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Tag: MasterCard

  • FTC Orders Mastercard to Stop ‘Illegal Business Tactics’

    FTC Orders Mastercard to Stop ‘Illegal Business Tactics’

    The Federal Trade Commission has ordered Mastercard to stop its ‘illegal business tactics’ in an effort to level the debit card payment field.

    Debit cards are increasing in popularity, but Mastercard has unfairly dominated the industry. The 2010 Dodd-Frank Act known includes a provision known as the Durbin Amendment. The Durbin Agreement “required banks to enable at least two unaffiliated networks on every debit card, thereby giving merchants a choice of which network to use for a given debit transaction.”

    According to the FTC, Mastercard flouted “the law by setting policies to block merchants from routing ecommerce transactions using Mastercard-branded debit cards saved in ewallets to alternative payment card networks, including networks that may charge lower fees than Mastercard.”

    As a result, the FTC is ordering Mastercard to provide competing networks with the customer data they need to be able to process debit card payments.

    “This is a victory for consumers and the merchants who rely on debit card payments to operate their businesses,” said Holly Vedova, Director of the FTC’s Bureau of Competition. “Congress directed the FTC to enforce this part of the Dodd-Frank Act and prevent precisely this kind of illegal behavior. We take this responsibility seriously, as demonstrated by our action today.”

  • Visa and Mastercard Suspend Russia Business

    Visa and Mastercard are the latest, and two of the most influential, companies to suspend operations in Russia in response to its invasion of Ukraine.

    Visa and Mastercard answered calls from President Volodymyr Zelenskiy to suspend their business in Russia, in an effort to make Russia’s invasion as costly to the country as possible. According to The Guardian, both companies are isolating Russia, preventing cards issued in the country from working outside, and vise versa.

    “We are compelled to act following Russia’s unprovoked invasion of Ukraine, and the unacceptable events that we have witnessed,” said Alfred Kelly, Visa’s CEO.

    “We regret the impact this will have on our valued colleagues, and on the clients, partners, merchants and cardholders we serve in Russia.”

    “This war and the ongoing threat to peace and stability demand we respond in line with our values.”

    Mastercard echoed those sentiments in their own statement:

    “For more than a week, the world has watched the shocking and devastating events resulting from the Russian invasion of Ukraine.

    “Our colleagues, our customers and our partners have been affected in ways that most of us could not imagine.

    “We don’t take this decision lightly. Mastercard has operated in Russia for more than 25 years.

    “We have nearly 200 colleagues there who make this company so critical to many stakeholders.

    “As we take these steps, we will continue to focus on their safety and wellbeing, including continuing to provide pay and benefits.”

    While the companies are clearly working to isolate Russia, domestic customers will still be able to use their cards in-country, according to The Guardian.

  • Mastercard Partners With Bakkt to Support Crypto

    Mastercard Partners With Bakkt to Support Crypto

    Mastercard has announced a partnership with Bakkt to enable its customers to better embrace cryptocurrencies.

    Crypto is taking the financial world by storm, with even established companies rushing to embrace it. Mastercard is one of the biggest financial companies to go all-in on crypto, partnering with Bakkt to do so.

    The partnership will enable Mastercard partners to offer their customers “the ability for consumers to buy, sell and hold digital assets.” The crypto wallets will be powered by Bakkt’s platform. Customers will also be able to access branded crypto credit and debit cards, and the partnership will help integrate crypto into Mastercard’s loyalty programs.

    “Mastercard is committed to offering a wide range of payment solutions that deliver more choice, value and impact every day,” said Sherri Haymond, executive vice president, Digital Partnerships at Mastercard. “Together with Bakkt and grounded by our principled approach to innovation, we’ll not only empower our partners to offer a dynamic mix of digital assets options, but also deliver differentiated and relevant consumer experiences.”

    “We’re incredibly excited to partner with Mastercard to bring crypto loyalty services to millions of consumers,” said Nancy Gordon, EVP, Loyalty Rewards & Payments at Bakkt. “As brands and merchants look to appeal to younger consumers and their transaction preferences, these new offerings represent a unique opportunity to satisfy increasing demand for crypto, payment and rewards flexibility.”

