Stakeholders Driving Payment Evolution and Digital Identity

June 2008 ACTion Newsletter

IN THIS ISSUE

1. Editorial Comment
2. PIN-Less Debits: Proposed Clearing Framework
3. RBC, Visa Prepare To Jump Mobile Payment Hurdles
4. Moneris To Perform Merchant Certification In Canada Using ICCSIM Test Solutions
5. G&D Supplying Olympic Smart Cards
6. GFG Group & Open Solutions Inc. Announce Partnership
7. Monitise & Everlink Launch Canadian Mobile Payments Service
8. Dynamic Card Solutions Partners With Collis
9. Bell ID Uses Latest Globalplatform Card Spec
10. Smart Payment Association Announces 2007 Global Payment Cards Market Survey Results
11. More Than 53 Million Chinese Get Updates To Their Phones OTA
12. Widespread Use Of Chip & PIN-Based Contactless Payment Technology Is "Only A Matter Of Time," Claims Payment Body Apacs.
13. HPS Selects Integri For e-Payments Platform Testing In Middle East & Africa
14. NBS Technologies Launches The Fresh New Look Of Its EMV-Compliant Remote/Branch Issuance SWSolution
15. Restaurant Exec: Obstacles To Overcome For Contactless
16. Vermont To Give Citizens Convenient Border Crossing Credential
17. Vancouver May Get Smart Card Transit Program, But Not Until 2011

ACT Canada is pleased to announce our new Partner - Collis

Collis
Collis is a leading provider of EMV, e-ID, and e-Passport test tools, consulting, and training in Canada. Contact us for EMV training and test tools for every step of the EMV Transaction life-cycle - Cards, Terminals, Acquiring host and Authorization host. Collis America at 1-651-925-5410.

ACT CANADA THANKS OUR NEW & RENEWING MEMBERS

GENERAL

ATB Financial ~ member since 2006

ASSOCIATE

A.M. Davies Consulting ~ member since 2007

CALENDAR OF EVENTS

ACT Canada is pleased to present:

Cardware 08 - Securing ID
September 23, 2008
Ottawa, ON, Canada
&
Cardware 08 - Securing Payments
October 8 & 9, 2008
Kitchener Waterloo, ON, Canada

Additional information is available at http://www.actcda.com/calendar/symposium.htm. ACT Canada members receive discounts for this event. 

Smart Card Alliance 7th Annual Smart Cards in Government Conference 2008
October 22-24, 2008
Washington, DC, USA
http://www.smartcardalliance.org

CARTES & IDentification 2008
November 4-6, 2008
Paris, France
http://www.cartes.com

1. EDITORIAL COMMENT
Source: Catherine Johnston, President & CEO, ACT Canada (06/25)

Merchants and EMV

Sometimes you just have to do the right thing. When it comes to EMV, our members and many others want it to work. It has turned out to be more complex and more work than any of us imagined, but it is the right thing to do.

We expected that Canadian retailers would get a lot of help making the transition, but it hasn't worked out that way for a number of reasons. Despite the legitimacy of those reasons, the clock is ticking, so ACT Canada has increased our efforts to help retailers find the answers and the resources they need. In addition to the emvcanada.com site, we are now holding monthly meetings of our Merchants Strategic Leadership team. The team has clear objectives, outcomes and action plans that have already resulted in many questions being asked and answered.

We want to thank all our members whose membership fees make it possible for us to fund this and other work. I won't name them all, but I'd like to single out our issuing and acquiring members:

CUETS, Scotiabank, TD Merchant Services, Visa Canada, ATB Financial, Canadian Tire Financial Services, Capital One Canada, Citi Cards Canada, HSBC Credit Card Services, Interac Association, MasterCard Canada, Open Solutions, President's Choice Financial.

Along with our industry members, their support has allowed us to do the right thing for Canadian merchants. We thank them.

Merchants who would like to join the team to ask questions and acquire information are invited to contact me. Collaboration among stakeholders to provide information and support will ultimately help not only the stakeholders, but also Canadians in general. If other issuers or acquirers would like to help with this effort, we would be happy to hear from them.

