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June 24, 2003 |
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Welcome to the June edition of ACTion News.
Our newsletter is distributed each month
in order to keep you up to date with events
in the advanced card industry. This complimentary
service is provided by ACT Canada; "building
an informed marketplace". It is also
available in the Resource Centre of our web
site http://www.actcda.com. Please feel free to forward this to your
colleagues.
If you would prefer to receive this newsletter
in plain text please send your request to
andrea(AT)actcda.com.
IN THIS ISSUE:
1. Editorial Comment
2. Millions of Canadians
to Get a Computer
on Their Visa Card
3. International Speakers
Join EMV Briefing
Roadshow This July
4. Keycorp Enters the Fast
Lane with Integrated
Retail Solution for Toys"R"Us
5. Philips & Visa Form
Major Alliance
to Promote Application
of Contactless Payment
Technology
6. New Dell Laptops Come
with Smart Card
Readers
7. Visa International Selects
ACI Software
for Regional Payment Processing
Solution
8. Ingenico Announces Next
Generation Multi-Lane
Payment Terminal
9. American Express Selected
to Partner with
Aeroplan
10. Tele-Cheques to be
Prohibited in Canadian
Clearing System
11. Chrysalis-ITS &
Webpay Provide Integrated
Solutions to Help Combat
Online Fraud
ACT CANADA WOULD LIKE TO THANK OUR NEW & RENEWING MEMBERS:
PRINCIPAL:
AmenityOne (Coinamatic)
~ member since 1995
(upgrade)
We would also like to welcome
AmenityOne
as our first member of
the Partnership program.
GENERAL:
ASSA ABLOY ~ new member
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1. EDITORIAL COMMENT
Source: Catherine Johnston, President &
CEO, ACT Canada (06/24) |
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All of us who support ACT Canada have so
many reasons to be extremely pleased with
the recent announcement by Visa Canada. On
Tuesday, June 24, 2003, Visa Canada announced
that it is actively advancing the multi-use
benefits of converting to the chip technology
platform.
I firmly believe
that this evolutionary
announcement
is extremely proactive
on the part of Visa
and its members.
You have heard me
state
many times that the
move to chip technology
adds significant
new benefits to an
established
secure and convenient
system. The broader
use of the chip technology,
as the current
magnetic stripe cards
are gradually replaced,
will help bring Canada
in line with the
global
standard.
As I noted in our
June 24th news release,
Canadians have been
encouraging card
issuers
to help reduce the
explosive growth
of identity
theft and to improve
access to electronic
commerce. In these
areas and through
many
more new applications,
the new chip Visa
cards are indeed
evolutionary.
We will hold 3 EMV
briefing sessions
in major
Canadian centres
in the coming weeks.
(see
details in this newsletter).
As usual our
goal is to provide
the latest information
on EMV conversion
to governments, retail,
financial, and other
sectors to help them
prepare for the introduction
of EMV chip
cards. We find that
Canadians have a
high
interest in EMV,
as they follow other
countries
announcing their
conversion plans.
The IMS-MTE (Integrated
Mobility Solution-Moving
the Economy) briefing
held on June 11th,
2003, with ACT Canada
was a tremendous
success.
At the cross industry
session, we reviewed
the opportunities
and obstacles presented
through the implementation
of a multi-modal/application
smart card system
across Canada's public
and private sectors.
Participants included
the transit, transportation
and financial
sectors, as well
as the advanced card
industry.
We look forward to
sponsoring more of
these
sessions in the future.
We are working with
the Smart Card Alliance
in support of their
"Smart Cards
in
Government - 2003",
July 15 - 17th at
the Sheraton National
Hotel, in Arlington
VA overlooking the
nearby Pentagon.
I will
be speaking on "Privacy
by Design"
and will announce
the release of our
new
version of the Privacy
Impact Assessment
Procedure for Multi-Application
Smart Cards.
Drop by our booth
to talk about recent
developments
in the Canadian market.
Mark October 16th
& 17th on your
calendar
for our annual conference.
I encourage you
to join us this year
as we introduce the
tools needed to drive
smart business.
Also, check out the many other events this
year at which we will be promoting our members'
products and services in the Canadian and
export market. For information, please contact
us at info(AT)actcda.com. We look forward
to seeing you soon. | |
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2. MILLIONS OF CANADIANS TO GET A COMPUTER
ON THEIR VISA CARD
Source: Canada NewsWire (06/24) |
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Canada is joining the global migration to
a new generation of Visa cards containing
a chip with a microcomputer, Visa Canada
announced.
