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The Green SheetGreen Sheet

The Green Sheet Online Edition

February 14, 2011 • Issue 11:02:01

Industry Update

The Green Sheet, Inc.NEWS

FBI issues malware threat warning

The Internet Crime Complaint Center (IC3) of the FBI issued a warning against a new malware threat targeting businesses that post job openings online. The cyber criminals reportedly respond to the ads via email. Recently, an unidentified U.S. business lost $150,000 to theft via unauthorized wire transfer as a result of an email the business had received containing embedded malware. The malware allowed the criminal to obtain online banking credentials for the company and change the account settings to allow wire transfers.

The malware was identified as svrwsc.exe and is connected to the ZeuS/Zbot Trojan. The FBI recommends that businesses use separate computer systems to conduct financial transactions. Any business that may have been the target of this type of attack should promptly report it to its financial institution, the FBI and IC3's website at www.ic3.gov. For more information, visit www.ic3.gov/media/2010/corporateaccounttakeover.pdf.

W.net, NACHA welcome new officers

Women Networking in Electronic Transactions (W.net) and NACHA - The Electronic Payments Association revealed the results of recent board elections.

W.net elected Kim Fitzsimmons as its 2011 National President. Fitzsimmons is Senior Vice President of Merchant Services at First Data Corp. Marla Knutson, President of TransFirst LLC, was chosen as President-Elect. Other officers include:

  • Secretary, Lisa Shipley, Ingenico North America
  • Treasurer, Patty Bengtson,TSYS Acquiring Solutions
  • Immediate Past President, Joan Mitchell, Moneris Solutions Corp.

W.net directors for the year include:

  • Gloria Colgan, Discover Financial Services
  • Christine Lee, National Processing Co.
  • Linda Rossetti, Bluestone Payments LLC
  • Christine Scappa, Sage Payment Solutions
  • Stacia Smith, Epson America Inc.
  • Nikki Tsairis, MasterCard Worldwide

NACHA's board consists of 19 voting members representing depository financial institutions that use the ACH network. Elected to two-year terms were:

  • Chairperson Pat Thelen, J.P. Morgan
  • Vice Chairperson Chrystina M. Giorgio, Sandy Spring Bank
  • Secretary/Treasurer Russell K. Oatman, First National Bank of Omaha

UMSI institutes free POS program

In January 2011, United Merchant Services Inc. began a free POS program for its ISOs and partners nationwide. The UMSI POS system features an Intel Atom Processor with a built-in touch screen and integrated payment processing through the company's proprietary payment platform.

In a statement about the program, Bryan Daughtery, UMSI Vice President of Sales and Marketing, said the program "is going to elevate our business partners to an entirely new level and assist in increasing the overall size of their merchant portfolio.

"With our experienced sales and support team, and their many years of experience with POS systems, our partners will not have to go through hours of online webinars and certifications. Instead, they can focus on sales and let the experts here do the heavy lifting related to programming, installation, training and ongoing support."

Federal Court upholds BofA card patent on basis of a keychain hole

The Federal Circuit Court of Appeals reportedly upheld Bank of America Corp.'s patent on the design for a credit card in Vanguard Identification Systems Inc. vs. Bank of America. The patent, issued in 2002, had previously been rejected by an examiner for "obviousness." The U.S. Patent and Trademark Office's board of appeals then reversed the examiner's decision. On Jan. 24, 2011, the federal appeals court upheld the patent office's decision.

Patent attorney Christopher V. Carani, who specializes in design law, stated in a commentary supplied to The Green Sheet that the Circuit Court's decision is good news for those seeking design patents. Vanguard had argued that BofA's design was too similar to prior designs to deserve a patent. The patent appeals board cited BofA's inclusion of a hole for key chains as the primary distinguishing feature deserving of a patent. The court's decision "can be interpreted as allowing functional features to serve as the basis for patentability," Carani stated.

The Green Sheet, Inc.ANNOUNCEMENTS

Allpoint expands in Mexico

Allpoint Network, an affiliate of Cardtronics Inc., added 2,500 ATMs at leading retail locations across Mexico. The dual-language ATMs provide surcharge-free access for U.S. tourists and business travelers.

DDS becomes Aperia Solutions

Data Delivery Services Inc. changed its name to Aperia Solutions "to better signify who we are," stated the company's Chief Executive Officer, Kevin Mokarow.

