From: BCC Enterprises <info@bccenterprises.com>
Subject: Contactless Payments Provide New Opportunities
Reply: info@bccenterprises.com

Possibilities Newsletter

BankCard Central VirtualTrak Technologies Business Capital Corporation Silver Stream Marketing
Petroleum Interchange Untangled
 
 
Effective April 13, 2007 Visa and MasterCard interchange was changed for petroleum merchants.
 
Visa made the following changes:
 
Corporate and Purchasing Card authorization chargeback protection for Automated Fuel Dispenser (AFD) was increased from $50 to $75, while consumer cards remained at $50 and Visa Fleet Cards were increased to $150.
 
What does this mean? Issuers will only be allowed to chargeback the difference between the limit and the transaction amount for chargeback reason codes 72 (no auth) and 96 (transaction exceeds limit abount). They also must submit chargebacks within 75 days which was is a reduction from 120 days.
 
 
MasterCard made the following changes:
 
MasterCard has added new Petroleum interchange categories and rates including a maximum cap to all MasterCard consumer card fuel transactions. Transactions will qualify for one of the following four new petroleum interchange programs:
 
 
  • MC Petroleum Base 1.90%
  • MC Petroleum Base Cap $ 0.95
  • MC Enhanced Petroleum Base 1.90%
  • MC Enhanced Petroleum Base Cap $ 0.95
  • MC World Petroleum Base 2.00%
  • MC World Petroleum Cap $ 0.95
  • MC World Elite Petroleum Base 2.00%
  • MC World Elite Petroleum Base Cap $ 0.95
  • MC Petroleum CAT/AFD Debit Cap $ 0.95
  • MC Petroleum Service Station Debit Cap $ 0.95

As a result, transactions will no longer qualify for Convenience Purchase or Merit III interchange rates. This change impacts Service Stations (MCC 5541) and Automated Fuel Dispensers (MCC 5542).
 
 
If you have any additional questions or concerns, please contact Jessica Piggee, Director of Sales at 800.745.7220 or info@bccenterprises.com .
 
Data Breach Responsibility
 
According to an article in InformationWeek dated June 28, 2007; California has proposed a bill that could change how retailers and financial institutions respond to a data breach. Data theft is a major concern for the Payment Card Industry, resulting in the creation of PCI Compliance; a set of guidelines and regulations to ensure security standards are met by everyone from the merchant to the financial institutions.
 
 
California was the first state to pass a law concerning the notification to consumers when a data breach has occurred. Currently it is the financial institutions responsibility. This new bill under consideration will place the responsibility of notifying consumers of a breach on the retail establishments. The basic line of thought for this bill is that financial institutions currently take on the cost of notification and the replacement of the cards regardless of who is at fault. Now, if a breach occurs and a retailer is not compliant with PCI, the cost will be passed on to the retailer.
 
 
Many groups currently oppose this bill and will attempt to block it from passing the Senate Appropriations Committee. The bill has a limited amount of time to be considered and with the opposition setting up their defense; it is unlikely the bill will be passed on to the Senate or to the Governor. There are other states considering bills concentrating on data breach notification.

Read more about this law at http://www.informationweek.com/management/
showArticle.jhtml?
articleID=20000
1385&cid=RSSfeed_IWK_News
or research your own state legislation proposals. Merchants, Agents, and ISO's all need to be aware of any regulations regarding PCI Compliance and what changes are being made in the industry.

Did You Know?
 
9% of 1,000 shoppers polled said they have used a contactless card, or key fob, to make purchases. This is more than double from a survey conducted at the end of 2005. 
 
In 2006, there were 27 million contactless payment cards (and key fobs) in use comprising about 7 million transactions.  This amounts to approximately 3% of all credit and debit card transactions.
 
By 2010 it is projected that there will be 109 million contactless payment cards (and key fobs) in use comprising about 2.2 billion transactions.
 
Bank Machine, the UK's leading independent ATM operator, has revealed 75% of today's consumers still prefer to use cash for smaller transactions. 81% of consumers believe financial institutions are pushing them to use their credit and debits cards more.
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Contact Information
Jessica Piggee
Director of Sales
105 E. 5th Street
Kansas City, MO 64106
P. 800-745-7220
C. 816-365-3663
F. 816-283-7457
PiggeeJ@bccenterprises.com

Quick Links
Featured Vendor: ViVOtech
Generate additional revenue and gain market share by selling differentiated contactless payment applications to merchants. ViVOtech delivers an affordable, scalable and easy to use contactless payment system that increases credit card acceptance in quick service environments.

Contactless radio-frequency (RF) technology provides quick and secure credit and debit card transactions, ensuring increased security as compared with existing magnetic card technology and offers customers faster and more convenient checkout processes.

You will be able to tap into the vastly unexplored quick-service market by selling a payment solution that has the speed and convenience needed for fast food, convenience stores and other quick service operators.

The ViVOpay technology enables contactless payments such as MasterCard PayPass™ and American Express® ExpressPay and Visa® contactless without extensive hardware or software changes to existing devices and at minimal cost to merchants. Over 60,000 ViVOpay readers have been shipped to different contactless payment deployments around the world.
ViVOpay is compatible with most POS systems (VeriFone, Ingenico, Hypercom, Lipman and integrated ECR) used by a variety of retailers. It provides a powerful contactless payment solution without requiring hardware replacement, major software upgrades or vast technical expertise.
 
 
Benefits of contactless include:
  • Increased revenues: Additional products and services available to merchants.
  • Reduction of fraudulent costs: A more secure payment system will reduce opportunities for fraud.
  • Convenience: Fun and easy to pay.
  • Speed: Faster than cash.
  • Quick to Market: Minimal changes to infrastructure.
Product Overview
ViVOpay™ transforms merchant legacy devices into next-generation contactless payment systems.
 


ViVOpay™ is a patent-pending, plug-n-play hardware application that enables existing magnetic stripe point-of-sale (POS) systems to accept payment from contactless credit and debit cards as well as from infrared-enabled cell phones and PDAs. 
 
ViVOpay enables contactless payments without any hardware or software changes to existing devices at a minimum cost. Merchants themselves can easily install any of the ViVOpay terminals to make legacy systems proximity-compatible.

ViVOpay comes in several different packages to fulfill the specific needs of each merchant:
 
ViVOpay 4000 Easy Mount Solution:
The flexible ViVOpay 4000 contactless payment device can easily be mounted onto a wide variety of existing Point of Sale (POS) terminals, Electronic Cash Register (ECR) systems, countertops, windows and a variety of other surfaces providing for physical and functional integration with the existing merchant system and check-out layout.


 
ViVOpay 3000 RF Countertop: Enables contactless credit, debit, gift and stored valued card payments with minimum change to existing infrastructure. Merchants themselves can easily install the plug-and-play ViVOpay 3000 and immediately start accepting contactless payments such as ExpressPay from American Express®, MasterCard® PayPass™, Visa® contactless and Chase blink™ as well as their own contactles gift, loyalty, etc.
 


 
ViVOpay NFC Countertop: Enables payment transactions directly from consumer's mobile phones. Consumers will just wave their mobile phones to securely transmit credit, debit, loyalty or prepaid card information to ViVOpay-enabled POS systems using Near Field Communication (NFC) technology being introduced into handsets by the largest mobile phone manufacturers.
 


 
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