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Guest Analysis: ControlScan Releases Online Transaction Laundering White Paper

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July 7, 2015 - The underwriting process for online sellers often includes automated technologies, as well as manual website checks to ensure that the merchant, its products/services and its customers align with the details provided on the merchant application. After years of getting burned, the payments industry has become adept at discovering anomalies on the merchant’s reported website, i.e., the site the merchant told them they use for business. The fraudsters behind illegal e-commerce don’t give up easily, however. Instead, they adjust their tactics to continue operating as effectively and efficiently as possible. Fraudsters’ ongoing attempts to avoid detection create an evolving landscape that challenges the risk-monitoring methods used by payments industry stakeholders today. Within this evolving online landscape a new enemy has emerged, and it’s catching many merchant service providers off guard. Now, rather than hiding their illegal pharmacies, counterfeit product sales, illicit pornography, unlicensed gambling, and the like on the website listed on their merchant application, unscrupulous merchants are creating an ecosystem of unreported e-commerce. In this new scenario, the site the MSP knows about serves as a storefront to which payments are funneled, effectively masking the nefarious sales activity taking place on one or more associated yet undisclosed websites. Understand your organization’s risk—and options to reduce your exposure. Download your free copy of Online Transaction Laundering and the Evolving Landscape of E-Commerce Merchant Fraud and you’ll learn:
  • The size and scope of the online transaction laundering problem;
  • Transaction laundering’s sophistication over previous methods for hiding illegal e-commerce; and
  • How payments industry stakeholders are working to detect transaction laundering and mitigate the associated business risks.
About ControlScan ControlScan is a security, compliance and risk management partner to hundreds of merchant service providers representing millions of small and mid-sized businesses. For more information, please visit ControlScan.com or call 800-825-3301.  

Guest Analysis: How the $40 Billion Chargeback Problem Impacts the Entire Payments Ecosystem

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Matt Cropped1

Matthew Katz, CEO of Verifi, Inc. Collaboration Between Merchants & Issuers Enhance Customer Experience and Boost Profits July 14, 2015 -   The $40 Billion chargeback problem[1] impacts the entire payments ecosystem.
  • Merchants are hit with fines and fees, extra labor costs, loss of goods/services and even the potential loss of processing privileges.
  • Issuers assume additional customer support costs as managing cardholder disputes costs time and money.[2]
  • Consumers even feel the pain with increased fees, more friction in the sales process due to increased fraud prevention measures and, ultimately, increased prices.
How to fix the problem? The answer: improve merchant/issuer collaboration to preserve the customer experience and foster healthier bottom lines. Benefits of a Collaborative Payments Ecosystem for Merchants & Issuers Direct collaboration between issuers and merchants streamlines processes and reduces operational costs by sharing data and helping consumers resolve disputes directly with the merchant – thereby preventing the dispute from escalating into a chargeback. Merchant benefits include:
  • Increased efficiencies – The expert level of understanding required to manage chargeback disputes is significant. Manual processing, reconciliation and reporting, as well as interaction with various banks often results in inefficiency - some of which may not always be evident on the balance sheet.
  • Effective use of resources – Near real-time notification of the dispute enables quick resolution without draining staff and resources once escalated to the exhaustive chargeback management process.
  • Eliminated chargeback fees and penalties due to excessive chargebacks – Collaboration allows for the prompt resolution of disputes before fees and penalties can be imposed.
  • Avoiding additional losses of goods and services – Merchants rarely receive back the original merchandise or service provisioned, adding to the total amount of losses. Organizations with a recurring business model or subscription services must also take into account services rendered when chargebacks occur, as these non-tangible goods cannot be returned.
Issuers also benefit, including:
  • Reduced compliance burden – Properly filing chargebacks with the correct reason codes and documentation is time-consuming. Chargeback notices eliminate the need for this by allowing the issuer to pass the dispute to the merchant to handle directly.
  • Enhanced customer experience – By looping the merchant in to communicate with the customer directly, issuers can foster a positive customer experience by making the dispute process more quick and efficient.
  • Lowered dispute costs and improved efficiency – Automating the dispute process has been proven to decrease costs by 50 percent without sacrificing customer service [1].
The Importance of an Intermediary Without more merchant/issuer collaboration, fraudsters will continue to profit, card acceptance will decline and the customer experience will continue to suffer. Using an experienced, third party intermediary that connects merchants/issuers streamlines processes and allows for disputes to be resolved more efficiently with the customer. A third-party intermediary that connects issuers and merchants in a collaborative eco-system improves the entire payment eco-system. Everyone wins when Merchants and Issuers collaborate. Keeping up with emerging technologies and increasingly strict regulations and standards takes its toll on merchants and issuers striving to maintain compliance and protect payments against fraud. Disputes that turn into chargebacks increase operational costs for both issuers and merchants. This leads to higher fees to merchants who, in turn; may pass them to the consumer. When centralized data sharing between issuers and merchants is in place, the result is a seamless dispute resolution process that allows merchants to resolve the issue directly with cardholders and protect issuers from increased operational costs and poor customer reviews. Merchants and issuers have the same goals – preserve the customer experience and foster healthier bottom lines. By taking a collaborative approach to payments risk management and implementing a collaborative chargeback dispute resolution process both merchants and issuers win and so do their customers. About Matthew Katz, CEO, Verifi, Inc. Matthew Katz is the founder of Verifi, Inc. and currently serves as the Chief Executive Officer. Matthew founded the company in 2005. Verifi’s Total Chargeback Management System includes the patented Cardholder Dispute Resolution Network (CDRN) to stop chargebacks before they happen and the Chargeback Representment and Revenue Recovery Service (CBR) to represent and dispute chargebacks and recover profits, which would otherwise have been lost. Recently, the company received the CNP Award for Best Chargeback Management Solution for the third consecutive year.