No change of ownership or management was involved. The new name supports the Aperia's development of additional product types and verticals.

ElectraCard enters American market

ElectraCard Services, a developer of software for electronic payment systems, opened operations in the Americas. The Omaha, Neb., operations are headed by Dale Van Stratten. ECS provides third-party card and automated clearing house (ACH) processing for the payments industry.

FeeFighters scores angel investor money

A website where merchants get competitive bids from card processors has obtained $1.6 million in financing from venture capital firms. FeeFighters will put the money toward expanding its product line and marketing budget.

Ixaris to automate corporate purchasing

Ixaris recently launched the Opn Card Guardian application, which automates the corporate purchasing process through one-time-use virtual Visa Inc.-branded cards. According to Ixaris, developers and businesses can now integrate corporate purchasing into third-party procurement systems without having to partner with a financial institution or integrate with a card processor.

McKeever's implements WorldPay encryption

McKeever's Price Chopper, a Midwestern grocery chain, was the first merchant to implement encryption from WorldPay US Inc. (formerly RBS WorldPay).

The retailer plans to roll out end-to-end encryption to all its stores.

Supermarket chain opts for Hypercom PIN pads

German supermarket chain REWE Group will buy 30,000 Artema Hybrid PIN Pad systems from Hypercom Corp. over the next few years. The systems replace existing PIN pads from another supplier.

The Merchant Store picks Dejavoo terminals

The Merchant Store Inc. named POS equipment from Dejavoo Systems its "terminal of choice." The terminals deploy a Linux operating system.

The Green Sheet, Inc.PARTNERSHIPS

Sage deploys Beanstream technology

Beanstream Internet Commerce Inc., a subsidiary of LML Payment Systems Inc., provided the electronic payment processing technology behind a direct payment service for Sage Simply Accounting, a service of Sage North America.

Subscribers to Sage can directly debit customers using the Beanstream payment gateway.

Chase Paymentech uses VeriFone encryption

Chase Paymentech Solutions LLC added VeriFone Inc.'s VeriShield Protect encryption service as a component of its newly launched Safetech Fraud and Security Solutions suite of services. VeriShield Protect encrypts cardholder data at the moment of acceptance.

Cynergy Data turns to Voltage email

Cynergy Data LLC chose Voltage Security Inc. to provide secure email services. SecureMail is designed to protect sensitive emails flowing between Cynergy and its customer base of 100,000 merchants.

Credit unions, FIs sign with Fifth Third

Fifth Third Processing Solutions LLC signed six new credit unions for comprehensive processing services. The institutions are the Quincy, North Coast, New Mexico Energy Federal, TrustUS Federal, Cutting Edge Federal and Citco Federal credit unions.

Three Southwestern financial institutions signing with Fifth Third are First New Mexico Bank, Valley Bank of Commerce in Roswell, N.M., and First State Bank of Mesquite, Texas.

Global Payments signs Caesars, partners with Planet Payment

Global Payments Inc. will provide card-based cash advance services to some resorts in the Caesars Entertainment Corp. chain. The service is provided through Global's VIP LightSpeed platform.

In addition, Global Payments partnered with Planet Payment Inc. to provide multicurrency processing services to Global's U.S.-based ISOs and merchants.

The Global HomeCurrencyPay service is powered by Planet Payment. The service was already available in Asia.

Higher One joins Secure Vault network

Higher One Payments Inc., which provides payment services to academic institutions, joined the Secure Vault Payments network.

The network was developed by NACHA and eWise, a payments and online financial management solutions provider.

Ohio physicians association taps Heartland

The Ohio State Medical Association chose Heartland Payment Systems Inc. to provide its members with payments services and software created for health care practices. The association represents 20,000 physicians.

PAX implements Voltage encryption

Electronic payment system manufacturer PAX Technology Inc. implemented end-to-end-encryption from Voltage Security in a POS product. With Voltage SecureData, the system encrypts data at the POS.

Paysouth partners with Alliance

Paysouth Merchant Services LLC and Alliance Companies partnered to provide merchant services on behalf of credit unions. Alliance, an advisory firm in the payments industry, will work with Paysouth to deliver the services to credit unions.

Philanthropy site picks mPayy

Daily deal site Philanthroper named mPayy Inc. its exclusive payment processor.

The site showcases a different nonprofit organization every day, facilitating $1 donations from individuals. MPayy takes one cent from each $1 transaction.

