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December 7, 2004 |
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Welcome to the November/December edition
of ACTion News. This complimentary service
is provided by ACT Canada; "building
an informed marketplace". It is also
available in the Resource Centre of our web
site. Please feel free to forward this to
your colleagues.
If you would prefer to receive this newsletter
in plain text please email your request to
andrea(AT)actcda.com.
This newsletter has been sponsored by ACT
Canada's 2004 Partner:
A Coinamatic Company
IN THIS ISSUE:
1. Editorial Comment
2. Smart-Card Use Wise
For Future, TTC Decides
3. Axalto Chosen For Largest
North American
Health Care Smart Card
Rollout
4. ACI Worldwide, Thales
& MAOSCO Launch
In-Branch Smart Card Issuance
Solution
5. Pay@Table Market: New
Solution Launched
In Canada
6. Visa Introduces Battery-Powered
Card
7. European Telecoms Standards
Institute,
GlobalPlatform Move Towards
Common Standards
For Over-The-Air Smart
Card Updates
8. Cell Phones Become Mobile
Parking Meters
In Toronto
9 MasterCard Introduces
Contactless Payments
With European Flavour
10. Canadian Bank Buys
Ingenico Smart Card
Terminals
11. Additional Stories
Available In Members
Only Section
ACT CANADA WOULD LIKE TO THANK OUR NEW &
RENEWING MEMBERS:
PRINCIPAL:
MasterCard ~ member since
1999
GENERAL:
Smart Chip Technologies
~ member since 2003
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1. EDITORIAL COMMENT
Source: Catherine Johnston, President &
CEO, ACT Canada (12/06) |
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Doing the Right Thing
On October 30th,
four men followed
me off
a train in Paris
and robbed me. Now
everything
is disturbingly different.
If you issue ID,
payment or loyalty
cards you need to
understand
that personal security
is a growing issue
for Canadians and
they will increasingly
expect it from you.
Secure payment cards
will occupy top of
wallet and identity
protection
will grow as a political
issue.
Canadians value good
works as evidenced
by
the recent poll for
the greatest Canadian
of all time. We chose
Tommy Douglas for
his
vision of universal
health care. I can't
imagine how difficult
it must have been
to
sell people on a
concept that would
be so
expensive, but it
was the right thing
to
do. Today our challenge
is to do the right
thing in relationship
to protecting Canadians
when we want them
to carry paper or
plastic
in their wallets.
In spite of all the
articles and speeches
I've delivered on
identity theft, I
failed
to appreciate how
immediate and devastating
the effect would
be from losing a
small number
of cards.
I was lucky. They
only got one credit
and
debit card, my driver's
licence, health card,
and loyalty cards.
Perhaps they were
satisfied
with the Canadian
cash and the more
than
$2500 dollars they
got from the credit
card
while I was in the
police station reporting
the theft. If I'm
really lucky they
threw
away the rest, but
the odds aren't with
me.
The information on
my driver's licence
is
worth money and my
health card can be
sold
or used. Two pieces
of information that
card
issuers routinely
ask me for, in order
to
identify me, appear
on my driver's licence.
It took a significant
amount of time to
notify
all the right agencies
and get cards replaced,
and most of that
had to be done during
business
hours, so there is
a cost to my employer
for that time. I
had to notify credit
bureaus
and will now have
to check my credit
reports
on a regular basis
for the coming years
and
there will be a cost
for that. If my health
card is used there
will be a cost to
the
system and therefore
to the citizens of
Ontario.
On top of that, there
was the $2500 used
on the credit card.
I've replaced some
of my loyalty cards,
but
the frightening moment
came when I realized
that my airline frequent
flyer card could
now be in the hands
of people who might
wish
to use it to travel
under the security
radar
screen. Don't worry
said friends; the
airline
would make them identify
themselves before
giving them a ticket.
Well, I do worry.
They
have my picture,
signature, birth
date, address
and height - all
on the surface of
that driver's
licence. With that
much information,
it won't
be hard for them
to get my mother's
maiden
name or other information.
They know what
car I drive, because
of the insurance
and
vehicle identification
papers I am required
to carry, so that
gives them more avenues
to collect data.
This too has a cost,
one I continue to
pay
at 2 or 3 AM, when
I wake up thinking
about
the robbery and potential
consequences.
The Canadian Council
of Better Business
Bureaus
estimates consumers;
banks, credit card
firms,
stores and other
businesses lost CAN$2.5
billion to the perpetrators
of identity theft
in 2002. Phonebusters
(OPP) reported a
63%
growth in victims
in 2003.
