Thursday, April 30, 2009

VeriFone to Supply Cara with Pay-At-the Table Systems - Issue 18 - July 2007

VeriFone to Supply Cara with Pay-At-the Table Systems

June 14, 2007 - VeriFone Holdings, Inc. has announced that Cara, the largest operator of full service restaurants in Canada, has selected the ON THE SPOT pay at the table system designed exclusively for the hospitality industry.

With this multi-million dollar rollout, Cara becomes the largest restaurant operator and the first in Canada to provide its customers with payment at the table. Cara owns many of Canada’s most popular restaurant concepts with stores totaling over 800, including the Swiss Chalet, Harvey’s, Kelsey’s, Montana’s Cookhouse and Milestone’s Grill & Bar brands.

ON THE SPOT is designed to significantly improve security for restaurant patrons and cut down on the increasingly common problem of credit card fraud. It has two main platforms. One that allows at-the-table, curb or point of delivery payment for full-service family, casual and fine dining restaurants (model Vx 670); and the other designed for use at drive-thru windows (model QX720). At Cara, ON THE SPOT is integrating seamlessly with MICROS Systems, Inc. point-of-sale solutions.

ON THE SPOT allows patrons to hold on to their card during the payment process, consequently cutting down on “skimming,” an increasingly common practice in which a restaurant employee swipes the card through a special device that records its owner’s account information, which can then be used in identity theft. TransUnion estimates that 70 percent of all skimming takes place in the restaurant environment.

The payment system also uses special encryption and other security features to protect all financial data handled over a restaurant’s Wi-Fi network. These security features are a necessity today, with the Federal Trade Commission reporting that credit card fraud has become the most common form of identity theft.

Restaurant owners may also experience an additional benefit of lower credit card processing fees when customers use PIN-based debit cards, which incur lower processing fees than signature-based credit transactions.

The use of payment devices similar to ON THE SPOT has been widespread in Europe for years and is picking up steam in North American restaurants. VeriFone’s ON THE SPOT is the most widely deployed solution in the U.S. and Canada since being launched in May of 2006 at the National Restaurant Association trade show.


NOTE FROM THE EDITOR

It seems our gamble at the FT has paid off. Since the founding of this publication, we have bet on the Canadian payments industry going in the direction of the US payments market. I think its safe to say that as of the summer of 2007 that has happened. Every few months a new merchant account ISO comes on line in Canada. Canadian ISOs and some US ISO’s have finally rolled out cash advance products in Canada, and prepaid cards are now being issued wherever you look in Canada. Its official, Canada now has a payments industry.

The challenge for Canadian payments entrepreneurs, in my opinion, is not just to open the Canadian market for payments products, but to keep their market share when the US competitors come to Canada.With the exception of the ten or so biggest names in the industry, most US payments businesses that have tried to come to Canada got tired of not getting called back by Canadian banks and decided that a country the size of California was not worth the hassle. That has left Canadian entrepreneurs with the thankless task of re-engineering the Canadian marketplace to become open and welcoming of new payments offerings. That is happening right now, and we are delighted to report on it in the pages of this publication.

In this issue we are also launching The Frontier Times General Store where readers will be able to pick up odds and ends that might be hard to find elsewhere. The first offering in this regard is cleaning cards. Anyone who has ever done grocery shopping knows how important it is to clean POS machines. The FT is pleased to help you help your merchants with this perennial problem.

Whether you are reading this issue at the cottage with your feet in the lake or in the muggy city summer heat, we hope you are having a great Canadian summer.

Adam N. Atlas

Editor in Chief

atlas@frontiertimes.ca


NEWS

First Data International Extends Agreement with Laurentian Bank of Canada

Toronto, June 06 2007 – First Data International, a global leader in electronic commerce and payment services, announced it has extended its agreement with Laurentian Bank of Canada. Under terms of the agreement, First Data will continue to provide payment processing services for the bank's credit card portfolios.

