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Table of Contents

Lead Story

Integrated systems create a new POS paradigm


Industry Update

Intuit's IMS ends agent program

Indictment halts the action for poker sites, processors

PayPal, Discover launch Money Messenger

Does certification without licensing make sense?

Selling Prepaid

Prepaid in brief

China's prepaid market a different world

Prepaid's unique way in India


Text message marketing, the other mobile

Pal Flagg
Street Savings

Meet The Expert: John Arato

Technology in the hospitality world

Press release power


Facts and figures from the feet on the street

Jeffrey Shavitz
Charge Card Systems Inc.


Street SmartsSM:
Let's reform our industry's education and training

Bill Pirtle
MPCT Publishing Co.

What tokenization is and isn't

Tim Cranny
Panoptic Security Inc.

Ask, don't sell

Jeff Fortney
Clearent LLC

How to use direct mail to build your business

Peggy Bekavac Olson
Strategic Marketing

Global opportunities mean global strategies

Caroline Hometh
RocketPay LLC

New Products

Tapping the government and education markets

Electronic Merchant Systems


Learn to make use of conflict


10 Years ago in
The Green Sheet


Resource Guide



2011 Calendar of events

A Bigger Thing

The Green Sheet Online Edition

May 09, 2011  •  Issue 11:05:01

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Meet The Expert: John Arato

John Arato has been in the payments industry more than 25 years and at MagTek Inc. the last eight. Previously, he spent seven years selling transaction services at American Express Co. and 10 years at Hypercom Corp. heading up sales east of the Mississippi. But his current position at MagTek has been the most rewarding.

"It's a lot of fun," he said. "MagTek is really on the forefront of providing security technology to the industry, and a lot of that has moved over to mobile payments products. So we've taken what we've learned over the last five or six years in point of sale, and now we're incorporating that into mobile."

MagTek offers MagneSafe (technology that encrypts cardholder data directly at the POS terminal), MagnePrint (authentication technology that detects the unique mag stripe "fingerprint" of each payment card) and now QwickPAY, a downloadable mobile payment app that, combined with a reader that fits over mobile devices, transforms the devices into payment terminals that accept mag stripe cards.

With QwickPAY, a merchant downloads the free app to an Apple iPhone, iPad or iPod Touch, as well as Android smart phones, and purchases the "sleeve" from one of MagTek's approximately 100 ISO reseller partners. In the sleeve rests MagTek's four layers of security: encryption, authentication, tokenization and dynamic data.

Help for small businesses

"If you use our readers and you use our technology, the likelihood of you being out of PCI scope is very high," Arato said, adding that this should be of critical value, especially to smaller merchants. Fraud is migrating from Level 1 merchants to the Level 4 mom-and-pop retailers, and if a small merchant is breached, the card brands can levy fines that can put a business out of business, Arato said.

Arato believes MagTek's solution can help small businesses go beyond the requirements of the Payment Card Industry (PCI) Data Security Standard (DSS) and keep payment data safe. "Crooks are getting very smart," he said. "They know they can target somebody with a PC - let's just say a delicatessen who is doing their transaction through a PC. They could easily put malware on that PC and steal the data from that customer - very easy to do. It happens all the time."

Given that reduced costs have made state-of-the-art security technology available to even the smallest merchants and that those merchants are the most vulnerable to attack from fraudsters, one can see where Arato gets his passion for data security.

"Whether it's a large merchant accepting payments or a small mom-and-pop, they need to find a way to secure their data," he said. "PCI has certainly provided a role in helping the industry get along, but I just think there are other things in addition to PCI that customers can do."

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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Spotlight Innovators:

North American Bancard | USAePay | Impact Paysystems | Board Studios