  • Verizon and Mastercard Team Up to Apply 5G to the Payments Industry

    Verizon and Mastercard Team Up to Apply 5G to the Payments Industry

    Verizon and Mastercard are partnering to bring the benefits of 5G to the payments industry.

    5G stands poised to revolutionize numerous industries, not the least of which is the financial sector. Like most carriers, Verizon has been moving ahead at full-speed in its efforts to deploy its 5G network.

    The two companies plan to use 5G to help “drive transformational solutions for the global payments and commerce ecosystem.” The next-gen wireless technology will help revolutionize new areas of the commerce industry, including contactless payments and autonomous checkout.

    In particular, the two companies’ efforts will help advance the use of smartphones for making and accepting payments, providing touchless retail experiences, VR/AR shopping and creating new ways to consume digital content.

    “Business needs and consumer demands constantly fluctuate. Critical components of long-term success are the ability to remain agile and align with strategic financial and payments partners that have the tools and capabilities to drive industries forward,” said Sampath Sowmyanarayan, CRO, Verizon Business. “Coupling Verizon’s leading global IP network and transformative 5G technology with Mastercard’s deep industry expertise, leading services and solutions, and a strong commitment to innovate, is a partnership that aligns perfectly with what we are striving to achieve at Verizon and one that can create game-changing solutions.”

  • Mastercard Buys CipherTrace to Boost Its Own Crypto Capabilities

    Mastercard Buys CipherTrace to Boost Its Own Crypto Capabilities

    Mastercard announced it has acquired CipherTrace, as the payments company continues to expand its crypto capabilities.

    Cryptocurrency is quickly going mainstream, with companies large and small supporting the technology. That adoption is extending to traditional finance and payments companies, such as Mastercard.

    CipherTrace is a crypto intelligence company with a focus on the intersection between consumer privacy and the blockchain economy. Mastercard sees the company as a valuable element in creating an atmosphere of trust and security in the realm of cryptocurrencies and digital assets.

    “Digital assets have the potential to reimagine commerce, from everyday acts like paying and getting paid to transforming economies, making them more inclusive and efficient,” said Ajay Bhalla, president, Cyber & Intelligence at Mastercard. “With the rapid growth of the digital asset ecosystem comes the need to ensure it is trusted and safe. Our aim is to build upon the complementary capabilities of Mastercard and CipherTrace to do just this.” 

    “We help companies – whether they are banks or cryptocurrency exchanges, government regulators or law enforcement to keep the crypto economy safe,” said Dave Jevans, CEO, CipherTrace. “Our two companies share this vision to provide security and trust throughout the ecosystem. We are thrilled to join the Mastercard family to scale CipherTrace’s reach across the globe.” 

    Terms of the deal were not disclosed, although it is expected to close by the end of the year.

  • Facebook Libra Backers Back Out

    Facebook Libra Backers Back Out

    A week ago we covered a Wall Street Journal article highlighting potential trouble for Facebook’s Libra cryptocurrency, as multiple backers were reconsidering their commitment to the project.

    Fast-forward a week and things have only gone from bad to worse. As Bloomberg reports, PayPal was the first to announce they were leaving on October 6, with Visa, Mastercard, eBay, Stripe and Mercado Pago following suit. Each of these companies provided a brief statement, expressing their interest in monitoring Libra’s progress. Nonetheless, without these companies’ support, Libra is left without a single payment processor in the U.S.

    The high-profile exits follow increased pressure from U.S. senators, who cautioned Mastercard, Visa and Stripe about backing the currency. Since Facebook first announced the Libra project, governments around the world have been critical of the endeavor, expressing concern about how the cryptocurrency will impact financial markets. In the days leading up to the companies pulling their support, senators cautioned them about how Libra could impact their broader payment business as well.

    Critics are mixed about whether these high-profile defections spell doom for Libra or a new opportunity. Michael Pachter, an analyst for Wedbush Securities, told Bloomberg TV that he “didn’t think Facebook can do this by itself. Short of a big bank stepping in like JPMorgan, I don’t think this could ever happen.”

