Alto Global Processing: Russia To Introduce National Payment Card

The Central Bank of Russia has revealed plans to launch a national payment card that will both rival Visa and Mastercard and create more choice for consumers, according to the country’s officials.

The card, which is the first of its kind in Russia, will use technical infrastructure provided by one of the country’s existing payment systems, with Sberbank’s Pro100 and Zolotaya Korona both being considered as partners. The latter, which means “Golden Crown”, was developed by the Centre of Financial Technologies Group, based in Russia. The chosen operator will clear payments made within Russia using the national card system, but the card will also be valid for payments abroad.

The move was welcomed by Russian Prime Minister Dmitry Medvedev as a way of giving Russian consumers more choice. However, it has also been interpreted as a reaction to financial sanctions imposed by the US over the Ukraine crisis, which led to Visa and Mastercard blocking card operations by Rossiya and SMP banks. Both institutions have been blacklisted by the Obama administration due to close ties between their key shareholders and Russian President Vladimir Putin. In addition to competition created by the national payment card, new rules mean that Visa and Mastercard will have to place collateral deposits into special accounts created at Russia’s Central Bank in order to continue operating in the country.

The national payment card system operator is undergoing state registration,” said Elvira Nabiullina, the Central Bank’s chief. “We have a roadmap for infrastructure development and the Central Bank has set up a commission composed of MPs, senators and government members for finding technological solutions.”

Source: http://www.paymenteye.com/2014/06/20/russia-to-introduce-national-payment-card/?utm_source=PaymentEye+Daily+Newsletter&utm_campaign=bf9e1621ce-20_06_2014&utm_medium=email&utm_term=0_3bd2a3a3c5-bf9e1621ce-14476705

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Alto Global Processing: MasterCard and Worldline partner to deploy and integrate MasterPass

MasterCard and Worldline have announced their partnership on the integration and deployment of MasterPass, the future of digital transactions. This collaboration, which covers all countries operated by Worldline – France, Benelux, Germany, UK, Spain, India and other Asian countries paves the way for the adoption of MasterPass by thousands of merchants.

MasterPass, the digital platform from MasterCard, simplifies online purchases made from connected devices including PCs, touchpads and smartphones. MasterPass eliminates the need for consumers to enter detailed shipping and card information to complete their online shopping at MasterPass merchant sites that have the Buy with MasterPass button on their check out page.

This solution, which is initially being deployed for e-commerce, will at a second stage enable merchants to offer to their customers to pay in store with MasterPass and encourage the convergence of payment experiences using new technologies such as NFC, flashcode, and QR code from November 2013. MasterPass will be available on Worldline’s online payment platform, an online, secure and cross-channel solution. This partnership should help to expand the adoption of MasterPass to thousands of e-merchants starting from 2014, who may now benefit from the many advantages offered by this simple and quick solution for consumers.

As an Atos subsidiary specialized in electronic payments and transactional services, our goal is to offer our clients a solution that will improve both online and offline shopping experiences“, declared Xavier Brucker, Head of multichannel payments  at Worldline. “We share with MasterCard the same vision for the future of commerce, which implies innovative payment solutions.”

Régis Folbaum, CEO of MasterCard France, commented: “This partnership with a global leader such as Worldline will accelerate the adoption of MasterPass in France and in Europe, as it will increase the number of merchants adopting this practical, fast and secure solution. With MasterPass, merchants will greatly improve their customers’ shopping experience online and in store. MasterPass is undoubtedly the future of electronic payments. ”

Source:  http://www.paymenteye.com/2013/10/18/mastercard_and_worldline_partner_to_deploy_and_integrate_mas/#.UmgzNZRAREB

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Alto Global Processing: Visa, MasterCard Offer Common Debit Solution

Written by writers of Card Not Present

Last week, Visa and MasterCard said they have partnered to offer a common debit solution in the U.S. Debit networks in the U.S. have been working for nearly two years toward a solution that would address inconsistencies between the debit network routing requirements of the Durbin Amendment and limitations of the chips in chip & PIN cards and the rules of EMVco—the organization that administers EMV standards. With migration to the EMV standard underway in the U.S., several groups had been working on the problem, with some consensus among debit networks, but no buy-in from Visa and MasterCard.

