Tuesday, November 22, 2011

NRF and Other Groups File Lawsuit: Fed Didn’t Follow Law in Setting Swipe Fee Regulations


WASHINGTON--()--The National Retail Federation, the Food Marketing Institute, the National Association of Convenience Stores and two retailers filed a lawsuit in federal court today saying the Federal Reserve failed to follow key requirements of a 2010 law when it adopted a flawed cap on debit card swipe fees that took effect this fall. NRF and the other groups say the failure has allowed big banks to continue charging unjustifiably high swipe fees and has discouraged price competition among credit card networks.
“The Fed’s regulations have blunted the competition that would have made greater savings possible.”
“The Federal Reserve was required by law to come up with swipe fees that were ‘reasonable’ and ‘proportional’ but what we got were neither,” NRF Senior Vice President and CEO General Counsel Mallory Duncan said. “Instead, the Fed allowed themselves to be influenced by the very banks they are supposed to regulate and raised the originally proposed cap to include expenses the law said were not allowed. In doing so, they literally gave away half the savings that could have been seen by merchants and their customers. We want them to go back and follow the law this time.”
“Rather than following the law, it’s almost as if the banks and the Fed were working hand-in-glove to block the genuine competition and common-sense price reductions Congress directed,” Duncan said. “The Fed’s regulations have blunted the competition that would have made greater savings possible.”
The regulations, which took effect October 1, have also led to an increase in swipe fees for some small-ticket purchases, the lawsuit says. The suit was brought by NRF on behalf of both NRF and its National Council of Chain Restaurants division, which filed comments with the Fed earlier this year warning of the potential impact on small purchases. In addition to FMI and NACS, other plaintiffs include NRF member Boscov’s Department Store, based in Reading, Pa., and NACS member Miller Oil Co., a convenience store/gas station chain based in Norfolk, Va.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 required the Federal Reserve to set guidelines that would result in debit card swipe fees that are “reasonable” and “proportional” to banks’ costs in processing debit card transactions. Financial institutions with less than $10 billion in assets were exempt.
The Fed said in December 2010 that it had determined that it costs banks an average 4 cents to process a debit transaction, and proposed that the fees be capped at no more than 12 cents per transaction – triple banks’ actual cost. After intense lobbying by banks and the card industry, however, final regulations adopted in July 2011 set the cap at more than five times the actual cost – 21 cents plus 0.05 percent of the transaction and, in most cases, an additional 1 cent for fraud prevention.
While the Dodd-Frank law said the Fed could consider the incremental costs of acquiring, clearing and settling each transaction and specifically prohibited any other expenses from being used to inflate those costs, the lawsuit alleges that the Fed – under pressure from the banks and card industry – included costs that were barred by the law. Doing so has deprived merchants and their customers of the full extent of the swipe fee relief to which they were entitled.
The approximate 21-cent cap would lower swipe fees for most purchases, which averaged 44 cents but could range as high as several dollars under the previous formula of 1-2 percent of the transaction amount. This fall, however, both Visa and MasterCard announced that they would charge the maximum amount even on small-ticket transactions the card industry previously processed profitably for as little as 6 to 8 cents. The move would severely impact many members of NRF’s National Council of Chain Restaurants division, whose transactions often amount to only a few dollars.
“Congress passed this law to cap swipe fees but the banks have turned a ceiling into a floor and raised fees dramatically higher for quick-service restaurants across the nation,” NCCR Executive Director Rob Green said. “This clearly was not the intent of Congress.”
The plaintiffs also said that the Fed’s final rules discourage competition among debit card networks. In order to establish a competitive market between networks such as NYCE, Pulse and Plus as well as the Visa and MasterCard networks, the law required that merchants be given a choice of two networks on every transaction. Under the Fed’s final regulations, however, banks can limit their cards such that merchants may never have a choice of networks. The lack of competition will allow the dominant networks to continue increasing their fees.
The lawsuit was filed in U.S. District Court in Washington, D.C.
As the world’s largest retail trade association and the voice of retail worldwide, NRF’s global membership includes retailers of all sizes, formats and channels of distribution as well as chain restaurants and industry partners from the United States and more than 45 countries abroad. In the United States, NRF represents an industry that includes more than 3.6 million establishments and which directly and indirectly accounts for 42 million jobs – one in four U.S. jobs. The total U.S. GDP impact of retail is $2.5 trillion annually, and retail is a daily barometer of the health of the nation’s economy. www.nrf.com.