    As SiliconANGLE highlights, however, several other companies emphasized their support, “including Kiva, Mercy Corps, Andreessen Horowitz, Anchorage and Xapo. Arguably, the change sees Libra look more like a startup now with the lack of mainstream company support.”

    The news comes days before the Libra Association is scheduled to meet to sign a charter agreement. It’s probably a safe bet there will be far more to talk about in the wake of these defections.

  • Libra Currency Backers Reconsidering Involvement

    Libra Currency Backers Reconsidering Involvement

    The Wall Street Journal (WSJ) is reporting that financial backers of Facebook’s cryptocurrency, Libra, are having second thoughts.

    According to sources familiar with the situation, Visa and Mastercard—both members of the Libra Association created by Facebook to oversee the project—are having doubts about continuing to back the currency amid criticism from various governments. Neither of the financial companies want to risk the investigation and regulation that seems all but certain should Libra move forward.

    Since Facebook’s announcement that it would be rolling out Libra in June 2020, governments around the world have expressed concern about the cryptocurrency. Fears include the possibility that Libra could undermine government-backed currencies, erode consumer privacy—an area where Facebook already has a poor track record—and give the social media giant even more influence and power than it currently has.

    Lawmakers in the U.S. have asked Facebook to delay the currency’s launch until an investigation can be done, while Germany and France have vowed to block it from Europe altogether. Even governments that are not opposed, such as Ireland, are still cautious about the repercussions that come with the currency.

    If the WSJ’s article is any indication, Facebook may have to shore up confidence in the currency long before it ever deals with government regulation.

  • Microsoft, Mastercard Teamup Enables Small Businesses to Trade Globally

    Microsoft, Mastercard Teamup Enables Small Businesses to Trade Globally

    Mastercard and Microsoft recently announced their latest collaboration—the Mastercard Track. The program is described as a distinct trade platform that can be used worldwide. It will reportedly simplify and automate payments between companies.

    Payments are supposed to be a fundamental and essential aspect of any business transaction. However, a lot of companies struggle with late payments. These delays are caused by inefficiency most of the time and result in profit loss and the erosion of trust between the buyer and supplier.

    Mastercard and Microsoft believe Track has the potential to solve this dilemma. The Track platform can automate and streamline procurement-to-payment procedures. Instead of having payments and invoices in separate systems, all data will be placed in one location. This will give companies improved visibility into their cash flow and help them to comply and conduct payments in a more efficient manner.

    Mastercard said that Track builds on and augments the company’s range of innovation and B2B assets, including its card and account-to-account payment solutions, data analytics, payment gateway, and fraud management services. Meanwhile, Microsoft will provide its very own Azure cloud system to run the Track platform, thereby giving it the protection of the company’s strict security and compliance standards.

    Mastercard Track will also be supported by a partnership comprised of nine procure-to-pay solutions companies and B2B networks – Basware, BirchStreet, Coupa, Ivalua, Jaggaer, Liaison Technologies, the Infor GT Nexus Commerce Network, Tradeshift, and the Tungsten Network.

    Michael Froman, Mastercard’s vice chairman and head of strategic growth, said that Mastercard Track is a tool that will “help reduce frictions in the global trading system and promote increased exports—especially by small and medium-sized businesses.”

    At the moment, companies have to navigate the various mechanisms that are currently in place for payments. Aside from that challenge, brands also have to deal with the lack of transparency and copious paper trail.

    Mastercard and Microsoft say that all account-based, bank transfer, or card-based payment systems will be connected on Track. The platform will also integrate invoice information and purchase order and will streamline the back-office.

    The platform is ideal for small to medium-sized businesses, especially ones involved in global exports. However, Track will also offer banks, B2B, insurance, and technology companies a business opportunity by providing value-added services. For instance, banks can give supply chain and trade loans on Track while technology brands can offer better data analytics.

    [Featured image via Pixabay]

  • MasterCard Is Using Facial Recognition for Online Purchases

    MasterCard Is Using Facial Recognition for Online Purchases

    Biometric security is on the rise, by all reports. One recently suggested that by 2019, over 770 million biometric authentication applications will be downloaded each year. Right now that number is about six million.

