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January 31, 2006 |
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Welcome to the January 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. EMV Entrenching In Global Payment Card
Markets
3. 12 Canadian Issuers
& 5 Acquirers
Commit To Introduce MasterCard
Chip Cards
4. Cardware 06 Goes On
The Road
5. E-Passport Testing Begins
At San Francisco
Airport
6. Keycorp Selected For
Hong Kong ePassport
Project
7. Giesecke & Devrient
Awarded Contract
To Provide E-Passports,
Other ID Systems,
For Macedonia
8. Contactless EMV Payments
Are In The Pipeline
9. Axalto Terminals Go
Contactless In Taiwan
10. Gift/Loyalty System
Integrates With Payment
Platform
11. Texas Goes Live With
A Benefits Smart
Card
12. Smart Cards For Patient
Histories
13. UK Charity Pilots Smart
Card For Visually
Impaired
14. Additional Stories Available In Members
Only Section
ACT CANADA THANKS OUR NEW & RENEWING
MEMBERS:
PRINCIPAL:
Oberthur Card Systems ~ member since 2005
GENERAL:
CUETS ~ member since 1990
ICC solutions ~ member since 2003
NBS ~ member since 1995
ASSOCIATE:
Energy Card ~ new member
IMS-MTE ~ member since
2003
Pierre A. Roberge - new
member
Technology Surveys International
~ new member
UPCOMING EVENTS:
Smart Card Alliance presents - 5th Annual
Smart Cards in Government Conference 2006
April 18-20
Arlington, VA, USA
http://www.smartcardalliance.org
CardTech/SecurTech 2006
May 2-4
San Francisco, CA, USA
http://www.ctst.com
ACT Canada presents Cardware 2006
June 13 - Toronto, ON,
Canada (financial
focus)
June 15 - Ottawa, ON, Canada
(government
focus)
http://www.actcda.com
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1. EDITORIAL COMMENT
Source: Catherine Johnston, President &
CEO, ACT Canada (01/30) |
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Happy New Year. We wish you every success
this year, both personal and professional.
2006 is certainly
off and running with
EMV
conversion progressing
in the financial
services
sector and much discussion
of a cross border
identification card
in the public sector.
The first seeks to
improve upon an existing
product but the second
still has time to
go another route
- that of building
a Canadian
solution to meet
Canadian needs.
Many years ago I
talked with the developer
of a highly innovative
product. It had so
many features that
made perfect sense,
you
couldn't help but
wonder why no-one
had brought
it to market earlier.
I asked how he had
come up with the
original concept.
It seems
that a number of
co-workers were in
a bar
one night after work
and when the bill
came,
someone asked, "How
would we pay for
this if no-one had
invented cash?"
That
led them to develop
payment from scratch,
free of any restrictions
encountered when
you are trying to
improve upon an existing
product. In this
case the product
was ahead
of its time because
it required extensive
infrastructure upgrades,
but I strongly believe
that it will emerge
when that infrastructure
is rolled out for
other business reasons.
The point is that
sometimes it's best
to
improve upon an existing
product or service,
as is the case with
EMV for credit payments,
and other times you
can achieve the best
by starting from
scratch.
Our government must
now decide what kind
of identification
is needed for Canadians
crossing between
Canada and the US.
This
decision cannot be
made in isolation
because
we must work with
our counterparts
in the
United States, but
we do need to explore
all our options.
In that process,
we should
look at existing
ID to determine whether
it can be made more
secure; tamper and
counterfeit
resistant. We need
to openly discuss
the
use of provincially
issued identification
for this purpose.
In the end, we will
make
decisions bound by
many factors, but
the
discussion should
be as broad as possible.
Someone should ask,
"What would
we do
if no-one had invented
travel ID?"
Regardless
of the final choice,
any ID carried by
a
citizen must be highly
counterfeit and tamper
resistant.
In June we will be
hosting Cardware
06 with
programs designed
to help financial
services
maximize their EMV
investments and government,
both federal and
provincial, to understand
the case and options
for identity management.
(see Cardware story).
ACT Canada is committed
to helping source
and analyze information
and identify contacts
for our members in
both the public and
private
sector.