  [1] Aite Group Research, 2015.
[2] http://www.aciworldwide.com/-/media/files/collateral/automating-your-dispute-management-process-tl-a4-5234-1213.pdf The views expressed in the posts and comments of this blog do not necessarily reflect those of ETA.
 

Guest Analysis: 4 Reasons Why your MPOS Strategy is Failing

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Rick Oglesby July 16, 2015 - Are you tired of hearing that MPOS is the future of payments while your business is incapable of scaling its MPOS offering? Or are you seeing that your MPOS portfolio is made up of nothing but inactive or low volume merchants? Here’s 4 reasons why, and some things you can do about them. This blog post was inspired by a recent report by Double Diamond Payments Research. For more information about the report please visit To Be or Not To Be an ISV? Integrated Payments Strategies for Merchant Solutions Providers, or email research@doublediamondgroup.com.Payments is a universal merchant need and a commodity, MPOS is neither of those things, so it shouldn't be a surprise that payment companies are struggling with it. POS is a highly differentiated, value-added service, so a whole new set of rules apply. It will be  product teams, not  distribution teams, that will make or break the payments companies of the future. Is your business ready? About Double Diamond Payments Research Double Diamond Payments Research (DDPR) delivers world-class payments-centric research, information and intelligence through highly sophisticated research methodologies and best practices. DDPR produces trend and analysis reports that are extremely valuable to the majority of firms driving growth in global electronic payments. In addition to these report and white paper offerings, DDPR also conducts customized and proprietary research projects for specific clients. DDPR is an affiliate of Denver-based Double Diamond Group, which provides expert consulting services to the global electronic payments industry. Visit www.doublediamondgroup.com for more information.
The views expressed in the posts and comments of this blog do not necessarily reflect those of ETA.
 

ETA Expands Policy Advocacy with New Director of Regulatory Affairs

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July 22, 2015

ETA Expands with new Director of Regulatory Affairs

WASHINGTON, DC The Electronic Transactions Association (ETA), the global trade association of the payments technology industry, today announced the next step in its continued expansion of government relations activities with the hiring of seasoned public affairs professional Mary Albert as the Director of Regulatory Affairs. “Mary brings extensive experience in regulatory and legislative affairs to our growing ETA team,” said Jason Oxman, CEO of ETA. “Her background in the technology and telecommunications industry is important for our members, particularly as ETA now represents all four mobile network operators, the largest mobile handset manufacturers, and the nation’s leading technology innovators.” Albert joins ETA at a time of immense growth for the association, with more than 50 new technology companies joining since last year. ETA has greatly expanded its advocacy program with the launch of ETAPAC, and ETA’s Federal and State Government Relations Committees have grown to include the nation’s largest financial and technology companies.  ETA now advocates before state regulators, federal courts, and more than a dozen federal technology and financial industry regulatory agencies. “I'm thrilled to add Mary to the team during such an exciting time for our industry,” said Scott Talbott, SVP of Government Affairs for ETA. “Her experience and knowledge of the regulatory environment will strengthen ETA's ability to represent our members' interests in DC and across the nation.” Albert joins ETA from COMPTEL, where she served as Assistant General Counsel and Secretary. Albert also worked as in-house counsel at a technology company, as a lawyer in private practice, and as a staff attorney at the Commodity Futures Trading Commission. She holds a BA from Wells College and a law degree from Georgetown University Law School. “I am thrilled to join ETA’s dynamic team,” said Albert. “ETA members are bringing exciting innovations in payments technology to consumers, and I look forward to helping regulators understand the need for policies that advance innovation.” For media inquiries, contact Meghan Cieslak, 202.677.7406 or meghan.cieslak@electran.org. About ETA The Electronic Transactions Association (ETA) is the global trade association representing more than 500 payments and technology companies. ETA members make commerce possible by processing more than $4.5 trillion in purchases in the U.S. and deploying payments innovations to merchants and consumers.