    Apple and other smartphone makers are pushing it forward with fingerprint ID systems. Will biometrics ever completely edge out the password? Maybe. Hopefully. The password is terribly insecure, as we’ve seen over and over again.

    Anyway, MasterCard wants to get in on this biometrics push by letting users confirm online purchases with their faces.

    According to a report from CNN, MasterCard is set to launch a small pilot program (500 cardholders) that will allow people to use facial recognition to confirm purchases. Once you download the MasterCard app and buy something, you’ll receive a confirmation alert.

    From CNN:

    If you choose fingerprint, all it takes is a touch. If you go with facial recognition, you stare at the phone — blink once — and you’re done. MasterCard’s security researchers decided blinking is the best way to prevent a thief from just holding up a picture of you and fooling the system.

     

    MasterCard said it doesn’t actually get a picture of your finger or face. All fingerprint scans will create a code that stays on the device. The facial recognition scan will map out your face, convert it to 1s and 0s and transmit that over the Internet to MasterCard.

    Cool.

    MasterCard says it has plans to launch the feature publicly soon, after the trial period.

    “The new generation, which is into selfies … I think they’ll find it cool. They’ll embrace it,” said MasterCard’s Ajay Bhalla.

    Oh, this is about selfie love? Ok, you’ve ruined it.

  • Kylie Minogue Pranks One Of Her Biggest Fans [VIDEO]

    What if your favorite singer came to your job or local gym to give you a personal performance? That would be pretty cool, huh?

    Well, that’s what happened to Adam Miner of Crouch End, England recently, when pop star Kylie Minogue walked into his gym and gave him a one-on-one performance, complete with backup dancers and everything.

    The whole thing was set up by MasterCard to promote the 2014 BRIT Awards, and the company is doing the same thing with other stars like Pharrell, as he’s supposed to surprise a fan as well.

    Here’s how MasterCard and Minogue pulled the prank off:

    Miner was doing his usual workout at his neighborhood gym and all of a sudden Minogue comes out of nowhere and starts singing her new single “Into The Blue,” and the other people working out in the gym were secretly planted, as they were really Minogue’s backup dancers. Soon after, Miner was in the middle of a full-on performance, and considering he’s one of the pop singer’s biggest fans, it made the prank extra special for him, he said.

    “I’ve been a fan of Kylie for as long as I can remember,” said Minor. “I have so much memorabilia from over the years and from concerts at home, that to have my own personal performance from Miss Kyle Minogue herself, I was just stunned. She’s an incredible woman. I’m so lucky.”

    And Minogue said the performance was special for her as well, because she hardly ever gets to meet and do a personal show for one of her fans. “I’ve never performed in a gym before,” she said. “So it was a crazy and exciting experience for both me and my fan Adam. I loved Adam’s reaction when I walked in and even in his shocked state, he still managed to sing along to all the words to ‘Into The Blue.’ It was fabulous for both of us.”

    Image via Wikimedia Commons

  • Microsoft Launches ‘Bing Offers Card-Linked’ Deals

    Earlier this year, Bing announced Bing Offers, its latest foray into the local deals space. The product launched across the United States. Today, the company has announced an expansion of that with “Bing Offers Card-Linked”.

    This is a program they’re launching in Seattle only for the time being, but more cities will follow soon.

    “We found that there is some frustration with having to make major commitments to create coupon deals along with additional investment in infrastructure and training to manage redemptions. Merchants also wished they had more direct control on managing promotions with better insights into consumer engagement,” says Microsoft’s Erik Jorgensen.

    They created Bing Offers Card-Linked to help “minimize this frustration,” partnering with First Data, Visa and MasterCard.

    Basically what it does is gives merchants the ability to provide offers to consumers via their credit cards or other payment cards, so the customer doesn’t have to use a coupon, promotion code or voucher.

    Bing Offers Card-Linked

    Benefits for advertisers, as described by Microsoft, include broad reach (ads across Outlook.com, windows Phone 8, Skype and Bing Apps), a CPA model, better engagement, controlled discounts and “frictionless” redemption.