Philanthroper does not take a cut, according to the site. A recently featured nonprofit was Give an Hour, which arranges for mental health professionals to volunteer an hour per week to counsel U.S. troops returning from military service.

Gemalto chosen for NFC trial in Japan

Softbank Mobile Corp. picked Gemalto to provide a turnkey near field communication system for its mobile contactless payment trial in Japan. Two credit card issuers are participating in the trial, which deploys MasterCard's PayPass technology.

Credit union implements RDC from Bluepoint

SunState Federal Credit Union now uses a remote deposit capture system from Bluepoint Solutions Inc. The product suite automates all item processing for the credit union.

UATP taps SITA for payment platform

Payment network Universal Air Travel Plan selected SITA to provide next-generation authorization and settlement infrastructure for its payment system. The hosted platform incorporates Horizon Payment Services, a component of SITA's passenger management system.

Verifi integrates with Demandware

Verifi Inc., a developer of payment and risk-management software, joined the Demandware LINK e-commerce platform. Both companies provide hosted software, which will be integrated for retail clients.

Three credit unions sign with Vertifi for RDC

Vertifi Software LLC signed new credit unions to its DeposZip remote deposit capture service. The clients are GTE Federal Credit Union, E & P Federal Credit Union and Ent Federal Credit Union.

The Green Sheet, Inc.APPOINTMENTS

TMG hires Christensen, promotes several

The Members Group appointed Konrad Christensen as its Retail Payments Product Manager. He had been a product manager with Nationwide Insurance Co. TMG also promoted two marketing executives. Tana Krumm was named Senior Marketing Manager. Sarah Barthole was promoted to Marketing Communications Strategist.

Other promotions include Janet Gottschalk, Senior Revenue Accountant; Corbin Rinard, Senior Settlement Accountant; Todd Tesar, Operational Application Analyst IV; Corey Weeklund, Technology Infrastructure Network and Systems Lead; Joey Yaukovitz, Business Analyst IV; and Andrea Lones, Systems Analyst IV.

CSI hires DuPerrieu

Steve DuPerrieu joined payment processing technology provider Computer Services Inc. as Director of Product Marketing. DuPerrieu was previously Vice President of Sales at Financial Data Technology Corp.

Digital Check hires Jordan

Tom Jordan was hired by Digital Check Corp. for the position of Business Development Manager.

Previously, he was a sales manager at Fidelity National Information Services Inc. where he focused on large financial institutions.

First Data makes executive changes

First Data consolidated its regional operations under two executives. Ed Labry, President of First Data Retail and Alliance Services, was named President - North America. Labry has been with the company since 1985. He continues to report to CEO Jon Judge.

Simultaneously, First Data began a search for an executive to lead its business outside North America.

Executive Vice President John Elkins serves as interim leader of the Asia Pacific, Europe, Middle East and African regions. Kevin Schultz retired as Executive Vice President in the Financial Services division.

Nguyen joins CIC

Payment technology veteran Nhan T. Nguyen, PhD, joined Communication Intelligence Corp. as Chief Scientist and Chief Technology Officer. Nguyen is a former CTO at Pay By Touch and Gemstone Global Services.

Perry joins Capital Payments

Capital Payments LLC appointed John M. Perry its CEO. Perry had previously been CEO of iPay Technologies and President and Chief Operating Officer of NOVA Information Systems Inc., among others.

Aite Group hires Polack

Howard Polack came on board at Aite Group LLC as a Senior Analyst covering the payments industry. Polack had been Product Manager at Springbok Services Inc.

Root joins Clearent

Clearent LLC hired Kate Root as Vice President of Business Development. She is charged with expanding the company's ISO partnerships nationwide. Previously, Root created the acquiring division and ISO program at Meridian Bank. She is also a veteran of Pay By Touch.

The Green Sheet, Inc.BOTTOM LINES

  • IBISWorld Inc. expects consumers to spend $18.6 billion, or about $125 per person, on Valentine's Day in 2011. This is 5.8 percent more than they spent on the holiday in 2010.

  • Consumers began returning to high-end and super premium spirits products in 2010. Revenue in the super premium category grew 10.9 percent - from a very "soft" 2009, according to the Distilled Spirits Council

  • Sale of digital reading devices is apparently popularizing e-books. On USA Today's Best-Selling Books list, for sales ending Jan. 23, 2011, four of the five best sellers were e-books.
end of article

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