Stakeholders Driving Payment Evolution and Digital Identity

August 2009 ACTion Newsletter

IN THIS ISSUE

1. Editorial Comment
2. WestJet Selects RBC And MasterCard For New Travel Rewards Card
3. Interac Qualifies Contactless Payment Certification Test Packages From ICC Solutions
4. Rim Announces New Blackberry Smart Card Reader
5. Eight Million Brits Share PIN Numbers - Survey - Members Only
6. Visa Paywave Announced For Country Style & Blenz The Canadian Coffee Company
7. YESpay Solves EMV) Headache For Canadian Retailers With Chase Paymentech
8. Almost All Canadians Use Loyalty Programmes - Members Only
9. Mexico To Issue Citizens National Identity Card
10. Nokia Enters Increasingly Crowded Mobile Money Market - Members Only
11. LaserCard Receives Follow-On Order For Italy's Foreign Resident ID Card Program
12. American Hospital Association Endorses Smart Card Product
13. Support Grows For MasterCard Advanced Authentication For Chip
14. Travelers In UK Will Pay For A Journey With Their NFC Bank Cards - Members Only

ACT Canada Partners

 

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.

Visa

Visa operates the world's largest retail electronic payments network and is one of the most recognized global financial services brands. Visa facilitates global commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses and government entities.

ACT CANADA THANKS OUR NEW & RENEWING MEMBERS

GENERAL

Capital One ~ member since 2008
Hypercom ~ member since 2008

CALENDAR OF EVENTS

Cardware Connections + ACT Canada's Annual General Meeting
September 21, 2009
Toronto, ON, Canada
http://www.actcda.com

Collis EMV Chip Seminar
September 28-29, 2009
Toronto, ON, Canada
http://www.collis.nl

Cardware 09 Government Insights
October 14, 2009
Hellenic Centre, Ottawa, ON, Canada
http://www.actcda.com

Smart Card Alliance 8th Annual Smart Cards in Government Conference 2009
October 27-30, 2009
Washington, DC, USA
http://www.smartcardalliance.org

CARTES & IDentification 2009
November 17-19, 2008
Paris, France
http://www.cartes.com

PIN Management RFP
ACT Canada will be issuing an RFP for PIN Management solutions. If you have products or services to deal with this, and have not already done so, please email Catherine Johnston at Catherine@actcda.com. Please put PIN Management in the subject line.

New Market Info
ACT Canada is very pleased to announce that presentations from the financial track at Cardware 09 were captured as full audio and PowerPoint webinars, providing delegates with a superior level of post conference access to information. For those who missed Cardware, these will be available for purchase in the coming weeks.

Membership Benefit Reminder
All ACT Canada members, who do not currently subscribe to the Nilson report, are entitled to a 10% discount. Also, all members receive significant discounts for Cardware 09.

1. EDITORIAL COMMENT
Source: Catherine Johnston, President & CEO, ACT Canada (08/28)

Integrity: The Hallmark of an Individual

Throughout your career, you meet a lot of people. Some you will like and others you won't. In turn, some will like you and others won't. Wanting to be liked is a normal human reaction, but business gurus always tell us that we need to set that aside in order to succeed.

As I look back, the most memorable people from my career are the ones I respect. I confess that I didn't like all of them, but I admired their integrity. Although there are a lot of people I'd be happy to see again because they were very likeable, these are the people with whom I'd like to work again.

Integrity doesn't mean you'll always be right but it increases the chances that you and others will be able to accept your mistakes. Standing up for what you believe is right won't always make you popular, but it will make it easier for you to face yourself in the mirror. Defining the line between integrity and stubbornness can be challenging from time to time.

Even more important than the role it plays in building your career, integrity shapes your life. One of the best parts of this job is that I get to work with a number of people whose integrity inspires me. You know who you are and I thank you.

Be inspired by someone you respect and in turn, inspire others.

2. WESTJET SELECTS RBC AND MASTERCARD FOR NEW TRAVEL REWARDS CARD
Source: MasterCard (08/05)

WestJet announced it is teaming up with RBC Royal Bank and MasterCard for the upcoming launch of its new travel rewards credit card. The new co-branded card will allow guests to earn WestJet rewards. More details on this program will be unveiled this fall.

The new WestJet credit card, to be issued by RBC with MasterCard, will complement RBC's other travel rewards cards and appeal to North American and Caribbean travellers who want to be rewarded by their preferred airline.

In keeping with WestJet's flair for innovation, the new rewards card will be the first MasterCard product offered by RBC in Canada. This milestone is also expected to make RBC the first Canadian bank to begin offering both MasterCard and other credit card brands, which will benefit consumers with increased choice and innovation.

MasterCard Canada is a member of ACT Canada; please visit http://www.mastercard.ca.