    So far businesses taking advantage of Bing Offers Card-Linked include: Pizza Hut, Mooyah Burgers, Buca Di Beppo, as well as some other SMBs in the spas, automotive, espresso shop, restaurant and retail store verticals.

    Microsoft expects to update the list of available cities later this year.

  • Foursquare Partners with Visa, MasterCard for Amex-Like Offers

    In early 2011, Foursquare and American Express launched a partnership that allowed card-owners to score discounts and cashback by using Foursquare to check-in and spend at certain participating businesses around the country. The program made a big splash on Small Business Saturday (the shopping day after Black Friday) and featured offers like “spend $25 get $25 off.”

    Later, Foursquare and AMEX extended those deals, even launching them across the pond.

    Now, Foursquare is making a move to expand these offers to more types of plastic.

    The company has announced that they will be extending these types of specials with both Visa and MasterCard, and most debit cards to provide similar check-in offers alongside participating businesses.

    Foursquare is working with payment solutions company First Data and CardSpring to expand the seamless specials.

    The AMEX/Foursquare deal has morphed over time to start producing more revenue for Foursquare, and the company says that the new deals with Visa and MasterCard will earn them a fee for every offer redeemed. It’s unclear whether that will be a flat fee per offer claimed or some sort of percentage deal.

    “This is going to be a pretty core part of our revenue model going forward,” said Foursquare Product Manager Noah Weiss.

    According to AdAge, the first offer that should be available today involves $1 off for $10 spent at 8,000 participating Burger King locations.

    Since this is going to be a “core part of the revenue model,” it shouldn’t surprise you that Foursquare is also making these credit card deals more prominent within the app.

    All you’ll have to do is sync your Visa, MasterCard, or AMEX with your Foursquare account to start earning cashback on purchases made through the app.

  • MasterCard Introduces MasterPass Digital Wallet, Partnership With mFoundry

    MasterCard introduced MasterPass today at Mobile World Congress, calling it the “future of digital payments”. The service lets people use any payment card or enabled device to “discover enhanced shopping experiences”.

    MasterPass includes checkout services for merchants, and connected wallets for users.

    “Every device is becoming a shopping device,” said Ed McLaughlin, chief emerging payments officer, MasterCard. “MasterPass brings together all of the ways we pay for things, from traditional plastic cards to digital wallets, and gives consumers the ability to make a payment from wherever they are and with one simple experience.”

    MasterPass will be integrated into mFoundry’s nearly 900 bank customers, integrating it into mFoundry’s mobile banking solutions, which have millions of customers.

    “Consumers will now shop and pay in whatever way best fits their needs and lifestyles, from every device they have. MasterPass gives them the ability to make a payment from wherever they are, with one simple experience,” said Ed Olebe, Group Head, MasterPass Services, MasterCard. “Integrating with mFoundry’s solution embeds the power of MasterPass into an industry-leading mobile banking platform and enhances both the payment and banking experience for consumers.”

    “Together, mFoundry and MasterPass deliver an outstanding customer experience by integrating mobile banking and mobile payments into one, seamless solution,” said mFoundry CEO Drew Sievers. “By bringing together both, financial institutions can transform their mobile banking experience and achieve the broader goal of turning mobile into their most valuable channel.”

    MasterCard announced PayPass nearly a year ago, and says MasterPass is an evolution of it. mFoundry will create a digital wallet service using its APIs, and the service will be available early next year. Pilots are expected to launch later this year.

  • Barnes & Noble Partners With Mastercard For Nook Promotion

    Are you one of the millions of Americans who use a Mastercard credit card? Have you always wanted a Nook HD or Nook HD+? If you answered yes to both of these questions, you may want to take advantage of a new promotion Barnes & Noble is running this weekend.

    Starting today, Barnes & Noble will be giving away $20 gift cards to anybody who purchases a Nook HD or Nook HD+ using a Mastercard card. The offer is good online and in any of the retail stores around the nation. You will have to act fast, however, as the deal will only last throughout January 21.

