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Table of Contents

Lead Story

PCI: The 'little engine that could' gains steam

News

Industry Update

Eureka! HMS has conference hosting down

Visa muscles to squelch risk

Interchange under attack

Visa identifies apps storing sensitive data

ISOMetrics:
Restaurants most vulnerable to data breaches

Features

Mind on the ATM money

Tracy Kitten
ATMmarketplace.com

Industry Leader

Kim Fitzsimmons –

Views

Payments: A very large space

Patti Murphy
The Takoma Group

Education

Street SmartsSM:
To certify or not to certify: That is the MLS question

Dee Karawadra
Impact PaySystem

What if my ISO tanks?

Adam Atlas
Attorney at Law

Ten myths muddling PCI mastery

Ross Federgreen
CSRSI

Statement analysis for cave men

Jason Felts
Advanced Merchant Services Inc.

Getting wise to wireless security

Joel and Rachael Rydbeck
Nubrek Inc.

Help desk quality check

Biff Matthews
CardWare International

Company Profile

WAY Systems Inc.

Premier Payment Systems

New Products

No-brainer protection on smart cards

Smart Card Guard
National Envelope Corp.

Fort Knox for merchant data

CardVault
3Delta Systems Inc.

A new Vu of IP device management

NetVu version 2.3
Precidia Technologies Inc.

Inspiration

What about you?

Departments

Forum

Resource Guide

Datebook

Skyscraper Ad

The Green Sheet Online Edition

May 29, 2007  •  Issue 07:05:02

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Industry Update

NEWS

Mobile banking and payments are looming, with U.S. market penetration of 10% expected within four years, according to a recent study from Online Banking Report. The study also indicated that communicating with customers in real-time via mobile devices will enable card issuers to ratchet up fraud protection, while reducing costs for issuers and merchants.

Texas House passes data security bill

The Texas House of Representatives voted 139 to 0 in favor of a data security breach bill, H.B. 3222.

The bill is designed to induce merchants to properly protect consumer financial information. It would also enable financial institutions (FIs) to recover costs when data is not adequately secured.

If the bill is adopted, the Payment Card Industry (PCI) Data Security Standard would be codified into Texas state law for all payment card related transactions. The legislation would provide a safe harbor for merchants who are PCI-compliant when a breach occurs.

Merchants not in compliance with PCI and breached by hackers would potentially be liable for costs to FIs, such as expenses for reissuing credit and debit cards and associated fraud.

Currently in Texas, when a data breach occurs, regardless of who is responsible, FIs must notify their cardholders, reissue new cards and cover all costs associated with the fraud losses.

The bill moves next to the Texas State Senate for consideration.

Restaurants still working on PCI compliance

A March survey of restaurant executives revealed that four out of five believed their companies had made significant progress toward achieving PCI compliance by addressing the security of their POS and back-office systems. However, the vast majority had yet to achieve full end-to-end network PCI compliance.

Hughes Network Systems LLC polled 62 restaurant executives attending Hospitality Technology magazine's 2007 Murtec tradeshow. Hughes provides broadband satellite networks and services for large enterprises, governments, small businesses and consumers.

ANNOUNCEMENTS

3DSI creates new brand identity

3Delta Systems Inc. announced a corporate brand identity program that unifies all of 3DSI's products and services. It includes a corporate logo; an enhanced Web site ( www.3dsi.com); a tag line; and multiple logos for merchant processing systems and to introduce buyer-managed payment technology and secure data products.

Comstar announces new Web site, partnership

Comstar Interactive has a new corporate Web site, www.comstarinteractive.com.

The site was launched in conjunction with a rebranding of several products, including ComsGate (formally Comstar Gateway), ComsGate Transaction Manager, Charge Anywhere Web Terminal and Partner Portal (formally Dealer Zone). The site offers improved navigation features and detailed product information.

The company also announced it is a Sprint Business Solutions Partner, which enables Comstar to offer its suite of payment processing solutions on Sprint's code division multiple access (CDMA) wireless devices.

Heartland reports growth in Q1

Heartland Payment Systems Inc. reported growth for the quarter ended March 31, 2007, over the same period last year. Net income was $6.9 million, a 56% increase from the first quarter 2006. Fully diluted earnings per share rose 55% to $0.17. Total revenues were $284.2 million, up 20%.

