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March 29, 2005 |
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Welcome to the March 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.
IN THIS ISSUE:
1. Editorial Comment
2. Burger King Canada Speeds MasterCard Payment
3. MasterCard & Visa
Agree To Common
Contactless Communications
Protocol
4. Europe's EMV Liability
Shift Is Not Yet
Absolute
5. Gov't Smart Card Leaders
Approve Key Smart
Card PIV Specification
6. Keycorp Contactless
Smartcard Selected
For Taiwan Transit Card
7. EMV Helps Malaysia's
ProJet Eliminate
Card Fraud
8. G&D Provides SECCOS
Smart Card Operating
System With Contactless
Interface
9. Visa USA Contactless
Payment Platform
Operationally Ready
10. SCM's Mobile E20 Reader
Certified For
MasterCard Onesmart Authentication
Program
11. Smart Card Alliance
Forms Transportation
Council
12. Additional Stories Available In Members
Only Section
ACT CANADA WOULD LIKE TO THANK OUR NEW &
RENEWING MEMBERS:
GENERAL:
Credit Union Central of Canada ~ member since
1990
Loyalty Group ~ new member
Mint Inc. ~ member since
2003
GOVERNMENT:
Passport Canada ~ member since 2002
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1. EDITORIAL COMMENT
Source: Catherine Johnston, President &
CEO, ACT Canada (03/29) |
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I've waited a long time to say, "the
race is on". I'd be happier if it was
to put advanced cards into Canadians' wallets.
We will get to that, but right now the race
is to find people and information.
The first is the
harder of the two.
Many
consulting firms
would like to help
with
your card systems
and were involved
with
similar systems in
other countries.
The question
you need to ask is
whether you are hiring
the company or the
individuals who did
the
projects. Too often
we've seen companies
hired but with different
consultants, leaving
customers to wonder
why it is so hard,
so
expensive and so
time consuming to
get their
projects done.
ACT Canada is fortunate
to be in a position
to help its members.
We have access to
highly
regarded individuals
who are available
for
assignments in Canada.
Some are local, some
from abroad. Some
are members of ACT
Canada.
Helping all our members
find the resources
they need to be successful
is a membership
benefit we are pleased
to support. Judging
by the calls of the
past month, this
will
be a well-used service.
Information is also
a top priority for
ACT
and our members and
we are now closer
to
launching our webinars.
In this case it is
us who need a resource.
We need a CGI Pearl
programmer to write
a small program.
Do you
know anyone who could
help? It is very
exhilarating
to watch this web
education grow from
concept
to reality.
It is also exciting
to see the return of
our networking events.
On April 5th, our
first Cardware Connections
of the year will
feature Michael W.
Roschlau, President &
CEO, Canadian Urban
Transit Association.
Michael will talk
about Public Transit: Wherever
Life Takes You. This
is your chance to hear
about Challenges
and Opportunities for Advanced
Fare Payment Systems.
Join us for conversations,
camaraderie and connections.
To register
visit:
https://www.sporg.com/registration?link_type=reg_info&form_id=21380
Join us as well for
Cardware 05. This
year
we will have three
conferences, each
designed
to meet the informational
and networking
needs of a specific
sector.
SMART MOVES will
help draw the financial
services chip roadmap
for 2008 to 2012,
address
emerging payment
technologies such
as contactless
and biometrics and
delves into telecomm
opportunities.
DRIVING IDENTITY
MANAGEMENT AND CUSTOMER
SERVICE WITH CHIP
is designed for all
government
levels and investigates
the business case.
The focus is on improved
and economical service
delivery and identity
management.
SMART MOVES: RETAIL
WINS helps retailers
with their business
case and looks at
emerging
technologies such
as RFID, contactless
payment
and biometrics. It
explores opportunities
in unattended point
of sale and kiosks,
as
well as gift cards.
Join us June 1st
& 2nd for Cardware
05.
We'll keep you advised
of program developments.
If you are not a
member of ACT Canada,
we
are introducing a
new Research Subscription
for non-members and
a time limited trial
membership. I'd be
happy to talk to
you about
your needs.
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ACT Canada Benefits for Readers and Members
ACT Canada and Business Representation Inc.
