A security vulnerability has been found in Visa Cards which does not exist in MasterCard. Basically, it involves the number of times you can try to process a transaction with an incorrect expiration date (or CVV). Visa allows multiple attempts to process a transaction, and Mastercard allows only 10 attempts before the transaction is blocked not.
Why does this matter? Because if a computer can make an unlimited number of attempts, then it can try different numbers until it guesses the correct number. In this case, criminal that illegally purchased a 16-digit credit card number can (literally) guess different month/year combinations until they find correct information. On average, there are roughly 60 likely month/year combinations that are available for a valid Visa card at any given time. Continue reading “Security Flaw Found in Visa (But Not MasterCard)”
It’s been called a “Surcharge,” “Swipe Fee,” “Credit Card Fee” “Interchange,” or a “Checkout fee.” Until today, retailers were not allowed to pass these fees on to their customers. If you heard about it in the news, you may have the impression that you will have to pay 4% more for everything starting today. That is a myth, and it is not the only one: Continue reading “Seven Myths About New Credit Card Fees”
Square launched at Starbucks today, and it is an interesting step forward in the world of mobile commerce – not just for Starbucks, but for other Square retailers.
For all of the good and not-so-good features of Square’s new app, remember that it is Square’s “Model T Ford.” They are just getting started in the world of feature-rich apps for consumer use. Also, integration with traditional POS systems is new for Square. Overall, this is a good start that Square will use as a foundation for future development. Here are the eight key elements of Square’s new smartphone app, including its use at Starbucks: Continue reading “Top 8 Features of Square-Starbucks Launch”
Looking for a sign that the mobile commerce space is growing? Take a look a the swelling number of conferences on our updated calendar of mobile commerce events.
It includes over 50 new events scheduled over the course of the next twelve months. In addition, some events that were rescheduled due to Hurricane Sandy are also included. This includes the NFC Payments USA Conference that has been rescheduled to December 10 and 11 because of the hurricane.
Predicatively, the volume of conferences falls off dramatically after December 11 for the holiday season, but picks back up by late January 2013.
A rumor that has been circulating for several days appears to have been confirmed: the joint venture of mobile carriers (previously called Isis) will launch in its two test cities (Austin and Salt Lake City) on Monday October 22, 2012. The rumor received some credibility when the Wall Street Journal reported it today. Also, the twitter account @paywithisis, which is unverified but appears to be legitimate, tweeted this today, “It’s official: We’re launching in Austin and SLC on Oct. 22”
It is important to note that the web site has no press releases regarding an October 22 launch date as of today.
Based on Apple’s press conference on September 12, their strategy can be described as: change customer behavior now, encourage an upgrade later.
The Apple wallet going to be called, imaginatively, “Apple Wallet.” It works without an NFC chip, relying instead on geolocation to determine if an iPhone user is in the proximity of a compatible terminal. Geolocation is clearly not permanent solution because it includes obvious problems, such as: unwanted notifications (if you ever want to be notified that you can use your Starbucks card, for example, you’ll be notified whenever you can possibly use your Starbucks card, whether you want to or not), and imperfect functionality indoors (when you are in a shopping mall, GPS has a hard time figuring out exactly where you are).
Twenty-five years ago, telecommunications was facing their biggest threat since deregulation, and most executives did not take the threat seriously. Ten years later, it had decimated international telecom revenue models and profitability. Today, it is the reason that most phone calls cost close to nothing. It’s called “Bypass,” and it has just appeared in the payment card industry. If you are a payment industry executive (or investor), don’t make the same mistake as your telecom colleagues by ignoring this trend.