August 13, 2015: Fundamentals of a Payment Processing Company

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[two_third] 1:00pm - 2:00pm ET FREE for ETA Members & $99 Non-Members [/two_third] [one_third_last] [button color="blue" link="http://eo2.commpartners.com/users/eta/session.php?id=16591" size="small" target="_blank" textcolor="#FFF" texthcolor="#CCC" bgcolor="#172652" align="right"]REGISTER TODAY![/button] [/one_third_last] This webinar will explain the foundations of an ISO or payment facilitator business, laying the groundwork for a successful launch into the business of providing payment processing services to merchants. Discussion topics will include naming and trademark issues, critical negotiating points in the ISO / bank sponsor contract, sales representative / sales channel agreements and marketing strategy tips. [divide]

SPEAKERS

HOLLI TARGAN Attorney and Partner Jaffe, Raitt, Heuer & Weiss, PC Holli Targan is an attorney and partner at Jaffe, Raitt, Heuer & Weiss, where she is Chairman of the Jaffe Electronic Payments Practice Group. She is a past President of the Electronic Transactions Association and concentrates her practice on contracts, compliance, and mergers and acquisitions in the payments industry. [spacer height=22] PEGGY BEKAVAC OLSON President Strategic Marketing Peggy Bekavac Olson is president of Strategic Marketing, a marketing firm specializing in serving payments industry companies. Strategic Marketing’s clients range from card brands, acquirers, processors, gateways and POS manufacturers to ISOs, agents and merchant level sales. Formerly head of marketing for Vital Processing Services and TSYS, today Peggy serves on the Board of Directors for W.net – the Women’s Network in Electronic Transactions and on the program planning and communications committees for the Electronic Transactions Association. She is also a marketing guest columnist for the popular payments publication The Green Sheet.

ETA Announces Payments’ Premier Fintech Event: TRANSACT Tech

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July 23, 2015

Registration open for the San Francisco hub of payments innovators

Washington, DC – The Electronic Transactions Association (ETA), the global trade association representing the payments technology world, announced today the launch of  their new event TRANSACT Tech, an educational and networking event for payments innovators and disruptors. Sponsored by PayPal and Discover, the inaugural TRANSACT Tech will take place November 10, 2015 in the hub of technology, San Francisco. Registration is open now at http://www.electran.org/conferences-events/2015-transact-tech/ “ETA is nurturing innovation and building bridges among entrepreneurs, investors, and industry titans in payments,” said Jason Oxman, CEO of ETA. “Following our enormously successful TRANSACT 15 event in San Francisco in April, TRANSACT Tech is the perfect platform for payments and technology companies to connect.” TRANSACT Tech brings leaders in fintech, P2P, cloud, mobile, authentication, and security together to network and build products and services that will revolutionize commerce. Attendees include senior level executives from the Bay Area including financial institutions, technology companies, investment and VC firms, and industry analysts. TRANSACT Tech is the newest addition to ETA’s educational and networking event program across the country, including the sold-out Transaction Alley Day in Atlanta and Silicon Alley Day in New York. ETA Members can register for $59, and non-members for $99.  Join the most innovative companies in payments, technology and global commerce at TRANSACT Tech. Register today: http://www.electran.org/conferences-events/2015-transact-tech/. For media inquiries, contact Meghan Cieslak at 202-677-7406 or mcieslak@electran.org. For information on ETA membership and events, please contact Del Baker Robertson, 202-677-7404 or dbaker@electran.org. About ETA The Electronic Transactions Association (ETA) is the global trade association representing more than 500 payments and technology companies. ETA members make commerce possible by processing more than $5 trillion in purchases in the U.S. and deploying payments innovations to merchants and consumers.