This multi-billion
dollar loss is still
not
getting enough attention
from senior executives
and bureaucrats,
but some leaders
are emerging.
The Department of
Justice has sought
consultation
on Identity Theft
and options for the
Criminal
Code. Visa Canada
members are working
towards
the implementation
of chip secured VISA
credit
cards. The Canadian
Bankers Association
continues
to be a strong advocate
for identity protection.
Many other organizations
are beginning to
be aware of their
own risks, as well
as that
of their customers
and stakeholders.
To all
of them I would advocate
moving quickly.
We are already losing
this race and while
we would each like
a strong business
case
before investing,
there is a bigger
business
case for Canadians
and our economy.
Let's remember Tommy
Douglas and do the
right
thing. It is what
makes great legacies.
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2. SMART-CARD USE WISE FOR FUTURE, TTC DECIDES
Source: Globe and Mail, by Jeff Gray (11/27) |
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In just five years, the Toronto Transit Commission's
tokens, paper tickets and transfers could
be collectors' items, its vice-chairman predicts,
because of a move announced yesterday to
join the province's regional transit "smart
card" plan.
TTC vice-chairman
Joe Mihevc said that
under
the plan, which involves
GO Transit and the
other major transit
systems in the greater
Toronto area, state-of-the-art
smart-card
readers will eventually
replace the TTC's
fare boxes, and allow
riders onto buses,
streetcars and subways
with just a flick
of the wrist.
"Five years
is not a long time,
but
I don't think I'm
being aggressive
or ambitious
in saying that 2010
is a good guess,"
Mr. Mihevc said,
adding that the new
technology
would kill the trade
in bogus tickets
and
tokens, which costs
the TTC at least
$2-million
a year.
The province's Greater
Toronto Area fare-card
plan aims to allow
riders to transfer
seamlessly
from system to system
across the region,
using one common
electronic card.
But until
now, TTC staff, often
accused of being
overcautious
on technology, were
reluctant to get
involved
because of the estimated
$140-million cost
of converting the
TTC alone.
TTC commissioner
Brian Ashton told
a breakfast
conference put on
by the Canadian Urban
Institute
that the TTC had
signed on to the
province's
plan, which aims
to have its first
smart
cards in use by 2007,
for tests on Mississauga's
transit system and
the Milton GO train
line.
The cards themselves,
with a microchip
embedded,
can be used like
credit cards, with
cash
uploaded via vending
machines or the Internet.
The right combination
of fares is charged
to the user automatically,
whether the card
is used on a bus
in York Region or
a subway
downtown.
Mr. Mihevc said the
TTC's change of heart
on the plan came
as it became clear
that
Queen's Park gave
it priority. Also,
money
to establish the
system is part of
the $1-billion
funding announcement
from senior levels
of
government earlier
this year.
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3. AXALTO CHOSEN FOR LARGEST NORTH AMERICAN
HEALTH CARE SMART CARD ROLLOUT
Source: ICMA Daily News (11/02) |
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Axalto announced that it has been selected
to provide all two million microprocessor
cards for the Puerto Rico Department of Health's
new Health Smart Card ("Tarjeta Inteligente
De Salud") program. The project covers
the entire Commonwealthof Puerto Ricoand
is the largest deployment of health care
smart cards in North America to date.
"This project
demonstrates how
microprocessor
cards can be a very
valuable tool in
North
America for health
care providers, insurers
and patients alike,"
said Paul Beverly,
president, Americas,
Axalto. "Smart
cards enable compliance
with HIPAA regulations,
as well as support
for new applications
that
deliver clinical
and administrative
benefits.
They support the
delivery of fast,
efficient
and appropriate medical
care and allow institutions
to securely manage
patient records while
protecting privacy,
verifying patient
eligibility
and billing appropriate
entities for the
proper amounts."
Axalto collaborated
with Puerto Rico-based
Evertec Inc., the
integrator that is
providing
for the complete
system implementation.
Total
deployment is expected
to be completed by
the middle of 2005.
Volume deliveries
by
Axalto have already
started.
The Health Smart
Card is distributed
to all
beneficiaries of
the plan who are
certified
as eligible for the
Medicaid Program
of the
PRDOH. Current plans
call for operating
220
issuing stations
in several regions,
and
eventually issuing
health cards for
two million
Medicaid recipients.
The rollout follows
on the heels of a
successful
pilot conducted with
16,000 smart cards
already
deployed by PRDOH.
