Monday, June 30, 2003
It's almost July 1.....
- in order to qualify for equal charges, customers must provide their bank with the beneficiary's IBAN (International Bank Account Number) and BIC (Bank Identifier Code).
Here lies an interesting challenge for banks/consumers/companies. I'm pretty sure that the next month's we'll hear quite a lot of incidents/anecdotes about the practical problems. The public may expect the regulation to apply anyhow, regardless of the use of IBANs/BICs. The actual IBAN's may be hard to figure out sometimes (especially if calcualted by software, some errors may occur...) etcetera.
Meanwhile, card organisations are also in the playing field. Supposedly Visa Direct should be up and running now (see this press release) but I found no evidence for that. Similarly Mastercard's MoneySend should do the same: provide card holders with an easy and cheap opportunity to transfer money among EU-states to other consumers.
So, we now not only have the above P2P payment mechanisms, but also Paypal, Way2Pay, Certapay, C2it, Let's see how that market develops.
Posted by Simon on 1:48 PM | link
Canada moves over slowly to EMV... so will the Netherlands....?
Yet, in the Netherlands we are subject to the so-called liability shift, imposed by EU regional card organisations. So although, at a recent first Dutch conference on EMV it became clear that we'd also better not rush into EMV, we may need to dismantle the imposed liability shift first. Legally, there appears to be plenty room for that; the imposed liability shift is basically a void legal arrangement under both competition law and principles of fair distribution of responsibilies and liabilities (as applicable through civil law). Also, Visa Canada sets the precedent:
"The Visa Canada Association decided not to set a deadline or impose penalties on members who do not convert to chip because there is no explosion of credit card fraud that requires immediate action, says Derek Fry, president of the Visa Canada Association.
All in all, I would not be surprised if the Netherlands becomes the first European country to ignore the liability shift as an legally irrelevant / void rule. Formally, we'll have to await discussions and further exploration in the Dutch society council on payment systems, but this one issue will be high on their agenda as it means that we can get ourselves the time to slowly and properly migrate to EMV.
Posted by Simon on 1:27 PM | link
Fortis Bank will follow with a similar product introduction. Other banks are not eally considering it. Elsevier notes that smart pinnen is easy, but there is always the risk that -in case of a skimming/shoulder surfing attack- all accounts will be emptied.....
Posted by Simon on 12:39 PM | link
Saturday, June 28, 2003
T. Padoa-Schioppa: Private and Public Sector Challenges in the Payment System
Posted by Simon on 8:47 AM | link
Thursday, June 26, 2003
Rabo is testing loading procedure Chipknip for sight impaired customers
The talking load-device is developed for Rabobank by CCV and Interact and has a slow interface; allowing customers the time to understand the spoken instructions and act accordingly. The first reactions appear to be quite positive.
Posted by Simon on 12:00 PM | link
Guide on cross-border payments.....!
Posted by Simon on 2:23 AM | link
Tuesday, June 24, 2003
OFT publishes market study on payment systems
1.35 The costs of becoming a full settlement member of the clearing schemes are not trivial. However, the decentralised (fixed) costs associated with a member’s own infrastructure requirements are perhaps the most substantial barriers to direct access. Nevertheless, the requirement that these decentralised systems are made compatible with the legacy systems of existing members increases the costs of new membership, potentially discouraging entry.
1.37 The justification for preventing non-financial institutions from joining the clearing schemes, at least as recipients of payments, do not appear strong.
1.50 Participants have told the OFT that the continued existence of restrictions on access to card schemes is justified by the need to safeguard the security of the schemes. It is not clear, however, that the current restrictions place requirements on new members commensurate with the risks that those members would place on the schemes. We therefore view the continued existence of the restrictions to be a concern.
Posted by Simon on 1:14 PM | link
Debit-card payments and direct-debits remain secure for now
The investigation followed after some fraud incidents with both instruments last year. It turns out that 800 debitcards were copied and 20 direct-debit frauds occured. DNB does one suggestion in its reports: to determine the product conditions for the use of the direct debit on the web. The solution to this issue has been proposed earlier on this weblog (see previous entry) and could be implemented quite quickly.
Posted by Simon on 11:55 AM | link
MPSA chooses Simpay as the brandname
Posted by Simon on 11:49 AM | link
Sponsoring for public transport payment on the way
- chipknip is mandatory for paying at parking meters (a local tax),
- public transport payments will be subsidized to allow quick identification,
- SMS/0900 payments are fully exempted from supervision law.
Essentially, to be succesfull, any issuer of payment instruments should thus seek endorsement of a public authority.
UPDATE: The Automatiseringsgids reported here on the same issue.
Posted by Simon on 11:43 AM | link
US fear drives EU-biometrics...
Under the United States' Enhanced Border Security and Visa Entry Reform Act of 2002, countries whose citizens enjoy visa-free travel to the United States — as is the case with most if not all of Western Europe — must issue passports with biometric identifiers no later than Oct. 26, 2004.