    Before you go running out to pick up one of Barnes & Noble’s acclaimed tablets, you might want to check if you have enough credit to cover the cost. The Nook HD, which features a 7-inch screen, comes in two varieties – 8GB and 16GB. The former will set your credit back $199 while the latter goes for $229. The Nook HD+ comes in at 9-inches and features a 1080p display. The 16GB device retails for $269 while the 32GB device retails for $299. Buying any of these with a Mastercard card will net you the $20 gift card.

    So, why is Barnes & Noble offering a Christmas-like deal in January? It’s very simple really. The Nook didn’t have a very good holiday season, and Barnes & Noble is obviously trying to drum up demand for its tablet. The only flaw in its plan is restricting the deal to Mastercard users. Hell, it would be a bad idea to restrict it to any credit card purchases as most consumers are now in the process of paying off their credit card debt left over from the holidays.

    Still, it’s a neat little promotion for those who prefer Nook to the Kindle Fire HD or the Nexus 7. The latter of which just received a T-Mobile version for those who want to take it on the go.

  • MasterCard and Deutsche Telekom Partner for Mobile Payments

    MasterCard and Deutsche Telekom announced today that they have entered into a partnership to bring mobile phone payments to more Europeans over the next year. Deutsche Telekom has around 93 million mobile customers that could soon be using their phones as a credit card.

    “This is a huge step on our way to increase mobile payments,” said Thomas Kiessling, chief product and innovation officer for Deutsche Telekom (pictured above with Ann Cairns, president of international markets at MasterCard). “With MasterCard we have a well-known and experienced partner generating growth in this important market segment. We want to build a comprehensive ecosystem around mobile payment, helping Telekom to realize its strategy of being the first choice for customers regarding connected life and work.”

    The roll-out of the service will begin in Poland later this year, with Germany following soon after. The initial trial for the technology will use mobile phone tags and cards before a full-on mobile wallet service rolls out in the first half of 2013. The mobile wallet service will be open to issuing banks and partners other than MasterCard.

    It seems that NFC technology is finally going to take off in the West, and not just for making payments. There are rumors that the next iPhone will have built-in NFC. Though high-end Android smartphones have had NFC capabilities for over a year, it could take the might of Apple to push the technology forward to popularity.

  • Hacker Releases Visa and Mastercard Information Stolen From Chase Bank

    According to a hacker who calls himself Reckz, or Jeremy, he has gained access to Visa and Mastercard files through several large banks.

    He then released the information minus several critical aspects including card number, security code, and expiration date. The message was posted via Pastebin on the 18th of June.

    Reckz comments in his Pastebin post about the bank hacks and the release of information:

    “Today’s target is VISA & Mastercard, I will be only leaking a portion of the credit card information, as I cannot leak the entire data, it’s too large, and this is the certain proof that i’ve hacked into VISA & Mastercard….”

    “I’m also censoring the credit card information such as CC Number, Secret Code, Expiry date for security measures, I also edited the way the information will look, the original one looked bullshit.”

    He further explains that his purpose for hacking the banks involves good old fashioned curiosity rather than some malicious intent. He also claims to have no special talents, just passionate curiosity.

    He mentions Chase Bank as one of the institutions he infiltrated, but suggests there are several more involved. ZD Net speculates the hacks could be related to a credit card security breach that occurred in late March where big banks sent out letter to customers that a security leak may have compromised their information.

    According to another message on Pastebin from Reckz posted on the 12th of June, he is retiring from the hacking business, realizing he has no real purpose for his unusual skill. He says he will use his talents for only good purposes from here on out.

    Reckz comments on his retired status:

    “I’ve realized that I am doing this shit for nothing.”

    “I am officially..a whitehat.”

    “I will use my intelligence for good.”

    “I’ve done over 50 large hacks, and leaked many essential information, I am sorry if I harmed you, or affected your families.”

    “This is my departure from the hacking scene.”

    In his post from yesterday, he reminds us that of the purpose for his hacks; all in the name of curiosity and challenge. What I have to wonder is whether his latest hack falls in line with his new mission to use his hacking prowess for only good. Perhaps he hopes to reveal to the general public just how antiquated bank security really is.