Merchants’ Lawsuit Says Fed Failed to Follow Law on Swipe Fee Reform

November 22, 2011 01:00 PM Eastern Time 

WASHINGTON--()--Flawed debit card swipe fee reform regulations issued by the Federal Reserve this year have allowed big banks to continue charging unjustifiably high swipe fees and have discouraged price competition among credit card networks, according to a lawsuit filed in federal court today by three of the retail industry’s largest trade associations and two retail companies.
“Forcing small businesses to pay three times as much to the big banks on small purchases was clearly not the intent of the law and is further evidence that the Fed got it wrong”
The regulations, which took effect October 1, have led to an increase in swipe fees in some cases, the lawsuit brought by the Food Marketing Institute, National Association of Convenience Stores, National Retail Federation, Reading, Pa.-based Boscov’s Department Store and Norfolk-based convenience store/gas station chain Miller Oil Co. says.
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 required the Federal Reserve to set guidelines that would result in debit card swipe fees that are “reasonable” and “proportional” to banks’ costs in processing debit card transactions. Financial institutions with less than $10 billion in assets were exempt.
The Fed said in December 2010 that it had determined that it costs banks an average 4 cents to process a debit transaction, and proposed that the fees be capped at no more than 12 cents per transaction – triple banks’ actual cost. After intense lobbying by banks and the card industry, however, final regulations adopted in July 2011 set the cap at more than five times the actual cost – 21 cents plus 0.05 percent of the transaction and, in most cases, an additional 1 cent for fraud prevention.
While the Dodd-Frank law said the Fed could consider the incremental costs of acquiring, clearing and settling each transaction and specifically prohibited any other expenses from being used to inflate those costs, the lawsuit alleges that the Fed – under pressure from the banks and card industry – included costs that were barred by the law.
“The proposed rules followed the law, but the Federal Reserve Board changed its view of the law midcourse and without justification when issuing the final rules,” said Doug Kantor, a partner at the Washington law firm of Steptoe and Johnson and lead counsel in the lawsuit. “Not only did the final version fail to introduce competition, it provided a loophole for the big banks to exploit and actually increase some fees. The Fed’s job was to implement the law as written and it did not do that.”
The approximate 21-cent cap would lower swipe fees for most purchases, which averaged 44 cents but could range as high as several dollars under the previous formula of 1-2 percent of the transaction amount. This fall, however, both Visa and MasterCard announced that they would charge the maximum amount even on small-ticket transactions that previously cost merchants as little as 6 to 8 cents.
“Forcing small businesses to pay three times as much to the big banks on small purchases was clearly not the intent of the law and is further evidence that the Fed got it wrong,” Kantor said.
The plaintiffs also said that the Fed’s final rules discourage competition among debit card networks. In order to establish a competitive market between networks such as NYCE, Pulse and Plus as well as the Visa and MasterCard networks, the law required that merchants be given a choice of two networks on any transaction. Under the Fed’s final regulations, however, banks can limit their cards such that merchants may never have a choice of network. The lack of competition will allow the dominant networks to continue increasing their fees.
“Reducing swipe fees is good for consumers, good for small businesses and a good way to take unnecessary costs out of the system and invigorate our country’s economic engine,” Kantor said. “By not implementing the letter and the intent of the law, the Federal Reserve Board failed in its duty and missed an opportunity to give consumers and businesses the relief they deserve. This litigation is about correcting those mistakes.”
The lawsuit was filed in U.S. District Court in Washington, D.C.

Infographic Shows 120 Million Shoppers at Risk and in the Dark on Data Breaches and Identity Theft over Upcoming Black Friday Weekend

November 22, 2011 12:16 PM Eastern Time

DENVER--(EON: Enhanced Online News)--ID Watchdog Inc. (TSX.V: IDW) (OTC: IDWAF), provider of identity monitoring and preservation tools, today released an infographic exploring the risk of data breaches and identity theft over the upcoming Black Friday shopping weekend.