Processing volume increased 21% to $11.2 billion. The company's active merchant count rose to 144,000, a 21% increase over the past 12 months. Heartland also reported a sales organization numbering 1,480 individuals.

Latin America orders 190,000 Ingenico terminals

Ingenico received orders from Latin America for 90,000 of its Aqua terminals, as well as a commitment for another 100,000. The company reportedly holds more than 50% of the market share in that region.

NAOPP to provide training at NEAA meeting

The National Association of Payment Professionals (NAOPP) will provide marketing training at the upcoming Northeast Acquirers Association (NEAA) Summer Seminar and Golf Outing in Providence, R.I., June 13.

Tony Vartanian, President of Cordsel Technologies, will present How to Maximize Profits and Leads on the Web.

Nancy Drexler, owner of Marketing Moguls and Processing Industry Marketing and Promotion Services, will present Marketing 101. She will also offer registered attendees a complimentary 30-minute marketing consultation following her presentation.

For more information about the NEAA meeting, visit www.northeastacquirers.com. For more information about NAOPP, visit www.naopp.com.

UBC reports PCI compliance

United Bank Card Inc. was certified compliant with the Payment Card Industry (PCI) Data Security Standard by an authorized scanning vendor.

VeriFone's QX100 certified

Both Visa U.S.A. and MasterCard Worldwide have certified that VeriFone's QX100 conforms to their respective contactless payment systems, Visa Contactless and MasterCard PayPass. The QX100 is an external contactless card acceptance device that attaches to VeriFone's Vx Solutions, Omni 3700 and Nurit products, as well as other stand-alone payment devices or systems.

Vivonet announces PCI, CISP milestones

Vivonet Inc. reported compliance with PCI and certification for Visa's Cardholder Information Security Program (CISP) for level 1 service providers.

PARTNERSHIPS

Fast Transact integrates with Escapia

Fast Transact Inc. has partnered with Escapia, a developer of Web-based vacation rental property management software. Fast Transact's credit card and check acceptance solutions are compatible with Escapia's platform, enabling customers to process payments within Escapia's software.

Fast Transact is a registered ISO/MSP of Bank of America N.A. Charlotte, N.C. and JPMorgan Chase Bank. First Data invests in ViVOtech

First Data Corp. has made a strategic investment in ViVOtech Inc. by participating as lead investor in ViVOtech's Series C round of financing. First Data will also use ViVOtech's emerging technologies, including its near field communication terminals and mobile commerce enablement.

Al Rajhi Bank picks Hypercom products

Saudi Arabia-based Al Rajhi Bank will purchase more than 4,000 of Hypercom Corp.'s Optimum dial-up and wireless card payment terminals. Alhamrani Universal Co., the distributor of Hypercom products in Saudi Arabia and the Middle East, will supply the terminals.

PaymentAccess teams with Cyclone

PaymentAccess and Cyclone Software are offering a check verification and payment product to merchants who take telephone orders and provide delivery services.

The solution enables merchants to verify check-writing history and then preauthorize payments using customers' telephone numbers. Check or credit card payments are then automatically accepted, which eliminates the need to collect payment at delivery.

POSA Tech installs VeriFone IP terminals

POSA Tech Inc. has installed VeriFone Internet protocol (IP)-enabled Omni 3750 terminals in all of Panhandle Cooperative Associations' grocery and convenience stores and pharmacies. POSA Tech handles the association's credit and debit card processing, check services, gift and other prepaid programs, and age verification.

SPS a recommended vendor

Church software firm Parish Data Systems has selected Smart Payment Solutions LLC as a recommended vendor for its clients. SPS will provide electronic payment processing to parishes, schools and other diocesan groups. SPS specializes in automated clearing house processing, returned check processing and check conversion services.

TASQ signs with Ingenico

TASQ Technology, a wholly owned subsidiary of First Data, will sell and provide warranty services for Ingenico products in the United States and Canada.

MERGERS & ACQUISITIONS

CrossCheck buys residual stream

CrossCheck Inc. purchased the residuals generated from check approval and guarantee transactions from Merchant Payment Center, a payment processing provider based in North Hollywood, Calif. The two companies became partners in 2003.