The Visa chip card
is capable of supporting
multiple applications
and data securely,
and can make cardholder-specific
decisions
such as approving
or declining transactions
without unnecessary
communications expense.
"Much of the
world has made significant
progress in transitioning
their Visa cards,
merchant equipment
and payment card
systems
over to this advanced
technology,"
said
Derek Fry, Visa Canada
Association President.
"We are pleased
that Canadians will
soon begin to enjoy
the substantial benefits
that Visa chip cards
will bring to our
payment
card market."
Chip cards have been
in use in Canada
for
a number of years,
particularly in telephone
cards used in payphones.
All Visa cards in
France have been
equipped with chip
technology
since 1992.
Approximately 60
million Visa EMV
chip cards
are in use around
the world and millions
more Visa EMV chip
cards are being issued
every month. There
are major conversion
programs
underway in Europe
and Asia. In line
with
the rest of the world,
Visa chip cards in
Canada will employ
the global standard,
EMV,
to ensure that Canadian
Visa cards work at
all Visa merchants
around the world.
"Chip technology
will offer greater
convenience to consumers,
provide added protection
to merchants, enhance
the Canadian payment
card system, and
provide future services
we can only begin
to imagine,"
Fry said.
One significant improvement
for the consumer
will be the use of
a Personal Identification
Number (PIN) at the
point of sale rather
than a signature.
In a survey conducted
in
January 2003, 61
percent of Canadians
said
they would prefer
entering a PIN at
the point
of sale.
Visa Canada Member
financial institutions
will implement chip
at their own pace.
It
is expected that
within seven years,
almost
every Visa card in
Canada will feature
chip
technology and most
merchants will have
the
equipment to accept
and fully benefit
from
these cards.
Visa Canada will
continue to work
with stakeholders
who have an interest
in the payment card
business and our
chip migration program.
Our intent is to
help all parties
make the
transition to chip
technology smooth
by giving
them the support
and information they
need.
In this respect Visa
will draw on its
extensive
experience from chip
implementations around
the world.
Twenty-one thousand
financial institutions
worldwide rely on
Visa's processing
system,
VisaNet, to facilitate
$2.4 trillion in
annual
transaction volume.
Cardholders in more
than
150 countries carry
more than one billion
Visa-branded cards.
Within Canada, 26
Member
financial institutions
have issued 25.6
million
Visa cards, accounting
for $111 billion
in
annual sales volume
in 2002.
Visa Canada Association is a member of ACT
Canada. For more information please visit
their web site at http://www.visa.com. | |
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3. INTERNATIONAL SPEAKERS JOIN EMV BRIEFING
ROADSHOW THIS JULY
Source: ACT Canada (06/21) |
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ACT Canada is pleased to announce the following
speakers will be joining our EMV Briefing
Roadshow:
Philip Andreae -
VP Emerging Technologies
- Visa Canada
John Atkinson - VP
& GM, Smart Cards
- Giesecke &
Devrient
Martyn Cooper - VP,
eBusiness - MasterCard
Int'l
Gerard De Moura -
President - KaSYS
Justin Fraser - International
Business Development
- Retail Logic
Julie Krueger - VP,
Smart Cards &
Emerging
Technology - JCB
Int'l Credit Card
Benoit Perrin - Marketing
Mgr, ePayment Terminals
& Systems - Schlumberger
Patrick Ratier -
EMV Consultant -
Schlumberger
Our speakers will
delve into the significance
of EMV implementation
on a global scale
as
well as case studies
from those who have
begun their rollout.
The Roadshow will
visit the following
cities:
Toronto - July 7,
2003 at the Ontario
Bar
Association Conference
Centre
Ottawa - July 9,
2003 at the Courtyard
Marriott
(Byward market location)
Montreal - July 10,
2003 at Le Centre
Sheraton
ACT Canada would
like to acknowledge
our
3 City Roadshow Sponsors
for their generous
support:
AmenityOne
Giesecke & Devrient
Ingenico Canada
Visa Canada Association
For a full list of sponsors, further details,
and to register online, please visit the
events section of our web site at http://www.actcda.com/calendar/symposium.htm. |
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4. KEYCORP ENTERS THE FAST LANE WITH INTEGRATED
RETAIL SOLUTION FOR TOYS"R"US
Source: Keycorp (06/05) |
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Keycorp Limited announced that one of the
world's leading retailers, Toys"R"Us
(Canada) had selected Keycorp payment terminals
for all of its stores in Canada.
The rollout of the
K23 payment terminals
is a breakthrough
for Keycorp because
it
will be the first
application of the
new
generation payment
terminals in a multi-lane
retail environment.
