ACTion Newsletter

November 27, 2008

Welcome to the November 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. Hypercom Optimum M4200 Mobile Payment Terminals Receive Interac Device Certification
3. Global Payments Introduces A Robust EMV Chip Platform From Collis
4. MasterCard Unveils EMV Authentication System
5. Gemalto Unveils World's First Optical Reader For Online Banking That Fits In A Wallet
6. ICC Solutions Announces ADVT qVSDC Device Module Test Scripts For qVSDC Intelligent Reader & Combination Testing Confirmed By Visa
7. US Rolls Out 'Vicinity RFID' To Check IDs In Moving Vehicles - Member Only Access
8. INSIDE & Fime Team To Ensure NFC Interoperability
9. First British ID Cards Introduced - Member Only Access
10. MasterCard Sees Enhanced Opportunities In A Dual Environment
11. Ingenico Leading Innovation By Integrating New Technologies Within Its Payment Terminal
12. Study Favours Use Of National Health ID Numbers For Patients - Member Only Access
13. Giesecke & Devrient Combines Optically Variable Device Technology With Laser-Engraved Security Features For ID Documents
14. Bell ID Partners With Monitise For Mobile Payment Technology
15. Think NFC Is Just Ticketing And Payments? Think Again.- Member Only Access
16. Aconite & Proxama Demonstrate New Solution For Remotely Managing NFC Applications On Mobile Phones
17. HID Global & Dynamic Card Solutions Partner For EMV Instant Issuance

ACT Canada Partners:

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

Collis is a leading provider of EMV, e-ID, and e-Passport test tools, consulting, and training in Canada. Contact us for EMV training and test tools for every step of the EMV Transaction life-cycle - Cards, Terminals, Acquiring host and Authorization host. Collis America at 1-651-925-5410.

ACT CANADA THANKS OUR NEW & RENEWING MEMBERS:

PRINCIPAL:
Scotiabank ~ member since 1995

GENERAL:
Coinamatic ~ member since 1995
Keystone Manufacturing ~ member since 2006

1. EDITORIAL COMMENT
Source: Catherine Johnston, President & CEO, ACT Canada (11/24)

Wisdom

This is the last editorial for the year and since I am away on holidays, I've had time to reflect on many things. I've thought about the current uncertainties in our industry, and even though forecasts at Cartes were positive, I believe we will all need to make wise choices in the coming year. That makes me think of 1993, when the last recession hit the smart card industry. Globally, we are in a much better state than then, but there will be companies that suffer and others that benefit, in large part due to the wisdom of their choices.

It occurs to me that wisdom is built on three pillars. The first is the knowledge you gain by learning from others. It starts at birth and never ends. The second is the knowledge you build from experiencing life. This does not come without a price, because some of the best lessons learned come from mistakes we have made. The third pillar is character. It determines how you will use the knowledge you've gained from the first two.

Being wise often requires courage and conviction. Wisdom must always be a servant of the long term, not just the immediate future. The wisdom of those who came before us has given us a strong national banking system. Where will our choices take it? How will we add to it? Our health system; what choices must we make to protect it?

Sometimes it is wise to wait before taking action, but it is never wise to wait because you are hoping that a problem will go away and you won't need to think about it.

For 2009, I wish you a prosperous year, one full of wise choices. And as this year passes and you look back, I hope that you have been in a position to make choices that support your long term prosperity.

2. HYPERCOM OPTIMUM M4200 MOBILE PAYMENT TERMINALS RECEIVE INTERAC ASSOCIATION DEVICE CERTIFICATIOND
Source: Hypercom (11/18)

Hypercom Corporation announced that its two smart card-based 32-bit multi-application mobile electronic payment terminals in its new Optimum M4200 series have received Interac Association Chip PED Device Certification for use within the Interac Direct Payment (IDP) network. The new certification covers the Optimum M4240 Bluetooth and M4230 GPRS models with integrated smart card readers.