    If he doesn’t have any overarching goal or message, and his hacks are just for curiosity sake, he probably should retire. He really doesn’t, “fulfill your (our) ‘lulz’ attention with some excitement & entertainment!”, as he suggests.

    Visa and Mastercard are most likely very interested (and probably Chase Bank as well), the general public however, doesn’t really care. Find something more exciting to do, you bore me Reckz.

  • Angry Birds Credit Cards Coming Soon…..To Russia

    What is left for Rovio to do after having their Angry Birds games downloaded over 1 billion times? Get into a partnership with a Russian bank to have an Angry Birds credit card of course.

    According to the Moscow News, the company is working with Internet Retail Solutions (Irsol) on branded MasterCard cards that will be available in Russia on June 4. Irsol said that they will print out 100,000 cards and then will determine if there is enough demand for more cards to be printed.

    This, once again, falls into Rovio’s new found push to move away from a “video game only” business approach, and more into a multimedia approach. They have a theme park, have acquired new studios, and have a movie/cartoon in the works. They seem to really want to capitalize on the Angry Birds name and good public opinion while they still can to build a better brand.

    Picture courtesy of Promsvyazbank

  • MasterCard Announces PayPass Wallet Services

    A recent survey conducted by MasterCard has shown that consumers demand more efficient and secure checkouts when making purchases. Now MasterCard’s payment platform will better integrate transactions spanning online, mobile and in-store shopping, with the introduction of PayPass Wallet Services.

    Users of PayPass Wallet can log the information up to 25 different credit cards to consolidate payment information, in one safe and secure place. Similar to Google Wallet, PayPass Wallet also incorporates NFC (near field system) technology to where users can “tap” their mobile devices during checkout at over 500,000 stores that have already installed the system. Also, third party vendors can create payment systems under their own brands using MasterCard’s system, and shipping information can likewise be stored for easy access.

    PayPass Wallet Services is made up of three components:

    PayPass Acceptance Network: The PayPass acceptance network includes both online and contactless payments, and gives merchants a consistent way to accept electronics payments across multiple channels. NFC payments can be made in-store by tapping your mobile phone, and a new PayPass online element lets you check out at a retailer by clicking a PayPass button – automatically providing your shipping and payment information to a retailer without having to fill that information out each time you pay.

    PayPass Wallet: PayPass wallet enables banks, merchants and partners to white label their own wallets. Consumers can store payment and shipping information in one secure place including American Express, Discover, Visa and other branded credit, debit and prepaid cards.

    PayPass API: The PayPass API allows partners to connect their own wallets into the PayPass network, and lets those partners user MasterCard’s check-out, fraud detection and authentication services to allow their customers to make purchases wherever PayPass is accepted.

    Ed McLaughlin, chief emerging payments office, MasterCard, states, “We think of MasterCard’s mission as using technology to make payments safer, simpler, smarter and this is just one of the ways we’re progressing against that mission – We realize that when it comes to payments, no single wallet will rule them all. PayPass Wallet Services simplifies the shopping experience while providing flexibility and choice to merchants, banks and consumers.”

    PayPass Wallet Services will become available to partners in Q3 2012, initially in the U.S., Canada, the U.K. and Australia, with other countries following.

    In related news, MasterCard has recently said that it’s pretty sure NFC technology will be included with Apple’s iPhone 5.

  • Credit Card Processor Hack Update: 1.5 Million Cards Compromised

    Last week it was reported that a major U.S. credit card processor’a security had been breached and that millions of credit card numbers and data were stolen. The specific processor that was the victim of the security breach and the full scope of the data theft have now been revealed.

    On March 30, Global Payments Inc., a credit card processor based in Atlanta, confirmed unauthorized access into its processing system. The company believes that 1,500,000 card numbers may have been stolen, but that cardholder hames, addresses, and social security numbers were not taken. Having had multiple information security and forensics firms investigate the incident, Global Payments believes it to be contained.