It will also be the
first
time in Canada that
the terminals have
been
integrated with existing
point of sale (POS)
systems for a major
retail chain.
More than 650 of
the Keycorp terminals
will
be installed in Toys"R"Us
stores
throughout Canada
over the next few
months.
Because of the Keycorp
"plug and play"
technology, the terminals
can be integrated
with the existing
POS systems without
having
to change any code
in the cash register.
This will allow Toys"R"Us
to complete
the changeover with
minimal disruption
or
delay.
Toys"R"Us
chose the Keycorp
terminals
because of their
large backlit graphics
display,
faster processing
speed, superior memory
and the capability
to add new applications
in the future. The
K23 terminals also
have
enhanced security
features as well
as an
award-winning ergonomic
PIN Pad design.
Keycorp Canada is
a member of ACT Canada.
For more information
please visit their
web
site at http://www.keycorp.ca.
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5. PHILIPS & VISA FORM MAJOR ALLIANCE
TO PROMOTE APPLICATION OF CONTACTLESS PAYMENT
TECHNOLOGY
Source: Visa (05/28) |
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Royal Philips Electronics and Visa International
announced a major alliance to jointly promote
and develop the application of contactless
chip technology for payment transactions.
The cooperation between the two companies
will help promote the benefits of fast and
secure universal commerce to the every-day
connected consumer and to businesses worldwide
such as content providers, merchants and
banks.
Both organizations
have recognized
the enormous
demand for
non-traditional
payments via connected
consumer devices
such as PCs,
mobile phones,
gaming and
other handheld
devices. By combining
the benefits
of electronic
payments and contactless
chip technology,
Philips and
Visa plan to
deliver contactless
solutions that
will enable
payment transactions
anywhere, anytime
and
through any
device.
Through the
alliance, Philips
and Visa intend
to explore
a wide variety
of applications
and engage
potential partners,
such as handset
and electronic
device manufacturers
and service
providers,
in areas such
as gaming, ticketing,
music, mass
transit, and
home shopping. As
a result, content
providers and
merchants
will have a
means to develop
new revenue
streams and
distribution
opportunities, as
well as attract
new customers.
Consumers
will benefit
from easier,
more flexible access
to new shopping,
transit and
entertainment
experiences.
Banks will
have the opportunity
to improve
customer convenience
and create
new service
models.
The two global
organizations
have signed
a Memorandum
of Understanding
(MOU) that
outlines the
scope of cooperation
between
the two companies.
This agreement
includes
exploring the
business requirements
for secure
payments utilizing
contactless
chip technology.
Specifically,
Philips and
Visa are looking
to identify
joint business
partners, such
as hardware
manufacturers
and content providers,
and to investigate
developing
business and
technical models
that meet their
unique needs.
Visa Canada Association is a member of ACT
Canada. For more information about either
of the above mentioned companies please visit
their web site at http://www.corporate.visa.com and http://www.semiconductors.philips.com.
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6. NEW DELL LAPTOPS COME WITH SMART CARD
READERS
Source: CardTechnology (06/13) |
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| Dell Computer Corp. has made smart card readers
standard equipment in its new Latitude line
of laptop computers introduced this year
for corporate and government clients. Dell
made the decision after surveys with major
customers in North America and Europe showed
that smart card readers was something they
wanted in their next generation of laptops,
says Brian McDonnell, Latitude product marketing
manager. He says Dell also saw that smart
cards were becoming increasingly standardized
and that information security was a growing
concern among customers. And, he says, it
cost Dell less than $10 per machine to add
the smart card readers. It made for an easy
decision, he says. "Here was a low-cost,
industry-standard solution that customers
were asking us for and that allows us to
position ourselves as a security leader,"
he says. Dell also offers a built-in smart
card reader in one of its desktop PCs targeted
at the corporate market, McDonnell says.
He notes Dell was not the first to build
smart card readers into laptops. He says
Taiwan's Acer, an increasingly aggressive
competitor in Europe, offers three models
of its TravelMate notebook computers with
built-in chip card readers. Fujitsu-Siemens
Computers also ships built-in smart card
readers with all of its high-end Lifebook
laptop computers. In addition, all of its
desktop machines for commercial customers
can be ordered with internal smart card readers,
says Gabriele Stark, senior product manager
for security, at Fujitsu-Siemens. |
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7. VISA INTERNATIONAL SELECTS ACI SOFTWARE
FOR REGIONAL PAYMENT PROCESSING SOLUTION
Source: ACI Worldwide (06/04) |
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ACI Worldwide announced that its BASE24-es™
software has been licensed by Visa International
to enhance the regional scalability of its
global payment processing system capabilities
outside the United States.