The Optimum M4200 mobile series has already received PCI PED approval, MasterCard Worldwide Payment Terminal Security approval for IP and wireless transactions and EMV Level 1 & 2 certifications for global merchant markets. The M4200 family shares the same application development toolkit and user interface as the T4200, enabling business applications written for one platform to be quickly repurposed for the other for fast deployment. This unrivaled efficiency constitutes the most flexible platform in point-of-sale today.

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

3. GLOBAL PAYMENTS INTRODUCES A ROBUST EMV CHIP PLATFORM FROM COLLIS/B2 PROCESSING SOLUTIONS INC.
Source: Collis (11/06)

Global Payments announced it has selected Collis/B2 Processing Solutions Inc. to provide EMV Chip testing and certification tools for its Point-of-Sale payment solutions in Canada. Collis' testing platform provides Global Payments with the ability to validate the functionality and performance of Canadian card payment networks' contact and contactless cards on its solutions. Utilizing the Collis platform, Global Payments is also able to test International cards that may circulate with the expansion of EMV Chip in Canada. This testing environment provides merchants with the assurance that their Point of Sale solutions from Global Payments are fully EMV Chip compliant.

Collis is a member of ACT Canada; please visit http://www.collis.nl.

4. MASTERCARD UNVEILS EMV AUTHENTICATION SYSTEM
Source: MasterCard (11/05)

MasterCard launched MasterCard Advanced Authentication for Chip - a new EMV authentication solution, for the hundreds of millions of EMV cards in the market that are currently not personalized for the MasterCard Chip Authentication Program.

This new authentication method is an innovative approach that allows two-factor authentication on the numerous EMV cards already issued in EMV markets, in addition to functions already available for cards which are personalized according to the MasterCard Chip Authentication Program (CAP). Issuers who decide to make strong authentication accessible to their cardholders no longer need to reissue their cards.

Additionally, the new Advanced Authentication for Chip solution supports issuers in markets where PIN is not used to verify cardholders by making sure that the card is genuinely issued and authenticated through the MasterCard network.

This new product is endorsed by a number of major vendors and ensures that:
" Standard EMV cards already issued, with or without off-line PIN, are supported regardless of the presence of explicit CAP personalization.
" The large base of EMV cards in issuance without offline PIN can now be strongly authenticated in remote environments.
" Advanced Authentication for chip readers also support cards personalized with CAP ensuring backwards compatibility with implementations already active in the marketplace.

Advanced Authentication for Chip is operated by the cardholder inserting an EMV card into a personal card reader. Once inserted, the personal card reader will perform specific card checks. If the card does not support offline PIN, the reader will immediately display a one-time password. Otherwise cardholders will first be prompted to enter their PIN. Similar to CAP, this one-time password can then be submitted over the internet, phone, and other channels to the issuing bank for verification. The reader can also be used to respond to presented challenges and create unique signatures incorporating transaction data.

The specification underlying Advanced Authentication for Chip governs how the personal card readers will deal with different EMV card profiles and ensures the widest possible acceptance.

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

5. GEMALTO UNVEILS WORLD'S FIRST OPTICAL READER FOR ONLINE BANKING THAT FITS IN A WALLET
Source: Gemalto (11/04)

Gemalto released Ezio Optical Reader, a unique optical authentication device that fits in a wallet together with the banking card, to provide utmost convenience for e-banking services. An optical sensor captures the data users would normally enter from a keypad to carry out and sign online transactions, eliminating cumbersome typing and saving time. The device is compliant with the latest industry standards - MasterCard CAP*, Visa DPA* and German Sm@rt TAN* - and leverages the security of EMV banking cards.

With Ezio Optical Reader, performing secure online transactions has never been so easy - almost transparent for consumers. They simply present the device in front of their PC screen and the data needed for authentication and signature generation is instantly read. In addition, it requires no software installation, which facilitates its usage. By offering unmatched convenience, Ezio Optical Reader will also enable financial institutions to enlarge the scope of their Internet services offering.

