is looking to develop new applications for PaySecure in the coming year, including money transfer, Peer to Peer (P2P) authentication, online banking authentication, and PIN debit entry on a kiosk.
PaySecure Mobile will be available on the iPhone, Android, Blackberry and Windows-7 platforms. [end]
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Chase to the Cut: Chase Cutting Debit Rewards

According to ABC News, it could be the beginning of the end for debit card rewards.  As of Feb. 8, Chase says it will close off enrollment for its debit rewards. The program will only continue for those who are already enrolled as of that date. >>read more>>
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2010 BAI & Hitachi Study of Consumer Payment Preferences

The 2010 Study was designed to provide financial institutions, , processors, and associations with information to create or enhance strategies for generating income, prioritizing investments, and identifying marketing initiatives to meet current and future consumer needs.

 To view the report, click here.

Related:   Consumers Still Skeptical of Mobile Payments, But Attitudes May Change Soon
Despite the hype about mobile payments, most consumers still aren't comfortable using smart phones to pay for things, according to new research from the Bank Administration Institute and Hitachi Consulting. That, however, could change, and change soon. The study also shows that debit remains consumers' preferred payment choice, though its future has question marks because of new regulations.  >>read more at Digital Transactions>>
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PhoneFactor Announces Standard ISO 8583 Support

PhoneFactor Announces Multi-Channel Solution to Credit and Debit Card Fraud
Support for Standard ISO 8583 Protocol Enables Real-Time Authentication of Card Transactions

OVERLAND PARK, KS--(Marketwire - January 25, 2011) - PhoneFactor, the leading global provider of phone-based multi-factor authentication, today announced support for ISO 8583, the standard protocol that financial institutions use to process credit and debit card transactions. Both MasterCard and Visa base their authorization communications on the ISO 8583 standard as do most Automated Teller Machines. By supporting the widely used ISO standard, PhoneFactor can authenticate card transactions in any channel, including point-of-sale, ATM, and online transactions, through a single technology implementation.
Credit and debit card fraud is rampant worldwide, and while countermeasures like EMV chip cards have been introduced in some European countries, they have yet to gain even limited adoption worldwide. In addition, chip technology fails to easily address the online and mobile channels, leaving a growing segment of transactions unprotected.
By adding PhoneFactor to the transaction path using the ISO 8583 protocol, card issuers canauthenticate transactions with a phone call or text message. When a protected transaction is initiated, PhoneFactor instantly places an automated phone call or sends a text message to the cardholder asking them to verify the transaction details. The user simply answers the call and presses # (or a PIN) or replies to the text message to approve the transaction.
PhoneFactor uses the cardholder's existing phone -- a device the cardholder already has and carries with him. So, enabling the service for large numbers of geographically diverse customers is easy and cost-effective. It works regardless of which merchant is processing the transaction or from which channel the transaction is initiated.
"Card issuers are processing more transactions through more channels than ever before," said Steve Dispensa, PhoneFactor CTO and Co-Founder. "By leveraging a ubiquitous device and providing built in support for the ISO 8583 standard, PhoneFactor enables seamless protection for card transactions in any context."
About PhoneFactorPhoneFactor is a leading provider of multi-factor authentication. The company's award-winning platform uses any phone as a second form of authentication. PhoneFactor's out-of-bandarchitecture and real-time fraud alerts provide strong security for enterprise, banking, and website applications. It is easy and cost effective to set up and deploy to large numbers of geographically diverse users. PhoneFactor was recently named to the Bank Technology News FutureNow list of the top 10 technology innovators securing the banking industry today and a finalist in the SC Magazine Reader Trust Awards. Learn more at
Contact:Alison Hill
Marketing Manager
(913) 499-4146

FIS Mobile Financial Services at the Ready

Ready Financial Group to Enhance Mobile Capabilities Through FIS’ Mobile Financial Services