3. INTERAC QUALIFIES CONTACTLESS PAYMENT CERTIFICATION TEST PACKAGES FROM ICC SOLUTIONS
Source: ICC Solutions (08/20)

ICC Solutions is delighted to announce the immediate availability of INTERAC contactless payment test packages for both cards and terminals having a contactless interface. These are the first contactless payment certification test packages available in the market to be approved by Interac Association, who consider contactless as the ultimate platform for achieving fast, efficient small ticket payment (STP) capability for INTERAC Direct Payment (IDP) transactions.

These INTERAC contactless test packages are based on the industry recognised ICCSimCTC (Card) and ICCSimTMat (Terminal) test platforms developed to test compliance against the test cases defined in the Functional PICC and Contactless Terminal Application Certification Guides. ICC Solutions was also involved in the development of the Contactless Terminal Application test plan and assisting with the definition of the certification process.

ICC Solutions offers an extensive range of fully validated card test packages which includes INTERAC ICC and Terminal Application Certification test packages. ICC Solutions is the only test tool vendor able to offer fully validated test packages for all payment scheme terminal certifications which includes INTERAC, TIP for MasterCard and Visa ADVT. These test packages are extremely cost effective and feature very efficient run time environments adopted by the main technology leaders and implementers deploying chip based payment systems in Canada.

"We're pleased that ICC Solutions has met all of the Interac Association requirements to provide contactless payment test packages," said Allen Wright, VP, Product Management, Interac Association. "ICC Solutions' test packages will support Interac Association members who are preparing to offer contactless services to their customers."

According to Dave Maisey, CEO / Managing Director at ICC Solutions, "ICC Solutions is delighted to be the first tool vendor to be approved by Interac Association for INTERAC contactless card and device certification test packages. This demonstrates our ongoing commitment to supporting the development of the Canadian payment card market extending our portfolio of certification test packages already approved by Interac Association. These new INTERAC contactless certification test packages will enable efficient, reliable and cost effective testing to be performed by test laboratories, manufacturers and implementers."

ICC Solutions and Interac Association are members of ACT Canada; please visit http://www.iccsolutions.com & http://www.interac.ca.

4. RIM ANNOUNCES NEW BLACKBERRY SMART CARD READER
Source: SecureID News (08/18)

Research In Motion has announced a new model of its BlackBerry Smart Card Reader that makes it easy for organizations to implement multi-factor authentication for computers, Blackberry smart phones and public key infrastructure applications. The lightweight, wearable, ISO 7816 compliant card reader enables proximity controlled access to a user's smart phone and computer.

The reader uses Bluetooth 2.0 technology with advanced AES-256 encryption to enable secure pairing and communications between the reader, the BlackBerry phone, the computer and PKI applications.

Organizations also now have the ability to deploy the BlackBerry Smart Card Reader as a security accessory for BlackBerry smart phones, even if the organization does not use smart cards. Once paired with the BlackBerry Smart Card Reader via Bluetooth, the smart phone will automatically lock if it is out of range of the reader.

Key benefits of the BlackBerry Smart Card Reader include:

Prevent Unauthorized Access - instead of inserting the smart card into a stationary reader or peripheral attachment, which can easily be left behind, users insert a smart card into this sleek lightweight reader and wear it on a lanyard. If the user is no longer in proximity, the smart phone or computer will automatically lock.

Convenience and Ease of Use - provides users with the convenience of a single reader to control access to both their BlackBerry smart phone and computer.

Increases Security Compliance - increasing the convenience and comfort of using smart cards helps to ensure that users comply with organizational security directives. Using IT policy controls, BlackBerry smart phones and computers can be configured to lock if the BlackBerry Smart Card Reader goes out of range, rendering the smart phone or computer unusable and information inaccessible until proximity is restored and user authentication requirements have been met.

5. EIGHT MILLION BRITS SHARE PIN NUMBERS - 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.

6. VISA PAYWAVE ANNOUNCED FOR COUNTRY STYLE & BLENZ THE CANADIAN COFFEE COMPANY
Source: Canada Newswire (08/25 and 08/12)

Visa Inc. announced in Canada that Country Style will accept Visa payWave(TM) contactless payments, which will help move coffee-craved customers move through check-out more quickly.

"In addition to offering our customers freshly ground coffee and a memorable experience, we can now give them the convenience and flexibility to pay with Visa payWave, said Rita McParland, VP Marketing, Country Style. "We
are very excited about this partnership."

More than 100 participating Country Style locations across Ontario will be equipped with Visa payWave enabled terminals by August 31, 2009.

On August 12, Visa announced that Blenz The Canadian Coffee Company Ltd. was the latest company to join the growing roster of Visa payWave(TM) contactless payment enabled merchants.

