In a First for Debit Networks, Shazam Adds a Mobile Feature to Shut off Lost Or Stolen Cards

BoltsLogo

In the wake of the arrival of EMV chip cards and ahead of the holiday shopping rush, the Shazam debit network has launched a mobile feature that lets cardholders disable their debit cards should they be lost or stolen.

While networks like Discover Financial Services have advertised a similar feature for credit cards, the new Shazam feature, which is part of its Bolts mobile app, is the first of its kind for a debit network, a spokesman for the network tells Digital Transactions News. “You just click a button and [the card] is off,” he says. “It’s attractive for consumers and financial institutions because that’s less fraud for them.”

Since the service went live at the end of September, it has blocked some 600 Shazam cards. As the holiday-shopping season approaches, the network expects many more will be switched off as cardholders lose their cards in the shopping frenzy. “As the volume goes higher seasonally, it stands to reason there’s more potential” for lost-and-stolen fraud, says the spokesman.

The feature, whose formal name is Bolts Transaction Control, is rolling out to the network’s 1,300 member financial institutions and is one of three services available for Bolts, a mobile app Johnston, Iowa-based Shazam launched in January 2013. The other two are transaction alerts and peer-to-peer payments, a service Shazam added this summer.

So far, about half of the Shazam members have integrated Bolts and have added Transaction Control. Those banks account for some 1.3 million debit cards out of the network’s total of 4.9 million active Shazam-bugged cards. Of these, just over half a million are now active on the new service.

For the rest of this story by John Stewart, head to DIGITAL TRANSACTIONS.


TSYS and Ingenico Group to Offer New Semi-Integrated EMV Solution

 

 

TSYS TSS, -1.12% a leading global payments provider, and Ingenico Group , a global leader in seamless payments, today announced a new semi-integrated solution to simplify the EMV [®] certification process. TSYS is the first processor to Class A certify Ingenico Group’s new offering, which is designed to enable partners with the ability to easily build and deploy secure EMV and NFC solutions.

The combined TSYS and Ingenico Group offering provides Value-Added Resellers (VARs) and Integrated Software Vendors (ISVs) with a simple and secure pathway to begin enabling EMV payments. This easy-to-implement solution empowers VARs and ISVs to focus on developing their core products, while offering them a secure method for accepting payments, including magnetic stripe, EMV and NFC contactless payments.

Using a semi-integrated approach, communications between the PIN pad and point-of-sale (POS) system are limited to non-sensitive exchanges, preventing card data from entering the POS. By taking the POS out of the payment flow process, not only are EMV certification and PCI compliance simplified, but overall costs and time required for EMV implementation are reduced as well. Fully certified through all major card brands, this new TSYS-certified solution also has the ability to process with TSYS Guardian Encryption [SM] , ensuring payments are both reliable and secure.

 

For the rest of this article, head to MARKETWATCH.

 

For any further questions about the exciting advances with Ingenico products, please contact CardWorks merchant support:

(866) 210-4625 X1

merchantsupport@cardworks.com


CardWorks Merchant Services Heading To WSAA

wsaa

 

CardWorks is heading to Henderson. NV and the M Resort for the Annual WSAA Conference.  With sponsors from all sectors of our industry, this event is sure to be informative and provide for excellent networking opportunities.

MUST SEE SEMINARS

 

Wednesday

 

Field Guide for ISO’s: Sponsored by American Express

11 AM    Introductions: Mark Dunn, Field Guide Enterprises

11:10 AM  EMV ‐ That Ship has not sailed, you can still get on board: Mark Dunn, Field Guide Enterprises

11:50 AM  How artificial intelligence can ensure required compliance: Neil Jones, Rippleshot

12:30 PM   Selling value added products: Marc Beauchamp, PayProTec

2:10 PM    Alternative lending ‐ How ISO’s make money: Scott Griest, Rapid Capital Funding

2:50 PM    Cracking the medical payments market: Mary Winingham, Mirror Consulting

Thursday

The Technology Bet

Ken Elderts, VP, ISO Sales, AnywhereCommerce

Cory Capoccia, President, Womply

John Priore, President and CEO, Priority Payment Systems

Moderator: Xavier Ayala, CEO, Managing Partner, ONESOURCE Business Advisors. President, WSAA

This dynamic panel of experts will discuss payment technology innovation geared towards enhancing the merchant and consumer payments experience. Discover which technologies merchants and consumers are adopting and how retailers are reducing friction at the POS and using big data to understand their businesses and customers better to increase customer loyalty. Learn how payment technology is becoming more intuitive, transparent, and enhancing the merchant and consumer experience.

How to Manage Through ISO Growing Pains ‐ Hit, Stay, or Fold?