JACKSONVILLE, Fla.--(BUSINESS WIRE)--FIS™ (NYSE: FIS), one of the world’s largest providers of banking and payments technology, today announced that Ready Financial Group has added FIS’ Mobile Financial Services application to enhance their prepaid account offerings.
“Adding FIS’ Mobile Financial Services application to our prepaid card offering greatly enhances our customers’ ability to manage their financial transactions”
Located in Boise, Idaho, Ready Financial Group provides READYdebit® Visa® Prepaid Cards to thousands of consumers nationwide. The prepaid debit cards can be used globally anywhere Visa debit cards are accepted, including ATMs. The card provides consumers the flexibility of a traditional checking account debit card and bill pay without the worry of possible overdraft fees.
Ready Financial Group currently utilizes FIS’ prepaid alerts which provide SMS messages alerting customers when funds are loaded or removed and enables them to perform balance inquiries via their mobile device. With the addition of FIS’ Mobile Financial Services application, consumers using the READYdebit Visa Prepaid Cards can perform financial transactions via their mobile phones − including paying bills, checking balances and reviewing transaction history. The application features advanced security utilizing FFIEC compliant two-factor authentication with a unique ID embedded in each application. All card-related data handling is also PCI compliant. In addition to providing enhanced mobile functionality for Ready Financial’s prepaid cards, FIS has recently launched a READYdebit-branded iPhone application available in Apple’s App Store and an Android application available in Google’s Android Market.
“Adding FIS’ Mobile Financial Services application to our prepaid card offering greatly enhances our customers’ ability to manage their financial transactions,” said John Magnuson, vice president of Product Development/Analytics, Ready Financial Group. “Our goal is to provide a reliable, quality and mobile-accessible product that gives our customers a high degree of flexibility and convenience. Teaming with FIS allows us to do that.”
“We are pleased that Ready Financial Group chose to enhance its mobile capabilities with FIS,” said Frank D’Angelo, executive vice president, FIS Payment Solutions. “Adding enhanced mobile capabilities to their product offering allows Ready Financial Group to supplement their existing functionality thereby strengthening their current offerings to customers.”
Founded in 2006, Ready Financial Group offers the READYdebit® Visa® Prepaid Card with online bill payment and check-writing service − an affordable alternative to high-fee checking accounts. In 2009 U.S. banks collected nearly $40 billion in bounced-check and overdraft fees − hundreds of dollars per household. Ready Financial's products are specifically designed to prevent overdrafts, with the potential to save American consumers billions in fees annually. The READYdebit Card is accepted everywhere Visa debit cards are accepted worldwide and all deposits are insured by the FDIC. Visit
FIS (NYSE: FIS) is one of the world’s largest global providers dedicated to banking and payments technologies. With a long history deeply rooted in the financial services sector, FIS serves more than 14,000 institutions in over 100 countries. Headquartered in Jacksonville, Fla., FIS employs more than 30,000 people worldwide and holds leadership positions in payment processing and banking solutions, providing software, services and outsourcing of the technology that drives financial institutions. FIS is a member of Standard & Poor’s 500® Index and consistently holds a leading ranking in the annual FinTech 100 list. For more information about FIS, visit


Marcia Danzeisen, 904.854.5083
Senior Vice President
FIS Global Marketing and Communications
Mary Waggoner, 904.854.3282
Senior Vice President
FIS Investor Relations
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What is the Meaning of...Credit Card Numbers

So what exactly do all those numbers on your credit/debit card stand for? put together a great little infographic (see below)  Did you know that (if you're pretty good at doing math in your head) you can decipher whether or not a credit/debit card is genuine or fake?  For the formula, see below:
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Economic Uncertainty is Changing 30 Years of Spending Habits - UK Consumers Begin to Rely Less on Credit Cards, says Auriemma Consulting Group

