Category Archives: Uncategorized
Acceptance – Part 1
I haven’t written much on acceptance over my 9 yr blogging career for one simple reason.. I was never “in” that side of the business. Given how much is going on in here I can’t leave it out any longer. Acceptance at the POS is a big topic, I see the following areas:
Great article in Digital Transactions that I missed in February
PAR – Consumer Tokens, February 2016
Quote “When a transaction is initiated with an EMV payment token, the functionality of these applications can be impacted since the full PAN may not be available to merchants, acquirers, and payment processors,” a recent EMVCo document says.
Payments – Civil War?
Regulated companies like banks and MNOs must not only know who is using their data, but also HOW it is being used.. and when it is transferred, it must be destroyed. We help 1st party data owners create data products within their environment.. your data, your rules, your environment
As always sorry for the typos. This is an 8 page blog… a little long.. and not always linear…. corrections/comments are appreciated…
The EMV of Payment Terminals – SHA-1
Never one to shy away from even the MOST ARCANE areas of payments… There is a firestorm in payments encryption right now.. SHA-1 is a hashing function (securing data for a counterparty without the use of public/private keys) that has long since been sunsetted by Microsoft, Google and others as “too weak” and “easily cracked”.
P2P Payments Update + MA/Vocalink
Short blog. I can’t believe it has been 5 years since I wrote Real Time Money Transfer in US. This week we see rumor that Mastercard is looking to make 1B GBP bid to buy Vocalink. Per my Apple and P2P blog there are 4 primary options for “real time P2P” in US:
- ClearxChange/Early Warning
- (FUTURE) Real Time Payments with TCH
Card Holder Present Update
Presented yesterday at KBW’s annual Payment Conference.. have a few updates in the rumor mill..
I predicted September of this year for CHP in in previous blog Card Holder Present last month. Issuers don’t like this one bit.. as there is no upside.. Merchants with large numbers of cards on file (Amazon, Google, Paypal, Walmart, …) will not tokenize until they obtain a risk based rate (Companies like Amazon manage fraud down to under 3bps).
Rumor is that one large issuer has been quite vocally against the new CHP rate coming into effect. My guess is that the issuers just funded $60M at The Clearing House (TCH) for them to create a new token utility based upon Bell ID…. and the banks want to use this beyond “faster payments”….
Last Mile Redesign (Processor-Merchant)
21 Jan 2016
My favorite blog of the year was written by famed UK computer scientist Paul Graham – The Refragmentation. Paul’s blog aligns very well to the work of 2 Nobel prize winners in economics: Oliver Williamson (2009) and his mentor Ronald Coase (1991). Both were focused on the factors governing the “nature of a firm”. (particularly Transaction Cost Economics). I covered how TCE relates to the sharing economy and the future of collaboration in my August blog Collaboration and the “Sharing Economy”.
If I were to pick the proof point for ‘refragmentation’ and TCE within the payments industry it would be processing. If payments is a network business.. processing is undergoing open access (think MCI/ATT), nodal redesign (think iPhone vs rotary), big data (democratized access), enterprise software (ERP/CRM), and direct sales (amazon) … ALL AT ONCE.
Cardholder Present – September 2016
Update 2022 – this never happened. While the networks have the facilities in VTS/MDES and the new SRC standard with EMVCo.. the rate tier has not taken hold.
As I outline 16 months ago in mCommerce/eCommerce Convergence, there is a new V/MA rate tier coming: Card Holder Present (CHP). CHP is coming by summer 2016 (70% probability), and can be thought of as a remake of what was VBV and MSC in 2006/7 using the new token utilities built for ApplePay.