The agreement enables deployment by mid-2004,
in Visa's EU region, of a regional processing
platform that maintains Visa's unsurpassed
processing reliability and integrity while
allowing Visa's non-U.S. regions to have
greater control over the implementation of
financial products and services. Visa is
making specific customization changes to
meet its unique volume, scalability, reliability,
and functionality needs.
ACI is delivering the BASE24-es system in
partnership with Deloitte Consulting as the
prime system integrator and Sun Microsystems,
provider of the hardware and Solaris™ operating
system. As a member of Sun's iForce™ partner
program, ACI has a strategic alliance with
Sun to jointly develop and market e-payment
solutions. ACI also has a teaming agreement
with Deloitte to deliver worldwide solutions.
ACI Worldwide and Visa Canada Association
are members of ACT Canada. For more information
about either of the above mentioned companies
please visit their web site at http://www.aciworldwide.com and http://www.visa.com.
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8. INGENICO ANNOUNCES NEXT GENERATION MULTI-LANE
PAYMENT TERMINAL
Source: Ingenico (06/10) |
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Ingenico announced their next generation
customer-activated payment terminal Š the
Ingenico 6500. The 6500 is the next generation
customer-activated terminal from the leader
in multi-lane retail payment. The 6500, with
integrated magnetic stripe reader and EMV
approved smart card reader, can be implemented
as one of two models; integrated PIN pad
with signature capture or integrated PIN
pad without signature capture. The Ingenico
6500 can be connected to a cash register,
a PC or directly to a store LAN. The 6500
also has the capability to support other
peripherals connected to it such as a check
reader or bar code scanner.
Lloyd Baylard, vice president and general
manager of Ingenico's Retail Solutions organization
stated, "The 6500 will provide an intuitive
user interface with a large bright graphical
screen and screen addressable keys providing
customers with instinctive transaction lead-through
that reduces checkout time and customer confusion."
Baylard continues, "For those retailers
that need electronic signature capture, the
Ingenico 6500 will feature a glass screen
and capacitive technology, proven to be the
most robust and responsive surface for electronic
signature capture available."
In addition to an intuitive user interface
and a strong set of communication options,
Baylard noted, "One of the strongest
features of the Ingenico 6500 is security.
The 6500 will be PED approved and Triple
DES ready, allowing our terminal to be used
at any checkout in the U.S. For retailers
with international requirements, the 6500
provides a security core with Interac and
VISA approval. Additionally the device will
be certified with T-Systems, Withams, ZKA,
Interpay, BBS, PBS and others providing Ingenico
customers with the ability to install the
6500 anywhere in the world.
Ingenico is a member of ACT Canada. For more
information please visit their web site at
http://www.ingenico.com.
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9. AMERICAN EXPRESS SELECTED TO PARTNER WITH
AEROPLAN
Source: American Express (06/03) |
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American Express Bank of Canada confirmed
that it has been selected as the winning
bidder to partner with Air Canada to offer
Aeroplan frequent flyer points to its cardmembers.
Under the terms of the deal, Aeroplan will
become a partner in American Express' Membership
Rewards program and the two companies will
work together to develop a range of co-branded
charge cards for consumers and corporations.
American Express, Air Canada and Aeroplan
have signed a letter of intent. The deal
is subject to definitive agreements and approval
of the court overseeing Air Canada's restructuring.
"We are delighted that Air Canada sees
us as the right partner for Aeroplan,"
said Beth Horowitz, president and general
manager, Amex Bank of Canada.
"We have the ability to drive aggressive
growth and deliver significant long-term
value to Air Canada. American Express will
be a powerful marketing partner both here
in Canada and also in key international markets.
We will promote Aeroplan through our existing
Membership Rewards program and through developing
compelling new products that will have a
strong appeal to consumers and business customers."
The Aeroplan deal will further strengthen
the strategic relationship between American
Express and Air Canada. Air Canada is one
of American Express' largest card merchant
partners, and American Express is the airline's
largest travel agency.
The opportunity to further leverage American
Express' leadership in the corporate and
government services market, in addition to
the high spending consumer segment, presents
a unique growth opportunity for both companies.
American Express Canada is a member of ACT
Canada. For more information please visit
their web site at http://www.aexp.com.