September 29, 2015: Policy Threats from Washington, DC

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[two_third] 1:00pm - 2:00pm ET FREE for ETA Members & $99 Non-Members [/two_third] [one_third_last] [button color="blue" link="http://eo2.commpartners.com/users/eta/upcoming.php" size="small" target="_blank" textcolor="#FFF" texthcolor="#CCC" bgcolor="#172652" align="right"]REGISTER TODAY![/button] [/one_third_last] Lawmakers and federal regulators, like the Federal Reserve and the CFPB, have taken a keen interest in the payments industry. With the stroke of pen, policymakers can change the way you do business, as well as your bottom line. This webinar features policy experts providing you with an in-depth look at the threats from Washington, like Operation Choke Point, as well what ETA is doing to represent your interests, and how you can get involved to help promote good public policy and defeat bad policy ideas. Sponsored by: [divide]

SPEAKERS

ED MARSHALL Partner Partner, Arnall Golden Gregory LLP Edward A. Marshall is a partner and the chair of the business litigation practice at the Atlanta-based law firm, Arnall Golden Gregory LLP, where he also serves as co-chair of the payment systems team. Ed is an active participant in the ETA’s Lawyers and Risk, Fraud, and Security Committees, and represents card issuers, payment processors, and ISOs in a variety of legal matters. He also established the American Bar Association’s subcommittee on Payment Systems Litigation in 2014. Recently, Ed was selected as one of Georgia’s “Top 40 Under 40” by the Daily Report, Atlanta’s leading legal newspaper. [spacer height=22] SCOTT TALBOTT Senior Vice President, Government Affairs Electronic Transactions Association Scott is Senior Vice President, Government Affairs at ETA, where he directs the overall policy strategy and manages the daily legislative and regulatory advocacy efforts. He has received numerous accolades in his tenure, including being named a top lobbyist by The Hill, a newspaper based on Capitol Hill, in 2009 and 2011-2015, as well as a “winner” for his work during the economic collapse of 2008 by Washingtonian magazine. In 2010, he appeared in the Oscar-winning film “Inside Job”. Once named NPR’s favorite bank lobbyist, he is a frequent contributor to both national and international media. Talbott joined the ETA in 2014 after spending 20 years as the top lobbyist for a large financial services trade association. He also worked in the tax departments of Arthur Anderson and Ernst & Young. He received his B.A. from Georgetown University, cum laude, and his J.D. from George Mason University School of Law.

ETA Signs Joint Trade Letter to NIST on Privacy

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July 30, 2015

Please click here to view a joint trade letter to National Institute of Standards and Technology (NIST) on its draft Internal Report 8062—“Privacy Risk Management for Federal Information Systems”. The letter argues that the NIST standard, while meant to help the government address its own internal privacy challenges could be applied to the private sector.


JULY / AUGUST 2015

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25 YEARS OF ETA EXCELLENCE During the past quarter century, ETA has grown from a small group of like-minded professionals to the leading global organization connecting and advocating for the payments community. Hear from past presidents as they share their personal reflections on the growth and future of ETA and its members. [divide]

FEATURES

SLOW ROAD TO CONSUMER ADOPTION While investors are clearly enthused about Bitcoin, statistics show that U.S. consumers are not. With a still shaky reputation and less-than-compelling incentives, the cryptocurrency has years to go before mainstream acceptance is possible, say experts. TRANSACTION TRENDS EXCLUSIVE CE SERIES: FINDING BITCOIN Although the industry has yet to strike Bitcoin gold, payments professionals should learn how it works and benefits retailers, and become familiar with its potential outside of payments. Overstock.com accepts the cryptocurrency and offers a fascinating potential use case example. After you read the article, be sure to take the online quiz to earn two CE credits! [/two_third][one_third_last] View MULTIMEDIA version  Download PDF version [/one_third_last] [divide]

DEPARTMENTS

@ETA Announcements and ideas from ETA’s CEO Jason Oxman INTELLIGENCE Vital facts and stats from the electronic payments world POLITICS & POLICY Timely political, economic, and advocacy updates affecting your business COMMENTS Thoughts on cyber liability and exposures across the payments industry AD INDEX PEOPLE Vinay Gupta explains “smart contracts” and introduces “ether,” a cryptocurrency used on a of transaction processing network. [clear]

ETA Sends Letter to Senators in Support of S. 754 the Cybersecurity Information Sharing Act of 2015

ETA Submits Letter to NY DOL Regarding Proposed Regulations of Payroll Debit Cards

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July 31, 2015

The Electronic Transactions Association (“ETA”) hereby submits its comments in response to the Department of Labor’s proposal to adopt regulations governing the use of payroll debit cards. ETA is the leading trade association for the payments industry, representing over 500 companies that offer electronic transaction processing products and services. ETA’s members include financial institutions, transaction processors, payments networks and others that may be impacted by any rules or regulations the Department may adopt relating to payroll debit cards.