Michael Cottrell, Director, Global Sales and Marketing, ProPay

Jeremy Wing, President, Payscape

Donna Embry, Chief Payments Advisor, Payment Alliance International

Moderator: Deana Rich, CEO, Deana Rich Consulting

During this session a respected panel of industry leaders will discuss the life cycle of the ISO, focusing on major decisions that often must be faced in growing your business. Is registration truly required to be successful? Is a retail model the best solution, or is wholesale the answer? What are the implications of the liability versus no‐liability landscape?

For more details regarding the agenda of the event and specific sponsors, CLICK HERE.

If you will be in Las Vegas and would like to meet with a member of our team, please email CardWorks Partnerships.


B2B Commerce Tech Is Finally Catching Up to Consumer Payments

evolve-business-phone-ss-ps

We used to be content just searching online for information on products, scanning the latest news or finding out what our friends and family were up to.

But today we expect consumer e-commerce and payment sites to be intelligent and deliver experiences that are personal and relevant, and to know things about us and anticipate our needs within the context of our actions and to execute them in line with our personal preferences and company policies. To help us not only do things faster, but better. After lagging consumer payments, business to business payments is finally catching up to that level of function.

Technology has unleashed a host of new data. And by mining this data for insights and delivering them to the right people at the right times, technology can make us more intelligent and ultimately drive advantage.

Business networks are turning these scenarios into realities for the procurement industry. By leveraging the hundreds of billions of dollars of financial transactions and transactional data along with relationship history that resides in business networks, for instance, buyers and sellers can make more informed decisions by detecting changes in buying patterns or pricing trends. This provides organizations with more confidence and qualifying information on a potential, yet unfamiliar, trading partner.

And, when combined with community-generated ratings and content, they can glean not only real-time insights, but also recommended strategies for moving their businesses forward. So, things like performance ratings where buyers rate suppliers and suppliers rate buyers. Others in the community can use this information to help detect risk in their supply chain or determine who to do business with – much like a consumer might read a product review before purchasing something online.

For any questions regarding this article, please contact CardWorks Merchant Support at (866) 210-4625 X1 or email merchantsupport@cardworks.com.

To continue reading, please go to PAYMENT SOURCE.


Debit Card Growth Data, Durbin Ruling

debit_card_23

 

Americans are using debit cards more, especially for small dollar purchases.

They also make fewer withdrawals from ATMs than they did just a decade ago. These are two key trends reported in the 2015 Debit Issuer Study from Pulse, a network owned by Discover Financial Services.

Meanwhile, the Federal Reserve has published a “clarification” of how it determined debit interchange caps when it was directed to do under the Durbin Amendment to the 2010 Dodd-Frank Act.

The Fed has come under fire for years for a ruling it issued in 2011 that capped debit card interchange as directed by the Durbin Amendment. The National Association of Convenience Stores successfully argued before a U.S. district court that the cap set by the Fed – 21 cents per transaction plus an adjustment for fraud prevention – was too low.

But the district court’s decision was overturned last year by the U.S. Court of Appeals for the District of Columbia Circuit. The appeals court, however, instructed the Fed to explain one aspect of the ruling, the treatment of fraud protection and prevention costs. That explanation, published recently in the Federal Register, makes distinctions between fraud tools used at the transaction and program levels.

10-year track record

Pulse is one of the oldest debit card networks in the nation and an early champion of POS debit. It commissions a yearly debit issuer study. The latest, the 2015 Debit Issuer Study, reveals that over the past 10 years, debit card usage has grown 32 percent.

“The past decade saw a major shift in consumer preference to paying with debit cards, which accelerated after the 2008-2009 recession,” said Steve Sievert, Executive Vice President for marketing and communications at Pulse. “We believe there is still opportunity for debit growth, considering that consumer use of debit for smaller purchases is rising, and the average active debit card is used about five times per week.”

Tony Hayes, a Partner at Oliver Wyman Group who co-led the study, said, “Consumer use of debit has been nothing short of remarkable. Debit has steadily gained wallet share as consumers shift their spending to this payment type. The use of debit for small-ticket purchases is particularly noteworthy, where one-third of all debit transactions are for less than $10 – purchases that historically would have been made with cash or not at all.”

Debit cards have been available for POS payments since the 1980s but only began to gain significant market share in the 1990s, when Visa Inc. and MasterCard Worldwide logos began appearing on debit cards, and the networks behind those logos began clearing debit card payments authorized at the POS by cardholder signatures. Debit card activity grew to equal credit card payments in the early 2000s, and about 10 years ago, yearly debit card tallies began to exceed those for credit cards.