“There will be a wealth of consumer data including credit card numbers, email addresses, etc. circulating this weekend which creates a prime opportunity for hackers to strike retailers”

With the shopping “holidays” of Black Friday and Cyber Monday right around the corner, the National Retail Federation predicts that up to 152 million people will be hitting stores looking for deals. Yet, with widespread data breaches and identity theft leading some to call 2011 the “Year of the Hacker”, caution needs to be taken to prevent this from becoming the year that cyber thieves stole Christmas.

“There will be a wealth of consumer data including credit card numbers, email addresses, etc. circulating this weekend which creates a prime opportunity for hackers to strike retailers,” said Mike Greene, CEO, ID Watchdog. “According to industry research, these databases are prone to security risks and it only takes being right once for a hacker to successfully steal the personal data of thousands of customers.”



About ID Watchdog

ID Watchdog and its partners provide consumers with identity monitoring and preservation tools that provide the only real protection against identity theft: active knowledge about your online identity. Using these tools, consumers watch their credit reports and receive warnings about significant changes as first alerts to possible identity theft. ID Watchdog and its partners empower consumers to play a role in defending their online identity by remaining vigilant about changes to and inaccuracies in their credit reports and resolving any issues that do arise with the help of personal information agents.

ID Watchdog (TSX.V: IDW, OTC: IDWAF) was founded in 2005 and is headquartered in Denver, Colorado. All of the Company’s services have been developed with input from industry experts; national consumer advocacy groups; federal, state, and local law enforcement agencies; consumer protection agencies; and adhere to guidelines published by the Consumer Federation of America. For more information, please visit www.IDWatchdog.com.

U.S. Bank Upgrades Mobile Banking


U.S. Bank Customers Get Mobile Banking Upgrade

New app features check deposit for more devices and easier login
MINNEAPOLIS--()--U.S. Bank recently released a new mobile banking application that significantly upgrades the mobile banking experience for all customers. The upgrade offers improved features and customer experience for iPhone, Android and BlackBerry. The new app, available in app stores now, begins a series of upgrades planned for U.S. Bank mobile banking over the next several months.
“U.S. Bank is a leader in mobile banking and with this new app, we have made banking even more convenient for our customers by delivering service right to the palms of their hands.”
"Customers are blending all of their business into their smartphones, and in many cases, mobile devices are now the first point of entry for consumers,” said Meheriar Hasan, executive vice president and head of U.S. Bank’s Internet and mobile channels. “U.S. Bank is a leader in mobile banking and with this new app, we have made banking even more convenient for our customers by delivering service right to the palms of their hands.”
Mobile check deposit
The new U.S. Bank mobile banking app has all the features and functionality that customers have come to expect from their mobile device, including mobile check deposit. U.S. Bank was one of the first banks in the nation to introduce mobile check deposit for iPhone when it launched in March 2011, and remains one of only a few banks to offer mobile check deposits today. The new app enables check deposit on iPhone and Android using the device’s camera feature. Customers will be able to deposit checks via iPad in January 2012.
Person-to-person payment
Another innovative mobile feature that U.S. Bank now offers is Pay-A-Person, which allows customers to send money to anyone in the United States simply by using the recipient's mobile number or email address.
Easy access to the app
U.S. Bank has made it much easier for customers to find and download the appropriate app to their smartphones. At www.usbank.com/mobile, customers can get the app by having an SMS message with a link sent to their smartphone, or by scanning the QR code, which will take them to the correct app store for their phone. Customers can also scan the QR codes on U.S. Bank ATM screens, or signs at U.S. Bank branches.
Easy login
U.S. Bank customers will now be able to log in to mobile banking with the same credentials they use for Internet banking, making it easier to login to mobile banking. Customers can also access other features, such as ATM and branch locator or customer service, without logging in to mobile banking. Using the phone's GPS, U.S. Bank now lists the closest U.S. Bank branches and ATMs to the customer’s current or chosen location.
Features that match services available via Internet banking:
  • immediate access to account balances and transaction history,
  • funds transfer,
  • bill payment, and
  • payments to other U.S. Bank accounts such as credit cards and car loans.
U.S. Bank is a leader in mobile innovation and has been recognized for its work in the mobile space. The company was the first bank in the United States to offer mobile banking and bill pay services to under-banked customers on reloadable prepaid cards such as U.S. Bank AccelaPay and ReliaCard. The U.S. Bank AccelaPay mobile banking application was honored as the "Best in Category for Virtual or Mobile Prepaid Application" at the 2011 Paybefore Awards. More recently, U.S. Bank was the first to offer a mobile application with instant approval and card access when it launched the REI Visa app for the iPhone in October 2011. Mobile access for businesses got easier with the launch of U.S. Bank SinglePoint Mobile in September 2011 and for health and flexible spending account customers with the launch of the U.S. Bank Healthcare Payments app in April 2011. U.S. Bank is a leader contactless mobile payment technology, being among the first banks to adopt mobile payment technology for contactless readers at the point of sale.
U.S. Bancorp (NYSE: USB), with $330 billion in assets as of Sept. 30, 2011, is the parent company of U.S. Bank, the fifth-largest commercial bank in the United States. The company operates 3,089 banking offices in 25 states and 5,092 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. U.S. Bancorp and its employees are dedicated to improving the communities they serve, for which the company earned the 2011 Spirit of America Award, the highest honor bestowed on a company by United Way. Visit U.S. Bancorp on the web at www.usbank.com.