"We're excited to have found one more way to help our customers to enjoy their day. With Visa payWave, they'll see fewer and quicker line-ups and they can pick up their beverage and be on their way with just a friendly wave", says George Moen, President, Blenz.

Fifty-three Blenz locations in British Columbia will be equipped with Visa payWave terminals that can help increase speed at the cash register, which is an important consideration for quick service restaurants.

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

7. YESPAY SOLVES EMV (CHIP AND PIN) HEADACHE FOR CANADIAN RETAILERS WITH CHASE PAYMENTECH
Source: YESpay (08/28)

Chase Paymentech is working with YESpay to provide its managed EMBOSS card payment services in Canada to support the introduction of pre-accredited EMV payment services into the local market.

With YESpay's managed EMBOSS card payment services, retailers will have access to fully accredited integrated EMV Chip and PIN payment services, removing the burden of having to manage their own formal testing, hence reducing their time to market to a matter of weeks.

Chase Paymentech will assist YESpay to provide its secure payment services for retail, MOTO (mail order telephone ordering) and e-commerce credit and debit card (with Online PIN validation in card present environments) to mainstream or web retailers - all at a low cost. YESpay will initially target mid-tier retailers with integrated EPOS retail systems.

EMBOSS is an Online, IP-based payment processing service that has also been preaccredited (generically) by major card processors in Europe and is fully end-to-end certified to Payment Card Industry Data Security Standards (PCI: DSS) Level 1, as mandated by Visa and MasterCard.

Through EMBOSS, merchants can quickly accept integrated card payments within their EPOS tills, kiosks and hospitality payment systems as well as enhance their Web sites to accept Online payments with minimal capital investment and low, ongoing services costs. EMBOSS reduces the business and technical issues of outsourcing payment services and helps retailers avoid lengthy timescales and high costs of bank accreditation. Moreover, EMBOSS helps retailer environments with PCI compliance, especially when they only have a handful of integrated point-of-sale terminals or low throughput transactional Web sites.

Rohit Patni, EVP Sales and Marketing, YESpay, said, "Businesses of all sizes are facing major payment issues, including the task of complying with PCI DSS regulations, the rise in fraudulent activity, costs and timescales surrounding bank accreditation and the October 2010 liability shift for credit Chip and PIN transactions. These problems can be eradicated by outsourcing to YESpay's managed bureau service which takes on the responsibility, relinquishing the need for PCI compliance and bank accreditation by the merchant."

Bill Farris, Vice-President, Product Management, Chase Paymentech, said, "We are confident in YESpay's ability to deliver a superior product as its proven expertise in the payment sector and their track record in providing managed card payment services which they have been doing for over five years in Europe. We are equally confident that the company's knowledge of payments and the provision of outsourced managed services will help support our retailers in Canada through the introduction of EMV Chip and PIN."

Given the large percentage of transactions performed by retailers using multilane payment solutions, YESpay's EMBOSS managed credit / debit card payment service provides an innovative and low cost alternative to bank-owned terminals that helps retailers integrate Online card payments with their existing retail infrastructures while providing a migration path to full EMV compliance.

YESpay and Chase are members of ACT Canada; please visit http://www.yes-pay.com & http://www.chase.com.

8. ALMOST ALL CANADIANS USE LOYALTY PROGRAMMES - 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.

9. MEXICO TO ISSUE CITIZENS NATIONAL IDENTITY CARD
Source: Associated Press (07/28)

President Felipe Calderon says Mexico will start issuing nationwide identity cards for its citizens starting this year, and by 2012 everyone will have one.

The cards will carry the bearer's photograph. It will also include information on fingerprints and biometric data, including facial and iris scans, on a magnetic strip.

Most Mexicans currently use their voter ID cards for identification. They contain a photo, signature and one fingerprint. They will continue to be issued.

Interior Secretary Fernando Gomez Mont said Tuesday the new cards will help in the fight against organized crime, and ensure transparency in government aid programs.

Drug traffickers frequently use false identification documents to evade law enforcement.

10. NOKIA ENTERS INCREASINGLY CROWDED MOBILE MONEY MARKET - 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. LASERCARD RECEIVES FOLLOW-ON ORDER FOR ITALY'S FOREIGN RESIDENT ID CARD PROGRAM
Source: : ICMA Industry News (07/30)

LaserCard Corporation announced receipt of a purchase order of approximately $1.5 million for the supply of ID cards for Italy's Foreign Resident Card program. The order calls for deliveries to be completed during the current fiscal quarter, ending September 30, 2009.

