Showing posts with label credit cards. Show all posts
Showing posts with label credit cards. Show all posts
Friday, February 22, 2008
Chicago Fed Conference - Payments Fraud: Perception versus Reality
The Federal Reserve Bank of Chicago has announced it will host its eighth payments conference, Payments Fraud: Perception versus Reality, June 5–6, 2008 at the Chicago Fed. The conference will highlight threats to the security of the payments system and explore solutions to those challenges.
Friday, February 15, 2008
Pew Study of Online Shopping
The Pew Internet & American Life Project has released a new report on online shopping - finding that Internet users like the convenience but worry about the security of their financial information. "Most online Americans view online shopping as a way to save time and a convenient way to buy products. At the same time, most internet users express discomfort over a key step in online shopping -- sending personal or credit card information over the internet."
Friday, February 8, 2008
Gartner Says Consumers Prefer PIN-based Debit
Gartner has announced results of a survey of 4,500 online U.S. adults, conducted in August of 2007 that concludes that while banks and credit card issuers have put significant efforts into marketing contactless and signature-based debit card payments, they have failed to win over consumers. Gartner found that "consumers prefer alternative payment types that earn banks less revenue, but which consumers believe are more secure." In, particular, PIN-based debit and not signature debit. Gartner also found little consumer interest in contactless or mobile payments.
“Despite significant marketing campaigns by banks and card issuers to steer consumers towards using debit cards with a signature — ostensibly so that the banks can earn more interchange revenue — consumers prefer entering their personal identification number (PIN) to pay for groceries with their debit card over all types of signature-based card payments, whether credit or debit,” said Avivah Litan, vice president and distinguished analyst at Gartner.
“Banks promote signature-based debit payments because they earn more fee revenue from card-accepting merchants, on the premise that they are riskier and more prone to theft, so the banks need to earn higher fees to compensate,” Ms. Litan said. “Fraud rates on signature-based debit card payments are at least 10 times higher, and banks usually eat these costs if they are incurred in a card-present (or store) environment. Higher interchange fees paid by merchants to banks and card issuers for signature-based transactions must offset these costs or else banks wouldn’t promote the signature variety.”
When shopping at grocery stories, consumers prefer debit card payments that require entry of a PIN despite the fact that only debit and credit card payments with physically signed receipts typically earn them reward points. Consumers’ least-favorite payment type when shopping for groceries is contactless (wireless) payments, and there is similarly small interest in using mobile phones for making payments.
“Brick-and-mortar businesses who accept electronic consumer payments should promote use of PIN-based debit card payments by steering consumers to them through payment terminal programs and/or by offering store-based incentive programs,” Ms. Litan said. “Businesses pay less to banks for PIN-based payments and since consumers prefer them anyway, this is a win-win strategy for all parties except credit card issuers and banks.”
Consumers who have been affected by the data breaches publicized in recent years are more prone to change their online payment behavior than other online or offline activities, such as shopping and e-mail preferences. These consumers are more likely to call the online store and give them their payment account number over the phone.
“Online businesses should therefore enhance their ability to offer secure automated phone payments,” Ms. Litan said. “For example, businesses can use a transaction number generated during the online shopping season to tie a purchase to an automated phone-based payment. For this customer base, online merchants should also promote alternative payments, such as PayPal and Bill Me Later, where interest in using them increases as age decreases.”
Compilation Copyright © 2002 - 2007 Glenbrook Partners LLC. All Rights Reserved.
“Despite significant marketing campaigns by banks and card issuers to steer consumers towards using debit cards with a signature — ostensibly so that the banks can earn more interchange revenue — consumers prefer entering their personal identification number (PIN) to pay for groceries with their debit card over all types of signature-based card payments, whether credit or debit,” said Avivah Litan, vice president and distinguished analyst at Gartner.
“Banks promote signature-based debit payments because they earn more fee revenue from card-accepting merchants, on the premise that they are riskier and more prone to theft, so the banks need to earn higher fees to compensate,” Ms. Litan said. “Fraud rates on signature-based debit card payments are at least 10 times higher, and banks usually eat these costs if they are incurred in a card-present (or store) environment. Higher interchange fees paid by merchants to banks and card issuers for signature-based transactions must offset these costs or else banks wouldn’t promote the signature variety.”