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2. EMV ENTRENCHING IN GLOBAL PAYMENT CARD
MARKETS
Source: Card Technology (01/05) |
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By mid-2005, 329 million EMV-compliant payment
cards had been issued globally, 65 million
of which were issued during 1H 2005 alone,
or 38 per cent more than in the same period
of 2004. At end-June 2005, 3.9 million EMV-compliant
POS terminals and ATMs had also been installed,
a 25 per cent increase on end-2004, according
to EMVCo, which defines the EMV card standard.
While this is just 15 per cent of the global
total for internationally-branded credit
and debit cards, the reality is that EMV
is rapidly gaining a presence in the global
payment card infrastructure.
EMV chips feature
on over one-third
of payment
cards in the 25 countries
of the European
Union in part due
to the regional liability
shift that MasterCard
and Visa mandated
for
January 1, 2005.
About 40 per cent
of ATMs
and 30 per cent of
POS terminals in
Europe
are said to be EMV-ready,
but the Netherlands,
Italy, Germany and
Spain still rely
heavily
on magnetic-stripe
card transactions.
Despite
this, MasterCard
believes that acquirers
in Spain had EMV-enabled
10 per cent to 15
per cent of their
card terminals by
end-2004,
up from virtually
none in July 2004.
On this basis MasterCard,
which expects two-thirds
of its cards and
terminals in Europe
to be
EMV-ready by end-2007,
argues that EMV conversion
can occur within
a very short timeframe.
In 2007, Italy is
expected to shift
fraud
liability for domestic
transactions to the
non-chip compliant
party, but for now,
its
bankers believe the
case for EMV is weak
with a card fraud
rate of 4 cents for
every
EUR 10,000 in transactions.
Although other
European countries
have a similar stance
and some financial
institutions have
a long
way to go, EMV is
acknowledged to be
gaining
steam.
MasterCard and Visa are members of ACT Canada;
please visit http://www.mastercard.ca & http://www.visa.ca.
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3. 12 CANADIAN ISSUERS & 5 ACQUIRERS
COMMIT TO INTRODUCE MASTERCARD CHIP CARDS
Source: MasterCard (12/21) |
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MasterCard Canada announced that 12 of its
card issuers will be working with MasterCard
and five leading acquirers to introduce chip-enabled
MasterCard payment cards in Canada by 2010.
With 17 commitments to date on the migration
to chip, MasterCard is leading the market
in Canada.
The Canadian MasterCard
issuers are ATB Financial;
BMO Bank of Montreal;
Canadian Tire Bank;
Capital One Canada;
Citibank Canada;
Credit
Union Electronic
Transaction Services
(CUETS);
GE Money Canada;
HSBC Bank Canada;
MBNA Canada;
National Bank of
Canada; People's
Trust Company;
and President's Choice
Bank. The acquirers
are First Data Loan
Company, Global Payments
Inc., Moneris Solutions
Corporation, Paymentech
Canada and United
Network Payment Solutions.
"The shift to
chip is one of the
most
important changes
to the Canadian payments
industry since its
inception,"
said
Kevin Stanton, President,
MasterCard Canada.
"Chip cards
will bring unprecedented
security, convenience,
and value to consumers
and businesses. It
also means the implementation
of industry-wide
technical and commercial
infrastructures.
MasterCard is providing
cutting-edge, customized
hands-on support
and extensive expertise
to assist in a smooth
transition, with
the philosophy of
'do it
once and do it right.'"
Bank of Montreal, CUETS, MasterCard and Paymentech
are members of ACT Canada. Please visit:
http://www.bmo.com; http://www.cuets.com; http://www.mastercard.ca & http://www.paymentech.com.
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4. CARDWARE 06 GOES ON THE ROAD
Source: ACT Canada (01/30) |
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The race for information is on! Over the
past few months we have had an unprecedented
number of questions from issuers, acquirers,
government and the industry.
Stakeholders in EMV,
and there are at
least
nine groups, are
starting to ask questions
about how to optimize
their investments
as
they move forward.
Everything from streamlining
data management to
pre-formatting customer
cards for future
use, managing the
card lifecycle
to PIN selection
for multiple applications,
is being questioned.
The Cardware program
committee has selected
"Optimization"
as the theme for
this year's Financial
Services
event, to be held
Tuesday, June 13th
at the
St Andrews Club in
Toronto.
To meet government
needs, we are, for
the
first time, taking
Cardware to Ottawa.
On
Thursday June 15th
we will hold a 2
track
event. The first
deals with Identity
Management
for Canadians. The
second track also
looks
at ID, but for civil
servants and contractors.
Privacy will be a
key issue in the
discussions.