"The solution which is mostly likely is a chip in the passport containing fingerprints and eye scans," said Pietro Petrucci, a spokesman for the European Commission.
Apparently biometrics industry in the US has also sponsored the Bush campaign.
Posted by Simon on 11:12 AM | link
Monday, June 23, 2003
Supervisor fines retail store for attracting deposits
The deal is that a computer appliance store, Mercurius, is unable to get funds from banks and uses EIS to attract working capital from the public. The public receive a monthly interest of 5 %.
See also the statement at the DNB-website.
Posted by Simon on 11:46 AM | link
Friday, June 20, 2003
Decision NMa about debit-card fees for Superunie
Posted by Simon on 3:50 PM | link
Thursday, June 19, 2003
Conference on EMV: open dialog on business issues needed
- discuss both business issues (fraud, liability shift) and technical/functional theme's,
- involve the ICT-players such as builders of terminals and processing service providers.
A brief summary of the conference and its main results will be published next week.
Posted by Simon on 4:11 PM | link
Internet Payments Fraud: A Primer for Merchants
Posted by Simon on 4:07 PM | link
Saturday, June 14, 2003
Chip-trial Northampton proceeding nicely
But so far shopkeepers in Northampton seemed to have given the thumbs up to the new cards, with no reports of any technical difficulties or baffled customers.
Posted by Simon on 8:46 PM | link
Wednesday, June 11, 2003
More online banking in the Netherlands
In addition it would be interesting to know how many of these users also (still) use the telebanking facilities of their banks.
Posted by Simon on 7:04 PM | link
Web payments in the Netherlands
- inpayment (acceptgiro): 31 %
- credit card: 22 %
- one time direct debit: 12 %
- internet banking: 10 %
- credit-transfer: 8 %
- cash on delivery: 8 %
The remaining 9 % is unexplained.
Posted by Simon on 12:19 PM | link
Tuesday, June 10, 2003
BugBear learns new tricks, targets financial institutions
Posted by Simon on 6:00 PM | link
Instruments for self-regulation...
Posted by Simon on 9:52 AM | link
Saturday, June 07, 2003
US Fraud attempt with Dutch credit-cards
Following the detection of curious payments of some hundred card holders, Interpay blocked a group of 10.000 cards on Wednesday and immediately informed the Dutch card holders. Card holders are asked to verify the payments and will be provided a new card within 10 days. Those card holders that just left or were leaving for their holidays may use the regular emergency-cash procedures for cash on holidays.
Posted by Simon on 1:19 PM | link
Friday, June 06, 2003
Benefits of EMV for banks?
The potential benefits are:
- fraud reduction,
- increasing number of off-line transactions,
- usage for other applications,
but whether they can be realised in practice is unsure.
The first Dutch discussion on these and other policy issues, related to the introduction of EMV, will be the subject of this conference (Van strip naar chip).
Posted by Simon on 3:44 PM | link
Nijmegen accepts credit-cards in parking meters
Jun 06 2003 : Credit card payments for parking are possible in the Dutch city of Nijmegen under a cross-border credit card parking initiative that also supports payments with the domestic e-purse, ChipKnip. Nijmegen’s initial pay-and-display ticket machines for parking, accepted ChipKnip payments, but German visitors to the city were unable to use their e-purse, GeldKarte, at the machines. Consequently, Nijmegen’s municipal office chose to install new ticket machines alongside the cash/ChipKnip versions, with a GSM modem for the online authorization of card transactions, instead of adapting the old machines for cross-border payments.
Eleven parking ticket machines have been set up in Nijmegen, with CardEase technology from UK firm, CreditCall Communications, enabling the acceptance of credit cards and international debit cards for sums as little as €1. When a motorist enters their card in the machines, provided by UK vendor, Metric, CreditCall leverages its in-country infrastructure and the GSM network, to route authorization data to its servers in Bristol, UK. Cards from Visa, MasterCard and Maestro are accepted at the machines, and a bank in Ireland acquires the transactions, which generate a ticket in about 15 seconds.
See also the Nijmegen parking website. As a matter of fact, Nijmegenaars may also pay with the citychip (a local loyalty system). Or with the mobility card of ANWB, a card that combines the Chipknip, a loyalty-system for filling up gasoline and a Visa credit card and costs only 16 euro per year for ANWB members.
Posted by Simon on 3:42 PM | link
Thursday, June 05, 2003
Supermarkets may claim money from Interpay
Posted by Simon on 8:30 AM | link
Monday, June 02, 2003
Rabobank does it best in the Netherlands...
-Fortis Bank: 7,2
-ABN AMRO: 6,7
ABN AMRO clearly pays for the result of reorganisations. And I would not be surprised if the consumer-side of a similar survey would show similar results.
Posted by Simon on 1:37 PM | link
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Retail payments are still very much influenced by local conventions, regulations etc.....
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