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The CNP Report Archive - June 2011

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  • CEO of Suspect Russian Online Payments Processor Arrested for Hacking Competitor - June 30, 2011
    Pavel Vrublevsky, CEO of Russian online payments processor ChronoPay was arrested in Moscow last week charged with hiring a hacker to run a denial of service attack against a business rival. At the time of the attack, ChronoPay and Assist.ru were competing to handle processing for online ticket sales for Russian national airline Aeroflot. Vrublevsky, 32, is also the co-owner of Rx-Promotion, a rogue online pharmacy known for processing payments for scammers who attempt to trick victims into purchasing antivirus software they don't need.
  • Intuit Buys Citigroup/SK Telecom Mobile Platform - June 30, 2011
    Intuit Inc., provider of popular tax preparation and accounting software TurboTax and QuickBooks, this week said it has acquired mobile Web banking technology assets from Mobile Money Ventures (MMV), a joint venture between Citigroup and SK Telecom Americas. Intuit said the transaction bolsters its Financial Services unit as an online and mobile technology provider to financial institutions.
  • Report: Global Payments Moving Toward CNP Transactions and Mobile - June 30, 2011
    In both developed and emerging economies, payments are moving from cash-based to cashless transactions and on to CNP transactions, according to a report from London-based VRL. The report, Alternative Payment Channels, also said the mobile payment infrastructure in developed economies needs to be augmented before it can escalate further.
  • Enter Card Details Using Smartphone Camera - June 27, 2011
    A San Francisco startup that has developed an an app that enables consumers to use the camera of a smartphone to enter payment card details for mobile purchases launched a private beta test of its technology today and said it has received $1 million from angel investors. card.io said its solution solves one of the main problems dogging m-commerce. "One of the biggest hurdles to mobile commerce adoption is that users don't want to type lots of information into their phone to make a purchase," said Scott Thorpe of mobile ticketing software provider MogoTix. "card.io's software solution is disruptive because it allows consumers to use their phone camera to pay with a credit card, with no need for extra hardware.
  • CNP Fraud Surges Down Under - June 27, 2011
    The Australian Payments Clearing Association (APCA) said CNP fraud in the country surged 38 percent in 2010. Overall, the APCA found payment card fraud in Australia increased from 33.3 cents in 2009 to 35.6 cents in every $1,000 transacted in 2010 and CNP fraud is leading the way, according to APCA CEO Chris Hamilton.
  • PayPal Expects $3 Billion in Mobile Payments This Year - June 27, 2011
    PayPal said this week it expects consumers to spend $3 billion in mobile payments this year, double the volume it predicted for 2011 last year. Laura Chambers, senior director for PayPal Mobile, wrote on the company’s official blog that the new figure represents the third time the company has updated it volume forecasts for 2011. At an analyst day in February, the company upped its projections to $2 billion, from the $1.5 billion anticipated last fall.
  • Citi Ventures Buys Stake in Billing Revolution - June 23, 2011
    Citi Ventures, the investment arm of global financial services company Citigroup, has made a strategic investment in mobile payments provider Billing Revolution. The bank's active investment in the firm follows the completion of a $6.6 million Series B funding round two weeks ago that was led by DCM and SK Telecom Ventures. Last year, Citi Ventures sponsored Billing Revolution’s Single Click Checkout Android app. Billing Revolution’s Single Click Checkout allows mobile users to single click to purchase digital and physical items globally across all mobile operating systems.
  • Report: Virtual Currencies Could Shift Power in Payments - June 23, 2011
    A new report from San Francisco area Javelin Strategy & Research forecasts that the payments services market share will shift from financial institutions to socially networked providers. Javelin found that two-thirds of consumers who have used an alternative payment method in the past 12 months are current Facebook users, compared to 58 percent who used credit cards. Javelin said in Virtual Currency and Social Network Payments – The New Gold Rush that the increased use of virtual currencies and socially networked payments present new challenges to traditional payments services providers, regulatory bodies, and even cross-border economies.