Please follow this link to view the full letter.

Guest Analysis: EMV Lessons from Our Neighbors to the North

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Philippe Benitez - Gemalto

Philippe Benitez August 11, 2015 -As the U.S. continues its rollout of EMV technology, it may be useful to look to Canada's example. Canada officially made the switch to EMV in October 2010 and is now further rolling out contactless EMV to increase the speed of transactions at the point-of-sale (POS). While the U.S. is a much larger market and migration than Canada, the two countries share many similarities that make key takeaways applicable to U.S. stakeholders. Lesson #1: Change takes time, so recognize your runways. Many Canadian banks and retailers underestimated the complexity and time investment it takes to make the switch to EMV. That should serve as a cautionary tale to U.S. businesses. Migrating issuance, customization and cryptographic systems, as well as educating employees and call centers on fraud procedures, are significant undertakings. Banks need to figure out if they can issue EMV cards through standard cycles or if they need to do special rounds of issuance. As a guidepost, many Canadian issuers started distributing cards over a year in advance of their liability shift. U.S. banks are well within that window. Lesson #2: Educate consumers. They need to understand the how’s and why’s of EMV as well. In Canada, multiple stakeholders ran a two-year trial in Kitchener-Waterloo that wrapped up before the official shift, which went a long way in helping to understand obstacles. One of hardest things for Canadians to grasp was that all chip cards (credit included) would require a PIN, something the U.S. has already learned from in deciding to move forward with chip and signature for credit instead of chip and PIN. Lesson #3: Lean on your partners. Canadian companies demonstrated that cooperation between businesses was key to successful EMV migration and interoperability. Banks need to work together with card bureaus, brands and card or equipment manufacturers. Visa, MasterCard and American Express also have resources to help banks and merchants make the shift. Lesson #4: Expect fraud to move elsewhere. If the effects of the Canadian migration are any indication, plan to keep a close eye on fraud patterns. While counterfeit card fraud will drop sharply, it’s highly likely that online and card-not-present (CNP) fraud will increase. In Canada, CNP fraud jumped from just over $128 million in 2008 (pre-shift) to more than $259 million in 2011 (post-shift). Issues such as ATM fraud will also continue to be an issue. Additionally, banks should realize that outdated magnetic strip transactions will still need to be supported at retailers opting to lag behind on the EMV upgrade. Lesson #5: Plan for contactless EMV. Because EMV-ready terminals are generally supportive of contactless card and near field communication (NFC) payments, start thinking about this next frontier. In Canada, the number of people using contactless cards is estimated to have nearly quadrupled between 2009 (pre-shift) and 2013 (post-shift). In parallel, as of mid-2014, 75 percent of major Canadian retailers accepted contactless payments. Not only do contactless payments significantly increase consumer spend, they also simplify the POS payment experience to “tap-and-go” instead of "dip-and-pay.” Average POS transactions take 12.5 seconds with contactless EMV, as compared to 26.7 seconds with contact EMV cards or 33.7 seconds with cash. Mobile payment EMV also needs to be addressed post-migration. Industry groups like EMVCo have learned from the Canadian migration and are prepared to handle the specifications for mobile this time around. If U.S. companies keep these lessons in mind, the results can be extraordinary. With 105 million cards active in Canada, the country went from 48% of transactions protected by EMV chips in December 2010 to greater than 75% protected by December 2013. That paid major dividends, as losses from debit card fraud fell from a high of $142 million in 2009 (pre-shift) to $38.5 million in 2012 (post-shift) – a 73% drop. Philippe Benitez is vice president of financial services and retail at Gemalto.  
          The views expressed in the posts and comments of this blog do not necessarily reflect those of ETA.
 