"We are pleased to continue working with our partners and the Italian Government to support the ongoing demand for this critical secure ID program," said Bob DeVincenzi, President and CEO of LaserCard Corporation. "Italy's continuing investment in secure ID credentials based on optical memory underscores its commitment to protecting its internal security and the security of its borders through the valid identification of citizens, legal foreign residents and entrusted government employees."

Italy's Foreign Resident Card utilizes LaserCard's tamperproof and highly counterfeit resistant optical memory technology in combination with other advanced security features, including the company's Personalized Embedded HologramHD, a critical feature used by inspectors or agents when electronic readers are not available. The digital security of LaserCard's optical memory has never been compromised. Italy's national printer and mint, Istituto Poligrafico e Zecca dello Stato S.p.A. (Poligrafico), and the government's prime contractor on the project, will add a contact IC chip to enable access to government services prior to personalizing and issuing the cards to authorized non-EU residents.

LaserCard is a member of ACT Canada; please visit http://www.lasercard.com.

12. AMERICAN HOSPITAL ASSOCIATION ENDORSES SMART CARD PRODUCT
Source: ICMA Industry News (08/27)

The American Hospital Association, through its subsidiary AHA Solutions Inc., has announced its endorsement of EXTENSION HealthID. HealthID is a smart card that holds individual patient data for use by the hospitals to improve the care experience. The AHA's endorsement of HealthID comes at a time when maintaining and accessing accurate patient information is becoming increasingly important.

HealthID is a pre-packaged solution consisting of an EXTENSION rack-mounted appliance, smart cards and card reader. The system is designed to simplify implementation with the hospital's existing scheduling, registration, clinical and financial systems. A Web-based interface enables hospitals to improve operational processes, such as patient registration, discharge and billing, which can reduce the number of delayed or denied claims.

Smart cards store medical and demographic information, creating a portable, secure record unique to each patient. Health care providers and emergency responders who are not connected to the network also can securely access patient information through a downloadable Web-based card reader. Future use of the HealthID could include authentication and data sharing with personal health records systems such as Google Health and Microsoft HealthVault.

While smart card technology is relatively new in the U.S., HealthID has been used with Mt. Sinai in New York, helping them capture more patient information at the point of registration, streamline billing, eliminating record duplication and errors, and creating better patient experiences. The center anticipates adding clinical information to the cards, enabling providers at off-site locations to quickly and easily access patient data.

13. SUPPORT GROWS FOR MASTERCARD ADVANCED AUTHENTICATION FOR CHIP
Source: Payment News (08/27)

MasterCard has announced that it has approved personal card readers and authentication servers from four vendors for MasterCard Advanced Authentication for Chip - a new EMV authentication solution that leverages the hundreds of millions of EMV cards already in the wallets of cardholders. According to MasterCard, "banks looking to manage the growing threat of online fraud can today deploy this best-of-breed two-factor authentication solution by working with leading providers to the payments industry: DSSS, Gemalto, Logos and Thales."

The Advanced Authentication for Chip is the latest evolution of the Chip Authentication Program (CAP) solution that allows cardholders to authenticate themselves using their existing EMV banking card and a personal card reader issued by their bank. The reader generates single-use password that can be used for e-banking transactions, e-commerce, telephone authentication or a whole host of other uses where the customer is not face-to-face with the bank or merchant: these transactions are known as Card Not Present.

With a MasterCard-commissioned survey showing that 84% of UK and Benelux cardholders think that their bank should have responsibility for online banking security, it is important for the reputation of banks for them to deploy effective and simple security systems. As Advanced Authentication for Chip replicates the same simple process that cardholders are accustomed to from chip-enabled retail environments, it makes remote authentication easy for them to understand, and easy for them to use.

Unlike a standard authentication token or paper-based system, Advanced Authentication for chip allows part of the transaction data to be included in generation of the password - this means that banks can get cardholders to create a unique signature for the transaction and is a major leap forward in the prevention of man-in-the-middle attacks, a huge problem in e-banking and e-commerce.

Art Kranzley, Chief Emerging Technology Officer at MasterCard, said, "Our solutions are only as strong as the support they receive from the vendor community. Advanced Authentication for Chip offers tangible benefits to issuers, cardholders and merchants. Vendor solution components are approved by MasterCard to ensure high standards and global interoperability."

"Several million online customers have already been using Gemalto's complete CAP solution for authentication and transaction signature, including server and readers," added Cédric Collomb, senior vice president, Identity and Access Management at Gemalto. "Now, our Advanced Authentication for Chip solution will allow more online banking customers to use standardized chip-based authentication across the world."

MasterCard Canada and Gemalto are members of ACT Canada; please visit http://www.mastercard.ca & http://www.gemalto.com.

14. TRAVELERS IN UK WILL PAY FOR A JOURNEY WITH THEIR NFC BANK CARDS PAYMENT PRODUCTS - 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.

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.