When shopping at grocery stories, consumers prefer debit card payments that require entry of a PIN despite the fact that only debit and credit card payments with physically signed receipts typically earn them reward points. Consumers’ least-favorite payment type when shopping for groceries is contactless (wireless) payments, and there is similarly small interest in using mobile phones for making payments.
“Brick-and-mortar businesses who accept electronic consumer payments should promote use of PIN-based debit card payments by steering consumers to them through payment terminal programs and/or by offering store-based incentive programs,” Ms. Litan said. “Businesses pay less to banks for PIN-based payments and since consumers prefer them anyway, this is a win-win strategy for all parties except credit card issuers and banks.”
Consumers who have been affected by the data breaches publicized in recent years are more prone to change their online payment behavior than other online or offline activities, such as shopping and e-mail preferences. These consumers are more likely to call the online store and give them their payment account number over the phone.
“Online businesses should therefore enhance their ability to offer secure automated phone payments,” Ms. Litan said. “For example, businesses can use a transaction number generated during the online shopping season to tie a purchase to an automated phone-based payment. For this customer base, online merchants should also promote alternative payments, such as PayPal and Bill Me Later, where interest in using them increases as age decreases.”
Compilation Copyright © 2002 - 2007 Glenbrook Partners LLC. All Rights Reserved.
Thursday, February 7, 2008
Paul Noblett, Founder of N&A Consulting, Appointed to Fast Transact, Inc. Board of Directors
Fast Transact, Inc., is pleased to announce the appointment of Paul W. Noblett to its Board of Directors.
Mr. Noblett, founder of N&A Consulting, has been a key figure in the transaction services and communications industries for over 30 years. With experience ranging from systems management at what today is MBNA to being the General Manager of MasterCard’s Worldwide Operations, Paul has had hands-on responsibility for many of the systems and operational enhancements developed in the industry. N&A Consulting is a business development, data processing and communication consultancy specializing in the payments industry. Customers include major service organizations and financial institutions, both domestic and international. Additionally, the group specializes in developing new businesses. These efforts have resulted in the creation of six new companies to take advantage of market opportunities. Over 200 people now work for these organizations, generating more than $100 million in annual revenue.
"Fast Transact is committed to providing a total solution for merchant services. The addition of Paul Noblett to our Board of Directors ensures that the company will continue to benefit from a diversity of knowledge and opinions. Paul is a perfect director for Fast Transact because of his strong leadership skills, extensive management experience, and proven record of accomplishment within the credit card industry. We believe Paul’s experience in this arena and overall management and governance acumen will greatly assist Fast Transact’s strategic growth," said David Solomon, founder and Chief Executive Officer, Fast Transact Inc.
“We are very excited to be part of the Fast Transact team,” stated Paul Noblett. “We have always been impressed by what they have accomplished and their customer loyalty. It is our hope to add our industry position and know how to help build a truly unique solutions provider.”
With the appointment of Noblett, the Fast Transact board stands at six directors.
Mr. Noblett, founder of N&A Consulting, has been a key figure in the transaction services and communications industries for over 30 years. With experience ranging from systems management at what today is MBNA to being the General Manager of MasterCard’s Worldwide Operations, Paul has had hands-on responsibility for many of the systems and operational enhancements developed in the industry. N&A Consulting is a business development, data processing and communication consultancy specializing in the payments industry. Customers include major service organizations and financial institutions, both domestic and international. Additionally, the group specializes in developing new businesses. These efforts have resulted in the creation of six new companies to take advantage of market opportunities. Over 200 people now work for these organizations, generating more than $100 million in annual revenue.
"Fast Transact is committed to providing a total solution for merchant services. The addition of Paul Noblett to our Board of Directors ensures that the company will continue to benefit from a diversity of knowledge and opinions. Paul is a perfect director for Fast Transact because of his strong leadership skills, extensive management experience, and proven record of accomplishment within the credit card industry. We believe Paul’s experience in this arena and overall management and governance acumen will greatly assist Fast Transact’s strategic growth," said David Solomon, founder and Chief Executive Officer, Fast Transact Inc.
“We are very excited to be part of the Fast Transact team,” stated Paul Noblett. “We have always been impressed by what they have accomplished and their customer loyalty. It is our hope to add our industry position and know how to help build a truly unique solutions provider.”
With the appointment of Noblett, the Fast Transact board stands at six directors.