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10. TELE-CHEQUES TO BE PROHIBITED IN CANADIAN
CLEARING SYSTEM
Source: Canadian Payments Association (06/23) |
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The Canadian Payments Association (CPA) Board
of Directors has issued an official policy
statement advising that the clearing system
rules will be amended to prohibit the clearing
of tele-cheques effective January 1, 2004.
The prohibition is a proactive measure to
address the heightened risk of fraud associated
with this type of item.
A relatively recent development in Canada,
a tele-cheque has the same physical appearance
as a regular cheque but it is not signed
by the person from whose account the funds
are to be drawn. Rather, the item is created
by a third party (usually the party that
will receive the funds) using cheque-creation
software, after purportedly obtaining the
account holder's account information and
authorization over the telephone or, in some
instances, the Internet.
The prohibition of tele-cheques in the clearing
system reflects a concern that unauthorized
parties could use this vehicle to gain access
to deposit accounts fraudulently. Since this
type of payment item is not signed by the
account holder, nor is it supported by any
other form of written authorization, there
is no practical means for the account holder's
financial institution to verify whether the
payment has been properly authorized.
Information provided by CPA member financial
institutions suggests that tele-cheques are
currently in limited use in Canada. Although
the CPA is not aware of any fraudulent use
of these items to date in Canada, the CPA
Board has concluded that the inability to
verify authorization of these items creates
an unacceptable level of risk for both account
holders and financial institutions. In taking
this step, the CPA is acting in accordance
with its public policy objectives to ensure
the safety and soundness of the clearing
and settlement system and to take into account
the interests of payment system users.
"Our consultations with business and
consumer representatives, government bodies
and financial institutions found a general
view that the ability to verify authorization
of payments is absolutely key to mitigating
risk for transactions initiated over the
Internet or other remote channels,"
commented CPA President and CEO Guy Legault.
"Consequently, to support the introduction
of new payment options in those environments,
authorization requirements will be a pillar
of a broader policy framework now under development."
Implementing the prohibition on tele-cheques
on January 1, 2004 will allow sufficient
time for the necessary CPA rule amendments
to be put in place and for organizations
that may currently be using tele-cheques
to explore alternatives. As an interim safeguard
until the new policy comes into effect, the
CPA Board has adopted a provision giving
account holders up to 180 days to report
any unauthorized tele-cheque, sign a declaration
and have the funds restored to their account.
The Canadian Payments Association is a member
of ACT Canada. For more information please
visit their web site at http://www.cdnpay.ca. |
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11. CHRYSALIS-ITS & WEBPAY PROVIDE INTEGRATED
SOLUTIONS TO HELP COMBAT ONLINE FRAUD
Source: Chrysalis-ITS (06/23) |
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Chrysalis-ITS and Webpay announced their
collaboration on a number of integrated hardware
and software solutions to combat online payment
fraud for Verified by Visa and MasterCard
SecureCode projects. The companies are combining
market-leading Chrysalis-ITS Hardware Security
Modules (HSMs), with the flexible and cost
effective Access Control Server (ACS) software
from Webpay. Both integrated components are
designated for use in Verified by Visa (VbV)
and MasterCard payment authentication systems.
The first phase in the strategic relationship
between the companies involved the integration
of Chrysalis-ITS' Luna CA3 and Luna SA HSMs
with the Webpay Transaction Server optimized
for secure payments and authentication. This
complementary solution is available now.
The companies have also announced plans to
port the Webpay software directly onto the
Chrysalis-ITS Ultimate Trust Solution Platform
(UTSP), to deliver an easy to deploy commoditized
payment authentication appliance for card
issuing banks.
Chrysalis-ITS is a member of ACT Canada.
For more information about either of the
above mentioned companies please visit their
web site at http://www.chrysalis-its.com and http://www.webpay.com.au. |
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| ACT Canada is an international non-profit
association for the advancement of card technologies.
We work on behalf of our members to promote
the awareness, understanding and use of all
advanced card technologies; including optical,
smart, capacitive and emerging technologies.
If you would like to learn more about ACT
Canada membership please visit http://www.actcda.com or contact our office at (905) 426-6360
ext. 21. |
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| Please forward any comments, suggestions,
questions or articles to andrea(AT)actcda.com.
If you would like to be removed from our
newsletter distribution list please reply
to this email with the word "REMOVE"
in the subject field. Please note that articles
contained in this newsletter have been edited
for length, and are for information purposes
only. |
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Andrea McMullen
AVP
ACT Canada
tel: 905 426-6360 ext. 24
fax: 905 619-3275
email: andrea(AT)actcda.com
web: www.actcda.com
mail: 85 Mullen Drive, Ajax, ON, L1T 2B3 |
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