(BRI) are pleased to announce a new benefit
for companies that sell network products
and/or services. We have arranged access
to the BRI leads database at a preferred
rate. This database is designed for network
vendors offering products and services to
both the public and private sectors and includes
450 Network Security Executive contacts across
Fortune 2000 North American organizations.
For more information on content, pricing
and your discount, please contact Chuck Ross
of BRI at 804-224-2924 or bri@netstar-usa.com.
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CardTech/SecurTech
April 12-14, 2005
Mandalay Bay Convention
Center, Las Vegas,
NV
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This year's CTST conference offers an exciting
new look at two "core competencies"
that have always been at the foundation of
the event: Security and Transactions. CTST
has always been about ID tokens that are
usually taken to mean smart cards, but actually
include so much more. Here, we've taken the
high-level technological expertise that forms
the conference and we've re-focused, packaged
and labeled it with you, the end-user of
these technologies, in mind. The result is
CardTech/SecurTech 2005. ACT Canada members
receive a discount on registration fees.
Visit http://www.ctst.com for details
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ACT Canada is pleased to present
Cardware 05
June 1st & 2nd, 2005
Toronto, Canada
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ACT members receive discounts on registrations
& exhibitions rates
Details are coming soon
to the ACT Canada
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2. BURGER KING CANADA SPEEDS MASTERCARD PAYMENT
Source: Canada Newswire (03/25) |
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Burger King Canada has become the largest
merchant in Canada to support MasterCard's
Quick Payment Service (QPS) program, which
waives signatures on card receipts of under
USD 25. The move is significant for Burger
King, which will benefit from faster transactions,
and for its card processing partner, First
Data, which stands to deflect the threat
of new payment mechanisms.
MasterCard's QPS
service was devised
for
merchant environments
where speed is crucial
and purchase values
are small, and 124
Burger
King restaurants
across Canada will
use the
system. In the US,
small-value card
payments
are exploding, and
in 2004 fast-food
sales
accounted for over
63 per cent of credit
and debit card transactions
under USD 10
at a total of over
USD 22.4 million,
according
to CardWeb.com. Credit
card firms perpetuated
the trend by charging
retailers monthly
set
fees for signature-free
card purchases instead
of sticking to older
card fee structures.
Credit and debit
card spending on
items of
USD 5 or less has
more than tripled
from
USD 4 billion in
2000, to USD 13.5
billion
in 2004, according
to CardWeb.com. In
2000,
credit and debit
transactions of USD
10 or
less, totaled USD
5.7 billion, of which
26.3
per cent went on
fast-food sales and
by 2004,
accounted for USD
35.5 billion, with
63.4
per cent going on
fast-food sales.
MasterCard Canada is a member of ACT Canada.
For more information visit http://www.mastercard.com.
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3. MASTERCARD & VISA AGREE TO A COMMON
CONTACTLESS COMMUNICATIONS PROTOCOL
Source: MasterCard (03/15) |
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MasterCard International and Visa International
announced that they have reached an agreement
to share a common communications protocol
and associated testing requirements for radio
frequency-based contactless payments at the
point of sale. This protocol is based on
the MasterCard PayPass ISO/IEC 14443 Implementation
Specification.
The agreement means
that cards and terminals
supporting MasterCard
and Visa contactless
payment applications
will conform to the
same communications
protocol and undergo
equivalent testing.
The use of a common
protocol for conducting
contactless payments
will enable vendors
to streamline product
development and testing,
leading to reduced
implementation costs
and
faster time to market
for financial institutions
and merchants. With
a common protocol
in
place, merchants
will also have the
assurance
that a single point
of sale terminal
may
support multiple
payment brands and
will
require less time
for terminal programming
and testing.
The common protocol
specification is
based
on international
standards (ISO 14443)
and
has already been
trialed and market-proven
by MasterCard.
MasterCard and Visa
Canada Association
are
members of ACT Canada.
For more information
visit http://www.mastercard.com & http://www.visa.ca.
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4. EUROPE'S EMV LIABILITY SHIFT IS NOT YET
ABSOLUTE
Source: ICards International (03/24) |
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On January 1 2005, liability for card fraud
in Europe shifted to the non-chip compliant
party in a transaction (the retailer or card
issuer), which leaves retailers open to the
risk of fraud for the first time. Essentially,
merchants who have not adapted their POS
infrastructure to accept EMV chip cards will
need to cover the cost of any card fraud
resulting from the use of an international
Visa or MasterCard card on their systems.
