The Japan Consumer Credit Industry Association reported this week that credit card fraud losses declined 10.7% last year. Total credit card fraud losses were 27.57 billion yen for 2001. However, losses due to forgery rose 4.4% last year to 14.6 billion yen. The Japan Consumer Credit Industry Association studied 49 domestic card-issuing firms.Details
MasterCard and Citibank have agreed to issue a limited edition MasterCard to coincide with the FIFA World Cup to be held during May-June 2002 in Korea and Japan. The card will feature special offers from Citibank’s merchant partners across India. MasterCard is an official sponsor and the Official Card of the 2002 FIFA World Cup.Details
A court in Beijing has ruled that China Telecom does not have to pay a customer compensation for phasing out its magnetic phone cards. China Telecom is replacing all its magnetic cards with smart cards by the end of this year.The Beijing No. 1 Intermediate People’s Court has denied a magnetic-card user’s appeal for 4.66 million yuan in compensation. The plaintiff, Qin Ting, had gathered together the magnetic cards of 85 users and filed the suit.Details
TrustAsia, a leading provider of digital trust services and an Asian affiliate of VeriSign, Inc., announced the launch of TrustAsia Payment Services (TAPS), a robust suite of payment products and services that enable secure online transactions through an automated process and open platform.
TAPS can handle secure multi-lingual and multi-currency transaction requests that are connected in real-time to financial institutions.
TAPS’ newest product offering features TAPS*POS, a high-speed business-to-consumer payment gateway that allows online merchants to process credit card payments quickly and reliably throughout Asia-Pacific. TAPS*POS integrates a unique system architecture that connects banks, credit card companies and online merchants in order to authorize secure online transactions in real-time.
The technology, capable of facilitating online and off-line payment requests, features secure multi-currency and multi-lingual functionality enabling merchants to handle as many currencies as they wish to transact.
“As e-commerce in Asia is expected to reach US $1.6 trillion by 2004, primarily by individuals making personal transactions, penetrating the B2C payment sector is a priority,” said Benjamin Lee, Vice President of TrustAsia Payment Services. “Providing secure payment gateways for such an exploding market will help continue to broaden our customer base and create additional growth opportunities for TrustAsia.”
TAPS*POS is connected to several major financial institutions and credit card companies like United Overseas Bank, American Express and Diners to provide secure credit card processing services for merchants.
TAPS*POS also supports Visa’s latest Authenticated Payment Program known as Verified by Visa. This technology enables both consumers and merchants to transact online with peace of mind.
TAPSconnect, TrustAsia’s business-to-business payment platform that was launched in December, has experienced a steady increase in monthly transactions conducted through its payment gateway. TrustAsia plans to increase the number of online financial services offered through TAPSconnect to include letter of credit (L/C), demand draft (D/D) and Telegraphic- Transfers (T/T).
“The widespread adoption of the Internet throughout Asia-Pacific has certainly provided new outlets for fulfilling daily responsibilities such as paying bills and purchasing goods and services,” said Seth Jutan, founder and CEO of TrustAsia. “TrustAsia is committed making payment procurement convenient and user-friendly for all users.”
TrustAsia Payment Services (TAPS)
TAPS is the cornerstone of TrustAsia’s vision to be the leading payment services provider throughout Asia-Pacific.
Built on industry leading technology from VeriSign, a core group of leading financial networks, and the strategic acquisitions of VCHEQ, CC Merchant Services and Centripetal, TAPS will lead the industry in offering a flexible, integrated payment services platform that securely processes multi-lingual, multi-currency and multi-payment types from disparate platforms.
TAPS works closely with banks and financial services providers in Asia-Pacific.
TrustAsia is a leading digital trust services provider that helps businesses and consumers establish an Internet presence while safeguarding its online transactions and communications.
With an unbeatable combination of knowledge and experience, TrustAsia has built its brand by providing a solid foundation that support the explosion of e-commerce and m-commerce in China and Southeast Asia’s growing markets. TrustAsia’s product offering includes public key infrastructure (PKI) capabilities, online payment solutions, and wireless domain name services.