Contacts

U.S. Bank
Teri Charest, Public Relations, 612-303-0732
teri.charest@usbank.com

The Most Disruptive Services Presently Evolving in the Telecoms Industry


Research and Markets: Mobile Payments 2012-2016 - Most disruptive services presently evolving in the telecoms industry

DUBLIN: Research and Markets has announced the addition of the "Mobile Payments 2012-2016" report to their offering.
Mobile commerce, especially the mobile payments market, is gaining traction among mobile subscribers, and the uptake of mobile payment mechanisms has begun to disrupt the traditional card-based payment market.
Mobile payment services are one of the most disruptive services presently evolving in the telecoms industry, and have now developed to such an extent that some argue the ever more multi-functional mobile handset could replace the wallet altogether, through cashless and cardless payment systems.
The V-SIM Patent is held by NFC Data, Inc.  To learn more, email me
Everyone in the mobile payments ecosystem - mobile network operators, solution vendors, app stores and developers, banks and card issuers, big retailers and other major merchants, handset and device vendors, and consumer associations - are in agreement that the mobile payments space is going to be a big market, but there is currently no consensus on exactly how we are going to get there.
Near Field Communication (NFC) looks strong, but - as with any solution that involves getting the overwhelming majority of the stakeholders within a value chain to work together and cooperate for a major industry change - there are likely to be countless conflicts of interest and endless differing opinions as to how to progress; especially with fantastic opportunities and hundreds of billions of dollars worth of transactions to compete for.
This new market study thoroughly examines the worldwide market for mobile payment services over the following eight fact-filled chapters:
  • Introduction
  • Mobile Commerce
  • Worldwide Mobile Market
  • Worldwide Mobile Money Market (includes: Mobile Payments, NFC, Ticketing and Coupons, In-app Payments, Mobile Banking)
  • Regional Trends (includes: UK and US Case Studies; and Regional Key Developments)
  • Case Studies - Key Players (ViVOtech, Visa, SK Telecom, Square, Ericsson IPX, Bango, and Boku)
  • Summary and Conclusions
  • Appendices (includes: Business Models)
Read more inside the comprehensive research report Mobile Payments 2012-2016

WorldPay and Diners Club International® Expand Partnership to Increase Acceptance in Europe