2. PIN-LESS DEBITS: PROPOSED CLEARING FRAMEWORK
Source: Canadian Payments Association (June 2008)

The CPA is inviting comments on a draft policy framework that sets out the proposed criteria that PIN-less Point-of-Sale (POS) Debits would need to satisfy to be eligible for clearing through the CPA's Automated Clearing Settlement System (ACSS). This initiative reflects a key element of the CPA's mandate as defined in the Canadian Payments Act: facilitating the development of new payment methods and technologies.

PIN-less POS Debits would be created in a face-to-face environment using a contactless platform or "form factor", such as a bank card, key fob or cellular phone that has been issued by a CPA member financial institution either directly or through an agent. There would be no requirement for the user to enter a PIN or a password in order to be authenticated.

The CPA invites all interested parties to submit written comments on the Consultation Paper, A Proposed Framework for Pinless POS Debits, and Draft Rule, Rule E4 - Exchange of Pinless POS Debit Payment Items for the Purpose of Clearing and Settlement. To view these documents, please visit - http://www.cdnpay.ca/news/consultation_pinless_debits.asp

All comments should be submitted by August 20, 2008.

Canadian Payments Association is a member of ACT Canada, please visit http://www.cdnpay.ca.

3. RBC, VISA PREPARE TO JUMP MOBILE PAYMENT HURDLES
Source: Briony Smith,ComputerWorld Canada (06/11)

RBC and Visa say they are still in the process of figuring out areas of responsibility around the upcoming trail of mobile payment technology slated for later this year.

Speaking at the Canadian Institute's Mobile Payments conference, Anne Koski, head of payment innovations with RBC, said the trial, which may spill over into 2009, has raised a number of unanswered questions. "Who's responsible for liability issues?" she said. "You use a credit card or fob, and then there's the mobile world with Bell, Telus, or Rogers, but who's responsible for what? Our legal team is fully engaged!"

Visa and RBC have yet to announce who their mystery telco partner will be, but it should be "soon," said Zack Fuerstenberg, director of new channels with Visa.

Putting the consumer in control of the technology is key, said Koski. But customers can be fickle. "To change consumers' habits is no small feat. Research is great, and they say they love something, but then it doesn't go anywhere," she said.

One thing that consumers are concerned about is security. Said Koski: "They have a lot of fear about contactless payments around data breaches and misperceptions about identity theft… Then they like the concept of securing it with a PIN and that." But they do like the convenience aspect, she said, as their phone is already with them, and how fast they can make a purchase. Secure and fast? "And, to me, these two ideas bump up against each other," said Koski.

The technology boasts a variety of choices, according to Fuerstenberg. "New chipsets enable the power and application to keep running, and you can set your preferences, so that, even with a clamshell phone, it should be able to work (contactlessly)," he said. They are currently working on improving power consumption for the application.

Another obstacle is the short-term gap in the availability of handsets, which could result in a lopsided market and customers being forced to choose certain carriers to get the contactless capability. "Some banks and telcos are more active than others in this space, so there will be a period, probably, where it won't be industry-wide," he said.

Visa Canada is a member of ACT Canada, please visit http://www.visa.ca.

4. MONERIS TO PERFORM MERCHANT CERTIFICATION IN CANADA USING ICCSIM TEST SOLUTIONS
Source: ICC Solutions (05/23)

ICC Solutions Limited and Moneris Solutions announced that the range of industry recognised ICCSim test tools have been selected by Moneris to support both internal and external Point of Sale (POS) test programs dedicated to merchant certification. These test programs provide value, ensuring all merchant POS equipment connected to the Moneris acquiring network are configured correctly.

In the first instance, Moneris will add the EMVCo recognised ICCSimTM terminal test tool and associated payment scheme integration test script packs certified by Visa, MasterCard and Interac Association to support internal POS device application and certification test requirements.

For external merchant certification, a dedicated stand-alone test solution supporting test cases defined by Moneris, will be used by merchants to demonstrate compliance prior to connection to Moneris. This test solution has been developed to provide a powerful yet user-friendly environment enabling efficient test campaigns featuring automated analysis of the test results.