All the topics for
both cities have
been
chosen by the committee
to meet the needs
of the market. We
will soon publish
more
information on the
sessions, speakers
and
exhibitors, but for
now, Mark Your Calendars
- June 13th &
15th.
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5. E-PASSPORT TESTING BEGINS AT SAN FRANCISCO
INT'L AIRPORT
Source: Contactless News (01/16) |
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A live test of e-passports, that contain
contactless chips with biographic and biometric
information and the readers that are capable
of reading these e-passports, began January
15 at Terminal G at San Francisco International
Airport (SFO). This test is a collaborative
effort between the United States, Australia,
New Zealand and Singapore that will run through
April 15, 2006.
Participants include
citizens of Australia
and New Zealand who
have been issued
the
new e-passports,
Singapore Airlines
crew
and officials holding
trial e-passports
and
U.S. diplomatic and
official e-passport
holders.
The test will assess
the operational impact
of using new equipment
and software to read
and verify the information
embedded in the
e-passports. Participants
will present their
e-passports when
arriving in the United
States
at SFO, at Changi
Airport in Singapore
or
at Sydney Airport
in Australia.
The e-passport contains
the holder's biographic
information and a
biometric identifier,
in
this case a digital
photograph, embedded
in a contactless
chip set in the passport.
The inspection process
for those participating
does not change.
The e-passports being
tested are enabled
with a security feature
known as Basic Access
Control (BAC), which
helps prevent the
unauthorized
reading, or "skimming,"
of information
from e-passports.
This is the second
live test conducted
between
the United States,
Australia and New
Zealand.
The goal of the live
test is to gather
information
that can support
countries around
the world
in their development
and implementation
of
e-passports that
comply with International
Civil Aviation Organization
(ICAO) standards.
It will also provide
valuable information
on the capability
of the reader technology.
For more information on US-VISIT, or to learn
more about entry procedures, please visit
the US-VISIT site at http://www.dhs.gov/us-visit.
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6. KEYCORP SELECTED FOR HONG KONG EPASSPORT
PROJECT
Source: : Keycorp (01/24) |
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Keycorp Limited announced it had been selected
as the exclusive supplier of MULTOS technology
to the consortium awarded the tender for
ePASS, Hong Kong's ePassport project. It
is the first win for Keycorp's MULTOS ePassport
solution, which was launched in November
2005 at the Cartes smartcards trade show
in Paris.
Hong Kong Immigration
Department awarded
a tender for ePASS
to Unihub Limited,
which
is heading a consortium
of suppliers, including
Keycorp, who will
develop and deliver
the
new ePassport system.
The project is due
to commence in 2006.
The Keycorp MULTOS
ePassport technology
capitalises
on the special features
that have made MULTOS
the most secure,
open, multi-application
smartcard operating
system.
Keycorp is a member of ACT Canada; please
visit http://www.keycorp.net.
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7. GIESECKE & DEVRIENT AWARDED CONTRACT
TO PROVIDE E-PASSPORTS, OTHER ID SYSTEMS,
FOR MACEDONIA
Source: SecureID News (12/06) |
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The government of the Republic of Macedonia
has awarded international technology group
Giesecke & Devrient (G&D) a contract
to provide the country with electronic passports,
personal identity cards, and driver's licenses,
as well as a corresponding, combined system
for personalization of the documents. Work
on the project is scheduled to begin this
year, with the project itself expected to
take a total of 11 years to complete.
The first electronic
passports and
ID cards
are due to
be issued to
the citizens of the
Republic of
Macedonia as
early as 2006. The
order covers
delivery of
1.5 million passport
documents with
integrated
microchips, 1.8
million personal
identity cards,
and 500,000
driver's licenses.
In addition
to the documents,
G&D will
be supplying
equipment for centralized
personalization
and decentralized
data acquisition
as well as
centralized
data storage and preparation.
The international
smart card
manufacturer
will also handle
system integration
and upkeep
through a maintenance
agreement.
Giesecke &
Devrient is
a member of ACT
Canada; please
visit http://www.gi-de.com.
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8. CONTACTLESS EMV PAYMENTS ARE IN THE PIPELINE
Source: epaynews.com (01/19) |
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Contactless card payments, which are designed
to gain share of the traditional cash payment
market, are rapidly gaining traction in the
US due to running on existing payment infrastructures.