TrustAsia is a VeriSign affiliate in China, Singapore, Thailand, Indonesia and Vietnam, and also offers VeriSign products and services in Malaysia, the Philippines, Myanmar, Brunei, Cambodia and Laos. TrustAsia also provides its innovative TrustAsia Payment Services (TAPS) offering in the additional territories of Hong Kong and Taiwan. For more information, visit http://www.trustasia.com.Details
As the annual tax reporting season draws to a close, a battle has erupted among issuers and networks to capture tax payments on credit cards. This morning, First USA and United Airlines announced they will award a 5,000 air mile bonus to cardholders using the United Mileage Plus VISA to pay taxes through May 30. The bonus is in addition to the one-mile-per-dollar earned under the program. Mileage Plus has more than 40 million enrolled members and approximately 4 million United Mileage Plus VISA cardholders. One week ago, VISA USA reached an agreement with Official Payments Corporation to permit VISA cards to be used for payment of federal and state income taxes. VISA had been a holdout in the tax payments via credit card market due to its regulations which prohibit merchants from charging a fee to cardholders for acceptance. OPC has been offering its tax payment service on MasterCard, Discover, and American Express cards since 1998. OPC generally charges consumers a fee of approximately 2.5% for each transaction, since most government entities cannot legally pay a merchant or discount fee for such transactions. Following VISA’s announcement to join the program, American Express and Citibank issued press releases to encourage consumers to use their card products for tax payments. Citibank encouraged taxpayers to use its American Airlines AAdvantage Program to earn one AAdvantage mile for every dollar of income tax paid. American Express said it will award double SkyMiles when cardholders pay federal taxes, or one SkyMile when paying state taxes, on their Delta SkyMiles Credit Card, between now and April 16, 2002. Other American Express cardholders can earn points through the Membership Rewards program. Currently, OPC has agreements to collect and process credit card payments with the IRS, 21 state governments, and more than 1,200 counties and municipalities. In 2001, OPC collected and processed more than one million transactions totaling $1.2 billion in federal, state, and local government payments. According to the IRS, as of mid-March, the agency had received more than 20,000 credit card payments, up 13% from nearly 18,000 for the same period last year. OPC was formerly known as U.S. Audiotex Corp. and went public in 1999. (CF Library 10/29/99; 11/23/99)Details
The People’s Bank of China said this week that its unified payment system for bank cards has made considerable progress and is ready to compete with foreign banks. China UnionPay is a network which links banks within the country to each other and handled 8.43 trillion yuan in transactions during 2001, an 86% increase over the previous year. The PBOC said glitches in the system will take about one year to iron out. The interbank linking system will serve 383 million bank cards currently in circulation in China.Details
Universal Debit and Credit Corporation along with its strategic partner, National Processing Company, a leading provider of merchant credit card processing and a wholly owned subsidiary of National Processing, Inc., announced they have signed 14 new banking institutions. This relationship provides the 14 banks and 148 branches the opportunity to offer their banking customers payment-processing services.
The 14 banks that signed this agreement include: Blue Ridge Bank, Central National Bank, Community National Bank, First National Bank, First National Exchange Bank, Mountain National Bank, Patrick Henry National Bank, Patriot Bank, Peoples National Bank, Shenandoah National Bank, Southern Financial Bank, National Bank of Davis, and WEPCO Federal Credit Union. This affiliation expands UDC’s current bank client customer base to more than 40 banks and 247 branches, making them one of the largest independent payment processors in the Washington, D.C. Metro area.
Lon Gaddy, president of UDC, said, “We are very excited to partner with these banks. They place as much emphasis on personalized customer service as we do with all of our merchant accounts.”
“We are excited that 14 new banks have entered into an agreement with UDC and NPC,” stated Randy Sagar, senior vice president of Independent Sales for NPC. “NPC shares the same commitment of providing our customers with superior products and outstanding service as these banking institutions and UDC. This shared commitment will equate to a winning partnership for all parties involved.”
About Universal Debit & Credit Corporation
Universal Debit & Credit Corporation was founded by Lonnie D. Gaddy and Carlos Gavidia, and has been marketing credit and debit card acceptance, ATM services, EBT (Electronic Benefits Transfer), check services, pre-paid services, gift cards and customer loyalty programs to merchants in the Mid- Atlantic region since 1994. The management team of UDC cumulatively represents more than 50 years of professional bankcard experience. Additional information regarding Universal Debit & Credit Corporation can be obtained at .
About National Processing, Inc.
National Processing, Inc. through its wholly owned operating subsidiary, National Processing Company (NPC(R)) is a leading provider of merchant credit card processing. National Processing is 86 percent owned by National City Corporation (NYSE: NCC) ( . ), a Cleveland based $106 billion financial holding company. NPC supports over 600,000 merchant locations, representing nearly one out of every five Visa(R) and MasterCard(R) transactions processed nationally. NPC’s card processing solutions offer superior levels of service and performance and assist merchants in lowering their total cost of card acceptance through its world-class people, technology and service. Additional information regarding National Processing can be obtained at .Details
Proton World and the KBC Bank & Insurance Group,
one of Europe’s important financial groups, announced that they had
signed an agreement licensing KBC Bank to implement the Proton Prisma
multi-application smart card technology in a number of its associated banks
in Central and Eastern Europe. As a group, they opted for a single secure
chip card platform, i.e., the end-to-end high-security multi-application
system, Proton Prisma, developed by Proton World.