ETA Submits Comments in Support of the American Bankers Association’s Petition For Reconsideration

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August 18, 2015

The Electronic Transactions Association (ETA), through undersigned counsel, hereby submits these comments in support of the American Bankers Association (ABA) Petition For Reconsideration and modification of the exemption from the Telephone Consumer Protection Act (TCPA), 47 U.S.C. § 227, that the Commission granted in the above-captioned proceeding in response to the ABA’s Petition for Exemption for certain automated calls from financial institutions to mobile devices.

ETA’s full comments can be viewed here.

CEO Perspective: Innovate, Don’t Regulate

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Jason Oxman August 21, 2015 - The Clearing House (TCH), a 162 year old trade association representing 24 banks, this week issued a white paper calling for wide-ranging new regulations on what it calls “alternative payment providers (APPs).”  TCH took the unusual step of specifically naming the companies that it believes should be subject to sweeping new regulations, including Apple, Google, Facebook, Square, Stripe and PayPal, among others. As most of these technology companies that TCH named for regulatory scrutiny are ETA member companies, I wanted to share my thoughts on the matter. TCH is a really interesting organization with a long history of service to the financial industry (you can learn about their history here). I have to respectfully disagree with this broad call to impose heavy-handed regulations and new legal requirements on providers of payment services. I agree wholeheartedly with TCH that traditional financial services are being disrupted at a rapid pace. But where I part ways with my learned association colleagues is what the government response should be. TCH assumes that alternative payment providers are seeking to “avoid the reach of the traditional financial regulators” and that they should be “subject to regular examinations and enforcement actions by regulators.” Why?  Because “[b]anks are subject to extensive regulatory, supervisory, and enforcement scrutiny by their regulators.” In other words, banks are regulated heavily, so everyone else should be too. No question: banks are fundamentally important players in the payments industry, and they are heavily regulated. But a look at the new payments innovations happening in today’s market makes it clear that banks are playing a vital role. For example, every merchant in the U.S. that accepts electronic payments is served by an acquiring bank – a financial institution that ensures the proper movement of funds from card issuing banks to merchants. TCH acknowledges that APPs are “providing their products and services by continuing to rely on the backbone of existing bank payment systems while capitalizing on innovations in communications platforms.” This is true for brick and mortar payments and for new online and mobile payments platforms cited by TCH in its white paper – they are sponsored by banks.  So if the banks are already involved, protecting consumers and merchants, why the call to heavily regulate their technology partners? It just doesn’t make sense. Moreover, the alternative providers cited by TCH as needing heavy regulation are actually partnered with TCH member banks to deploy innovative new payments products and services to consumers and merchants. For example, 15 of the 24 banks that make up TCH are participating in Apple Pay. Many of the same banks are partnered with Samsung on Samsung Pay, with Google on Android Pay, and on other new payments technology. Why is all this great payments/technology partnership happening? The payments industry has a unique and commendable approach to the disruptive innovation that is sweeping our sector.  Many incumbent industries choose to fight innovation because of the risk of creative destruction. Think of how the record labels reacted to the advent of digital music – they went all the way to the Supreme Court to shut down nascent web-based music sites. The movie studios lost their battle at the Supreme Court to kill the VCR.  John Philip Sousa took a break from composing music to lobby Congress to outlaw the player piano.  (Sousa made his money selling sheet music and was worried the player piano would kill that market). But the payments industry is different – we are embracing disruptive innovation by partnering with technology companies to deliver innovative financial products and services to consumers and merchants. Rather than emulate the buggy whip industry reacting to the invention of the car, financial institutions and technology companies are working together – and they certainly don’t call for new and onerous regulations to hobble new entrants or disadvantage whole industry segments. It’s exciting to be at ETA at a time when our more than 500 global members – banks, technology companies, and more – are partnering together to bring payments innovations to market. Established industry giants are working with technology startups, and consumers and merchants are the beneficiaries. Most importantly, established laws provide all the protections necessary as these new innovations are deployed. That’s why I think the TCH white paper is so out of touch with the industry I know and that ETA represents. Jason Oxman is the CEO of ETA, the global trade association representing more than 500 payments and technology companies. 

U.S. Representatives Host Event with the Congressional Payments Technology Caucus in Atlanta

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September 2, 2015 -  Last night , U.S. Representatives and Congressional Payments Technology Caucus (CPTC)  co-Chairmen Lynn Westmoreland (R-GA) and David Scott (D-GA) hosted a meet & greet reception with the CPTC in Atlanta. The Congressman were on hand to greet ETA members and celebrate the strength of the payments industry.  The CPTC is open to all US Representatives with an interest in the payments industry.  