On Tuesday, Visa and MasterCard, which each had offered separate solutions earlier this year, said they have made proprietary EMV technologies available that would enable a debit chip transaction originating from a single-chip application to be routed by the merchant to Visa, MasterCard or any other U.S. PIN debit network that elects to participate in the solution.

While yesterday’s decision by a federal judge overturning the Durbin Amendment eventually may render the need for such a solution moot, a working group formed bythe Secure Remote Payment Council (SRPc) that includes most U.S. debit and ATM networks has been seeking the creation of a common application identifier (AID) that would solve the issue. Visa and MasterCard have been part of those discussions, but neither has committed to the common AID, apparently hoping proprietary technology would give them a competitive advantage in routing debit transactions.

Members of the working group are interested in Tuesday’s announcement from Visa and MasterCard, but further evaluation would be necessary to determine if signing on with the solution is fair, according to Paul Tomasofsky, president of the Secure Remote Payment Council.

“The announcement is an interesting one on the surface but of course more information is needed to determine how other networks would fit into the picture,” Tomasofsky said. “Before that, it would be helpful to understand how Visa and MasterCard will work together from an operational viewpoint. The SRPc Chip-and-PIN working group members have always advocated a solution that allows all participating networks equal access to technology, a voice in governance, appropriate business terms and the ability to compete and innovate on future enhancements. In short, our solution calls for a multilateral solution and not a bilateral one.”

Read more at http://cardnotpresent.com/news/default.aspx?id=1576

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Alto Global Processing: Payments Players Face Four Key Decisions As EMV Shift Nears

Source: http://www.pymnts.com/

Visa, MasterCard and Europay formed EMVCo in the 1993 to combat and reduce fraud internationally, but in the United States, the slow transition to this new standard is causing problems of its own.

To date, more than 1.62 billion payment cards have been upgraded to comply with the standards set by EMVCo. This accounts for nearly 45 percent of all cards globally – most of which are in use outside the United States.

As this figure continues to climb, domestic financial institutions (FIs), merchants and consumers face an increasing threat of fraud, which is increasingly likely to occur in nations where the financial infrastructure has fewer safeguards in place. With the U.S. EMV liability shift four years away, what does the road to compliance look like, and what steps do acquirers, issuers and merchants need to take to prepare?

This is the subject of a new white paper released by global management consulting firm Accenture. Entitled “Payments Transformation – EMV comes to the US,” the release outlines four key decisions facing those in the payments ecosystem.

In this PYMNTS.com Data Point, we’ll take a closer look at two of the four decisions Accenture highlights in its research.

Offline Or Online Authentication?

According to Accenture, FIs first need to determine how they will verify the authenticity of EMV cards. This process can occur online or offline. Either way, authentication validates the EMV card before a payment occurs while providing additional safeguards against fraud.

Offline authentication – The card is verified by the merchant’s POS terminal, which reads information and certificates embedded in card’s chip. With this option, the terminals manage the payments brands they will accept.

Online authentication – The card is approved by the issuer using cryptographic certificates created by a card or mobile phone. This removes the need for important information to be housed on the physical card

How To Verify The Cardholder?

In an EMV system, cardholders verify their identity through three Cardholder Verification Methods (CVMs). These are a PIN, a signature or no CVM. The second decision facing FIs is selecting one of these options. Factors that could influence this decision include the level of fraud reduction desired by the issuer and customer attitude toward PINs.

Chip & PIN – Since much of Europe has elected to use PIN technology over concerns of the use of signatures, EMV cards are sometimes known as “chip-and-PIN cards” overseas. Read by dipping the card into a POS, the chip-and-PIN is more secure, but alters the traditional customer experience.