As a financial group, KBC is active outside Belgium through a network of
subsidiaries, associated companies, representative offices, and branches as
well as through a series of international partnerships. In an initial phase,
the agreement will involve CSOB Bank in the Czech Republic (with branches in
the Slovak Republic), Kereskedelmi es Hitelbank (K&H) in Hungary, and the
Poland-based Kredytbank, which also has branches in Lithuania and a
subsidiary in Ukraine. The agreement also provides for possible
implementations of Proton Prisma technology by other KBC associated
KBC’s associated companies will issue the Proton Prisma smart cards
primarily for use with EMV PLUS, Proton World’s credit/debit application.
They will start the project immediately after the agreement is signed in
order to be able to issue the first EMVPLUS credit/debit cards during 2002
as part of the banks’ EMV migration plan.
By opting for the high-security Proton Prisma technology, KBC’s affiliates
will expand the capabilities of their legacy card systems to incorporate the
strengths of the full end-to-end card management capacities of CALC (Card
Application Life Cycle Manager), MATRIX (Proton World’s multi-application
card management and personalization environment), and DFM (Data File
Manager, allowing flexible implementation of third party applications). The
agreement also covers the potential implementation of ASPIC, Proton World’s
improved PKI application.
Proton Prisma offers KBC Group a wide range of fully compatible card
profiles, ranging from its basic step-in card profile (BP) to the secure
post-issuance Java Card- multi-application high-end card profile (Dynamic
Profile or DP). Moreover, Proton Prisma guarantees its customers full
application interoperability and an independent choice of card
“KBC was involved in the launch of the Belgian e-purse, the first
application of Proton, as far back as 1995. We are pleased that our
long-standing relationship with KBC Bank has resulted in KBC’s endorsement
of the flexibility, security and comprehensiveness of Proton Prisma, the
second generation of Proton technology, at a time when its affiliates are
deciding on their chip card migration programme,” says Armand Linkens, CEO
of Proton World and ERG Group Managing Director for the EMEA region. “Proton
World’s continued dedication to research has kept it at the leading edge of
secure smart card application development, safeguarding the smart card
investments of KBC Bank, its affiliates and customers.”
Herman Agneessens, KBC:
“By choosing Proton Prisma as the common chip card platform for KBC’s
international retail banking approach, we will be able to migrate to EMV in
a cost efficient way. Not only will the joint purchasing of cards cut costs
for KBC on the short term, it may also lead to permanent cost reductions by
means of common IT card-related development for all banks in the KBC Group.”
Mr. Pavel KavÃ¡nek, Chief Executive Officer of CSOB Bank, Mr. Tibor Rejto,
Chief Executive Officer of K&H Bank, and Mr Stanislaw Pacuk, President of
Kredyt Bank, were present yesterday at KBC’s Belgian offices to sign the
Pavel KavÃ¡nek, Chief Executive Officer, CSOB:
“CSOB hopes that this agreement will be a signal for other banks in Central
Europe to opt for Proton Prisma technology for their chip card platform, so
that card-personalization and processing efficiency in the Central European
card market can be enhanced.”
Stanislaw Pacuk, President, Kredyt Bank:
“The KBC Group’s invaluable experience with chip cards and Proton World’s
knowledge make us confident that Kredyt Bank’s migration from the existing
card programs to EMV will run smoothly, especially since the chip card
market in Poland is developing successfully.”
Tibor Rejto, Chief Executive Officer, Kereskedelmi es Hitelbank:
“Thanks to the Proton Prisma platform, K&H can combine its innovativeness in
the field of card programs with the benefits of the standardized card
approach of the KBC Group.”