  • Adyen Launches Mobile Payments Solution - June 23, 2011
    Dutch online and mobile payments provider Adyen has launched a new single-click mobile payment pages solution for iPhone and Android. The solution enables developers to implement payment solutions for mobile apps that accept credit cards and other payment methods within mobile applications and mobile websites. The company said a number of international merchants have gone live on the new mobile platform, including Pathe Cinemas and online greeting card retailer Greetz.
  • Group Urges Mobile Carriers to Beef up Consumer Protections for Mobile Payments - June 20, 2011
    San Francisco-based consumer advocacy group Consumers Union has released a report on mobile payments that highlights how consumer protections vary widely for different mobile payment methods and how wireless carrier contracts fail to provide needed safeguards. “Consumers who link mobile payments to credit cards have the strongest rights, with the greatest caps on liability, the ability to withhold payment of disputed amounts and the right to prompt recredit,” the group wrote in Mobile Pay or Mobile Mess: Closing the Gap between Mobile Payment Systems and Consumer Protections.
  • Conflicting Rulings Muddy Waters on ACH Fraud - June 20, 2011
    A federal court in Michigan has found in favor of Experi-Metal and ruled that Comerica Bank must reimburse the Sterling Heights company $560,000 for fraud losses related to a phishing attack. The ruling contradicts a similar one last week in Maine. In the Experi-Metal case, Judge Patrick Duggan of the U.S. District Court for the Eastern District of Michigan said that the bank should have done a better job of picking up the fraudulent transactions running from the company's accounts after its financial controller was duped into opening a malware-laden phishing e-mail.
  • eWise Partners with Affirmative Technologies for Online ACH Payments - June 20, 2011
    eWise, an online payment provider that leverages the ACH network, has partnered with Palm Harbor, Fla.-based ACH processor Affirmative Technologies to accelerate the adoption of new payment alternatives for merchants, financial institutions and billers. Through this agreement, both companies said they will provide their customers with new, integrated payment technology solutions that are scalable, customized, and secure.
  • Processor Says E-Commerce Merchants Ignoring PIN Debit Will Be Left Behind - June 16, 2011
    After last week’s vote on the Tester-Corker Amendment, implementation of some version of the Durbin amendment is now a certainty. The natural reaction of issuing banks to a reduction in revenue from signature debit will be added focus on credit and PIN debit. According to Acculynk, e-commerce merchants that want to take advantage of the lowest cost payment type are going to have to set themselves up for PIN debit acceptance. The Atlanta-based e-commerce processor said its graphical PIN pad product, PaySecure, will enable exactly that.
  • Retail Decisions Rolls Out Multi-Language Anti-Fraud Technology -June 16, 2011
    Anti-fraud solutions provider Retail Decisions (ReD) said its real-time fraud detection service for e-commerce, ReD Shield, now supports virtually every language. The London-based company said its adoption of multi-byte/double byte characters is significant news for online merchants particularly in Asia, as Japanese, Chinese and Korean are now available language options. More than half of all web pages use multi-byte/double byte, and it is the main character encoding used internationally online.
  • Visa Acquires Mobile Platform Provider - June 13, 2011
    Visa Inc. last week said it will acquire Fundamo, a South African platform provider of mobile financial services for mobile network operators and financial institutions in developing economies, for $110 million in cash. The San Francisco-based card network said Fundamo’s platform enables mobile delivery of person-to-person payment, airtime top-up, bill payment and branchless banking services. The combined Visa Fundamo platform will add enhanced functionality and new services to existing mobile financial services subscribers across Africa, Asia and Latin America.
  • Mobibucks Launches ‘Phoneless’ Mobile Payments - June 13, 2011
    Louisville, Ky.-based mobile payment solutions provider Mobibucks has partnered with an Abu Dhabi bank to enable payments using only a mobile number—consumers don’t even need to have the device present. Abu Dhabi Commercial Bank (ADCB) is the world’s first bank to offer this mobile payment service, which provides customers with a patented cashless, card-less, paperless and phone-less payment solution.