Moneris will also use a dedicated pack of ICCSim test cards loaded with pre-defined issuer profiles for merchant confidence and training purposes. These test card packs have been successfully utilised in many other countries supporting successful EMV migration and rollout.

ICC Solutions, Interac Association, MasterCard Canada & Visa Canada are members of ACT Canada, please visit http://www.iccsolutions.com, http://www.interac.org, http://www.mastercard.ca & http://www.visa.ca.

5. G&D SUPPLYING OLYMPIC SMART CARDS
Source: SecureID News (06/06)

G&D is supplying banks and telecom operators in China with special cards for the upcoming summer Olympics.

The Bank of China and the China Everbright Bank are offering their customers special Visa Olympic-edition credit cards. China Mobile is marketing a gift box containing six prepaid telephone cards, which is the fourth set of commemorative cards for 2008 Beijing Olympic Games launched by China Mobile.

More than 800,000 Visa Olympic credit cards have been supplied so far to the Bank of China. The cards' primary design element is the official logo of the Beijing Olympic Games, and this series features the blue, black, red, yellow and green of the Olympic rings. A special printing technique makes it possible to feel selected patterns and images on the surface of the card. In addition to the usual range of credit card services, the Bank of China's Olympic cards offer a dual currency function, a revolving credit option, access to the Bank of China's special customer network and other services.

The China Everbright Bank is issuing its VISA Olympic credit card in a vertical design displaying the five Fuwa mascots. G&D China has already supplied the bank with 200,000 cards, which have been issued to the bank's customers starting in August 2007.

Giesecke & Devrient is a member of ACT Canada, please visit http://www.gi-de.com.

6. GFG GROUP AND OPEN SOLUTIONS INC. ANNOUNCE PARTNERSHIP
Source: Open Solutions (06/18)

GFG Group and Open Solutions Inc. announced a new strategic partnership between GFG Group and Open Solutions Canada. Under the terms of the new partnership, Open Solutions Canada will refer GFG Group's Simfonie (Mobile payments), Cadencie (card management) and Finsim (certification engine) products and services to its North American and international clients.

Open Solutions Canada operates one of the country's largest off-premise ATM and point-of-sale networks. Open Solutions is a leading provider of integrated enabling technologies for financial service providers across the United States, Canada and internationally. "This strategic partnership with GFG will give both organizations a competitive edge in the marketplace and provide us the ability to offer additional services to our valued clients," says Rob Palin, general manager of the Payment Solutions Group at Open Solutions Canada.

The new partnership provides both GFG and Open Solutions the opportunity to support their business growth initiatives in their chosen markets. The groups will initially focus on the Canadian and North and South American markets where Open Solutions has a strong presence. Focus will also be given to supporting opportunities in Asian and other emerging markets where GFG's strengths lie. GFG and Open Solutions are already cooperating on new initiatives in the Asian, North American and South American markets.

Open Solutions Canada is a member of ACT Canada, please visit http://www.ca.opensolutions.com.

7. MONITISE AND EVERLINK LAUNCH CANADIAN MOBILE PAYMENTS SERVICE - Members Only Access

Available in the ACT Canada Members Only section of our web site. Click on the link below to access this section.
http://www.actcda.com/members-only/members-only-news/

If you are a member of ACT Canada but do not have your login details please contact me - andrea@actcda.com.

8. DYNAMIC CARD SOLUTIONS PARTNERS WITH COLLIS
Source: Contactless News (06/12)

Dynamic Card Solutions (DCS), developer of the instant issue and PIN selection software application CardWizard, has announced a partnership with Collis, a provider of transaction-processing and testing services. The companies will collaborate to offer an EMV Personalization Validation Tool (Collis EMV PVT) that analyzes, verifies and validates each CardWizard software script before it is used by a customer to instantly issue EMV and contactless payment cards.

The Collis EMV PVT is a test tool designed to read any EMV card to validate the personalized card data and cryptography against EMVCo, Visa, MasterCard and JCB specifications. The Collis EMV PVT guarantees that DCS' application has personalized the cards according to relevant specifications before going live with an instant issue program.