Congressional Research Service Publishes Study on the EMV Chip Card Transition

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September 11, 2015

Consumer financial card fraud due to data breaches of card information is an ongoing problem in the United States. The majority of breaches are carried out against point-of-sale (POS) systems, and are facilitated by what many consider to be the weak link in the U.S. retail sales payment process: the continued use of magnetic stripe cards (also referred to as stripe-and-signature cards). These cards are what most U.S. consumers think of when referring to financial cards.

Please click here to read the full CRS report.

ETA & PCI Host Payments Security Policy Day In Washington, DC

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September 16, 2015 -  ETA and the PCI Security Standards Council teamed up today in Washington, DC to host a policy event focused on technologies for securing payments. The event, held at Holland & Knight LLP,  attracted more than 100 industry stakeholders from across the payments ecosystem, including executives in town for ETA’s fly-in tomorrow. Three panels of experts featured in-depth discussions regarding the industry’s multi-layered approach to protecting consumer data. Brian Peretti, Director, Office of Critical Infrastructure Protection and Compliance Policy, US Department of the Treasury provided the keynote address. He highlighted the critical role that the payments industry plays in the financial sector, and outlined the ways in which the Department of the Treasury is working with payments companies to protect merchants and consumers. Other speakers at this event included representatives from ETA, PCI, Visa, MasterCard, World Pay, Igenico, TSYS, Paymetrics, Bluefin, ControlScan, and HoneyBaked Ham. The panelists discussed the impending EMV liability shift and its implications for other payments security technologies. The payments industry is working round the clock to make payments safer, faster, and more convenient. The ETA Executive Payments Fly-In is the latest in ETA's series of policy events advancing the payments technology industry. Upcoming events include Chip Card 101 on October 1 in Washington, D.C.

ETA Hosts Executive Payments Fly-In in Washington, DC

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September 17, 2015 - Today, ETA hosted the Payments Fly-In on Capitol Hill. We were pleased to welcome over 70 industry leaders, who went on to meet with Members of Congress and federal regulators, including the CFPB, Federal Reserve and Treasury, to discuss issues facing the industry. This Fly-In was a unique opportunity for our members to speak directly to lawmakers and provide insight into how the payments industry drives the U.S. economy. “The ETA Executive Payments Fly-In brings industry leaders to Washington as the voice of the payments industry,” said Jason Oxman, ETA CEO. “ETA is excited to bring our members face to face with members of Congress and regulators to engage in frank discussion about our industry, which enables $5 trillion in electronic transactions for merchants and consumers in the U.S. each year.” The underlying theme of the day was simple: security. Member companies educated legislators and regulators about everything they are doing to secure consumer data - including EMV, tokenization, and encryption. Our members also discussed the vital importance of cyber-sharing. With cyber attacks against private industry and the U.S. government growing in frequency and complexity, the need for business and the federal government to share  information about cyber threats is critical.  However, current anti-trust and privacy laws prohibit ETA members from sharing such information with the federal government.   To remedy this, a number of information sharing bills have been introduced in both chambers of Congress. ETA strongly supports creating a legal safe harbor to allow our members to voluntarily share targeted cyber threat indicators (CTI) with the government. Our members helped convince legislators and regulators that bills like the Cybersecurity Information Sharing Act of 2014 (CISA) are crucial components of a robust federal data security policy. Our members also educated policymakers about the need for a uniform data breach notification law. Several recent high-profile data breaches have highlighted the fact that, when it comes to notifying customers after an incident, victimized businesses are forced to comply with a patchwork of 47 different state laws governing if, when, and how customers are to be notified.  To remedy the problem of confusing and sometimes contradictory state laws, Members of Congress began working on legislation that would create one national standard for ETA members to follow in the event they were required to notify their customers about a data breach. To be truly effective, this standard would preempt state laws. By the end of the day, our Fly-In participants had met with 40 policymakers: Members of Congress and their staff from both sides of the aisle, and federal regulators. They met with members of the newly formed House and Senate Payments Caucuses. The House Congressional Payments Technology Caucus and the Senate Payments Innovation Caucus were formed to explore the new and innovative technologies in the payments industry, as well as answer questions about data security, unbanked users’ access to electronic payments, and more. Senator David Perdue (R-GA), a member of the Senate Caucus, addressed the attendees at lunch. “Having a voice in politics is crucial for businesses of all sizes”, said Scott Talbott, ETA Senior Vice President of Government Affairs. “At a time of unprecedented change in the payments industry, including mobile payments and other new technologies, ETA’s government relations efforts are enormously important to advance our industry.” “ETA member companies continue to drive payments technology innovation,” said Greg Cohen, President of iPayment and ETA’s President-Elect. “We are grateful that members of Congress and regulators are interested in and excited about the secure and convenient payments advancements that we are offering American consumers and merchants.” The ETA Executive Payments Fly-In was the latest in ETA’s series of policy events advancing the payments technology industry. Upcoming events include Chip Card 101 on October 1 in Washington, DC. Follow us on Twitter for more events and ETA news, as well as the latest updates from the payments industry.