    “We are making rapid progress toward bringing this issue to a close. Our nearly 4,000 employees around the world are focused on providing exceptional service. We are open for business and continue to process transactions for all of the card brands,” said Global Payments CEO Paul R. Garcia.

    Global Payments provides electronic processing for merchants, Independent Sales Organizations, financial institutions, government agencies, and corporations. It processes credit and debit cards, purchasing cards, gift cards, and electronic checks.

    There is no word yet on any progress finding those responsible for the data theft. What might be done with the stolen data is unknown. Global Payments also did not make any recommendations for consumers whose card numbers may have been compromised.

  • MasterCard and VISA Warning Banks of Massive Processor Breach

    Krebs on Security, a security news and investigation site, is reporting that both VISA and MasterCard are warning banks of a security breach at a U.S. credit card processor. The breach is said to be ‘massive’ with as many as 10 million card numbers possibly compromised.

    The alerts began going out late last week, but the actual security breach happened between January 21 and February 25 of this year. Banks were told that “full Track 1 and Track 2 data was taken,” which is enough information to counterfeit new credit cards.

    Only MasterCard is speaking out so far. “As a result, we have alerted payment card issuers regarding certain MasterCard accounts that are potentially at risk,” the company said to NewsCore, according to the New York Post.

    According to the Wall Street Journal, a MasterCard spokesperson said, “MasterCard’s own systems have not been compromised in any manner.”

    VISA has not issued any statements, and there is no word yet on which card processor was compromised. Krebs stated that banks are analyzing transaction data to determine any commonalities in purchased made on the compromised cards.

    From the Krebs article:

    Sources at two different major financial institutions said the transactions that most of the cards they analyzed seem to have in common are that they were used in parking garages in and around the New York City area.

    It’s not clear how many cards were breached in the processor attack, but a sampling from one corner of the industry provides some perspective. On Wednesday, PSCU — a provider of online financial services to credit unions — said it alerted 482 credit unions that appear to have had cards impacted by the breach, and that a total of 56,455 member VISA and MasterCard accounts were compromised. PSCU said fraudulent activity had been detected on a relatively small number of those cards — 876 accounts — and that the activity was geographically dispersed.

    Yesterday I shared an infographic on the largest hacking scandals in the past decade. Financial institutions must be hoping this latest one is dealt with swiftly and with a minimum of disruption to the financial industry.

    (via Krebs on Security)

  • NFC Coming To iPhone 5? MasterCard Thinks So

    NFC Coming To iPhone 5? MasterCard Thinks So

    Ed McLaughlin, head of emerging payments at MasterCard, has given some weight to rumors that Apple’s next iPhone will finally include near field communication technology. In a recent interview with Fast Company, McLaughlin said that he expected the use of contactless payment systems like MasterCard’s PayPass – which rely on NFC technology – to expand rapidly in the near future.

    Part of the reason for that expansion, he said, is the technology’s penetration into the smartphone market. McLaughlin insisted that “I don’t know of a handset manufacturer out there that isn’t in the process of making sure their stuff is PayPass ready.” When pressed on whether that included Apple, McLaughlin would only repeat that there aren’t any handset manufacturers not working on the technology.

    Though still in its early days, the technology is becoming increasingly common in the smartphone market. Google Wallet, a system designed for Android phones with NFC technology, stores users’ credit card data on their phones so that they can use them with NFC-based payment systems like PayPass. The Samsung Galaxy Nexus, which launched late last year, includes NFC, and the major mobile phone carriers are said to be working on their own mobile payment system much like Google Wallet (which, incidentally, is likely the reason Verizon blocked Google Wallet on the Galaxy Nexus when it launched).

    More than two years ago we began hearing rumors that the iPhone 4 would have NFC. When the iPhone 4 launch came and went with no mention of NFC, it was thought that Apple might include it in the iPhone 5. In October the iPhone 5 was revealed as the iPhone 4S, and still NFC technology was notably absent. Now, of course, rumors are flying that the next iPhone will finally have the technology built in. Though hardly an direct confirmation, McLaughlin’s statements are strongly suggest that those rumors are correct.

    [Via Fast Company]