Chip & Sign – The chip & sign method may lead to a smoother adoption of EMV cards in the United States because this process is similar to the one used currently with magnetic-stripe cards. However, these transactions are less secure, and may make consumers vulnerable to fraud and theft: one of the main issues the EMV transition could help the United States solve.

No CVM – In this choice, neither a signature nor PIN is used to verify transactions. By making this choice, issuers would need a merchant POS structure to support this feature. No CVM is best suited for low value transactions, such as unattended terminals ie mass transit, as an example.

For more insights from Accenture, read the full white paper here.

To access the Accenture Payments Transformation Series, visit Accenture here.

Email Accenture with questions at paymentservices@accenture.com.

Direct Link To Article: http://www.pymnts.com/briefing-room/security-and-risk/online-and-cyber-fraud/2013/payments-players-face-four-key-decisions-as-emv-shift-nears/

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Alto Global Processing: MasterCard Introduces MasterPass – The Future of Digital Payments

MasterPass gives consumers a better way to pay while enhancing and simplifying the physical and digital shopping experience

 To tweet this news, copy and paste http://bit.ly/XpDhd1 to your Twitter handle with the hashtag #MasterCard and #MWCashless

 BARCELONA –  – At Mobile World CongressMasterCard  introduced MasterPass™ – the future of digital payments.  MasterPass is a digital service that allows consumers to use any payment card or enabled device to discover enhanced shopping experiences that are as simple as a click, tap or touch – online, in-store or anywhere.

“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 is the evolution of PayPass Wallet Services, which was announced in Spring of 2012 and has been in production trial with select merchants and issuers. Consumers around the world will now be able to sign up for the service through financial institutions in Australia and Canada by the end of March, and in the United States and the United Kingdom later in the Spring and Summer respectively. Additionally, MasterPass availability in 2013 will expand to other markets worldwide, including: Belgium, Brazil, China, France, Italy, Netherlands, Singapore, Spain and Sweden.

The MasterPass suite of services includes:

  • MasterPass checkout services – to provide merchants a consistent way to accept electronic payments regardless of where the consumer may be. For in-store scenarios either at the register or in the aisle, MasterPass will support the use of NFC, QR codes, tags and mobile devices used at points of sale. For online purchases, MasterPass provides shoppers a simple check-out process by eliminating the need to enter detailed shipping and card information with every purchase.
  • MasterPass-connected wallets – to enable banks, merchants and partners to offer their own wallets. Consumers can securely store card information, address books and more in a secure cloud, hosted by an entity they trust. The wallet is open, which means that in addition to MasterCard cards, consumers can use other branded credit, debit and prepaid cards.
  • MasterPass value added services – to enrich the shopping experience before, during and after checkout. These will include more information like account balances and real-time alerts, loyalty programs, as well as Priceless offers and experiences.

“The most successful next generation payment product will be considerate of a wider range of stakeholders in its design and allow them to impact the user experience according to their business need and still-evolving industry dynamics. MasterPass reflects this modern sensibility of agnostic-based design but leverages the muscle that only a global network can deliver,” said Patricia Hewitt, Director, Debit Advisory Service, Mercator Advisory Group.

Merchants and Financial Institutions Embrace MasterPass

Since the introduction of PayPass Wallet Services in May of 2012, merchants and financial institutions worldwide continue to support MasterCard and its digital payments strategy.  With today’s announcement, merchants, issuers and supporting partners working with MasterCard to support the launch of MasterPass include:

  • Financial institutions: BBVA Bank, BNLPOSitivity, BNL Italy, BNP Paribas Fortis Belgium, Banco Sabadell, Banco Santander, Banca Sella, Bank of Montreal, Citi, Commonwealth Bank, Deutsche Bank Italy, EnterCard, EURO 6000, European Merchant Services, Fifth Third Bank, Handelsbanken, International Card Services Netherlands, Intesa Sanpaolo,Lake Trust Credit Union, ME Bank, NAB, SEB Kort, SIA, Swedbank, TMG Financial Services, UniCredit and Westpac.
  • Merchants: AHL, American Airlines, Argos, Boots, Grocery Gateway, Harvey Norman, Hikingboots.com, JB Hi-Fi, LogiTRAVEL, Mediamarket Spa Italy, MLB Advanced Media, Park Avenue Coffee, Roses Only Group, Runningshoes.com, Vodafone Italy and Wintercheck Factory. In addition to these merchants, through our work with service providers and payment gateways worldwide, MasterPass will be available at more than 5,900 merchants.
  • Technology partners: Adyen, Buckaroo, CQR, Cardinal Commerce, Cart32, CO-OP Financial Services, DataCash, Demandware, ICBA Bancard inc., Merchant Warrior, mFoundry, Moneris, OPENTECH.com, Paycorp Holdings, PSCU, Reply, Sage Pay, SIA, The Members Group,  Usablenet and VeriFone Systems, Inc.

Supporting Partner Quotes

  • “We understand the strategic importance of achieving true and global convergence in acceptance, security and simplicity across all channels, including digital. MasterPass allows us to offer to our customers, cardholders and merchants an immediate competitive solution for e-commerce, and a great foundation for new in-store experiences. Santander shares MasterCard’s vision of the future of digital payments and a world beyond cash, and we look forward to extending the benefits of MasterPass to additional markets in which we operate, with a global roll-out in the near future.” Javier Herraiz, Global Director of Innovation in Payments, at Santander Cards
  • “As a digital retail leader, we are keen to be at the forefront of new ways customers can shop with us.  With customers rapidly changing their mix of shopping methods, whether internet, mobile device or in store, MasterPass will in due course enable us to provide our customers with a simple, quicker and secure way to shop.” John Walden, Managing Director, Argos

Find a complete list of MasterCard’s news announcements from Mobile World Congress in our Digital Press Kit and follow us @MasterCardNews #MWCashless #MAMobileSymp to join the conversation.

About MasterCard

MasterCard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardNewsjoin the discussion on the Cashless Conversations Blog and subscribefor the latest news.

Media Contact

Brian Gendron

MasterCard Worldwide

914-249-1284
brian_gendron@mastercard.com

Alto Global Processing: More States Consider Ban On Credit Card Surcharges By Herb Weisbaum The Consumer Man

Source: NBCNews.com

Charge a fee to use your credit card? It’s legal for merchants to do that, unless barred by state law. Ten states already ban such surcharges – California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas – and more may join the list.

The legislatures in 13 other states are currently considering bills that would prevent these so-called “check out” fees. Lawmakers in Hawaii, Illinois, Kentucky, Maryland, Missouri, New Jersey, Pennsylvania, Rhode Island, South Carolina, Utah, Vermont, Washington and Tennessee are responding to a rule change that took place late last month. A similar bill will soon be introduced in West Virginia.

Visa and MasterCard agreed to let merchants add a surcharge to credit card transactions as part of the settlement agreement in an antitrust lawsuit brought by retailers. Until Jan. 27, both Visa and MasterCard had prohibited merchants from charging the customer for the cost of processing that credit card transaction.

The settlement does not affect Visa or MasterCard debit cards. American Express still
prohibits a surcharge on any of its cards.

New Jersey Assemblyman Vincent Prieto (D-Secaucus) said he introduced a bill to ban surcharging because it would hit consumers in the pocketbook.

“The amount of the surcharge may seem miniscule on paper, but in the family budget 1.5 to 3 percent could add up to a shorter grocery list or less to spend on gas,” he said in a statement.

In Utah, Sen. Curtis Bramble (R-Provo) is sponsoring a bill that would prohibit surcharges on any type of “financial transaction card” which would include debit cards.

Major retailers are not expected to tack on a credit card surcharge, at least not any time in the immediate future. Wal-Mart, Target, Sears and Home Depot told NBC News they have no plans to add a credit card surcharge. But just the possibility has spurred some lawmakers into action.