Laurentian Bank is a Quebec banking institution operating across Canada and drives the third largest branch network in Quebec. The bank has more than 3,200 employees, 158 bank branches, 29 commercial banking centers and 14 brokerage offices, and is dedicated to meeting the financial needs of its clients through the excellence of its service, simplicity and proximity.

First Data has provided card processing services in Canada since 2000 and currently processes accounts on behalf of leading card issuers in the region. The company is also a leading merchant acquirer of MasterCard® transactions in Canada working with a wide range of merchants.


Visa charges ahead with plan to go public

June 22 2007 – Visa has filed documents with regulators that provide further detail on its plan to launch an initial public offering for the company that operates the world's most popular credit card.

Visa said 51% of its shares now owned by the banks that issue Visa cards would be issued to the public.

However, before that can happen, Visa will restructure its global operations. Visa Canada, Visa International and Visa USA will be combined into a single company, Visa Inc., which will be owned by its member banks.

Visa hopes to replicate the success of its rival, MasterCard, which went public in 2006. Its shares gained 18% on their first day of trading and have quadrupled since then.

Member banks who own 100 per cent of Visa's stock could stand to reap huge windfall profits on selling their shares.

Both Visa and MasterCard are facing legal scrutiny in the U.S., where merchants have accused the two companies of price fixing and have filed antitrust lawsuits.

There are currently about 1.5 billion Visa cards in circulation around the world.


Bank of America Expands Toronto-based Global Corporate and Investment Banking Team

Toronto, June 28 2007 – Bank of America has announced two hires to its Toronto-based Global Corporate and Investment Banking (GCIB) team with the appointments of Paul R. DeMelo as Managing Director and head of Corporate Banking, and J. Andrew Riddell as Senior Vice President and Senior ClientManager in Commercial Banking. Both are based in Toronto, Canada.

DeMelo reports to Donald C. Stewart, Managing Director and Principal Officer and Chairman of Banc of America Securities Canada Co. In his position as head of Corporate Banking, DeMelo is responsible for building out and leading the bank's expanding corporate banking efforts in Canada.

DeMelo brings a wealth of experience and success in building and leading corporate banking teams in Canada and the United States over a career spanning 20 years. His most recent position was head of Corporate Banking for JPMorgan Canada.

Riddell reports to Kevin Murphy, Commercial Banking Market Executive for Upstate New York and Eastern Canada at Bank of America. In his position as Senior Client Manager, Riddell is responsible for leading and growing the bank's existing portfolio of commercial customers.

Riddell brings with him a 17 year history of outstanding results in servicing the Canadian commercial sector with a particular focus on cross border financial service needs. His most recent position was as a Senior Vice President in the International Banking group at National City Bank, Canada branch.


The RCMP launches the MERCHANTS AGAINST MONEY LAUNDERING AND COUNTERFEITING PROGRAM

Montreal, June 11, 2007 – The Royal Canadian Mounted Police created the Merchants Against Money Laundering and Counterfeiting Program to help business people recognize the various forms of money laundering as well as counterfeit bank notes.

Until August, the Merchants Against Money Laundering and Counterfeiting Program team will provide presentations on these two crimes and their consequences to merchants across Québec. The sessions are offered free of charge in both official languages.

Whether it is money laundering or counterfeit money, merchants often lack information to combat these types of financial crimes that affect them directly.

In response to this situation, the RCMP hired students and created a prevention program aimed at merchants who will gain by becoming more familiar with these increasingly popular crimes. “Counterfeit money has seen spectacular growth over the past few years, said Sergeant André Bacon, Regional Coordinator of the RCMP’s Counterfeit Program. Seized bills alone account for losses of tens of millions of dollars for the victims.”

Visual presentations on request:

The program uses visual presentations to raise merchants’ awareness. The material was created in collaboration with the RCMP Integrated Counterfeit Enforcement Team and Integrated Proceeds of Crime, as well as the Bank of Canada and FINTRAC (Financial Transactions and Reports Analysis Centre of Canada). This initiative has already been successfully implemented in other cities, such as Ottawa and Halifax.