Gemalto is a member of ACT Canada; please visit http://www.gemalto.com.

6. ICC SOLUTIONS ANNOUNCES ADVT QVSDC DEVICE MODULE TEST SCRIPTS FOR QVSDC INTELLIGENT READER & COMBINATION TESTING CONFIRMED BY VISA
Source: ICC Solutions (09/25)

ICC Solutions is delighted to announce the immediate availability of two test solutions featuring ADVT qVSDC Device Module test scripts confirmed by Visa for qVSDC Intelligent Reader Combination Testing. The ADVT qVSDC Device Module test script pack is available to run on ICCSimTM Terminal Test Tool, which is also recognised by EMVCo for EMV Level 2 type approval testing. A cost effective stand-alone solution ICCSimTMat: ADVT qVSDC, dedicated to running both contact and ADVT qVSDC Device Module test scripts, is also available.

Each combination of an approved intelligent qVSDC Reader and Terminal that an acquirer intends to deploy is required to successfully complete the ADVT qVSDC Device Module testing. This testing is mandatory for all acquirers wishing to deploy a qVSDC acceptance infrastructure.

This test tool can also assist developers in successfully delivering Visa approved intelligent qVSDC readers to their customers and facilitate the qVSDC development required on the device side to ensure a successful combination.

ICC Solutions is a member of ACT Canada; please visit http://www.iccsolutions.com.

7. US ROLLS OUT 'VICINITY RFID' TO CHECK IDS IN MOVING VEHICLES - Members Only Access

Available in the ACT Canada Members Only section of our web site. Click on the link below to access this section
http://www.actcda.com/members-only/news.htm

If you are a member of ACT Canada but do not have your login details please contact me - andrea(AT)actcda.com

8. INSIDE & FIME TEAM TO ENSURE NFC INTEROPERABILITY
Source: INSIDE Contactless (10/30)

INSIDE Contactless and FIME announced they are joining forces in a partnership designed to speed up the attainment of NFC interoperability. Through this partnership, the two companies will combine their expertise and leadership to identify and resolve potential conflicts in the interoperability of NFC devices, and develop a comprehensive process, support and service portfolio for testing and certifying NFC mobile handsets.

INSIDE and FIME will work in close cooperation with their customers in this partnership to help develop the most effective test and certification process, and plan to present a first version of this process and associated tools and services to their common customers early next year. Through this cooperative effort, they will be able to offer their customers greater visibility into the testing and certification requirements at an early stage during development of their NFC mobile handset products, and provide them with products, tools, know-how and services to ensure compliance. The partnership also intends to consult with various standards bodies, including the NFC Forum, ETSI, ISO and payment and transport associations, providing valuable results based on their experience to boost or amend current certification standards.

NFC devices not only have to comply with the NFC Forum's requirements and include the minimum interoperability level, but also with ETSI standards for HCI and SWP protocols. In addition, they need to be able to cohabitate with traditional NFC applications, as well as a large range of legacy applications and infrastructure combining payment, transport, access control, loyalty and other applications.

On top of all those requirements, there is the issue of connecting to the SIM card or other secure element (SE). As a result, the complex relationship between the NFC chip and the handset application framework requires a new dimension in testing to ensure an optimal interoperability level for contactless applications. To reach the full promise of NFC from day one, this interoperability issue has to be taken into account for the entire NFC device design, manufacturing and go-to-market process.

INSIDE Contactless and FIME are members of ACT Canada; please visit http://www.insidecontactless.com & http://www.fime.com.

9. FIRST BRITISH ID CARDS INTRODUCED - Members Only Access

10. MASTERCARD SEES ENHANCED OPPORTUNITIES IN A DUAL ENVIRONMENT
Source: MasterCard (11/17)

MasterCard applauds Canada's Commissioner of Competition for her determination that duality of credit card issuing and acquiring in Canada is competitively appropriate. Prior to the announcement, the Competition Bureau had favoured non-duality, which did not allow financial institutions to issue or acquire competing card brands.