The goal of the pilot
was to assess and
validate the integration
of the Electronic
Medical Record System
with
smart card technology
in the delivery of
health care services.
During the pilot,
the
voluntary enrollment
in the smart card
program
was close to 80%
of total eligible
beneficiaries.
Axalto is a member of ACT Canada. For more
information visit http://www.axalto.com.
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4. ACI WORLDWIDE, THALES & MAOSCO LAUNCH
IN-BRANCH SMART CARD ISSUANCE SOLUTION
Source: ICMA Daily News (11/02) |
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ACI Worldwide, Thales and MAOSCO announced
the launch of their In-Branch Smart Card
Issuance Solution which they demonstrated
at Cartes 2004 in Paris. The first complete
end-to-end solution on the market, it enables
banks to issue smart cards from their branches.
The solution enables
easy implementation
of smart card issuance
through branches
with
minimal impact on
existing host systems.
While the traditional
method of card issuance
is from a central,
well-secured bureau
and
then via post to
the recipients, many
banks
need the ability
to issue smart cards
from
their branches.
For banks and other
financial institutions
branch issuance presents
three powerful customer
relationship management
(CRM) opportunities;
Firstly the ability
to avoid 'not arrived'
cards that are fraudulently
intercepted en
route to the account
holder and at the
same
time allow the account
holder to select
their
own memorable PIN,
secondly to quickly
and
efficiently replace
lost or stolen cards
within the branch,
maximising account
transaction
opportunities, and
thirdly to provide
added
value application
services in-branch,
such
as the loading of
loyalty services.
The bank can maintain
total control over
customer records
as they never have
to leave
the bank's data preparation
facility in an
unencrypted form.
The card blanks are
electronically
secured and cannot
be enabled fraudulently.
Further, they do
not need to be stored
in
the branch for collection
as the process
of cryptographically
downloading information
and completing the
card body takes only
a
few moments. The
issuing bank also
saves
costs in generating
secure PIN mailers
and
the processes that
support them.
The increased complexity
of smart card issuance
compared to magnetic
stripe has made the
in-branch card issuance
process far more
difficult for banks
to implement. To
assist
with this and following
on from Thales' enormous
success of its Guide
to EMV Migration,
ACI
Worldwide, Thales
and MAOSCO, have
created
a guide to in-branch
smart card issuance.
The guide to accompany
the solution addresses
all of the key challenges
and considerations
that banks must take
into account and
describes
a typical system
implementation.
ACI Worldwide is a member of ACT Canada.
For more information on the above listed
companies visit: http://www.aciworldwide.com; http://www.multos.com & http://www.thales-esecurity.com.
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5. PAY@TABLE MARKET: NEW SOLUTION LAUNCHED
IN CANADA
Source: Ingenico (11/18) |
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Ingenico announced the launch of a new integrated
hospitality solution with HSI Canada Micros
and Radiant Communications. Restaurant patrons
will be able to securely pay their bill with
their debit or credit card right at their
table using Ingenico's short-range wireless
terminals. Besides their customers satisfaction,
restaurant owners will benefit from higher
productivity in their dining room as well
as increased efficiency in end of day processes.
The world market potential for Ingenico's
Pay@Table solutions is over 7 million hospitality
establishments.
HSI Canada Micros
is a leader in information
technology providing
complete information
management solutions
for the hospitality
and retail industries
in Canada. Radiant
Communications is
a leading provider
of IP-based
data communications
and Internet services.
The new solution
features Ingenico's
i7700
terminal range, a
new generation of
short-range
wireless transaction
terminals that are
part
of Ingenico's new
Pay@Table™ solutions.
The
Micros suite of hospitality
systems provides
the customers data
to this terminal,
which
enables the check
details to be printed
out.
The server simply
accesses the table
number
and all that the
table has ordered
by the
touch of a button
on the i7770. The
Micros
system then sends
the data to the terminal
for printing. All
payment activity
can take
place at the table,
therefore reducing
the
amount of time a
server uses to check-out
a customer by as
much as 33 percent
or more.
Integrating the payment
device with the Micros
system also eliminates
the possibility of
double-entry keying
errors as all information
is sent by the Micros
server in-store.
End
of day reconciliation,
closing of the transaction
batch and tip disbursement
calculations among
servers are fully
automated by the
system.
Using Radiant Communications'
RetailCONNECT™
high-speed Internet
services, debit/credit
transactions are
securely authorized
in only
3-4 seconds, thus
providing unrivalled
processing
speed and rapid handling
of the customer's
payment.