November 22, 2011 10:48 AM Eastern Time 

LONDON & RIVERWOODS, Ill.--()--WorldPay, the largest European acquirer and Diners Club International (DCI), a business unit of Discover Financial Services, today announced the signing of a merchant acquiring agreement that will increase the acceptance of Discover and Diners Club cards in the U.K. WorldPay will build on its current relationship by adding Diners Club and Discover as standard options to its portfolio of payments processing services beginning in early 2012, in time for the summer Olympic Games in London.
“Discover continues to expand acceptance by working with leading acquirers in the U.K. and around the world”
The partnership expands the relationship between WorldPay, a major global leader in payment processing that operates in over 40 countries and Diners Club, a globally recognized payments brand with the world’s first multi-purpose charge card. Currently, WorldPay offers Diners Club acceptance only on request by a merchant and is an E-commerce processor. In future, WorldPay will offer Diners Club and Discover to all merchants and will support D-PAS, Discover’s EMV-compliant payments solution, and will be enabling chip-based terminals throughout its implementation.
Ron Kalifa, WorldPay CEO said “Our expanded partnership with a renowned credit card brand such as Diners Club International reaffirms the WorldPay position as Europe’s leading payment processor. With the anticipated increase in overseas visitors expected to the UK next year, WorldPay customers will be able to offer a wider choice of payment options to their own customers.
“Discover continues to expand acceptance by working with leading acquirers in the U.K. and around the world,” said Gerry Wagner, VP of Global Acceptance for Diners Club International. “WorldPay’s global reach, local knowledge and robust products and services will enable us to increase our merchant presence in the U.K., benefiting our DiscoverDiners Club and Network Alliance card members as they travel to Europe.”
About WorldPay
WorldPay is a leading global provider of payment and risk services, processing millions of transactions every day. WorldPay is a unification of seven leading retail payment solutions and offers a range of services including acquiring, gateway, alternative payments, risk management, and mobile payments. WorldPay became an independent company in December 2010.
About Diners Club International
Diners Club International is owned by Discover Financial Services (NYSE: DFS), a leading credit card issuer and electronic payment services company. Established in 1950, Diners Club International became the first multi-purpose charge card in the world, launching a financial revolution in how consumers and companies pay for products and services. Today, Diners Club is a globally recognized brand serving the payment needs of select and affluent consumers as well as providing corporations and small business owners with a complete array of expense management solutions. With acceptance in more than 185 countries and territories, millions of merchant locations and access to over 800,000 cash access locations and ATMs, Diners Club is uniquely qualified to serve its cardmembers all over the world. For more information, visit www.dinersclub.com.
About Discover Financial Services
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.

Fiserv Names Bruce Hopkins General Manager of Processing Solutions for its Card Services Division


New executive post established to manage debit, credit and risk product development, and client service delivery
BROOKFIELD, Wis.--()--Fiserv, Inc. (NASDAQ: FISV), a leading global provider of financial services technology solutions, announced today that it has named Bruce Hopkins to the newly created post of general manager of Processing Solutions for its Card Services division. He will report to Kevin Gregoire, president of Card Services at Fiserv. In his new role, Hopkins will lead Card Services in supporting debit, credit and risk products and services, and manage the service delivery and payment processing functions.
“We’ll be fully leveraging his broad background as we pursue several impactful marketplace initiatives.”
“Bruce’s wealth of payments industry experience and knowledge makes him the ideal complement to our very strong Fiserv team,” said Gregoire. “We’ll be fully leveraging his broad background as we pursue several impactful marketplace initiatives.”
Fiserv provides comprehensive debit, credit, prepaid, ATM and ancillary processing services to more than 3,200 financial institutions across the United States. Fiserv also owns the ACCEL/Exchange Payments Network, operates 18,000 ATMs and processes approximately 800 million transactions monthly, making it one of the largest financial transaction processors in the nation.
Hopkins joins Fiserv from FIS where he previously served as senior vice president for the Merchant Solutions division within the Retail Payments Solutions business. During his career at FIS, Hopkins served in a variety of management roles leading payments business lines, including ATM acquiring, gateway processing, payments fraud management, biller direct payments, government payments, merchant solutions and the closed loop gift card business.
Prior to joining FIS, Hopkins was with J.J. Keller & Associates, Inc. and eFunds Corporation, where he held various positions in software development, project management, international software sales and product management.
Hopkins holds a master’s degree in business administration from Marquette University and a Bachelor’s of Business Administration in Management Computer Systems from the University of Wisconsin-Whitewater. He will be based in Brookfield, Wis.