MasterCard's New PCI Educational Webinar for Merchants
MasterCard has announced the immediate availability of a complimentary educational webinar developed to help merchants better understand the newly available PCI Data Security Standard Self-Assessment Questionnaire (PCI DSS SAQ) version 1.1 that has been updated and released by the PCI Security Standards Council.
The PCI DSS, which was developed by MasterCard in conjunction with the other founding payment brands that comprise the PCI Security Standards Council, sets forth requirements for enhancing payment account data security and is intended to help companies protect payment account data. The multifaceted security standard includes requirements for security management, policies, procedures, network architecture, software design and other critical protective measures.
A crucial component of PCI compliance is the Self-Assessment Questionnaire, a validation tool intended to assist those merchants and service providers that are not required to have onsite assessments to self- evaluate their compliance with the PCI DSS. There are multiple forms of the SAQ to meet various scenarios, depending on how an organization stores, processes, or transmits cardholder data.
The updated SAQ version 1.1, which is intended to simplify and streamline the assessment process, was released today by the Council.
MasterCard's new Web-based module features actionable advice from MasterCard industry experts to help acquiring banks and merchants better understand the new updated SAQ. The webinar is now available online at http://www.webcasts.com/mastercardpci.
"Educating merchants and encouraging broader adoption of the PCI Data Security Standard are essential steps to better ensure the integrity of payment data," said Bruce Rutherford, Group Head, Fraud Management Solutions, MasterCard Worldwide. "This new program helps merchants effectively manage the SAQ process of the PCI DSS, while complementing our other education initiatives in our collaborative efforts to help protect our customers and cardholders from data theft and fraud."
The webinar will highlight the various SAQ types and discuss how to choose the right SAQ, tips and strategies for compliance as well as other related topics.
The new webinar is the latest component to MasterCard's ongoing commitment to industry education and knowledge sharing. In October 2007, MasterCard launched the PCI Merchant Education Program, an initiative offered to acquiring bank customers that provides practical assistance in educating merchants and encouraging broader adoption of the PCI DSS. The program continues to offer other complimentary education and training for acquiring banks and merchants to better their understanding of PCI DSS through interactive sessions, which are also available online at http://www.webcasts.com/mastercardpci.
In addition to the PCI Merchant Education Program, the MasterCard Academy of Risk Management (ARM) offers a full curriculum of online seminars, global conferences, educational materials and other tools to help secure the payments system and promote secure commerce worldwide. More information on the PCI Merchant Education Program and other ongoing MasterCard security initiatives can be found online at http://www.mastercardsecurity.com, or merchants may contact their MasterCard SDP representative.
Compilation Copyright © 2002 - 2007 Glenbrook Partners LLC. All Rights Reserved.
Friday, October 19, 2007
Fast Transact, Inc Ranks No. 1058 on the 2007 Inc. 5,000
Inc. ranked Fast Transact No. 1058 on its first-ever Inc. 5,000 list of the fastest-growing private companies in the country. The Inc. 5,000, an extension of Inc. magazine’s annual Inc. 500 list, catches many businesses that are too big to grow at the pace required to make the Inc. 500, as well as a host of smaller firms. Taken as a whole, these companies represent the backbone of the U.S. economy.
Leading the list of the fastest-growing companies in the nation is the Midwest region with 1,046 of the fastest-growing companies, followed by the West with 884 companies. The Southeast comes in a close third, with 872 companies, followed by the Northeast with 782 companies, and the Mid-Atlantic region with 606 companies.
The largest business category is Construction, with 561 of the fastest-growing companies in this category, followed by Manufacturing with 515 companies, IT services in third with 466 companies, Business Services with 377 companies and Advertising & Marketing with 349 companies round out the top five industries ranked on the 2007 Inc. 5,000.
Industries reporting the highest total revenue in 2006 are Construction ($27.1billion), Manufacturing ($18.6 billion), Health ($13.1 billion), Computers & Electronics ($12.7 billion), and Financial Services ($11.8 billion).
About Fast Transact, Inc.
Founded in 1995, and privately owned and operated, Fast Transact, Inc. is a registered ISO/MSP of Bank of America and Wells Fargo Bank. FAST TRANSACT provides nationwide retail and Internet merchant service accounts, integrated payment gateways for processing credit cards and debit bankcards, online check services, affiliate partnership programs, and gift card / loyalty card programs. FAST TRANSACT is a registered trademark of Fast Transact, Inc. For more information, visit www.fasttransact.com
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