LONDON--(BUSINESS WIRE)--Consumers in the UK are consciously choosing to use debit cards (and other forms of payment) instead of credit cards for day-to-day purchases. This is being driven as a direct result of economic uncertainty, according to data recently published in Cardbeat®, a market research report published by Auriemma Consulting Group (ACG).
“Consumers today are seeking control of their finances and have become financially conservative. We believe that this shift in behaviour is a true social change – one that will permeate society long after our economy recovers.”
In this study, credit card users were asked to predict how changes in the economic environment would impact their use of credit cards. If the economy improves, 26% of credit card users reported that they would decrease their usage of credit cards. The percentage of credit card users planning to decrease their usage of credit cards rises to 39% if the economy declines. These findings suggest a continuation of the trend that has seen the percentage of purchases made with credit cards decline from 31% in Q3 2009 to 25% in Q3 2010 (debit cards and direct debit transactions increased from 33% to 38% over the same time period), a surprising result indicating that, regardless of the economic situation, consumers intend to move further away from credit cards.
While this trend of decreasing credit card usage has been ongoing for several years, analysts have presumed that this was due to consumers’ desire to be more fiscally conservative in the wake of changes to key economic drivers like rising unemployment, falling house prices and rising inflation. The consensus was that when the economy improves and consumers regain confidence, the appetite to borrow money would grow and consumers would return to use credit cards as before.
Megan Bramlette, director of knowledge management at ACG, says: “Consumers today are seeking control of their finances and have become financially conservative. We believe that this shift in behaviour is a true social change – one that will permeate society long after our economy recovers.” Bramlette goes on to say, “The results of this study indicate this thriftiness will result in consumers ceasing to use their credit cards. As a result, consumer usage of debit cards is likely to grow in terms of market share and volume for the next 2-3 years unless credit card issuers begin offering very compelling products to their customers in an effort to recruit them back from debit card usage.”
Matt Simester, Managing Director of ACG adds that, “There is a window of opportunity for credit card issuers to remind card users of the fundamental benefits of using credit cards and to build products that reflect the need for financial conservativeness. While I expect card usage in the premium credit card market to be maintained because of strong reward programmes, issuers need to invest in solid value for money propositions and educate the consumers about the benefits of credit cards.”
For additional information about this press release, please contact Megan Bramlette at +44 (0) 207 629 0075 or
About the Auriemma Consulting Group
Since 1984, ACG has offered comprehensive management consulting, research, industry roundtable and benchmarking services to the financial services industry. ACG clients include credit card issuers and networks, commercial banks, auto and mortgage lenders, merchants, and industry vendors. With offices in London and New York, ACG offers actionable solutions to help clients make important business decisions to maximise their efficiencies and revenues.


Auriemma Consulting Group
Megan Bramlette, +44 (0) 207 629 0075
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New West Technologies Partnership with Payment Processing, Inc. Delivers PayMover SecurePlus for Microsoft® Dynamics RMS

New product provides most secure retail solution with improved hardware and transaction handling for Microsoft Dynamics RMS customers

New West, leveraging their extensive experience with Microsoft Dynamics RMS customers, worked with PPI to develop the new product utilizing PayMover's advanced security capabilities including encryption via the Magtek iPad device and PayMover tokenization, eliminating the need to store card data locally for follow-on transactions. With this product, card data is encrypted at the point of swipe so the application never handles card data "in the clear."
The overall benefit to Microsoft Dynamics RMS customers is a highly secure environment in which only encrypted card data is processed, thereby providing enhanced security and significantly reduced PCI validation costs for retailers.
PayMover SecurePlus for Microsoft Dynamics RMS provides the following features:
  • Encryption of credit, debit, gift and hand-keyed transactions
  • Supports signature capture
  • Tokenization for follow-on transactions
  • Free gift processing
  • A merchant breach guarantee up to $150,000
  • Improved hardware installation and handling
  • An improved user interface for handling split-tender types
  • An improved merchant setup process
  • A proven, stable and reliable transaction peripheral that costs less than a currently supported unencrypted device
  • Financial incentives for resellers
  • Reduced cost for transaction processing

PPI President, Eddie Myers, commented, "PPI, in conjunction with our strategic partner, New West, is delivering the most secure solution on the market today for Microsoft Dynamics RMS customers. Retail customers are demanding advanced security solutions to protect their businesses. Advanced levels of security using encryption are paramount to meet this demand and will provide resellers with a significantly differentiated offering."
New West President, Dan King, added, "With PayMover SecurePlus for Microsoft Dynamics RMS, credit, debit, hand-keyed and gift transactions are easier, faster and – most importantly – safer for our customers. We believe this product to be a substantial new offering for Microsoft Dynamics RMS resellers and customers."
About New West Technologies
Founded in 1992 in Portland, Oregon, New West Technologies is a leading integrator of retail point-of-sale software solutions. As a full-service technology provider with extensive experience in business computer networking and retail software development and installation, we deliver comprehensive, practical solutions that dramatically improve profitability and workflow management. More information available at
About Payment Processing, Inc.
Since 1995, PPI has been partnering with software developers and their customers, delivering nothing less than robust, stable, fully supported and profitable integrated payment solutions. In 2010, PPI processed in excess of $6.5 billion in Visa® and MasterCard® payments. We provide developers with a full range of in-house services for building and promoting integrated payment solutions, including PPI-developed hosted payment services, integration support, customer support, marketing assistance and PA-DSS/PCI DSS security services. It's why nearly 1,500 partners and more than 45,000 businesses have selected Payment Processing, Inc. as their dedicated payment professionals. Learn more at

Media Contacts:

Richard Livingston, PPI

Visa Inc. Announces Sale of Minority Stake in CBSS

'V'Image via Wikipedia

SAN FRANCISCOJan. 26, 2011 /PRNewswire/ -- Visa Inc. (NYSE: V) announced today that its wholly-owned subsidiary, Visa International, sold its 10 percent stake in Visa Vale issuer CBSS to Banco do Brasil and Bradesco.  Visa's proceeds from the sale are expected to be approximately US$100 million based on current exchange rates.