According to industry statistics, MasterCard has enjoyed the highest increase in purchase volume, card growth, and number of transactions, making MasterCard the fastest growing payments brand in Canada - in a field that includes Interac (Canada's only debit brand), American Express, and Visa - over the past three years. A dual market will allow MasterCard to build on this trend by providing greater opportunities through access to new issuers and cardholders. Duality will also simplify the Canadian acquiring landscape and will make Canada a more attractive market for MasterCard to expand acceptance and introduce innovation at the point of sale.

The move to duality will allow improved competition and innovation in Canadian payments for consumers, businesses, and merchants as more financial institutions and their customers gain access to leading-edge technology from MasterCard, such as PayPass™ contactless payments, mobile payments, Multi Card® corporate payments, enhanced e-commerce payments, and an industry-leading global technology platform.

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

11. INGENICO LEADING INNOVATION BY INTEGRATING NEW TECHNOLOGIES WITHIN ITS PAYMENT TERMINAL
Source: Ingenico (11/04)

Ingenico announces significant developments across its range of Wireless, PDA, Unattended and PINPad devices. From the addition of colour screen and 'Text to Speech' functionality to improve the user experience, to the delivery and certification of new contactless technologies that radically simplify the installation of new payment solutions in store, Ingenico is committed to a programme of continual development.

Featuring its own unique embedded contactless technology, Ingenico's GPRS-enabled EFT930 G, and Bluetooth EFT930 B Wireless terminals, are designed to be Mastercard PayPass and Visa PayWave certified. These devices will also, for the first time, feature colour screens.

Its Vending Pass and CAD30 Unattended terminals are fully Mastercard PayPass and Visa PayWave certified, while its PCI-PED i3070 and ML30 PINPads - combining a smart card, magnetic card and contactless reader, and offering mobile phone (NFC) payment in a single integrated package - complete the evolution of the widest contactless portfolio of the market.

Equipped with the latest wireless technologies and the only solution on the market to integrate secure payment and multi-application capabilities into a rugged and user-friendly design, Ingenico's PDA i8550 sets new standards in intelligent payment solutions for mobile workforces. Already boasting a large colour touch screen display, the additional text to speech capability will further enhance the device's reputation for flexibility, quality and crucially, accessibility by visually impaired operators and consumers.

Ingenico is a member of ACT Canada; please visit http://www.ingenico.com

12. STUDY FAVOURS USE OF NATIONAL HEALTH ID NUMBERS FOR PATIENTS - Members Only Access

13. GIESECKE & DEVRIENT COMBINES OPTICALLY VARIABLE DEVICE TECHNOLOGY WITH LASER-ENGRAVED SECURITY FEATURES FOR ID DOCUMENTS
Source: Giesecke & Devrient (11/03)

Giesecke & Devrient (G&D) presented a new technology at this year's CARTES exhibition in Paris. Introduced under the name of Laser Personalized Patch (LPP), it provides significantly enhanced protection against the counterfeiting of all kinds of ID documents. This innovative product is G&D's response to the demand for increased security and meets the need for a simple but reliable means of verifying the authenticity of documents in real time. The LPP is the first product to combine multiple security techniques in a single personalizable security device offering maximum protection against forgery and manipulation.

The LPP works by integrating three separate security features, each of which provides a high level of security in its own right. The solution is based on Kinegram optically variable device technology in which an image integrated in the document creates a different illusion of movement depending on the angle from which it is viewed. Optically variable devices (OVDs) are already being employed today as a security element in a variety of applications, including banknotes, passports, and other forms of ID document such as vehicle registration papers.

The second feature of G&D's new LPP technology is that it also contains a "ghost image" integrated in the OVD. This is a laser image engraved in the transparent OVD film showing a miniaturized mirror image of the document-holder's photograph. The third personalized element of the new device is a laser-produced engraving in the OVD that stands slightly proud of the surface and can thus be detected with the fingertips. The document-holder's birth date or eye color, for instance, can be recorded here. The laser process used to produce the ghost image and engrave the other personalized details results in a document in which the holder's personal data are inseparable from the Kinegram image.