Standard & Poor’s announced this morning it has placed First Consumers National Bank’s credit card-backed securities on CreditWatch with negative implications. Last month, The Spiegel Group, FCNB’s parent, confirmed it is looking to unload its credit card business following rapid deterioration and a significant earnings shortfall in FCNB’s sub-prime credit card portfolio. During the past two years, the underlying pool of FCNB credit card receivables has experienced decreasing yield and payment rates and increasing delinquency and chargeoff rates. As of the February reporting period, the total delinquency rate was at 14.29%, which is 572 basis points higher than January 2000’s delinquency rate of 8.57%. Concurrently, the gross chargeoff rate has increased to its current level of 18.20%, up from 11.90% in January 2000. At the same time, the yield on the portfolio has declined steadily during the same time period, averaging approximately 30% during the past year. This decreasing yield, combined with a relatively static base rate and an increasing chargeoff rate, has negatively affected spread rates, causing it to fall dramatically from its high of 20.60% in July 1999 to its current rate of 5.17% in February 2002. Lastly, the total payment rate displayed by the master trust has also displayed dissipating trends, falling steadily to its current rate of 11.07% from 17.92% in March 1999. The Spiegel Group reported a total loss from discontinued operations of $396.3 million in the fourth quarter, which primarily consists of a $310.5 million anticipated loss on the sale of the credit card portfolio. At year-end 2001, FCNB had $1,269,428,449 in credit card outstandings and 1,073,499 active accounts, according to CardData ([www.carddata.com]). (CF Library 2/22/02)
EDS announced business agreements valued at US$1 billion with public and private
sector clients in Europe and the U.S.
Highlights of today’s announcements, terms of which were not disclosed,
— UK Post Office has awarded EDS a major eight-year contract to provide
a full spectrum of business process outsourcing services to help
transform the way UK citizens receive government benefit payments.
EDS will provide electronic benefits transfer, customer relationship
management, and application processing services to help the company
meet a UK government plan to issue payments electronically rather than
via paper. (See separate release.)
— A multi-year agreement with ABN AMRO Bank to provide a full range of
services including application hosting, data processing, and back
office processing for the Amsterdam-based financial institution’s
operations in India.
— A five-year IT outsourcing extension with OK Q8, Sweden’s leading
petroleum company with a network of 1,000 petroleum stations
countrywide. Under terms of the extension, EDS continues to assume
responsibility for all of OK Q8’s IT operations, including system
— One-year budget approval from the U.S. federal government for
continued Medicare Part B claims processing services provided by EDS
subsidiary NHIC. NHIC has the Medicare contract, which is renewed and
funded annually based on performance.
EDS, the leading global services company, provides strategy,
implementation and hosting for clients managing the business and technology
complexities of the digital economy. EDS brings together the world’s best
technologies to address critical client business imperatives. It helps
clients eliminate boundaries, collaborate in new ways, establish their
customers’ trust and continuously seek improvement. EDS, with its management-
consulting subsidiary, A.T. Kearney, serves the world’s leading companies and
governments in 60 countries. EDS reported revenues of $21.5 billion in 2001.
The company’s stock is traded on the New York Stock Exchange and the London
Stock Exchange. Learn more at http://www.eds.com .
Certegy Inc., announced it is implementing the Visa Payer Authentication service âVerified by Visa.â Certegy will make the Verified by Visa service available on March 29th to its 6,000 domestic Visa issuing financial institutions that service more than 13 million Visa card accounts. Certegy will later deploy the service to its issuers worldwide.
Certegyâs strategy is to offer a comprehensive suite of state-of-the-art payment authentication and security services to further instill confidence in their clients and their clientsâ customers in the integrity of the online payment process. Visa Payer Authentication is the basis for Verified by Visa, an Internet payment authentication service designed to increase consumer and merchant confidence in e-commerce by reducing fraudulent Internet transactions.
In a partnership with Arcot Systems, Inc., Certegy is employing Arcotâs 3-D Secure-compliant TransFort solution as the managed hosting service to support Verified by Visa, providing merchants with the ability to initiate the authentication of an online Visa transaction, resulting in lower transaction costs and offering protection from fraud losses.
Arcot TransFort has been recognized as fully compliant with the 3-D Secure interoperability standard by the Visa Interoperability Lab, and has been adopted by more than 20 banks around the world.
âArcot was the clear choice because of their leadership in delivering solutions for Verified by Visa. They were instrumental in developing the 3-D Secure protocol,â said Vince Pavese, senior vice president and general manager, Certegy Card Services North America. âFor our issuers, this service decreases chargeback liability while instilling greater confidence in a secure Internet payment system for cardholders. The result is a more loyal cardholder and more active online shopper,â concluded Pavese.
