Friday, March 25, 2011

Have Cybercriminals Hacked Visa/MC 3-D Secure?

From InfoSecurity Magazine:

You're probably familiar with the 3-D Secure system of card security for online transactions - aka Verified by Visa (for Visa) and SecureCode (for MasterCard) - but now a security researcher is reporting that cybercriminals may have found a way around the online transaction security. According to former Washington Post security researcher Brian Krebs, a dashboard panel in a cracking utility he accessed online has a tab labelled `Arcot.' "Arcot Systems is the company whose software powers the authentication system used by MasterCard’s SecureCode and Visa's Verified by Visa programs", he says in his latest security blog. "What's interesting is that the thieves could defeat these security systems by gathering personal data on victim card holders, which they appear to have done here", he adds.  <>

Related: Verified by Visa: "Textbook Example of How NOT to Design an Authentication Protocol" -ePayments News Blog

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International Payment News Roundup

From VRL/Cards International

McDonalds LatAm set to deploy VeriFone's PAYware

McDonalds LatAm set to deploy VeriFone's PAYware

E-payments solutions provider VeriFone will supply its PAYware merchant card payment and settlement hosted service to Latin American restaurant operator Arcos Dorados – manager of the McDonald’s brand in the region.Free
LatAm virtual goods market to double by 2012

LatAm virtual goods market to double by 2012

Latin America’s virtual goods market is set to increase by more than 50% to $517m by 2012, according to research by online monetisation platform PlaySpan.Free
Fed passes amendment to CARD Act

Fed passes amendment to CARD Act

The Federal Reserve’s proposed amendment to Regulation Z of the Credit Card Accountability Responsibility and Disclosure (CARD) Act of 2009 may have drawn many critics but the controversial rule has been passed.Free
CyberSource launches real-time fraud detection

CyberSource launches real-time fraud detection

Payments management company Cybersource has developed ‘Decision Manager’ - a real-time fraud detection radar for online merchants.Free
Nokia and UBI take advantage of NPCI's switching fee

Nokia and UBI take advantage of NPCI's switching fee

The National Payments Corporation of India (NPCI) has reduced its proposed switching fee for mobile money transfers from 25 paise to 10 paise in a bid to encourage the use of m-payments.Free
UnionPay strengthens presence in Russia

UnionPay strengthens presence in Russia

Russian bank Gazprombank will launch Chinese credit-card organisation UnionPay’s card payment service at its ATMs and merchants by the end of the year.Free
Google to test NFC m-payments

Google to test NFC m-payments

Google plans to team up with e-payments technology provider VeriFone to begin testing m-payments using near-field communication (NFC) technology in retail locations around the US.Free
Visa announces 2010 LAC results

Visa announces 2010 LAC results

Visa’s payments volume grew by 23.2% in the Latin America and Caribbean (LAC) region last year reaching $270bn, according to the network’s 2010 year-end results.Free
Apple shuns NFC for iPhone

Apple shuns NFC for iPhone

The future of contactless m-payments looks shaky once again as tech giant Apple confirms it will not include near-field communication (NFC) chips in its iPhone 5 due for release this year.Free
US consumers eye credit cards in 2011

US consumers eye credit cards in 2011

Young consumers in the US are said to be showing more interest in credit cards as the economy gradually starts to pick up, according to a study by the Auriemma Consulting Group (ACG).Free

Conference to Examine Impact of Fed’s Proposed Debit Card Regulations

Banks, Merchants and Consumer Groups Wrangle Over Likely Outcome of Controversial Change to Debit Card Fee Structure