Fraud liability on domestic transactions
in the UK shifted at the start of 2005, although
other European countries will be slower to
phase in the liability shift.
Given that the UK
is unlikely to be
fully
chip and PIN-compliant
until end-2005, merchants
who do not strictly
enforce PIN use for
card
transactions will
delay the liability
shift
deadline by at least
a year, according
to
Cards International.
Spain will not enforce
its liability shift
for domestic card
transactions
until 2008, while
Germany had not planned
a domestic liability
shift for fraudulent
transactions, but
may need to do so
in light
of growing fraud.
France, which is
EMV-enabling
an earlier chip card
program, meantime
expects
to be almost fully
EMV-compliant by
end-2005.
The UK is due to
eliminate signature-based
card transactions
by end-2005 but given
that
not all cards are
yet chip-based, signature-based
cards are likely
to be used beyond
this date.
The EMV liability
shift caused initial
confusion
in that retailers
believed all signature-based
transactions would
be banned, but the
shift
actually means compliant
retailers can accept
signature-based transactions
and the issuing
bank will pick up
any fraud losses.
PIN use
will however have
to be strictly enforced
to ensure the UK's
EMV deployment achieves
the 80 per cent fraud
reduction of other
countries.
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5. GOVERNMENT SMART CARD LEADERS UNANIMOUSLY
APPROVE KEY SMART CARD "PIV" SPECIFICATION
Source: SecureIDNews eDigest (03/04) |
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The Interagency Advisory Board (IAB), made
up of smart card leaders from major U.S.
federal agencies, unanimously voted to approve
SP800-73 -- a key specification for the Personal
Identity Verification (PIV) project. PIV
refers to the implementation of smart card
and biometric-enabled ID credentials for
all government employees. It was mandated
by the President in a document titled, Homeland
Security Presidential Directive (HSPD12).
On March 3, the IAB
met with representatives
from the National
Institute for Science
and
Technology (NIST)
responsible for drafting
SP800-73, the 87-page
document that defines
the smart card interface
for the credential.
This is a major achievement
considering the
wide gap that existed
in the discussions
just months ago.
Ten agencies were
represented
from the IAB, enough
to reach a quorum
for
the action. The agencies
were DHS, DOD, GSA,
Interior, Justice,
NASA, State, Transportation,
Treasury, and Veterans
Affairs.
The approval of the
document enables
the
progression of Federal
Information Processing
Standard 201 (FIPS201)
as well the meeting
of requirements set
forth in HSPD12--both
documents impacting
the government-wide
credential.
The outcome will
be the implementation
of
a standardized Federal
Identity Credential
to all employees
and contractors.
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6. NEW KEYCORP CONTACTLESS SMARTCARD SELECTED
FOR TAIWAN TRANSIT CARD
Source: Keycorp (03/14) |
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Keycorp Limited announced that its newly
developed MULTOS contactless smartcard product
had been selected for a new multifunction
card project for banking and transit in Taiwan.
The TaiwanMoney
Card will be
used for a transportation
system serving
millions of
residents in seven
cities in southern
Taiwan and
will be issued
by a number
of banks.
The Transportation
Bureau of Kaohsiung
City
Government
(KCG) selected
a consortium involving
MasterCard
International
and other partners
to provide
the world's
first MasterCard OneSMART™
PayPass™ chip
combi card
for the project.
The consortium
selected Keycorp's
new contactless
MULTOS smartcard
technology.
Both contact
and contactless
payment options
will be available
on the one
card. The all-in-one
payment card
will combine
MasterCard credit,
debit, Mondex
stored value
features, access
to the Cirrus
global ATM
network and the
MasterCard
PayPass contactless
functions.
"This
is an emerging
transaction technology
that uses a
contactless
interface to perform
fast, convenient
transactions
for low value
goods or services,"
explained Tim
Fletcher,
Keycorp's General
Manager, Smartcard
Technologies.
Keycorp & MasterCard are members of ACT
Canada. For more information visit http://www.keycorp.net & http://mastercard.com.