AnywhereCommerce Announces the Creation of a Board of Advisors


AnywhereCommerce 
AnywhereCommerceMONTREAL, QUEBEC--(Marketwire - November 2011) - AnywhereCommerce today confirmed the election of four advisors to its newly created Board of Advisory.
The new members are;
OB Rawls IV; SVP at Tasq, has over 30 year's experience in the banking and electronic transaction payments business. During his career, Mr. Rawls, has held senior management position at several industry leading companies and most recently as SVP of Sales globally for Hypercom Corporation.
Des Docherty; has been with Visa for more than 15 years in executive-level business development capacities. With his strategic mind and natural creative ability, Des brings a highly desirable perspective and expertise to the payment industry. His professional philosophy is one dedicated to focusing on the distinct and individual needs of each stakeholder for sustained long-term relationships.
Jesse Adams, Former Executive Vice Chairman at VeriFone the largest POS manufacturer in the world. Jesse brings 30 years of senior executive experience in the payment processing business and became instrumental in the creation and development of the business of automating credit/debit card processing automation at the Point of Sale (POS). He has worked for vendors of hardware, software, & processing services that enable card transactions at the point of sale and on-line.
Najeeb Kahlid, is an Engineer who has founded a number of successful high tech companies. He is frequently cited in the Walls Street Journal and has served on a number of Corporate boards as well as the Montreal Neurological Institute. Najeeb has been awarded patents in fields as diverse as the Internet, lasers, optics, automation, light emitting diodes, system architecture, and software. Najeeb continues his pursuits in addition to lecturing at McGill University, Concordia, Ecole Polytechnique, Pakistan University of Engineering and Technology, Hyderabad University in India, MIT Sloan School and the Pakistan Institute of Publics Administration.
Commenting on the Board's creation, Mitchell Cobrin, President & CEO said, "AnywhereCommerce is humbled and honored with the new slate of Advisors. It's a privilege to have access to such experts, we have already begun to realize value on their contributions."

Lost Credit Card Claims Climb 19 Percent During the Holidays


PNC Tells Holiday Shoppers to Stay Alert

PITTSBURGHNov. 22, 2011 /PRNewswire/ -- Reports of lost or stolen credit and debit cards jump an average of 19 percent in November and December compared to the rest of the year, according to PNC Bank. The country's fifth largest bank reviewed its reports of lost and stolen credit and debit cards from 2008 through 2010 and found holiday shoppers can be a little forgetful.    
"Holiday shopping can be a hectic experience," said Mark Ford, consumer credit and debit card expert at PNC Bank. "Losing a credit or debit card, whether by theft or by accident, is often a preventable problem."
PNC says one reason for the increase in the number of lost and stolen credit and debit cards during the holiday season is simply increased usage of credit and debit cards -- combined with the confusion and chaos of long lines and packed stores.
The fraud fighters at PNC suggest four easy ways to keep tabs on your plastic:
Four Ways to Keep Your Cards
  • Know where your cards are at all times, and never leave your wallet or purse unattended - even for a minute.
  • Never give your credit or debit card account number or PINs to anyone you don't know over the computer or the phone.
  • Don't allow anyone else to use your credit or debit card and never co-sign for a card that will be used by another person without your supervision.
  • Be sure to get your card back when you use it for purchases.  Also be sure you can see your card at all times when it's being used for a transaction.
If Your Card is Lost or Stolen
  • Call your bank and let them know your credit or debit card has been lost or stolen.
  • File a report with the police and get a copy of it for your records.
  • Change you PIN, and password immediately.
More information on preventing credit and debit card fraud can be found in the Security Assurance section on PNC.com.
PNC Bank, National Association, is a member of The PNC Financial Services Group, Inc. (NYSE: PNC).  PNC (www.pnc.com) is one of the nation's largest diversified financial services organizations providing retail and business banking; residential mortgage banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. Follow @PNCNews on Twitter for breaking news and announcements from PNC.