“What’s the Problem, What’s the Solution, Who Wins, Who Loses”
A half-day conference will examine the potential impact of proposed Federal Reserve Board regulations on debit card interchange fees. Under the proposed regulations, bank debit card fees charged to merchants for debit card transactions would drop by some 80%. Banks have expressed dismay over what would be a massive revenue loss, while merchants applaud the proposal. The conference will examine what the rules ultimately could mean for consumers, banks and economic efficiency. A final decision by the Fed is expected on April 21, 2011, unless Congress passes legislation to postpone the deadline to allow for further study.
Economists, law professors and representatives from banks, networks, merchants and consumer groups. Participants will include John Buhrmaster, chairman and president of 1st National Bank of Scotia; Mallory Duncan, senior vice president, general counsel, National Retail Federation; Chris McWilton, president, U.S. Markets, MasterCard Worldwide; and Travis Plunkett, legislative director, Consumer Federation of America.
Tuesday, March 29, 2011, 9:00 a.m. – 2:30 p.m. ET
9 a.m., “Reasonable Regulation of Debit Card Fees,” Martin Neal Baily, Bernard Schwartz Senior Fellow in Economic Studies, Brookings Institution, and Chairman of the Council of Economic Advisors under President Clinton.
10:15 a.m., “The Economic Impact of Durbin on Consumers and Small Businesses,” Richard Schmalensee, professor of Economics, Management and Dean Emeritus, MIT Sloan School of Management, and a member of the Council of Economic Advisors under President George H.W. Bush.
11:00 a.m., “What’s the Problem, What’s the Solution, Who Wins, Who Loses,” Panel discussion with law professors Adam Levitin (Georgetown), Ronald Mann (Columbia), and Todd Zywicki (George Mason), and economist James Miller III (former OMB Director), moderated by Douglass Eliott (Fellow at Brookings Institution).
12:30 p.m., Debit Card Stakeholder Roundtable
Willard InterContinental Hotel
1401 Pennsylvania Ave., NW
Washington, D.C. 20004
About is an online media channel that captures user-generated and expert-driven commentary, information, news, and analysis on “what’s next” in the payments sector worldwide. The site provides a platform for industry professionals to share content related to company and product developments, to tap into the collective commentary and analysis from experts, bloggers and industry pundits, and to interact with industry thought leaders and other influencers on topics of critical importance to the future of the sector. A joint venture of Business Wire, a Berkshire Hathaway Company, and Market Platform redefines the ways in which B2B news and information is both generated and distributed.


Healy Corporate Communications
Sean Healy, 201-857-2520
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VRL: New VRL Research Looks At Contactless Cards Take Up

Latest report from VRL highlights a lag between contactless card issuance and merchant acceptance of this form of payment WIRE)--Top financial and professional services information provider VRL has released a new report ‘Contactless Cards: Tentative Steps’ which examines market take up of contactless card across the US, Europe and Asia Pacific. While there has been significant media attention around the growth of contactless cards, this report looks at whether there is real momentum behind this payment technology.
The picture that emerges is one of fragmentation and complex commercial models, with the majority of merchants unlikely to fund migration to contactless payments unless a clear business case can be identified. This is particularly evident in the US where there are 100 million contactless cards in issue, yet only two percent of merchants are reported to accept this form of payment.
In the report, industry specialist Sarah Richardson-Clarke examines worldwide trends finding that in countries such as Turkey and the UK, card issuers and payment processing companies are paying for the introduction of the required technology to encourage growth. Outside the US, UK card providers are the most proactive, with over 11 million cards in circulation by the start of 2011.
Adoption of contactless cards is most prevalent in the retail convenience market where speed of service is vital. Global companies in this space using contactless cards include McDonald’s and Starbucks. Outside the large convenience retailers however there is little take up. The report also found that contactless and PIN-less payments are capped at £15 in the UK and $25 in the US, above which a PIN or signature is required which somewhat defeats the purpose.
Contactless Cards: Tentative Steps’ includes detail on worldwide contactless card schemes including Visa payWave and MasterCard PayPass, and outlines the future evolution of contactless cards, suggesting that contactless mobile payments will likely be the way forward.
For further details on how to purchase a copy of the report or for more information please call Jeannie Lam on +44(0)20 7563 5605 or email
VRL industry reports provide the analytical intelligence needed to make better-informed business decisions. Reviewing the most pressing issues and trends impacting on the world of finance, VRL reports cover a broad range of topics.


C8 Consulting Ltd
Cathy O’Neill

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