The credit crunch that began in 2008 contributed to some of this growth, as consumers postponed credit spending. So did growing adoption of prepaid debit cards. Now, the yearly total of PIN, signature and prepaid debit card spending is nearly double the total for credit card payments, according to Pulse. The average active debit cardholder conducted 23.2 debit card transactions (POS and ATM) in 2014, according to the study.

Weighing Durbin

Ten years ago financial institutions were receiving a weighted average interchange of 41 cents on a consumer debit card transaction. The Durbin Amendment – or more specifically, Federal Reserve Regulation II, which implemented the legislative mandate – changed that by capping debit card interchange at 21 cents plus a markup for fraud prevention. The cap, however, only applies to banks with $10 billion or more in assets.

In 2014, debit card issuers subject to the caps earned a weighted average interchange of 24 cents on each card transaction, while exempt institutions earned 40 cents per transaction in interchange, according to the study.

The drop in per-transaction earnings has been offset somewhat by growing usage, however. In 2008 (pre-Durbin) debit card issuers earned an average $81 in annual interchange per active debit cardholder, according to Pulse’s historical data. According to the latest study, exempt issuers generated an average of $112 per card in debit interchange revenue in 2014; the average was $59 per card for issuers subject to the Durbin debit caps.

Here are further key data points from the Pulse report:

  • Active cardholders averaged 16.1 POS debit transactions a month in 2005; in 2014 the average had jumped to 21.1 per month.
  • In 2005, the average annual spend per active debit card was $7,807; in 2014 it was $9,291.
  • The average debit card ticket was $40 in 2005; that dropped to $37 in 2014
  • The average active cardholder made 3.4 ATM withdrawals month in 2005, but just 2.0 per month in 2014.

For more information on Debit Cards, please contact CardWorks Acquiring – Merchant Services

Phone: (866) 210 – 4625 X1

Email: merchantsupport@cardworks.com

 

Full article at Greensheet.com

 


Mobile Point of Sale to Grow 400% in Four Years : Report

Square_SwipingHands

 

The mobile point of sale market already seems overcrowded, but what’s out there now is just a taste of what’s to come, according to 451 Research.

The global installed base of mobile point of sale technology will grow to 54.03 million units in 2019 from 13.3 million units this year. That’s a fourfold increase and a 32% compound annual growth rate.

The factors driving the growth are diverse and cover a range of geographies and industries. In emerging markets, mobile point of sale terminals promote financial inclusion. In more developed economies, the technology is a line-buster at retailers and helps overall engagement.

“We think of mPOS as a fairly well penetrated technology, but we’ve only scratched the surface,” said Jordan McKee, a senior analyst covering mobile payments for 451 Research.

In North America, larger businesses with more than 1,000 employees are increasingly deploying mobile point of sale technology, and 87% of IT decision makers say that accepting card payments on a mobile device and providing a real-time receipt is important, according the research.

Please contact CardWorks Acquiring for more details on Mobile POS options.  (866) 210-4625 X 1 or email merchantsupport@cardworks.com.

For the rest of this article, visit Payments Source.


EMV Shift : Real Life "Mad Men" Take on EMV Marketing

EMV PICTURE

EMV Shift : Real Life “Mad Men” Take on EMV Marketing

One of the more difficult challenges of the U.S. EMV conversion is getting the word out, especially given the urgency of the October deadline the card networks set for a fraud liability shift.

Some companies are starting to treat this marketing challenge as an opportunity, making their advertising more about the shift to EMV security than about their own products. ShopKeep, a mobile point of sale provider, is running an advertising campaign that cuts straight to the chase.

One ad states bluntly: “The card companies will hold you liable for fraud if you don’t have EMV technology — liable for their cards. That’s going to make you mad.”

Partners and Napier New York produced the ShopKeep ad campaign, which features two television spots and other digital content. One of the TV spots is a branding message around ShopKeep tied to the need to migrate to EMV, the other general messaging around EMV, liability and ShopKeep’s role.

“The liability shift is coming, and among our target market of small to medium sized businesses there’s not a lot of awareness,” said Brian Zang, senior vice president of sales and marketing at ShopKeep. “They mostly have their heads down running their businesses.”

“It starts with consumers. Consumers don’t necessarily know what EMV is,” Zang said. “If you’ve traveled that means ‘OK, my card has a chip on it now.’ But I don’t think that people understand what it means for the larger payment industry.”

CardWorks Acquiring – Merchant Services continues to work with our industry partners to provide merchants with affordable, easy-to-implement EMV solutions with the industry’s best security capabilities. To ensure your equipment is EMV compliant, contact CardWorks Acquiring Merchant Support today at (866) 210-4625 X1 or via email at merchantsupport@cardworks.com.

To read the rest of this story, visit PAYMENT SOURCE.


