PAY-SHIELD

Cambridge-based nCipher has launched “payShield”, an advanced hardware security module designed for the payment processing market. The company says “payShield” is the first HSM to satisfy both the cryptographic security and performance requirements of MasterCard’s “UCAF” and VISA’s “3-D Secure” initiatives to combat fraudulent online purchases. nCipher has partnered with leading e-payment solution providers Arcot Systems and Cyota to ensure full interoperability, optimal performance and ease of deployment for card issuers. Arcot “TransFort” and Cyota “SecureSuite” software products employ nCipher’s “payShield” to perform specific cryptographic functions including; protecting the database of cardholder information through encryption, performing cardholder verification processes and creating digitally signatures to confirm cardholder authentication to merchants creating a legally binding record of the process. “payShield,” which is currently undergoing validation to meet the exacting FIPS 140-2 Level 3 security standard, also provides high-speed cryptographic acceleration to overcome the heavy processing burden associated with these functions. “payShield” pricing starts at $25,000.

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CyberSource PAS

CyberSource said this morning it plans to release its new “Payer Authentication Service” in the USA and UK next week. The new service will offer merchants access to both VISA’s “Verified by Visa” and MasterCard International’s authentication program, as well as complementary fraud protection services. The CyberSource “PAS” can be used in conjunction with a merchant’s existing payment system, or accessed in combination with CyberSource payment services for a single, authenticated payment solution. The “Verified by VISA” cardholder-authentication service, based on the “3-D Secure” standard, deters unauthorized card use and provides chargeback protection for participating merchants. MasterCard’s authentication program is based on the “Universal Cardholder Authentication Field”, which supports a broad spectrum of issuer security solutions and offers similar cardholder and merchant protections.

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HUDSON TRIAD

Hudson’s Bay Company has selected Fair, Isaac’s latest release of “TRIAD” adaptive control system to increase customer value and boost portfolio profitability. Hudson’s has been a user of Fair, Isaac’s “Strategy Machine” solutions in credit account management since 1996. “TRIAD” allows the retailer to apply Fair, Isaac’s analytic and decision technology along with business expertise to automate key credit decisions while managing customer accounts. Hudson’s Bay has more than 500 stores led by the Bay and Zellers chains and employs 70,000 associates.

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Cubic Deal

San Diego-based Cubic Transportation Systems has nailed a $26 million contract from the San Diego Metropolitan Transit Development Board and the North County Transit District, to provide a regional integrated smart card-based automatic fare collection system for the county’s buses, trolley, Coaster Commuter Rail and future expansion of the light rail system. The project encompasses all of San Diego’s existing and new rail systems as well as all fixed-route and express buses. Cubic is providing a turnkey system that includes rail ticketing equipment, transit ticket vending machines, smart card validators for rail and bus lines, handheld units for code compliance enforcement, and Cubic’s Nextfare Business Management System, a complete backend administrative and revenue management system. In March, the Los Angeles County’s Metropolitan Transportation Authority approved a Cubic contract for a smart card-based system throughout L.A. County. When finished, it will be the largest smart card transit fare collection system in California.

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PIN Debit Transactions

Another survey confirms the results of a recent CardWeb.com homepage poll which showed that consumers are equally divided when it comes to using a PIN or signature with a debit card at the POS. A survey conducted for Paymentech revealed that 50% of consumers prefer to use a PIN with a debit card purchase transaction. However, the Paymentech survey found that 56% of consumers believe the use of a PIN at the point of sale is more secure. The survey of 400 debit cardholders also revealed that 23% believe a PIN is a faster transaction. About 10% of debit cardholders say the best thing about using a PIN is it eliminates the need to give the card to the cashier, while 4% say they like the fact that they do not have to sign the sales receipt. The informal poll conducted on CardWeb.com during August showed 52% of consumers prefer to sign for debit card purchases instead of using a PIN. Approximately 1,000 consumers participated in the poll. (CF Library 9/13/02)

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ACTIVE ALERTS

Mumai-based ABN AMRO Bank is now offering new wireless and email services to its credit card customers using Electronics For Imaging’s advanced “Unimobile” messaging platform. The technology gives ABN AMRO’s credit card customers “Active Alerts”, a feature that keeps cardholders informed on e-mail or mobile phone of all transactions made with the card, including all critical transactions such as “Risk Alerts” to inform them of multiple purchases, and “Maintenance Alerts” to inform them when they are nearing their credit card limit. Interactive alerts are also delivered instantly through pagers and “Personal Digital Assistants.” The Indian operations of ABN AMRO Bank includes 51 ATMs and 12 branches in nine cities -Mumbai, Delhi, Chennai, Kolkata, Pune, Baroda, Hyderabad, Bangalore and Noida.

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Debit vs Credit

VISA confirmed yesterday its debit card transactions continue to outpace credit card transactions this year. During 2001, VISA processed 6.9 billion debit card transactions compared to 6.2 billion credit card transactions. For the first six months of this year, VISA says it processed 3.04 billion “VISA Check” card transactions compared to 2.96 billion VISA credit card transactions. At the end of the second quarter, VISA had 122.6 million debit cards versus 261.0 million credit cards, according to CardData (www.carddata.com). VISA has a 77% share of the off-line debit card market based on volume and a 74% share based on cards-in-force. “VISA Check” cards now represent more than 35% of VISA’s total U.S. card volume compared to 17% just five years ago. VISA also released a consumer survey yesterday which shows the primary reason consumers use a “VISA Check” card is to carry less cash. Other findings: 76% say using their “VISA Check” card has saved them time and 70% say they have a better idea where they spend their money since they started using their “VISA Check” card. (CF Library 4/18/02)

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OnGuard

Paymentech has launched a new suite of fraud protection products and solutions. The new “OnGuard” suite offers a full range of endorsed proprietary and third-party products from relatively simple address verification services to sophisticated fraud scoring solutions to specialty services. “OnGuard” partners include: Experian, iShopSecure, Fair Isaac, Arcot Systems, ClearCommerce, Retail Decisions, and, VerifyMe which provides a patent-pending fraud prevention service using government-issued ID database checks, algorithms and an optional web-based signature capture to instantaneously verify identity and age for citizens in 112 nations. Paymentech says Internet transaction fraud is 12 times higher than in-store fraud and that merchants lost $700 million in revenue last year due to fraudulent transactions.

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