This unique combination of three security elements provides effective protection against manipulation or forgery of the personalized card or data page. The LPP technology is suitable for use in all types of high-security ID documents, including identity cards, drivers' licenses, healthcare cards, and passports containing a machine-readable PECSEC or polycarbonate data page.

Giesecke & Devrient is a member of ACT Canada; please visit http://www.gi-de.com.

14. BELL ID PARTNERS WITH MONITISE FOR MOBILE PAYMENT TECHNOLOGY
Source: Datamonitor via COMTEX (11/07)

Bell ID has partnered with Monitise Group to develop a shared Trusted Service Manager approach to mobile contactless payments.

According to Bell ID, the project will bring together Monitise's mobile money service, which has already been rolled out to consumers in the UK and North America, and Bell ID's technology in smart card and application management.

The shared Trusted Service Manager approach of Bell ID and Monitise is expected to create separate environments for both chip security and the management of consumer's financial accounts, therefore combining trusted card security with a consumer interface.

Bell ID is a member of ACT Canada; please visit http://www.bellid.com.

15. THINK NFC IS JUST TICKETING AND PAYMENTS? THINK AGAIN. - Members Only Access

16. ACONITE & PROXAMA DEMONSTRATE NEW SOLUTION FOR REMOTELY MANAGING NFC APPLICATIONS ON MOBILE PHONES
Source: Aconite (10/30)

Aconite and Proxama, showcased a new service that allows the remote management of NFC phone applications. This capability will be vital to the roll-out of NFC applications on mobile phones - from loyalty, to payments, ticketing and access control. Whether a customer wants to cancel the payment application because their phone has been lost or stolen, or they need to add a ticketing application or an access control facility for a new job, the ability to control NFC applications in the field will be critical to both consumers and service-providers.

Proxama and Aconite illustrated their NFC applications management service with a demonstration of a pre-paid mobile payment application. The demo uses a Java wallet application developed by Proxama that sits on a MasterCard M/Chip PayPass pre-paid 'card' on the phone's secure chip. The prepaid 'card' is topped up by Aconite's Prepaid Value Manager solution which manages authorisation and top-ups from contactless prepaid applications. The co-operation between the two organisations uniquely links the software on the phone with the back-end processes of the application issuer. This provides an important corner-stone in mobile applications life-cycle management.

Aconite is a member of ACT Canada; please visit http://www.aconite.net.

17. HID GLOBAL AND DYNAMIC CARD SOLUTIONS PARTNER FOR EMV INSTANT ISSUANCE
Source: ContactlessNews (11/05)

'HID Global and Dynamic Card Solutions announced they have partnered to deliver an EMV instant issuance solution that enables financial institutions to cost-effectively issue highly personalized non-embossed credit and debit cards. This revolutionary solution is already being successfully used by multiple issuers of Visa branded cards.

By combining DCS' patented CardWizard software and FCP 20/20 flat card printer, powered by HID Global's High Definition Printing (HDP) technology, financial institutions can now instantly issue secure, flat-panel EMV cards that function just like traditional embossed cards, but without raised numbers and lettering. With 98 percent of worldwide transactions being processed electronically, the need for embossed characters on payment cards has virtually been eliminated.

Dynamic Card Solutions is a member of ACT Canada; please visit http://www.globalinstantissue.com.

ACT Canada is the authority on the Canadian market, supporting our members through working with key stakeholders. We help members understand the market, public and private sector applications and potential barriers. We facilitate knowledge transfer and thought leadership through a neutral forum, while expanding our members' networks. Founded in 1989, ACT Canada is a non-profit membership association. Please visit http://www.actcda.com or contact our office at 905 426-6360.

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.

Andrea McMullen
VP, Operations
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