Geoff Bowen, Senior
Vice President and
General
Manager of Ingenico
Canada said: "We
are very excited
about working with
Micros
and Radiant to launch
this extraordinary
solution. As the
world leaders in
our respective
areas, we will be
in a position to
lead the
next big trend in
restaurant/hospitality
service - Pay@Table.
We estimate that
there
are over 200,000
Pay@Table devices
required
in Canada.
Ingenico is a member of ACT Canada. Fro more
information visit http://www.ingenico-ca.com.
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6. VISA INTRODUCES BATTERY-POWERED CARD
Source: ICMA Daily News (11/12) |
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Visa International introduced the world's
first battery-powered credit card, which
is as thin as a regular card, but in one
way more powerful. When a cardholder presses
a button on the card, he can use it as a
flashlight in dimly lighted places. The card's
light already has attracted two Visa member
banks. La Caxia in Madrid, Spain, and DBS
Bank Ltd. in Singapore will issue the card
when it becomes available early next year.
Visa, in an
alliance with
Innovative Card
Technologies
Inc., also
known as InCard,
developed the
underlying
inlay that contains
the battery,
circuit and
switch. In a statement,
Visa said the
card complies
with ISO standards,
which set card
width. "The
ability to
put power in
a card has
been tried,"
Debbie Arnold,
Visa's vice
president of consumer
products, tells
CardLine. "This
is the
first successful
attempt to
comply with ISO
standards and
put power in
a card. "The
first version
of the card
will contain a
light, and
should be available
in the first
quarter.
Sound and a
display screen
capabilities are
under development.
The sound card,
for example,
will play a
10-second recorded
song, and
the display
card will show
special messages
and loyalty
points. The
idea behind the cards
is to engender
loyalty, attract
new customers
and improve
customer satisfaction.
DBS Bank
and La Caixa
have signed
for the first version
of the card,
which will
have a magnetic stripe
. "The
response was
immediate with both
of those banks,"
Arnold says.
Other
versions could
include smart,
mini and contactless
cards.
Visa Canada Association is a member of ACT
Canada. For more information visit http://www.visa.ca.
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7. EUROPEAN TELECOMS STANDARDS INSTITUTE,
GLOBALPLATFORM MOVE TOWARDS COMMON STANDARDS
FOR OVER-THE-AIR SMART CARD UPDATES
Source: ICMA Daily News (11/17) |
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The European Telecoms Standards Institute
(ETSI) and GlobalPlatform, both contributors
to the standardisation of smart cards and
smart card solutions, have taken a step towards
establishing complimentary standards for
downloading applications and management commands
to smart cards over the air.
ETSI's Smart Card Platform (SCP) Committee
and GlobalPlatform have fully aligned the
latest versions of their smart card specifications
- ETSI's UMTS Integrated Circuit Card (UICC)
Specifications (TS 102 225 & 226) and
the GlobalPlatform Card (2.1.1) Specification.
The result of combining the ETSI SCP smart
card solution with GlobalPlatform's multi-application
infrastructure is that they will now provide
one end-to-end solution for secure, flexible
and remote smart card application life cycle
and file management.
Both ETSI SCP and GlobalPlatform Specifications
define card management commands and security
mechanisms to download over-the-air applications
and exchange data securely between the smart
card and a remote server. The aligned specifications
will allow smart cards which have already
been distributed in the field to be updated
dynamically over the air, while ensuring
security schemes are retained.
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8. CELL PHONES BECOME MOBILE PARKING METERS
IN TORONTO
Source: Mint Inc. (11/30) |
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No more running back and forth from parking
machines, searching for change while dealing
with children, packages and braving Toronto
weather thanks to a new innovative wireless
parking solution. Paying for parking in participating
Toronto Imperial Parking (Impark) lots is
now as easy as making a telephone call using
PayMint, a new wireless park and pay by phone
payment service launched by Mint Inc..
Available at 29 Impark parking lots throughout
the downtown core and along the Yonge St.
corridor, PayMint allows customers to drive
into a parking lot, dial the PayMint phone
number from their cell phone, and purchase
parking time without leaving the car. PayMint
will automatically send a reminder text message
to the customer's handset a half-hour before
their time at the virtual meter expires.
Customers can call again to obtain more parking
time if required.
Impark monitoring staff use any wireless
device, like a cell phone or PDA, to check
whether a vehicle has logged in, and the
duration of their parking stay.