Their value is underscored with the recent
establishment of the Contactless Payments
Council by the US-based Smart Card Alliance,
which promotes smart-card based payments
in that market. In May 2005 card issuer JPMorgan
Chase achieved two firsts with its contactless
card, blink, which runs on both the Visa
and MasterCard contactless infrastructures,
and others quickly followed suit.
Visa International recently issued a specification
for global contactless payments interoperability
that allows regional card issuers to customize
their programs to local markets. Contactless
cards meeting this new specification, which
applies to all card platforms (credit, debit
and prepaid) can use both mag-stripe and
EMV chip card functionality. Improved transaction
processing speed also will fuel the use of
contactless payments in low-value payment
environments and in higher-value environments
where PINs and signatures are currently used
to verify the cardholder.
Now that Visa and MasterCard have issued
contactless card specifications that incorporate
EMV security, banks in EMV-mandated regions
can support offline contactless transactions
and contact-based online transactions with
PIN verification if wished. For example,
a cardholder could make offline contactless
transactions for values of up to EUR 30,
and for larger totals, be required to insert
their card in a payment terminal for online
PIN verification. This approach allows banks
to leverage their contact infrastructure
while also offering the convenience of contactless
payments.
MasterCard and Visa are members of ACT Canada;
please visit http://www.mastercard.ca & http://www.visa.ca.
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9. AXALTO TERMINALS GO CONTACTLESS IN TAIWAN
Source: ICMA Daily New (01/12) |
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Axalto announced that its MagIC 6100 terminal
is being upgraded to accept TaiwanMoney Card
purchases. This MasterCard M/Chip-powered
card features a contact interface for traditional
EMV (Europay MasterCard Visa) payments and
the OneSmart(R) MasterCard(R) PayPass(TM)
functionality for EMV contactless payments
for use in both transport and retail environments.
This enhancement to Axalto terminals will
allow consumers to benefit from the speed
and efficiency of contactless at convenience
store chains, movie theaters and retail merchants.
The Axalto terminals are updated with an
external reader to accept the TaiwanMoney
Card. Within this project, Paysys Communications
Pte Ltd, an Axalto partner based in Malaysia,
has developed the software required to integrate
the contactless application into the terminals.
This Axalto solution was certified last October
by Mondex Taiwan, a subsidiary of MasterCard
International.
Both Axalto and MasterCard are members of
ACT Canada; please visit http://www.axalto.com & http://www.mastercard.ca.
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10. GIFT/LOYALTY SYSTEM INTEGRATES WITH PAYMENT
PLATFORM
Source: Ernex; AJB Software Design Inc. (01/30) |
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Ernex has integrated its real-time loyalty
and stored-value gift card solutions into
the AJB Software Design payment processing
platform, to help retailers leverage their
legacy point-of-sale terminals and infrastructure
to authenticate new gift and loyalty cards.
The integration of gift and loyalty processing
abilities into AJB's Retail Transaction Switch
(RTS) and FiPAY payment applications will
also allow merchants to run real-time POS
promotions for the gift or loyalty card programme.
FiPAY is a store-level communication gateway,
interfacing the merchant's PIN pad devices,
POS system, RTS network, and financial institutions,
while RTS is a multi-purpose transaction
switch that performs real-time authorisation
for a variety of transaction types, from
numerous sources, over any communication
medium, and prepares them for any destination
system.
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11. TEXAS GOES LIVE WITH A BENEFITS SMART
CARD
Source: Contactless News (01/25) |
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Speed, convenience and quicker reimbursement
all add up to a successful launch of the
WIC smart card program in Texas. WIC, a federal
program begun in 1974, stands for Women,
Infants and Children and provides participants
with nutritious foods, counseling, and referrals
to health and other social services at no
charge. The program serves low-income pregnant,
postpartum and breast-feeding women, and
infants and children up to age 5 who are
at nutrition risk.
After a year-long pilot program in El Paso,
the state's Department of State Health Services
(DSHS) is expanding the use of an electronic
benefits smart card for purchases made by
WIC clients, replacing the paper voucher
system.
"The pilot went very well," said
Hank Lundberg, part of the DSHS Electronic
Benefits Transfer Development project. Last
October, the state began the gradual implementation
of the WIC smart card program, issuing its
Lone Star Card to women in the north central
Texas area near Dallas. This same card is
also used for food stamp and TANF (Temporary
Assistance for Needy Families) recipients,
he said.