“It’s a waste of the legislative process,” said Mallory Duncan, senior vice president of the National Retail Federation. “They could take steps to bring greater competition into the marketplace by prohibiting the price fixing of the hidden swipe fees merchants pay to process credit card transactions.”

Trish Wexler, spokesperson for the Electronic Payments Coalition, whose members include Visa and MasterCard Worldwide, told NBC News it has not taken a position on the issue.

“No one knows how checkout fees will work their way through the system,” Wexler said in an email statement, “but the settlement provides sufficient consumer protections while the process plays out.”

What about disclosures?

The advocacy group Consumer Action has published a booklet on credit card checkout fees. It warns shoppers to be on the lookout for these fees and advises them to express their dissatisfaction.

“Customers shouldn’t stand for it,” said Ruth Susswein Consumer Action’s deputy director of national priorities. “Our advice is to tell them you don’t like the fee and this makes you want to take your business elsewhere.”

The new rules from Visa and MasterCard require retailers who apply a credit card surcharge to post a notice at the store’s entrance. The exact percentage of the surcharge does not need to be disclosed until the point of sale. The customer receipt must list the amount of the surcharge.

Online stores with a surcharge will not be required to have a notice on the home page.
They only need to alert shoppers about this when they reach the page where credit cards are first mentioned. In most cases, that means the final step of checkout when the purchase is being completed.

Not the end of this story

The settlement that allows merchants to impose a credit card surcharge is only preliminary. The court has yet to issue its final ruling in this case. That’s expected later this year.

Once that happens, various retailers and business groups plan to challenge the settlement. That could drag into late 2014.

The possibility that the settlement could be modified will probably keep most businesses of any size from instituting credit card fees for the time being.

Source: http://www.nbcnews.com/business/more-states-consider-ban-credit-card-surcharges-1C8455523

Herb Weisbaum is The ConsumerMan. Follow him on Facebook and Twitteror visit The ConsumerManwebsite.

 

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Alto Global Processing: American Express Moves Ahead of MasterCard; U.S. Credit Card Purchase Volume Marks First Double-Digit Growth Since 2007

Story by the Nilson Report

CARPENTERIA, Calif.–(BUSINESS WIRE)–There were several important developments in the fortunes of U.S. credit card companies in 2011, according to the annual special report on General Purpose Credit Cards, published in the most recent issue of The Nilson Report, a respected trade newsletter on the payments industry.

“This is the first time since MasterCard was known as MasterCharge back in the 1960s, that American Express has experienced more purchase volume”

American Express overtook MasterCard to gain second place among credit card brands in the U.S., based on spending at merchants. “This is the first time since MasterCard was known as MasterCharge back in the 1960s, that American Express has experienced more purchase volume,” said David Robertson, publisher of The Nilson Report. While purchase volume increased for all four card brands (Visa, Amex, MasterCard, and Discover), American Express credit cards had an increase of 13.4% to $540 billion dollars, vs. an increase 6.1% to $508 billion for MasterCard credit cards.

For the first time since 2007, combined American Express, Discover, MasterCard, and Visa consumer and commercial credit, debit and prepaid cards generated a double-digit increase in spending at merchants. The combined cards generated $3.595 trillion in purchase volume in 2011, up 10.4% from 2010.

Credit card outstandings, the unpaid balances owned by all Visa, MasterCard, American Express, and Discover general purpose credit card accounts totaled $713.27 billion in 2011, up $1.99 billion or 0.3%. This was the first increase since 2008.

About The Nilson Report

The Nilson Report is a highly respected source of global news and analysis of the credit, debit and prepaid card industry. The subscription newsletter provides in-depth rankings and statistics on the current status of the industry, as well as company, personnel and product updates. David Robertson, Publisher of The Nilson Report, is a recognized expert in the field, and is a frequent speaker at industry conferences. Over 18,000 readers in 90 countries worldwide value The Nilson Report to track industry trends and market information.

Source: http://www.businesswire.com/news/home/20120222006974/en/American-Express-Moves-MasterCard-U.S.-Credit-Card

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