First Data to acquire FundsXpress

First Data will acquire FundsXpress, a provider of online banking and bill payment services for consumers and small businesses.

LML to buy Internet payment processor

LML Payment Systems Inc. will purchase all the outstanding capital stock of Beanstream Internet Commerce Inc. for $17.5 million, net of cash. The transaction is expected to close the second quarter of 2007.

PAI acquires NetBank Payment Systems

Payment Alliance International acquired the principal operating assets of NetBank Payment Systems. PAI reported that the transaction, which includes over 8,500 ATMs and 6,500 convenience and grocery store clients, establishes it as the third largest ATM processor in the United States.

Posdata merges with Control Solutions

Control Solutions Inc. and Posdata Inc. announced their merger. Both company names will continue to be used, and their respective management teams remain intact. The merger creates a nationwide organization for supply chain automation and mobility solutions, as well as automatic identification and POS equipment sales and service.

GTCR to sell TransFirst

GTCR Golder Rauner LLC plans to sell TransFirst to Welsh, Carson, Anderson & Stowe, a private equity investor, for $683 million.

WCAS invests primarily in information and business services, health care, and communications companies and has over $16 billion of capital under management.

TransFirst reportedly processes approximately $25 billion in annual sales volume for more than 155,000 merchants and 965 financial institutions. Originally founded as ACS Merchant Services in 1995, GTCR partnered with TransFirst Chief Executive Officer Thomas Rouse to recapitalize the company in 2000.

APPOINTMENTS

The Green Sheet Inc. promotes McHale Holland

The Green Sheet Inc. has promoted Laura McHale Holland to Staff Editor. McHale Holland, who has over 20 years of writing and editing experience, joined the company in February 2006.

Assurz adds two to team

Assurz Inc. hired Martin Drake as Director of Business Development and Shawn Jarolimek as Director of Product Management. Drake most recently served as Channel Sales Manager for Authorize.Net. Prior to that, he was Implementation Manager for NetSchools Corp.

Jarolimek joined Assurz from Wells Fargo Merchant Services. She also previously worked at InteliData Technologies, First Data Merchant Services, Home Account and PeopleScape.

McCullen appointed to ETA board

Robert J. McCullen, CEO of AmbironTrustWave, will serve on the Electronic Transactions Association's (ETA's) board of directors, beginning July 1, 2007. He is also a member of the 2006 to 2007 ETA Industry Relations Committee and has served on the ETA Presidential Advisory Council.

Ezic hires three

Ezic Inc. appointed Jim Mouzakiotis, Vice President, Channel Sales. He has more than 15 years of senior leadership experience in the merchant acquiring industry. Heather Ryterski joined Ezic as Marketing Manager. She has over eight years' experience in sales and marketing.

Bridget Weiss, the company's new Director, Reseller Development, has over five years' experience in the area of sales administration.

ExaDigm names new CEO

ExaDigm Inc. promoted Michael Mulcahy to CEO. He has served as President and Chief Operating Officer since 2003. Prior to joining ExaDigm, Mulcahy was a senior executive for a number of payments industry companies, including Panasonic's POS System Division, California Retail Data Systems, MIST Inc., GEAC and Mellon Bank's Merchant Services Division.

Visa appoints Saunders Chairman and CEO

Visa Inc. named Joseph W. Saunders, a 30-year veteran of the financial services industry, Chairman and CEO. Saunders previously had been named the designated Executive Chairman of Visa's board of directors, a role he assumed in February 2007.

Prior to joining Visa, he served as President of Card Services for Washington Mutual Inc. He also served as President and CEO of Providian Financial Corp. and Chairman of its board of directors.

He was Chairman and CEO of Fleet Credit Card Services at FleetBoston Financial Corp. Before FleetBoston, Saunders spent 12 years at Household International Inc.

Targan elected ETA Treasurer

Holli Targan, a Partner with the law firm Jaffe Raitt Heuer & Weiss has been elected Treasurer of the ETA. Targan served as Chair of the ETA Government Relations Committee (2004 to 2006) and has been a member of the ETA board of directors since 2002.

BOTTOM LINES

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

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