"We are confident that Torontonians
are eager for this type of wireless payment
system. It not only offers car owners convenience,
but also gives them more control by allowing
them to add time remotely," says Frank
Maduri, president of Mint Inc. "Reaction
in Vancouver and Victoria, where we launched
in March, proves that PayMint is easy to
use and encourages a high repeat use rate."
PayMint works on any cellular network, and
simply requires pre-registration either by
phone or web, and "unblocking"
caller ID features on the phone. Parking
charges are sent to a pre-assigned credit
card. There is a fifty cent charge for each
parking session, or regular customers can
purchase a flat-rate plan for ten dollars
a month.
The Toronto rollout marks PayMint's third
implementation in Canada with Vancouver and
Victoria being the first cities in Canada
to have the park and pay by phone application
available. Additional rollouts are planned
for Calgary and Ottawa, as well as Coral
Gables, Florida and selected U.S. locations.
"PayMint delivers a win-win situation
for consumers and parking operators alike,"
says Gordon Craig, Vice President, Impark.
"We know people today are always in
a rush. With PayMint, customers do not have
to go back to the parking lot to purchase
extra time if they overstay their original
purchase. Extending is simply a matter of
using their cell phone from wherever they
are to make the extra payment," he explains.
Mint Inc is a member of ACT Canada. For more
information visit http://www.mintinc.ca.
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9. MASTERCARD INTRODUCES CONTACTLESS PAYMENTS
WITH EUROPEAN FLAVOUR
Source: ICMA Daily News (11/05) |
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MasterCard International has unveiled a version
of its PayPass pay-with-a-wave product integrated
with the contact-based EMV smart cards starting
to roll out across Europe. The product is
called OneSmart PayPass and it works with
a dual-interface contact-contactless chip.
When making small payments at retailers such
as fast food restaurants or coffee shops
that deploy contactless PayPass readers,
the customer will be able to tap the card
on a reader to make a payment. The same card
can also be inserted into a reader and used
with a personal identification number to
make a payment transaction based on the EMV
standard for credit and debit on smart cards.
Pascal Dufour, vice president and head of
chip product management, says the combined
product will allow issuers to employ a single-host
authorization system for both PayPass and
conventional credit or debit transactions.
It also will allow the issuer to use the
risk-management features of EMV with PayPass,
such as requiring the customer to further
authenticate herself or himself with a signature
from time to time. MasterCard officials demonstrating
the OneSmart PayPass card at the Cartes exhibition
in Paris, say the contactless transaction
can be completed in 600 milliseconds, or
just over half a second.
MasterCard Canada is a member of ACT Canada.
For more information visit http://www.mastercard.ca.
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10. CANADIAN BANK BUYS INGENICO SMART CARD
TERMINALS
Source: CardTechnology (11/01)
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Desjardins, one of the larger retail financial
institutions in Canada, has ordered 30,000
payment terminals and PIN pads from France-based
Ingenico as it upgrades it point-of-sale
equipment in preparation for the arrival
of EMV-compliant smart cards. The Ingenico
i5300 terminals and i3500 PIN (personal identification
number) pads comply with the EMV specification
for chip-based credit and debit cards set
by MasterCard and Visa.
Pierre Lemay, a director of the Desjardins
Group with responsibility for electronic
commerce solutions, said in a statement that
the new terminals "satisfy the high
level of security demanded within the Canadian
EMV standard and they provide the level of
performance that we require." While
Canadian banks have not set a deadline for
the conversion to EMV-compliant smart cards,
Visa Canada officials have set out a roadmap
for that conversion and predicted that most
cards and terminals will be EMV-compliant
by 2010.
Ingenico is a member of ACT Canada. For more
information visit http://www.ingenico-ca.com.
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| 10. ADDITIONAL STORIES AVAILABLE IN ACT CANADA
MEMBERS ONLY SECTION |
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These additional stories will now be available
to ACT Canada members via the Members Only
section of our web site. Click on the link
below to access this section. If you are
a member of ACT Canada but do not have your
login details please contact me - andrea(AT)actcda.com.
http://www.actcda.com/members-only/news.htm
SMART CARD ADOPTION ACCELERATED BY EMV MIGRATION
& INCREASING OCCURRENCES OF FRAUD
Source: ICMA Daily News (11/09)
Smart card technology offers the financial
industry - especially the banking sector…
SMART CARD VENDORS PREDICT STRONG GROWTH
IN 2005
Source: ICMA Daily News (11/05)
Wrapping up a strong 2004, smart card vendors
predict another good year in 2005, led by
healthy demand in the mobile-phone and banking
sectors…
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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. |
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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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