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7. EMV HELPS MALAYSIA'S PROJET ELIMINATE
CARD FRAUD
Source: epaynews.com (03/23) |
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Since EMV card-enabling its gas pumps, Malaysia-based
fuel station ProJet has had zero card fraud
on its forecourts, versus 6,200 cases in
2004, and increased its credit card volume
by 10 per cent. ProJet, which spent USD 2.2
million (RM 8.36 million) on its EMV enablement
project, believes the investment will grow
its existing 1 per cent to 2 per cent market
share and is also looking to 24-hour convenience
stores for extra revenue. As Malaysia's only
branded gas retailer to EMV-enable all its
stations, ProJet is seeking an edge over
big-name rivals such as Shell.
From January 1, 2005, ProJet has limited
its pay-at-the-pump gas purchases to EMV
chip-based credit cards to minimize the risk
of losses to fraud on stolen or counterfeited
cards. EMV card payments are accepted at
all ProJet gas pumps, at JetExpress payment
booths next to the pumps and inside its Destina
24-hour convenience stores. At the point
of payment, the card is 'locked' into the
terminal for verification, which takes a
couple of seconds, and drivers with non-EMV
cards can still make payments at the JetExpress
booth or in the convenience store.
MasterCard has also advised that fraudulent
transactions on its Malaysian-issued cards
fell by over 90 per cent in a period in which
MasterCard's EMV transactions grew to 84
per cent in February 2005, up from 73 per
cent in December 2004. Malaysia's EMV migration,
involving 6.6 million cardholders and over
60,000 card terminals, is expected to conclude
in mid-2005, ahead of the January 2006 liability
shift deadline. About 3.5 million of Malaysia's
4.5 million MasterCard holders currently
have EMV cards and no cards to date have
knowingly been cloned.
MasterCard is a member of ACT Canada. For
more information visit http://www.mastercard.com.
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8. G&D PROVIDES SECCOS SMART CARD OPERATING
SYSTEM WITH CONTACTLESS INTERFACE
Source: ContactlessNews eDigest (03/02) |
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Giesecke & Devrient (G&D) has expanded
the SECCOS smart card operating system specified
by the banking industry to include a contactless
interface. The improvement will make possible
additional card applications that provide
benefits such as speed and easy handling
for both card issuers and customers.
G&D has taken SECCOS and added to it
the ISO/IEC 14443 Type A contactless transmission
protocol on a dual interface chip, resulting
in an operating system dubbed SECCOS Dual
Interface (DI). Dual Interface makes possible
data transmission via an over-the-air, i.e.
contactless, interface as well as through
contact-based one. Service providers who
opt for the new card will profit from the
high level of market penetration of the SECCOS
operating system, which has become established
as a secure chip card platform. The system
offers the highest level of investment protection.
Besides payment transactions, card-issuing
enterprises can therefore offer their customers
additional applications that are quick, secure,
and convenient.
SECCOS, having been specified by the banking
industry, is a secure platform for numerous
payment applications, offering, for example,
electronic purse and EMV functionality for
national and international debit transactions.
The card also carries an integrated juvenile
protection feature. With its universally
applicable signature function, the operating
system also supports encrypted e-mail communication
and safeguards electronic transactions over
the Internet, including online banking and
digital signing of contracts.
Giesecke & Devrient is a member of ACT
Canada. For more information visit http://www.gdai.com.
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9. VISA USA CONTACTLESS PAYMENT PLATFORM
OPERATIONALLY READY
Source: ContactlessNews eDigest (03/02) |
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Visa USA announced it has completed the development
of its contactless payment platform and is
ready to begin deployment of this new payment
feature on Visa cards in the U.S. market.
The platform is designed to deliver speed
and convenience by making the purchase process
faster and easier, while offering all the
same security protections the industry has
come to expect from the leader in payments.
Visa's Contactless employs industry-standard
technology to deliver a secure application
specific to the payments marketplace that
transmits payment information over extremely
short distances to a contactless reader at
the point of sale. To use, cardholders simply
hold their card briefly near a secure reader
at checkout, instead of swiping it. All other
aspects of the contactless transaction are
handled in the same way as a traditional
Visa transaction.
"After successful trials in several
regions of the world, we feel we have the
right solution and this is the right time
for Visa to make contactless technology available
in the U.S. market," said Elizabeth
Buse, executive vice president, product development
& management, Visa USA. "We want
to make sure our Members and merchants have
the ability to offer current innovations
to their customers, if they choose to do
so."