  • Kount Gains Patent on Anti-Fraud Technology - June 13, 2011
    Kount Inc., a Boise, Idaho-based provider of fraud prevention technology, recently was awarded a patent relating to its device fingerprinting technology. U.S. patent number 7,958,246 covers claims around uniquely identifying a set of services linked to a specific device through its use of the Domain Naming Service (DNS). The company said it is significant because device fingerprinting using DNS-based technology is a completely new way to identify and track activity, including attempted fraud. DNS-based device fingerprinting cannot be easily manipulated or blocked by the user, making it more difficult for fraudsters to mask themselves, according to Kount.
  • eWise Nabs $14 Million in New Financing - June 13, 2011
    eWise, an alternative online payments solutions provider, has closed a $14 million financing round, led by venture capital firm Wellington Partners. The Denver-based company said previous investors also participated in this round, including Balderton Capital, TTV Capital and Patagorang. This funding will enable eWise to accelerate its plans to expand Secure Vault Payments in the U.S. and eWise payo in the U.K., and to unveil a mobile solution, which will be piloted later this year.
  • Report: Refusing Certain CNP Transactions Key to Stopping Spam - June 6, 2011
    Since 95 percent of spam-advertised orders are cleared through only a handful of banks, researchers suggest that U.S. issuing banks refuse to settle CNP transactions from known spammers, according to a new report. A team of 15 researchers from University of California, Berkeley, University of California, San Diego, the International Computer Science Institute and Budapest University of Technology and Economics examined spam from the payments perspective, rather than the delivery that usually gets the most attention.
  • Russian Online Processor Could be behind MacDefender Malware - June 6, 2011
    Malware that has recently targeted Mac users, scamming them into purchasing worthless security software, appears to be connected with Russian online payments processor ChronoPay. According to Krebs on Security, ChronoPay “specializes in processing the transactions of so-called ‘high-risk’ industries, including online pharmacies, tobacco sales, porn and software sales. A business is generally classified as high-risk when there is a great potential for credit card chargebacks and a fair chance that it will shut down or vanish without warning,”...
  • BluePay Remembers MOTO - June 6, 2011
    BluePay, a Chicago area processor, said it offers CNP transaction processing for telephone orders, which have received less emphasis since Internet commerce has exploded over the last decade. Merchants that still deal primarily with Mail Order Telephone Order (MOTO) transactions, the company said, can continue offering flexible payment solutions for their customers while streamlining the payment process.
  • Fed Official Questions Value of PCI Standards - June 3, 2011
    In a recent blog post, an Atlanta Federal Reserve official questioned the value of the Payment Card Industry (PCI) data security council guidelines in the U.S. Cindy Merritt, assistant director of the retail payments risk forum said in the Atlanta Fed’s Portals and Rails blog that the rising incidence and sophistication of skimming scams should have the payments industry looking beyond PCI compliance.
  • Digital River Partners with PayPal in Mexico and Brazil - June 3, 2011
    Digital River, Inc., a Minneapolis-based e-commerce outsourcing company, said PayPal is leveraging its World Payments solution to support local online payment processing in Brazil and Mexico. Digital River said the geographic expansion adds to the companies’ existing nine-year relationship, which now includes payment services across multiple continents.
  • PayPal Files Suit against Google for Stealing Trade Secrets - June 3, 2011
    Last week, eBay Inc. and its PayPal unit filed suit against Google in a California court claiming the search firm stole trade secrets and was in breach of contract. PayPal said Osama Bedier, a former employee hired by Google, and Stephanie Tilenius, another former PayPal employee who recruited Bedier to Google, “have misappropriated PayPal trade secrets by disclosing them within Google and to major retailers."

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