DCS' CardWizard Chip software application enables financial institutions to instantly issue Visa and MasterCard products at the branch or retail point of sale. DCS has recognized the need to have a professional and proper testing tool in place that thoroughly analyzes its instantly issued cards.

To meet this need, the Collis EMV PVT provides a detailed report validating card functionality and ensuring interoperability at the time DCS commissions its software for an institution. Once it is verified, DCS installs CardWizard Chip, along with an in-house data preparation system, which allows the financial institution to instantly issue EMV or contactless cards to consumers at each branch or retail point of sale.

Collis and Dynamic Card Solutions are members of ACT Canada; please visit http://www.collis.nl & http://www.globalinstantissue.com.

9. BELL ID USES LATEST GLOBALPLATFORM CARD SPEC
Source: SecureID News (06/05)

Bell ID is using GlobalPlatform's Card Specification v2.1.1 in its ANDiS4FIPS201 Card and Application Management technology. The solution was recently placed on GSA's Approved Products List in recognition of its compliance with the FIPS 201: Electronic Personalization standard.

Bell ID's ANDiS4FIPS201 is an electronic card personalization product used to generate and load the PIV technology on government issued ID cards. The solution enables government agencies to manage the PIV card lifecycle and ensures the interoperability of the cards across different markets while also reducing the development time of individual implementations.

Bell ID is a member of ACT Canada, please visit http://www.bellid.com.

10. SMART PAYMENT ASSOCIATION ANNOUNCES 2007 GLOBAL PAYMENT CARDS MARKET SURVEY RESULTS - Members Only Access

Available in the ACT Canada Members Only section of our web site. Click on the link below to access this section.
http://www.actcda.com/members-only/members-only-news/

If you are a member of ACT Canada but do not have your login details please contact me - andrea@actcda.com.

11. MORE THAN 53 MILLION CHINESE GET UPDATES TO THEIR PHONES OTA
Source: SecureID News (06/16)

Gemalto successfully completed over 53 million over-the-air (OTA) updates of GSM and CDMA mobile customers representing 6.3 billion short messages across 8 provinces in China. This demonstrates how useful and also how efficient OTA campaigns have become as a fundamental tool for SIM card data administrative management and even complete application download and activation.

Remote update of millions of active SIM cards in the field is not only a possibility but in some cases, the only way. Operators are spared managing the masses of subscribers turning up at the point of sale, or the logistics burden of sending replacement cards individually. All updates happen invisibly in the background without disturbing the subscriber; a process that now takes only a matter of weeks to cover targets of tens of millions of subscribers. The background process of updating also means no interruption of services.

Gemalto OTA platforms started out being used for basic SIM data management such as updating mobile operator's short message center addresses, which are kept in the internal storages of the SIM card. It later developed into another revenue source with international roaming partnership by operators that rapidly benefited from a lucrative optimization of their internationally-traveling customer base.

With the introduction of the first SIM-based applications, operators swiftly identified the opportunity to use an OTA platform as a way to properly manage the mobile application deployment and life cycle

Gemalto is a member of ACT Canada, please visit http://www.gemalto.com.

12. WIDESPREAD USE OF CHIP & PIN-BASED CONTACTLESS PAYMENT TECHNOLOGY IS "ONLY A MATTER OF TIME," CLAIMS PAYMENT BODY APACS - Members Only Access

Available in the ACT Canada Members Only section of our web site. Click on the link below to access this section.
http://www.actcda.com/members-only/members-only-news/

If you are a member of ACT Canada but do not have your login details please contact me - andrea@actcda.com.

13. HPS SELECTS INTEGRI FOR E-PAYMENTS PLATFORM TESTING IN MIDDLE EAST AND AFRICA
Source: Integri (06/18)

Integri announced that HPS, a provider of electronic payment processing solutions active in the Middle East and on the African continent has selected its technology for testing payment host and terminal connections.

To guarantee a correct functioning of debit and credit payment transactions, it is of key importance that data connections between issuing banks and acquirers are running faultless. With an extensive range of Integri test suites, HPS Middle East & Africa customers are now being offered a flexible and robust instrument to verify a correct data exchange as well as compliance to the HPS proprietary protocols SID and PPWM. The tools are built on the field-proven open Platform INQ, a test tool development platform enabling easy customization and test script editing.

