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Last month’s blog discussed the concept of leaving your wallet at home and using your mobile phone to make payments and purchase items.  This seems to be a hot topic as more retailers gear their services for smart phone users.

A few weeks ago, Starbucks officially announced their mobile application, Starbucks Card Mobile app, available on the iPhone, iPod touch and select Blackberry phones.  Not wanting to wait for Near Field Communication (NFC) to come to full use (NFC requires a lot more than two way communication between the mobile phone and the retailer), Starbucks decided to utilize existing technology, 2D barcodes, for their new app. Continue reading "The Mobile Payments Revolution – An Interim Solution"

As smartphones and open source mobile applications gain popularity and usage, consumers are relying more on their mobile phones to shop.  The market is flooded with applications giving consumers the ability to compare prices and make purchases, either at physical retailers or online, while on the go.  In March, Portio Research estimated that mobile payment transactions will reach over $633 billion by 2014.  According to ScanBuy, barcode scanning was up 200 percent in 2010.  Continue reading "Can You Start Leaving Your Credit Cards At Home?"

As I discussed earlier this year in my book, Beyond Plastic, using your cell phone to make contactless payments may finally become a reality in the U.S.  AT&T and Verizon are indeed encroaching into the electronic payment space, possibly creating a real threat to Visa and MasterCard.   Continue reading "Mobile Contactless Payments May See Light in the U.S."

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Recent reports about the security of mobile phone payments has raised red flags on the next hot payment channel.  Encryption on GSM calls has already been hacked and various researchers have released findings and tools that might encourage cyber crime.  Well, maybe not exactly the motive, but a GSM encryption codebook – a “how-to” guide to break GSM encryption – has been released by a team of German researchers.  Their goal was not to assist cyber criminals, but to encourage stronger security protocols for mobile technology.  Continue reading "Can You Trust Mobile Phones With Your Money?"

The EMV Standard

In the UK, the migration to EMV technology has reduced fraud in face-to-face transactions since EMV adoption in 2003.  The EMV standard operates with EMV-compliant cards (which have embedded chips instead of magnetic stripes) and EMV-compliant POS terminals.  The chips require a PIN entry for a secure EMV transaction.  The acronym EMV is derived from the initial letters of Europay, MasterCard, and Visa, all of whom cooperated to create the technology standard.  MasterCard merged with Europay in 2002.  JCB and American Express have since joined the organization as well.

EMV is a perfect example of two-factor authentication, where two different factors are required to complete a transaction, and has been referenced as a key solution for secure, fraud-resistant transactions.   Continue reading "Where Are We With Payment Security?"

Answer:  Offer alternative payment options

Okay, so what exactly does that mean?  Well, traditionally, merchants only had the option of accepting electronic payments online in the form of bank drafts, and debit and credit cards from the major card brands – Visa, MasterCard, American Express, Diners Club and JCB.  That is until payment product innovators discovered that merchants were losing potential business from consumers who did not have bank accounts or credit cards.  Most importantly, in the ecommerce space, some consumers are simply wary of using cards and bank account information for online transactions because of the fraud risk.  Most of this concern stems from consumers’ lack of trust in web site security.  Additionally, with card companies cutting cardholder credit limits, alternative payment methods are the only option. Continue reading "Want To Gain More Online Customers?"

We have seen the contactless functionality pop up in many stores over the last few years. You have probably seen the popular commercial where people are walking in an efficient circle, taping their card onto a contactless device, until one guy pulls out cash and the whole line comes to a screeching halt. Contactless payment systems are credit cards that have a device using a Radio Frequency Identifier (RFID) to make a secure payment. The consumer is able to wave their card over a reader at the consumer location to make their purchase. There is typically no signature required for purchases under $25.00.

Although many large retail chains such as Regal Cinemas and McDonalds have the technology available, the process has been put under a great deal of scrutiny because it is said to be more susceptible to identity theft and other types of fraudulent activity. The devices are easily hacked using a wireless frequency. Regardless of the security risks, all the major credit card companies were ready to get their piece of the action. In July of 2005, AMEX launched ExpressPay, which was quickly ditched because of a lack of response by consumers. The Discover Network released its Zip technology, Visa Inc released payWave, and MasterCard has PayPass.

Continue reading "The Evolution of Contactless Technology"

Visa has always been on the cusp of technology and is always looking for new and innovative ways to expand their sphere of influence. Visa is launching four new programs that allow payments and services via mobile devices. Two such programs are being launched in Brazil and Korea, and the other two will be in the United States.

Previously, I have talked about Google’s Android platform working with Visa on a service that sends you an alert if any payments have been made on your Visa card. This is great in helping to protect against fraud, and will also help in locating ATMs, but I don’t consider this to be a new technology.

In 2007, Visa partnered with Qualcomm, a wireless chip developer, to create technologies that allow consumers to make credit card transactions with a cell phone and a reading device. This would add another way for wireless carriers to make additional revenue by being paid a percentage of the transaction.

Continue reading "Visa Inc. Pushes For Mobile Technology"

In today’s economy, more and more people are turning to using credit cards. With this new onslaught of credit card users there comes a greater possibility of fraud. The payment card industry had made great progress in compliance and security. Visa and MasterCard are actively creating technology and guidelines to protect consumers and merchants alike.

Visa and MasterCard have developed ways to improve the security of online transactions. Verified By Visa and SecureCode allow the card holder and card issuer to authenticate each other. This is done by exchanging digital secure certificates. Card holders can be assured that they are dealing with a real merchant and conversely provide a merchant with proof of a real cardholder. A digitally signed record of the transaction is created. Most issuing banks encourage card holders to sign up for these programs and many online merchants give consumers the opportunity to sign up before they proceed with payment.

Continue reading "New Innovations Are Keeping Credit Card Information Secure"