Visa USA advocates that the industry adopt
a brand-neutral contactless indicator to
identify contactless cards, key fobs and
devices, and to convey to cardholders where
contactless cards are accepted. This will
simplify the point of sale for merchants
and will allow financial institutions to
brand their contactless programs as needed.
Visa Canada Association is a member of ACT
Canada. For more information visit http://www.visa.ca.
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10. SCM'S MOBILE E20 READER IS CERTIFIED
FOR THE MASTERCARD ONESMART AUTHENTICATION
PROGRAM
Source: SCM Microsystems (03/11)
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SCM Microsystems, Inc. announced that SCM's
e20 personal smart card reader for financial
applications, has been certified by MasterCard
International. The e20 reader was successfully
tested against the MasterCard OneSMART™ Chip
Authentication Program's (CAP) 2004 specifications
and was the first such device to achieve
this milestone. The approval makes it possible
for financial institutions and other card
issuers to use SCM´s mobile reader with the
popular MasterCard authentication program.
The OneSMART MasterCard Chip Authentication
Program is a smart card-based authentication
program that is a part of the MasterCard
SecureCode solution. It can be used to increase
security for Internet banking and other applications
requiring strong cardholder authentication.
"The global migration to smart card
technology is perhaps the most important
change to the card payments industry since
its inception," said Robert Schneider,
CEO of SCM Microsystems. "At the same
time, an even bigger change is taking place
in the world around us - the emergence of
ecommerce. SCM teamed up with MasterCard
to bring the power of smart card security
into the virtual world with our handheld
authentication device. The result is an easy
to use, but effective solution for ecommerce
and online banking that helps mitigate the
risks that phishing and keylogging programs
present to password-based security."
The same approach can be used to secure mail
order and telephone order (MOTO) payments
and online banking transactions. The card
reader also allows cardholders to view a
log of their last ten transactions. The solution
is aimed primarily at security-conscious,
technology-aware consumers - an important
and growing segment.
MasterCard & SCM Microsystems are members
of ACT Canada. For more information visit
http://www.mastercard.com & http://www.scmmicro.com.
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11. SMART CARD ALLIANCE FORMS TRANSPORTATION
COUNCIL
Source: Smart Card Industry News Summary
(03/24)
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The Smart Card Alliance announced the formation
of the Transportation Council to promote
the adoption of contactless interoperable
smart card payment systems for transit and
other transportation services. The newly
formed Transportation Council, in association
with the American Public Transportation Association
(APTA), will initiate projects to support
applications of smart card use. The overall
goal of the Alliance's Transportation Council
is to help accelerate the deployment of standards-based
smart card payment programs within the transportation
industry.
"The transit industry has made significant
progress in supporting the use of contactless
smart card-based payments as the most convenient
and secure payment option for commuters,"
said Randy Vanderhoof, executive director
of the Smart Card Alliance. "The Transportation
Council would like to leverage that progress
by joining forces with key organizations,
such as APTA, to address ways to accelerate
payment processing across multiple operators."
Initial Transportation Council projects will
support advancement of transit fare collection
systems and explore linkages between transit
payment systems and smart card programs in
the tolling, parking and financial industries.
The Council also plans to investigate how
transportation payment systems and credentialing
systems can be linked through the use of
multi- application smart card technology.
The Smart Card Alliance is a member of ACT
Canada and a founding member of the International
Smart Card Associations Network (ISCAN).
For more information please visit http://www.smartcardalliance.org & http://www.apta.com.
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| 12. ADDITIONAL STORIES AVAILABLE IN ACT CANADA
MEMBERS ONLY SECTION |
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These additional stories are 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
EMV CARDS WILL INCREASE SELF-SERVICE PAYMENTS
EMV card deployment in several world regions
in the next two years will create opportunities
for vendors to offer self-serve card payments
at gas pumps, kiosks, vending and ticketing
machines…
THE DEATH OF CASH?
The CASHLESS society moves a step closer
today. It comes with a large-scale trial
encouraging Tube commuters to use their Oyster
cards to pay for shopping as well as tickets…
MICROCHIP ID: THE ACT OF CARDS
Identity cards are nothing new - more than
100 countries have them, after all. But Thailand
should be the first to have a microchip embedded
in ID cards for newborns…
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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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