"It will be an incremental expansion,"
said Mr. Lundberg of the multi-year project.
"We had to break this up into manageable
pieces so stores can get ready."
The smart card, produced by Gemplus and issued
through First Data Government Solutions,
contains a chip that stores food benefits
data for all members of a household participating
in the WIC program. "The card is loaded
for each client at a WIC clinic," Mr.
Lundberg said.
Before the state even began its pilot program,
it worked closely with retailers, making
sure the system would work with the various
cash register systems in use. "Let's
say the grocer users NCR or IBM systems.
We worked with the grocers to make sure their
ECR (electronic cash register) vendors could
integrate the electronic benefits transfer
(EBT) function into their software,"
said Mr. Lundberg.
The program will also work for the small
grocer who may not have the sophisticated
electronic cash register capability of the
chains. "We have an EBT-compatible device
developed for the small operation,"
he added. "We have three commercial
vendors who have developed solutions for
small grocers which does the same thing as
the electronic cash register."
Gemplus is a member of ACT Canada; please
visit http://www.gemplus.com.
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12. SMART CARDS FOR PATIENT HISTORIES
Source: medGadget (01/24)
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Mount Sinai Medical Center, along with 8
affiliated hospitals, next spring plans to
begin deploying more than 100,000 smart cards
to its patients. In total, there will be
more than 45 related and affiliated health
facilities in the region involved with the
smart card initiative.
The project, which will be rolled out in
phases and might eventually provide the facilities'
500,000 patients with smart cards, could
also serve as a model for a regional health
information network effort in New York City
overall, which has a population of about
8 million, says Mount Sinai VP of IT Paul
Contino.
The cards, which will also feature a photo
of the patient, are embedded with a "secure
microchip" that will contain demographic
information-like patient name and address-and
also medical history, drug prescription and
allergy, recent lab results, and other key
data, says Contino. The information can be
updated whenever a patient receives new health
services or has a change in health status.
The cards, which are read by devices that
can attach to PCs, require that patients
enter a PIN before the chip's data can be
accessed. If cards are lost or stolen, information
cannot be accessed without the PIN, Contino
says.
"No other rollouts have reached 100,000
cards yet in health care," says Randy
Vanderhoof, executive director industry organization,
Smart Card Alliance. "This will be the
largest smart health card rollout in the
country," he says.
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13. UK CHARITY PILOTS SMART CARD FOR VISUALLY
IMPAIRED
Source: CardTechnology (01/12) |
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The Royal National Institute of the Blind
(RNIB), a UK charity, will start pilot trials
next month for a smart card that will let
users alter the appearance of ATM screens.
The RNIB developed the card in collaboration
with UK software developer SmartCitizen Ltd.
and the Suffolk County Council. On the chip,
the card includes an application that lets
users set their individual preferences for
screen display features including font size,
color, and contrast. When the card is inserted
into an ATM, a public computer, or a fare-vending
machine, the card will automatically signal
for the display settings to be changed to
suit the user's preferences. Once the card
is removed, the machine's display will revert
to its normal appearance. The initial trials
will take place on public computers at five
libraries in the Cambridge area, and the
RNIB expects the card to be available in
libraries nationwide later during the year.
There has also been discussion of incorporating
the technology into the Oyster smart card
program, which is used for fare payment by
Transport for London, the operator of the
UK capital's mass transit system.
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| 14. 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
UNDERSTANDING DPA ATTACKS AND THE COUNTERMEASURES
AVAILABLE TO PROTECT SMART CARDS
The primary reason for smart card technologies
growing success in the marketplace is simple
- security. Smart cards are self-contained
security units that can provide unparalleled
barriers to fraud and piracy. But what if
they were actually discovered to be insecure…
TSA ANNOUNCES KEY ELEMENTS OF REGISTERED
TRAVELER PROGRAM
The Transportation Security Administration
(TSA) announced several parameters for a
nationwide private sector Registered Traveler
(RT) program, including the biometrics to
be used for identification purposes and the
redress process for individuals who are denied
access to the program...
GERMAN MOBILE OPERATOR SEEKS TO LAUNCH CONTACTLESS
PAYMENT, TICKETING
Vodafone D-2, one of Germany's largest mobile
phone network operators, plans to allow subscribers
to pay their bus fares by tapping their handsets
against onboard contactless readers, says
a source with the operator. Later, it hopes
to test contactless credit payment and health
services…
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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
VP
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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