âWe are very pleased Certegy, a global leader in the payment processing market, has selected Arcot to deliver Verified by Visa to their customers,â said Chet Silvestri, president and CEO of Arcot Systems. âOur proven, fully compliant Visa Authenticated Payment service will allow Certegyâs thousands of issuers to quickly and affordably offer this valuable service to their cardholders.â
Certegy (NYSE:CEY) provides credit, debit and merchant card processing, e-banking, check risk management and check cashing services to over 6,000 financial institutions, 175,000 retailers and 140 million consumers worldwide. Headquartered in Alpharetta, Georgia, Certegy maintains a strong global presence with operations in the United States, Canada, United Kingdom, Ireland, France, Chile, Brazil, Australia and New Zealand. As a leading payment services provider, Certegy offers a comprehensive range of transaction processing services, credit risk management solutions and integrated customer support programs which facilitate the exchange of business and consumer payments. Certegy generated $851 million in revenue in 2001. For more information on Certegy, please visit [www.certegy.com].
About Arcot TransFort
Arcot TransFort strongly authenticates and digitally signs transactions in real-time, providing for the secure, non-repudiation of online payments. Scalable to hundreds of millions of transactions, Arcot TransFort allows companies to grow the volume and value of their online transactions and provide their customers with an added level of confidence and security in the business relationship.
Arcot TransFort is a multi-platform solution capable of authenticating transactions across Web, Virtual Private Network (VPN), and wireless environments. In addition, Arcot TransFort can comply with a variety of business rules or procedures that govern online payments and support multiple authentication methods including username/password (pass-code), physical smart cards (or âchip cardsâ), and the ArcotIDTM Software Smart Card.
Arcot Systems, Inc., is the leading provider of authentication and access control solutions for securing e-business in Internet-scale, transactional and wireless environments. Only Arcot provides cost-effective, scalable, software solutions based on the ArcotIDâ¢ Software Smart Card for strongly authenticating users and transactions for payment systems, Web-based email, Web portals and virtual private networks. Arcot solutions meet the business need for strong transactional security while providing the customer a user-friendly experience with anytime, anywhere convenience. Leaders in financial services, healthcare, and e-commerce are using Arcot solutions to protect their customersâ privacy and reduce fraud. For more information, visit [www.arcot.com].
Atmel Corporation announced the availability of the first high-end smart card secure microcontroller based on Atmel’s new secure AVR architecture.
This new architecture forms the basis of the AT90SC19264RC, which is a high-performance 8-bit secure microcontroller based on the AVR enhanced RISC architecture. Its low power consumption also makes it compliant with mobile phone requirements. The AT90SC19264RC is the first member of a family of very secure processors that Atmel is developing, to provide heightened security for electronic finance, e-commerce, and m-commerce transactions. The rest of the family will be introduced over the next quarter’s end with the objective being to offer a set of products ranging from 2-Kbytes EEPROM up to 128-Kbytes all being software compatible to each other.
The AT90SC19264RC features outstanding on-chip highly compact ROM program memory of 192-Kbytes, together with its flexible 64-Kbyte EEPROM for data occupies less than 25 square millimeters and is suitable for cost-sensitive high volume smart cards production. This capability provides all that is necessary for high-end smart card applications where security, fast computation, and short time-to-market are required.
This wide memory space, the powerful RISC core, and a large RAM working memory (6-Kbytes), makes this product particularly suitable to reach and even exceed JavaCard expectations. The high security level provided by the numerous dedicated security features (RSA, DPA/SPA resistant DES/TDES co-processor, true Random Number Generator (RNG), firewalls, and environmental protections), is above the state-of-the art, and is about to be certified against the more demanding security rules designed for banking and government applications.
Lucien Brau, Atmel’s Smart Card IC’s Division Director said, “We are very proud to offer this new highly secured microcontroller. This is the first one based on our new secure AVR architecture, which is a definitive step forward on the smart card microcontroller market. Our customers can now benefit from all the advantages afforded by this technology, such as flexibility of use, very high performances, advanced security features, and short time-to-market, giving them a key leading position to develop further innovative applications.”
A complete set of development tools is available, and the first ROM codes are already accepted for bulk production. In addition, evaluation kits can be delivered under specific security procedure.
Typical high-volume pricing is $4.00 for 100K units.
RSA Rivest Shamir Adelman
DPA Differential Power Analysis
SPA Simple Power Analysis
DES Data Encryption Standard
TDES Triple Data Encryption Standard
Founded in 1984, Atmel Corporation is headquartered in San Jose, California with manufacturing facilities in North America and Europe. Atmel designs, manufactures and markets worldwide, advanced logic, mixed-signal, non-volatile memory, and RF semiconductors. Atmel is also a leading provider of system-level integration semiconductor solutions using CMOS, BiCMOS, SiGe, and high-voltage BCDMOS process technologies.Details