Monext's International Acquiring Platform PCI DSS Certified


AIX-EN-PROVENCE, FranceNovember 22, 2011 /PRNewswire/ --
Following the certification of its call centre and its Payline and Pavavenue payment solutions, Monext has received yet another quality guarantee. Its international acquiring platform, which enables merchants based in Europe to manage VISA and MasterCard payments, has just been PCI DSS certified (Payment Card Industry Data Security Standard). The audit was carried out by XMCO, a consulting firm for information system security. Monext thus becomes the first and only French company to have its international acquiring platform PCI DSS certified.
Merchants reaching beyond borders
Monext, a key player in electronic payment in France and within Europe, offers a global solution for the acquiring of international bank flows. Aimed at buyers (i.e. banks, financial institutions, payment institutions) and their commercial clients (in shops or online), this platform allows them to manage cross-border payment transactions made using VISA or MasterCard cards. The platform covers the full value chain: authorisation, remote data collection, monitoring, calculating merchants' fees, accounting interface, and remittance of funds through the banking partner. It also offers multi-currency reporting services, multilingual call centres, European-wide dispute management, etc.
Monext provides banks with the means to manage the issues involved with the growth of their merchants' international business, who will only need a single acquiring bank across all of Europe. In particular BNP PARIBAS and UNICRE (Portugal), Monext platform clients, are using the system in several European countries, including FranceAustriaSpainIrelandPortugal, andSlovenia.  
PCI DSS certification
This certification guarantees maximum-security processing for banking institutions which outsource their international acquiring services. The certification meets the international standards established by the PCI Council organisation, made up of card networks (MasterCard, VISA, American Express, etc.). It aims to set standards for the secure storage and manipulation of supplied data.
Frédéric Charpentier, of XMCO, explains: "Monext's international acquiring platform meets the 220 security needs. The certification audit has therefore been declared successful."
Gilles Férec, Monext's director of operations, notes: "This certification, which recognises the quality and reliability of our services, is another sign of our commitment to banks and their customers. Our international platform meets the dual requirements of facilitating banking transactions while continually increasing their security."
About Monext
Monext is a key player in the French electronic payment industry. It is a pure-play electronic banking company covering the entire value chain. The business generates an annual turnover of more than € 60M and employs 480 associates to manage more than:
  1. 6.5 million debit and credit cards
  2. 900 million transactions in 2010
  3. 100,000 POS terminals

Monext provides innovative transaction solutions, with or without cards, including electronic payments made at a point of sale, online or via mobile device, in a manner that is secure, reliable, and immediate. With customers in the banking, distribution, trade and commerce industries, Monext aims to become a European leader in a sector that is experiencing strong growth.
About XMCO
Founded in 2002, XMCO is an independent consultancy firm, specialising in information systems security and counter-cybercrime. Its core business is security auditing. The team, made up of 15 technical experts, carries out more than 10 intrusion tests each month on the computerised environments of telecoms, banks, insurance companies, and industrial firms. XMCO is also officially certified by CERT, whose mission consists of monitoring the emergence of new threats and notifying its clients and providing support when clients suffer information system intrusions.

Veritec Announces a Patent Portfolio


NOW NUMBERING 20 PATENTS 

GOLDEN VALLEY, Minn.Nov. 22, 2011 /PRNewswire/ -- Veritec, Inc. (OTC: VRTC) today announced that their patent portfolio has reached 20 worldwide patents.  As a technology company, Veritec has built a considerable presence in the fields of two-dimensional Matrix Symbology, Secure identification for people and products, Secure financial transactions, and Multi-purpose cards or mobile devices that facilitate financial transactions and other applications. Veritec's recent Partnership Agreement with National Identity Solutions (NIS) of Norcross, Georgia and with Antero Payment Solutions Inc. of Harbor City, California will benefit from the strong technology position held by Veritec.
Veritec's two-dimensional Matrix Symbology patents provide the ability to improve the quality of reading Veritec's proprietary two-dimensional codes in conditions where other two-dimensional codes would be difficult or impossible to read. Veritec's proprietary two-dimensional codes, VeriCode® and VSCode® hold more data using less space, up to 4,450 bytes of data, have adjustable error correction, read in any rotation with up to 60 degrees of skew, and are highly secure. For applications that need a robust, highly secured two-dimensional code, there are no better offerings in the market than the VeriCode® and VSCode® available from Veritec. Veritec has also been awarded patents on a new two-dimensional Matrix Symbology that has the potential of 50,000 bytes of data per square inch using standard code printers and readers. 
Veritec's two-dimensional codes are being used for product inventory, product secure identification and product manufacturing automation, on mobile phones and financial cards to conduct secure financial transactions, as marketing tools on mobile phones for coupons, ticketing, and gift cards, for Biometric identification cards and many more practical and highly secure projects. Veritec's new Multi-purpose Card or Mobile Device can facilitate secure financial transactions and at the same time act as employee identification, health care identification, employee payroll and many more applications all in a single card or mobile device application. Veritec patents that encompass these technologies and markets provide a strong position for Veritec and partners.
"Veritec has a, "State of the Art", technology base that will add security and new features and benefits to the markets served by Veritec. The technical staff at Veritec has a proud reputation for providing the best technology to serve our customers," statesThomas Look, Chief Technology Officer of Veritec.
Van Thuy Tran, Executive Chair of Veritec states "We are all proud at Veritec to have achieved this strong portfolio of Intellectual Property. Veritec continues to aggressively build our Company surrounded by our two dimensional bar code technologies and mobile communications that will be the corner stone of secure identification and financial transactions while reducing complexity and costs."
ABOUT VERITEC, INC.
Founded in 1982, Veritec offers a patented line of encoding and decoding software products that utilize the 2-D Matrix Symbology™, which allows users to create, apply, store, or transmit unique identifiers directly on the products or to an electronic device in the form of a coded matrix symbol, which enables automated manufacturing control, as well as identification, tracking, and collection of data via cameras, mobile phones, readers and scanners. The collected data can then be stored in the 2-D barcode available for contemporaneous verification or other user-definable purposes. Veritec's 2-D Matrix Symbologies, the VeriCode® and VSCodes®, with its incredible robustness, security features, and large data storage capacity, have proven to be the technology of choice for products tracking, identification, and verification in many automated industries. Veritec technologies are also applicable in the Secure Bio-ID Cards to provide positive identification via biometric markers such as fingerprints, or pictures. Veritec's licensed software products have recently been introduced to the banking industries via Stored-Value Debit Cards. In the mobile phone industry, Veritec has patented the "PhoneCodes™" products that allow an individual using the Internet or mobile phones to purchase, send, or receive a gift certificate, ticket, coupon, receipt or transfer money.

