Thursday, July 31, 2003
Mobile phone becomes scanning / payment device
The system will be tested as of September this year with a selected group of NTT Docomo customers.
Posted by Simon on 5:14 PM | link
Wednesday, July 30, 2003
Dutch retailers aim for off-line debit with EMV
Dutch readers should note that the MKBNet web-article is somewhat misleading as it incorrectly suggests that the point of view of retailers and of the Dutch Society Council for Payments (Maatschappelijk Overleg Betalingsverkeer) is that off-line EMV should be implemented in five years time.
Posted by Simon on 3:12 PM | link
Tuesday, July 29, 2003
Questions in parliament on direct debit procedures
The issue has popped up repeatedly at this log. Most interesting is the fact that some of the answers of the Minister of Finance are not fully adequate. Asked how long the period is within which an illegitimate direct debit can be undone, the Minister replies one year. This is incorrect. If anyone succeeds in getting money out of your account without the existence of a prior legal agreement, we call this either a non-obligatory payment or robbery. Anyone facilitating such a transaction (bank / merchant) is for at least five years responsible/liable as an accomplice. Such an organization should thus undo the unlawful direct debit or prove that a prior legal agreement exists.
Replies such as the one of today do not help MP's or the public understand the issue properly. Hopefully, If I find the time, I'll try to provide an overview of this topic one of these days. Because there is also a competition element in this debate (some bankers are allowed usage of direct debit procedures that are denied to Internet merchants).
Posted by Simon on 6:07 PM | link
FT.com: paid content and increasing usage
Posted by Simon on 5:45 PM | link
Monday, July 28, 2003
Fortis Rotterdam victim of skimming at ATM
Posted by Simon on 4:35 PM | link
The telco-sector as an example for banks...?
In the Dutch payment arena, we are almost ready for a similar discussion. One year ago the Dutch Competition Authority issued a consultation paper on pin-authorisation network services as part of a process to determine:
- if the pin-authorisation network should be opened up (open access and access conditions),
- what fees would be applicable (the preliminary NMa-findings are that current fees are too high).
Although the outcome of both the telco- and bank discussion may be unclear, it is quite obvious that open access and reasonable fees are becoming the norm. Providers might actually consider a form of dual accounting; one for business reasons and one for the discussion with regulators (the Utopia models...).
Posted by Simon on 3:32 PM | link
The end of user-id / password ... ?
- the huge number of user-id/password combinations to be remembered,
- the possibility of keylogging at public Internet sites where one remotely accesses personal applications (webmail etc.).
This last risk is highlighted in a trial in New York City (see this article):
For more than a year, unbeknownst to people who used Internet terminals at Kinko's stores in New York, Juju Jiang was recording what they typed, paying particular attention to their passwords.
Jiang had secretly installed, in at least 14 Kinko's stores, software that logs individual keystrokes. He captured more than 450 user names and passwords, using them to access and even open bank accounts online.
Posted by Simon on 3:10 PM | link
Thursday, July 24, 2003
Risk management principles for electronic banking
The documents are generic guidelines for bank supervisors. Sometimes these local supervisors make these documents part of the local regulatory regime by referring to the documents as applicable guidelines. This makes the Basle Committee a powerful non-elected de facto legislator. Fortunately, the reports are not too specific and of a motherhood and apple-pie nature.
Posted by Simon on 4:06 PM | link
payment service provider Deltino agreed a £5m deal to resell BT Wholesale's micropayment service.
Ron Onrust pointed me to two articles in the New York Times. One about using the ATM for online payments and one about micro-payments systems Peppercoin and Bitpass.
Read also this Bitpass user experience by Brian Flemming.
Posted by Simon on 4:00 PM | link
Tuesday, July 22, 2003
Top Ticket Line chooses Bibit as Payment Service Provider
Today Bibit announces that TopTicketLine, the marketing and sales organisation for Joop van den Ende's Stage Holding, has chosen Bibit to provide the payment back-office for both Internet- and call centre payments.
One of the main considerations is to have the back office in line with the desired strategic position. TopTicketLine used to be the locally oriented Reserveerlijn, but is repositioning itself this summer towards a more diverse and international productline of tickets, hotel bookings etc. So given the expected increase of both Internet- and cross-border payments, Bibit has been chosen as the PSP.
Posted by Simon on 11:00 AM | link
Monday, July 21, 2003
Electronic Payments Help Drive Economic Growth, Says Visa-Sponsored White Paper
The event was co-hosted by Visa, Global Insight, and FINCA International. At the invitation of H.E. Amb. Gert Rosenthal (Guatemala), President, UN Economic and Social Council, the event brought together senior officials from the United Nations and specialized agencies and official representatives from 54 countries.
Essentially, the paper notes that the move (from cash) to a deposit-based economy allows any society to more efficiently use the savings/funds in an economy. The reason is that centralised funds can be used more quickly and efficiently than decentralised money. Global Insight repeats the estimate from a study by Humphrey, Willesson and Bergendahly:
Electronic payment networks, by increasing the efficiency and velocity of payments, have the potential to create cost savings of at least 1 percent of GDP annually over paper-based systems in any given economy.
The study itself may -for its research design- be quite interesting to macro-economists and historians. It is a nice example of biased research as it sort of summarizes the history of payments and payment theory into: the days and age before and those after Visa (Bank Americard). Still, the education effort should be commended.