EMV Shift : Real Life “Mad Men” Take on EMV Marketing

EMV PICTURE

EMV Shift : Real Life “Mad Men” Take on EMV Marketing

One of the more difficult challenges of the U.S. EMV conversion is getting the word out, especially given the urgency of the October deadline the card networks set for a fraud liability shift.

Some companies are starting to treat this marketing challenge as an opportunity, making their advertising more about the shift to EMV security than about their own products. ShopKeep, a mobile point of sale provider, is running an advertising campaign that cuts straight to the chase.

One ad states bluntly: “The card companies will hold you liable for fraud if you don’t have EMV technology — liable for their cards. That’s going to make you mad.”

Partners and Napier New York produced the ShopKeep ad campaign, which features two television spots and other digital content. One of the TV spots is a branding message around ShopKeep tied to the need to migrate to EMV, the other general messaging around EMV, liability and ShopKeep’s role.

“The liability shift is coming, and among our target market of small to medium sized businesses there’s not a lot of awareness,” said Brian Zang, senior vice president of sales and marketing at ShopKeep. “They mostly have their heads down running their businesses.”

“It starts with consumers. Consumers don’t necessarily know what EMV is,” Zang said. “If you’ve traveled that means ‘OK, my card has a chip on it now.’ But I don’t think that people understand what it means for the larger payment industry.”

CardWorks Acquiring – Merchant Services continues to work with our industry partners to provide merchants with affordable, easy-to-implement EMV solutions with the industry’s best security capabilities. To ensure your equipment is EMV compliant, contact CardWorks Acquiring Merchant Support today at (866) 210-4625 X1 or via email at merchantsupport@cardworks.com.

To read the rest of this story, visit PAYMENT SOURCE.


Alibaba's New Bar Code Could Fight Return Fraud

 

Alibaba

 

Alibaba has started using a modified version of a QR code to fight counterfeit fraud and enable individualized marketing.  And the payments potential for such an offering is huge, delivering something akin to a non-wireless version of item-level RFID.

The new code is like a QR code only in appearance, and that appearance was chosen for the familiarity that consumers and merchants have with scanning a QR code. The identifier, which is unique to each individual item on a store’s shelf, can add a huge amount of data to each purchase. For example, a retailer who suspects a fraudulent return — an item being returned that was purchased elsewhere or stolen — can use the code to determine whether that item came from its inventory and whether it was paid for.

“It certainly closes a door that exposes a retailer to a great deal of expense, by virtually eliminating return fraud,” said Thad Peterson, a senior payments analyst at The Aite Group. “If every product has a unique identifier, then any time a product is returned to the store, the nature of the transaction prior to that return can be determined, including if there ever was one.”

This type of fraud exploits store policies that allow for returns without a receipt. But there are other uses for this technology at the point of sale. “This adds a massive amount of data to CRM and general data management, throwing in so much incremental data that you simply didn’t have before,” Peterson said.

Alibaba has been working with an Israeli tech company called Visualead and has licensed its Dotless Visual Code Technology to use in these bar codes. L’Oréal and Ferrero also use this technology. In Alibaba’s case, the codes can be read by the Chinese e-commerce company’s Taobao mobile app.

 

Read the rest of this article on PaymentsSource


Alibaba’s New Bar Code Could Fight Return Fraud

 

Alibaba

 

Alibaba has started using a modified version of a QR code to fight counterfeit fraud and enable individualized marketing.  And the payments potential for such an offering is huge, delivering something akin to a non-wireless version of item-level RFID.

The new code is like a QR code only in appearance, and that appearance was chosen for the familiarity that consumers and merchants have with scanning a QR code. The identifier, which is unique to each individual item on a store’s shelf, can add a huge amount of data to each purchase. For example, a retailer who suspects a fraudulent return — an item being returned that was purchased elsewhere or stolen — can use the code to determine whether that item came from its inventory and whether it was paid for.

“It certainly closes a door that exposes a retailer to a great deal of expense, by virtually eliminating return fraud,” said Thad Peterson, a senior payments analyst at The Aite Group. “If every product has a unique identifier, then any time a product is returned to the store, the nature of the transaction prior to that return can be determined, including if there ever was one.”

This type of fraud exploits store policies that allow for returns without a receipt. But there are other uses for this technology at the point of sale. “This adds a massive amount of data to CRM and general data management, throwing in so much incremental data that you simply didn’t have before,” Peterson said.

Alibaba has been working with an Israeli tech company called Visualead and has licensed its Dotless Visual Code Technology to use in these bar codes. L’Oréal and Ferrero also use this technology. In Alibaba’s case, the codes can be read by the Chinese e-commerce company’s Taobao mobile app.

 

Read the rest of this article on PaymentsSource