FarPoint Blog

MasterCard Prepares Change to EMV-Enabled ATMs

MasterCard officials expanded its roadmap for EMV debit and credit card technology to include automatic teller machines. After October 2016, banks can hold ATM operators liable for fraudulent withdrawals and cash advances from debit and credit cards. MasterCard's announcement was the first to specifically address ATM operators, who had been waiting for the kind of details already provided to store owners and gas station operators.

In a statement to reporters, MasterCard spokesman Mike Weitzman said that payment fraud usually shifts to the "least secure channel." With most merchants expected to adopt contactless EMV card readers before the end of 2015, ATMs could become a target for criminals who manufacture fake debit and credit cards using cloned magnetic stripe data. Technology roadmaps previously announced by MasterCard, Visa, and American Express include a "liability shift" that forces merchants to pay for preventable fraud.

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Tags: chip-and-pin, EMV, payment solutions

Startups racing to offer European chip-and-PIN mobile payments

Smartphone card payments startup Payleven will start accepting chip-and-PIN transactions in Europe from October 15, enabling SMEs to accept payments from major credit and debit cards via smartphones. Its competitor Elavon, meanwhile, announced the expansion of its European mobile chip-and-PIN reach to Ireland.

Payleven, based in London and Berlin, announced its chip-and-PIN technology during the App World show in London. It uses a secure device that links to a smartphone or tablet via Bluetooth, the company said. Customers can slide their cards into the device and then enter their personal identification number (PIN) on a keypad.

Transactions are as secure as on a traditional card terminal and merchants are fully protected, said Payleven, adding that chip-and-PIN transactions will be offered in the UK, Germany, Italy, the Netherlands, Poland and Brazil.

Enabling chip-and-PIN is important, because until now Payleven (below image) could only accept transactions using magnetic stripes, said company co-founder and CTO Rafael Otero.

In the UK, around 85% of the four billion card transactions that take place annually involve either debit cards or Visa-branded cards, he said. Visa only accepts chip-and-PIN payments, he said, while debit cards transactions in the UK require the payments processor to accept a PIN.

Without chip-and-PIN capabilities, a mobile payment terminal in the UK can only accept the 15% of transactions that rely on either the magnetic stripe or a combination of a chip readout and a signature (chip-and-sign) for authentication, said Otero.

Accepting a PIN via a magnetic stripe reader in combination with a smartphone app could be possible, said Payleven co-founder Alston Zecha. "But you don't want to do that on a phone," he said, adding that it is not secure to let people type in their PIN on a smartphone. In other countries, like the Netherlands and Germany, payment processors are allowed to accept transactions based only on magnetic stripe data, and in those countries that technology is in use by Payleven, he said.

Payleven is compatible with iOS and Android devices for which it offers a payments app. For its existing magnetic stripe service, Payleven charges €0.09 or £0.07 per transaction, plus 2.95% of the transaction value, with no monthly fees. While the company promised there would be no monthly fees for the chip-and-PIN service, it declined to say what transaction fees it will charge.

Also, Elavon (above and top image) extended its smartphone chip-and-PIN service, MobileMerchant, to Ireland. The service has been available in the UK since January, Elavon said.

Like Payleven's service, Elavon's MobileMerchant allows cardholders to authorize transactions using a Bluetooth-connected PIN pad. Using a separate PIN pad ensures that no confidential information is captured and stored by the smartphone, the company said. But unlike Payleven, Elavon offers its technology to users of BlackBerry and Android smartphones and tablets for the moment. Its PIN pad supplier Thyron Systems states on its site that iOS integration is coming soon.

Elavon charges SMEs a £25 one-time setup fee and £10 a month for PIN pad rental, plus a 2.95% transaction fee for its chip-and-PIN service. Companies with bigger sales volumes can get a tailored deal, with cheaper transaction fees but added costs for system maintenance.

Read more here:

http://news.techworld.com/mobile-wireless/3402222/startups-racing-offer-european-chip-pin-mobile-payments/

 

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Tags: mobile phone payments, payment development services, mobile payments, EMV, payment solutions

Far Point Systems Now Offers EMV Consulting and Development Services

ATLANTA, GA (PRWeb). Far Point Systems, an experienced provider of mission critical, high stress, high volume, now offers EMV (Eurocard/MasterCard/Visa) software consulting and development services.  This service is an extension of Far Point’s existing payment processing consulting and development capabilities.

“Credit Cards in the US are finally moving away from the mag stripe of the 60’s and receiving integrated circuits”, says Brent Reeves, VP for Far Point Systems.  “With that comes an increase in security and an increase in card capability”.  Both Visa and MasterCard have released an aggressive roadmap for the integration of EMV technology.  “Several factors are at play that we believe made this a good time for the U.S. to adopt and embrace chip technology," says Stephanie Ericksen in an excerpt from Bank Info Security. "The movement toward mobile, which uses the same technology as EMV, is a big reason. We've been working on that in the U.S. for a long time. ... and we've had several U.S. issuers that have been looking to issue chip cards for their international travelers."

“We have been serving the payments space since 1993 and we have developed EMV solutions for our international clients for years.” adds Mike Sanders, Far Point Systems President.  “Our expertise is in building high stress, ultra secure, high volume transaction processing engines for government agencies and companies like Chevron, GlobalPayments, Verifone, HP, CCH and others.  Over the last 20 years, we’ve accumulated a depth of knowledge and experience in the development of products that support retail automation, electronic banking, and payment processing industries. EMV is a natural extension for us. ”

 

About Far Point

Far Point Systems, a 19 year old, US based payments and transaction software development and consulting firm helps banks, merchants, credit card issuers, and payment processors trying to prepare for the Visa and MC mandated EMV compliance deadline.  Far Point has completed numerous EWV certification projects for some of the largest names in the payment space.

Far Point has experts available for EMV development efforts or on-site consultation to help shorten the EMV certification process and get you compliant.

Tags: software consulting, payment development services, EMV, payment solutions

EMV and Mobile Phone Payments - The Future Is Now

Cashless transactions are rapidly gaining popularity across the world as technology continues to develop. American Express recently launched PAYVE, a centralized electronic payments service to cater to corporate payments in the U.S. Mobile phone payments are a major component of the revolution to make cash obsolete. AmEx plans to issue EuroPay compliant cards across America this year.  

A recent study by Deloitte revealed that 5% of sales in retail stores in the U.S. are completed through mobile phone payments and this number is expected to rise to as high 19% by 2016, exceeding $600 billion in sales volume.  

To give you some perspective, U.S. internet sales are currently around $200 billion.  Said differently, in four years, mobile payments will be 3 times bigger than the internet is now.

I may be preaching to the choir, but mobile payment is a huge opportunity.  Every smart retailer wants to make it that much more convenient for a consumer to make an impulse purchase.  

So, what are you doing to get your share mobile payments?

We can help.  Give us a call. 

Until then, here's an interesting article from Forbes.

http://www.forbes.com/sites/greatspeculations/2012/07/05/american-express-charges-for-60-with-new-emv-technology/

Tags: mobile phone payments, mobile payments, EMV