Posted by Simon on 11:42 AM | link
Citigroup to Acquire Sears Credit Card Business
Citibank announced last week that it would buy the card-business from Sears (see this press release and the presentation). So the economy-of-scale game continues....
Posted by Simon on 11:13 AM | link
Thursday, July 17, 2003
Internet-search bot for supervisors in the Netherlands
The move is understandable from a historical perspective / starting point where one believes that the whole world can be monitored and regulated. However, there must come some time when supervisors will discover that it may be wiser to outline the boundaries and limitations of their work and leave some responsibility to consumers themselves. My guess is, that it's a lot more efficient to provide on-line access to bank supervision registers and educate consumers to check at the supervisors website if a provider exists in that register.
Posted by Simon on 2:37 PM | link
Tuesday, July 15, 2003
Internet Chat as Tool to Teach Theft of Credit Cards
Now, lets have a closer look. One can obtain the numbers by picking up copies of receipts in restaurants (I was amazed to discover lately how sloppy customers are in taking care of their own copy). And one can use the numbers on the web or in mail-order telephone-order situations. So I'm not really sure if the suggestion that a move to IC-chip or migration to EMV will solve credit-card fraud is really true and can be the basis for liability shifts and all that....
Posted by Simon on 5:04 PM | link
Monday, July 14, 2003
Money makes one happy...?
Posted by Simon on 1:57 PM | link
Saturday, July 12, 2003
Almost perfect falsifications of the Euro...
Earlier this week some more people were caught in Woerden en Mijdrecht with false notes of 100 and 200 euro. The police state that levels of bank note fraud are still lower than before the introduction of the euro.
Posted by Simon on 11:29 AM | link
Friday, July 11, 2003
Online-direct debit for gambling; case Sponsorloterij
Despite the formal regulation, the reality is different. The Sponsorloterij (a lottery) for example allows customers to order lottery tickets and fill in a direct debit form on the web. Then, if some-one mistypes his account number on the web into your account number and you als a legitimate client try to undo the lottery direct debit that popped up on your account, it is impossible (all bank employees know that reversing a direct debit for lotteries is forbidden).
The sponsorloterij is one of the many experiences with the illegal online debit. Undoubtedly more will follow.
Posted by Simon on 3:44 PM | link
Thursday, July 10, 2003
On-line bankers are loyal customers
See also: Planet Internet and the Trends in ICT website.
Posted by Simon on 3:48 PM | link
Rabobank introduces virtual wallet...
In its introduction plan, the virtual wallet very much looks like a copy of the Way2Pay initiative. First internet-payments and then mobile. So it looks as if the market for small payments starts moving once again.
Posted by Simon on 3:38 PM | link
Tuesday, July 08, 2003
Moxmo buys Paybox customers
Posted by Simon on 2:44 PM | link
Monday, July 07, 2003
Anyone interested in further automation of the payment interface might consider checking the Exploy Connect product which provides an automated secure ftp interface, that works both with Intersafe as well as with I-connect.
Posted by Simon on 10:28 AM | link
Friday, July 04, 2003
De Moneycard .... Geldkaart....
Just came across a pop-up with the Geldkaart depicted here. Which is a card that would provide me with additional € 2300 spending power during vacation. But the website itself didn't really state clearly who was offering this so called Money Card. A closer look at the source reveals that it is an offer of the DSB-group (the new banking kid on the block....)
If one tries to fill in the form on the site the location box only provides space for 7 characters. And after succesfull completion of the form it says "we" will contact you. Not stating who the "we" is..... But it is clear that the offer is about consumer credit.
I guess this is what we call innovation ...?
Posted by Simon on 9:02 AM | link
Thursday, July 03, 2003
Chip and PIN: not enough to beat card fraud
Detective Chief Inspector Steve Eastwood, operational head of the dedicated check and plastic crime unit, has warned the outcome of the introduction of chip and PIN could be a shift in fraudsters' attentions to other, more vulnerable areas. In the payment space these are likely to be telephone, Internet and mail order transactions. Card not present (CNP) fraud, the collective name for fraud via these channels, amounted to GBP110 million in 2002, up by 15% on 2001.
We may therefore conclude that imposing a liability shift on POS-merchants that do not have an EMV-compliant terminal cannot be fully justified as a means to combat fraud. The Card-not-present transactions really generate the fraud, not so much the magstripe at a manned Point of Sale.
Posted by Simon on 3:10 PM | link
Railways contract East-West to use chipcard for access control
The idea is that this chipcard (which in the future will also be used for payments) may help reduce the number of not-paying travelers and thus serve to reduce violent behaviour in and near trains.
Posted by Simon on 2:51 PM | link
Tuesday, July 01, 2003
Danish clearing house split up...
-PBS Holding A/S
-Multidata Holding A/S
-PBS International Holding A/S
The reason for this split-up is related to the merger between Danske Bank and RealDanmark. This led to a demand from the Danish Competition Authority that Danske Bank should lower its share unit in those parts of PBS that are essential for the Danish payment infrastructure.
The interesting thing to note is that the Danish central bank has bought the shares of Danske Bank. Which, if this move were to continue when other shareholders step out, essentially comes down to a slow move from private to public provision of services......
Posted by Simon on 10:37 AM | link
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