Visa International will maintain a strong commercial relationship with CBSS, focusing on benefits cards and prepaid cards.  CBSS will continue to issue Visa Vale prepaid cards and Visa International expects no disruption to cardholder service as a result of this transaction.
Visa Vale products perform a unique service for Brazilian consumers, delivering the convenience, security and accessibility that have become synonymous with the Visa brand worldwide.  Since Visa's investment in CBSS, the Visa Vale program has become the market leader.
"We have successfully delivered on our objective to grow the Visa Vale platform in Brazil through our strategic partnership with CBSS.  This is an example of Visa's long track record in employing strategic investments to help drive growth in emerging categories," said Ruben Osta, Country Manager for Visa do Brasil.  "Expanding the use of prepaid cards is an important part of our business strategy and will complement our plans for continued investment in Brazil, one of our fastest growing markets.  We will continue our solid partnership with CBSS, while evaluating opportunities to grow the Visa Vale brand."
Visa's sale is subject to regulatory approval by Brazil's Conselho Administrativo de Defesa Economica.
About Visa Inc.: Visa Inc. is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the world's most advanced processing networks -- VisaNet -- that is capable of handling more than 20,000 transaction messages a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank, and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: Pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit
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TSYS Reports Revenue of $440 Million for Q4

TSYS Provides 2011 Guidance of 9% - 11% EPS Growth and Reports 2010 Fourth Quarter and Full Year Financial Results

COLUMBUS, Ga.--(BUSINESS WIRE)--TSYS (NYSE: TSS) today reported results for the fourth quarter and full-year of 2010 that were in-line with consensus estimates for earnings per share (EPS).
For the fourth quarter, total revenues were $440.0 million, an increase of 1.7% over 2009. Basic EPS from continuing operations were $0.24, down $0.07 or 20.9%. Excluding termination fees in the fourth quarter of 2009, total revenues were up 6.0% and basic EPS from continuing operations were down 3.2%.
For the year 2010, total revenues were $1.7 billion, up 2.4% over 2009. Basic EPS from continuing operations were $1.00, down $0.12 or 10.7%. Excluding termination fees in 2009 and 2010, total revenues were up 3.0% and basic EPS from continuing operations were down 9.1%.
TSYS’ 2011 guidance includes revenues before reimbursable growth of 3% - 5% and basic EPS from continuing operations growth of 9% - 11%.
“While 2010 was a very challenging year, we are pleased to have met the high end range of our guidance for net income and EPS for the year. We continued to see growth in transactions in our card issuing services and merchant business for the fourth quarter that resulted in organic revenue growth of 4.0% and same client issuer transactions increased 5.3% for the year. Including the acquisition of TSYS Merchant Solutions (formerly First National Merchant Solutions), revenues from our Merchant Segment rose from 19% to 27% of consolidated total revenues. We believe this diversification will contribute to our growth and benefit our margins in the future,” said Philip W. Tomlinson, chairman and chief executive officer of TSYS.
“Our guidance for 2011 reflects our renewed enthusiasm for growth in all of our business segments. Excluding the termination fees in 2010, our 2011 guidance for revenues before reimbursable items are projected to be up 6% - 8%, and net income from continuing operations is projected to be up 20% - 22%,” said Tomlinson.
TSYS’ guidance for 2011 is as follows:
  2011 Guidance
(in millions, except per
share amounts)
Total revenues$1,748  to  $1,7882%  to  4%
Reimbursable items$260to$267(5%)to(3%)
Revenues before reimbursable items$1,488to$1,5213%to5%
Income from continuing operations$211to$2167%to9%
EPS from continuing operations$1.09to$1.119%*to11%*
Average Shares Outstanding
NOTE: * Denotes rounding
Conference Call
TSYS will host its quarterly conference call at 5:00 p.m. ET on Tuesday, January 25. The conference call can be accessed via simultaneous Internet broadcast at by clicking on the link under "Webcasts" on the main homepage. The replay will be archived for 12 months and will be available approximately 30 minutes after the completion of the call. A slide presentation to accompany the call will be available by clicking on the link under "Webcasts" on the main homepage of

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