Further details about Veritec's technologies and its multiple applications can be found on Veritec, Inc.'s website atwww.veritecinc.comwww.vtfs.comwww.blinxcard.com

Gemalto Deploys First Contactless EMV Payment Cards in Brazil for Santander Universities


Forecast of rapid growth in the contactless EMV payment market in the country
AMSTERDAM--()--Gemalto (Euronext NL0000400653 GTO), the world leader in digital security, was chosen by Banco Santander Brasil, one of the largest financial institutions in the world, with more than 90 million customers worldwide, to deploy the first contactless EMV payment system in Brazil. Santander Universities Global Division, responsible for the project, expects to issue thousands of contactless payment cards to Brazilian university students over the next 12 months. This innovation represents the evolution of the University Smart Card, which is already widespread in 12 countries, in more than 200 universities and with 5 million users.
“Banco Santander has been taking advantage of Gemalto's ability to produce and personalize high volumes of contactless EMV cards locally, so that it can provide the contactless payment experience to a new generation of card users.”
This important breakthrough allows Santander Universities to take the lead in the market, providing the new contactless technology along with financial and academic functions. Rapid growth in the contactless EMV payment market is expected in the country. Santander is the first bank in Brazil to issue personalized contactless EMV cards, which are produced in the country. In addition, it is well positioned in the expansion of more advanced payment programs, such as through cell phones, using NFC contactless technology.
Besides the speed and convenience of contactless payments, students in Brazil will continue enjoying the features of the university smart cards they already have. These features include EMV security, digital ID, strong authentication and access to university facilities, as well as public transportation in some universities.
"The card offers unmatched technology in our market and gives us a leading edge that adds great value to our brand, positioning and activities. We want to strengthen our ties with universities offering state-of-the-art technology, which improves the operation of the institutions,” said Jamil Hannouche, Director of Santander Universities in Brasil.
"Santander Universities and Gemalto have built a strong business relationship and bringing a new payment technology to Brazilian students fosters our commitment to secure payments anywhere,” said Eric Megret-Dorne, Senior Vice-President of Secure Transactions, Gemalto Latin America. “Banco Santander has been taking advantage of Gemalto's ability to produce and personalize high volumes of contactless EMV cards locally, so that it can provide the contactless payment experience to a new generation of card users.”
About Gemalto
Gemalto (Euronext NL0000400653 GTO) is the world leader in digital security with 2010 annual revenues of €1.9 billion and over 10,000 employees operating out of 87 offices and 13 Research & Development centers in 45 countries.

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