October 22, 2015: Effective Fraud Prevention for Payment Processors

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[two_third] 2:00pm - 3:00pm ET FREE for ETA Members & $99 Non-Members [/two_third] [one_third_last] [button color="blue" link="http://eo2.commpartners.com/users/eta/session.php?id=16943" size="small" target="_blank" textcolor="#FFF" texthcolor="#CCC" bgcolor="#172652" align="right"]REGISTER TODAY![/button] [/one_third_last] Merchants are looking for more from their payment processor or gateway than simply...payment processing. And, payment processors and gateways are looking to add value for their merchant customers. Offering fraud mitigation services to an entire merchant customer base and removing the hassle of IT integration can give payment processors the edge for winning new business, reduce churn with current customers and increase order acceptance overall. Attend this webinar to learn about:
  • How to protect your merchants and your company from fraud
  • New revenue opportunities with added value for top merchants
  • How fraud prevention can be simple, affordable and real-time
  • Creating a safer, more profitable ecosystem with one API integration
  • Critical backend underwriting when reviewing new merchant account applications
Sponsored by: [divide]

SPEAKERS

JACK ALTON Senior Vice President of Sales Kount Jack Alton is the Senior Vice President of Sales at Kount, where he is responsible for business development and sales. His 15 years of experience in building and leading large account sales organizations has helped several companies accelerate growth and move to leadership positions within their respective industries. Prior to joining Kount, Alton was the Vice President of Sales, North America for CradlePoint, a wireless hardware company, where he directed his team to double-digit growth annually. Before moving to CradlePoint, Alton developed a team of over 70 at Wayport, Inc. (acquired by AT&T) as Vice President of Sales and grew sales from $7M to over $75M annually in less than three years. [spacer height=17] SCOTT MCLEAN Product Manager Kount Scott McLean is the Product Manager at Kount and is responsible for the product roadmap and leading market driven product development. This includes gathering feedback to identify high value market problems and collaborating with all parts of the company to create and provide compelling solutions that deliver on Kount's promise to boost sales and beat fraud. Prior to joining Kount, McLean was a Solution Manager at Naehas, a marketing automation company, where he managed strategic clients and special projects. Before moving to Naehas, McLean led custom product development for strategic customers as a Professional Services Consultant at Healthwise. In addition, McLean has almost a decade of experience as a software developer, leading technical teams in companies both large and small.

ETA to Host Chip-Card 101 Day on October 1

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September 25, 2015 -  We are now just days away from the EMV liability shift date! On October 1, as U.S. retailers activate their new chip-card ready POS terminals and customers make the shift from swipe to dip, the Electronic Transactions Association will host Chip-Card 101 Day, an informational briefing connecting media and industry stake holders to discuss the start of the EMV migration .  This event will take place in the Washington DC Newseum’s Broadcast Room from 8:30am-10:30am. Several ETA members will be on-site for the Technology Showcase, demonstrating their EMV compliant POS technologies. The variety of POS terminals on display will enable merchants and press to interact with a few of the many EMV-ready solutions available. Attendees will also hear from two power-house panels. First, Carolyn Balfany, Group Head of US Product Delivery at MasterCard and Maryam Cope, Vice President of Government Affairs at the American Hotel & Lodging Association will discuss details on how EMV works to make payments more secure and to reduce fraud. In the second panel, we’ll hear from merchants, financial institutions and consumer groups on the transition to EMV, implementation, and the road ahead for payments security. Join us for this engaging conversation on the chip card transition and payments’ road ahead! Attendance is free, but space is limited – REGISTER NOW! For additional information, please contact Meghan Cieslak, ETA Director of Communications at mcieslak@electran.org
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