HPS endorses Integri tools within local banks and acquirers in the Middle East and Africa. The partnership will possibly be extended to a larger region in a next stage.

Integri is a member of ACT Canada, please visit http://www.integri.com.

14. NBS TECHNOLOGIES LAUNCHES THE FRESH NEW LOOK OF ITS EMV-COMPLIANT REMOTE/BRANCH ISSUANCE SW SOLUTION
Source: Smart Card Alliance New (06/08)

NBS is proud to announce the fresh new face of our remote/branch issuance software, Xpressi. Xpressi is the remote/branch issuance EMV™ (Europay Mastercard Visa) software that allows financial institutions the ability to issue debit/credit cards on the spot and be EMV compliant.

Developed by NBS' software division, UbiQ, Xpressi is a scalable, flexible and convenient way to ensure remote/branch issuance of secure, EMV-compliant contact or contactless cards. XpressiTM can also produce "magnetic stripe only" cards in environments that do not require EMV™ compliance.

Xpressi is deployable in any-sized financial institution that requires remote/branch issuance capabilities -- from a single branch location to large multi-national financial institutions. Existing NBS central issuance EMV customers can take advantage of UbiQ's reusable software modules and simply add-on a remote/branch issuance solution thus saving new investment at the Central Issuance Server.

NBS is a member of ACT Canada, please visit http://www.nbstech.com.

15. RESTAURANT EXEC: OBSTACLES TO OVERCOME FOR CONTACTLESS- Members Only Access

Available in the ACT Canada Members Only section of our web site. Click on the link below to access this section.
http://www.actcda.com/members-only/members-only-news/

If you are a member of ACT Canada but do not have your login details please contact me - andrea@actcda.com.

16. VERMONT TO GIVE CITIZENS CONVENIENT BORDER CROSSING CREDENTIAL
Source: Business Wire (06/13)

Digimarc Corp. announced it has been selected by Vermont to provide the State with an Enhanced Driver License (EDL) solution that can be used in the State's border crossing program with the Department of Homeland Security (DHS).

Vermont will issue an EDL that gives Vermont citizens the convenience of using a single credential for identity, driving and travel to leave and enter the country by land or sea. The program is approved by DHS, which allows the use of Enhanced Driver Licenses -- rather than a separate and more expensive PASS card or passport -- for land and sea border points. Washington State, the first jurisdiction to issue EDLs in North America, successfully deployed the Digimarc solution earlier this year.

States like Vermont and Washington offering Enhanced Driver Licenses are responding to the Western Hemisphere Travel Initiative that, after June 1, 2009, will require a federally issued passport or passport card document to cross the border. The DHS-approved dual-purpose EDL takes advantage of the in-person driver license application process, delivering convenience and security to card holders.

Enhanced Driver Licenses are issued on proof of citizenship, identity and residency; The Vermont EDL will cost an additional $25.

17. VANCOUVER MAY GET SMART CARD TRANSIT PROGRAM, BUT NOT UNTIL 2011
Source: Contactless News (06/16)

An automated fare collection system is being contemplated by the transportation agency in Vancouver, British Columbia. The minister of transportation, Kevin Falcon, said he wants the system up and running as soon as possible because it will help block people from riding unauthorized and unpaid as well as make the transit system safer.

He is shooting for a launch in 2010, but TransLink, the organization responsible for the regional transportation network in Vancouver, may proceed cautiously. They are planning a smart card system that could be close to completed by 2010, but they don't feel that it will officially launch that soon. Systems throughout the world on average take around six years to complete, from when they get the green light to start the project to the time it was actually operational. One advantage for TransLink is that they have been following smart card-using systems throughout the world and will be hopefully be able to avoid some of the problems that current systems have had.

For more information, please contact Andrea McMullen at 1 905 426-6360 ext 124 or email andrea@actcda.com.

Please forward any comments, suggestions, questions or articles to andrea@actcda.com. Please note that articles contained in this newsletter have been edited for length, and are for information purposes only.