Anyone interested in this program can contact Annie Bélanger and Maude Boivin-Laframboise at (514) 939-8304 for theMontréal area or the RCMP Integrated Proceeds of Crime at (418) 648-4126 for the Québec city area for additional information.


GE Money, eBay Introduce eBay MasterCard

June 16, 2007 – GE Money has announced the eBay MasterCard, calling it an expansion of its partnership with eBay. eBay MasterCard customers will benefit from a new rewards program, earning one Reward Point for every $1 spent in purchases. Reward Points are also earned with non-Internet, everyday purchases wherever MasterCard is accepted. Points are redeemable for shipping discounts and vouchers that can be used to shop on eBay or to pay eBay seller fees.

Cardholders will enjoy other benefits with the eBay MasterCard, such as the ability to choose from one of three card designs, and the option to add their eBay User ID to the card. The card also features Safe Shipping, which protects them if their item never arrives. The card fits perfectly with PayPal, as customers can view their account activity within their existing PayPal account. Additional benefits include zero percent liability for unauthorized purchases, 24/7 customer service and no annual fee.

eBay will provide promotional and branding support for the eBay MasterCard. GE Money Bank will be responsible for issuing the card, and providing customer service, billing and credit management.

The eBayMasterCard is an expansion of a relationship originally created in June 2004 for GE to offer PayPal Buyer Credit, a private label, revolving credit line available to registered PayPal customers. A PayPal® Plus MasterCard was introduced in May 2006.


New POSLynx220 Version Introduces TransNet™ Payment Engine

Solution makes PC-based payment processing more secure.

Ottawa, June 14 2007 – Precidia Technologies Inc., a global leader in the design and manufacture of Internet Protocol (IP) payment and networking devices, has announced the release of POSLynx220™ version 2.09, which now supports TransNet™, Precidia’s secure payment engine for PC POS systems.

This new solution eliminates the vulnerability of PC-based systems running payment applications by leveraging the POSLynx220 hardware as a secure server for Precidia’s payment application. The solution can be purchased by vendors and developers to integrate secure payments functionality with complementary applications. Delivering peace of mind with automatic PCI alerts and updates, merchants purchasing TransNet with the POSLynx220 can also take advantage of value added store-level management tools.

Established in hospitality and other retail sectors, PC based systems are ideal for running multiple applications, from inventory to email.When it comes to payments, however, PC systems have one fundamental flaw that TransNet has been designed to address: inadequate security. In order to meet the demanding requirements of cardholder security standards like PCI, the payments function must stand alone separate from other applications running on the PC. The POSLynx220 payment router connects to the PC system, delivering fast IP transactions, enhanced management and statistics, switching for multiple card types and solid security.


Experian and eCredit™ Join for Rapid Credit Decision Service

Toronto, June 11 2007 – Experian®, a global information services company, has announced that it has teamed with eCredit™ a leading provider of online solutions for credit and collections professionals, to launch an end-to-end new account and portfolio management credit decisioning tool.

Powered by eCredit's market-leading credit decisioning technology and integrated with Experian's small-business commercial risk information, Credit Risk Advisor(SM) provides the trade credit community with a powerful tool to more efficiently support new accounts and existing portfolio management.

With automated workflow functionality and configurable decisioning criteria, Credit Risk Advisor enables users to develop and easily implement a robust credit policy that identifies areas of risk and opportunity across their entire portfolio. The new service also provides clients with flexible scorecards that meet the evolving demands of trade credit companies, including manufacturers, wholesalers and transportation businesses.

Credit Risk Advisor automates the new account decisioning process by allowing business credit applications to be entered and instantly evaluated in a paperless online environment. All account information including Experian credit scores, payment history, notes and approved credit limits can be electronically routed within the credit department or between credit and sales, enabling clients to save time, reduce out-ofpolicy exceptions and improve cash-management productivity. The new service also will evaluate account portfolios using automated customer-defined rules and will aid in the immediate identification of unwarranted credit exposures before significant problems arise.


MasterCard Wins Injunction Against Visa

New York, June 08 2007 – Federal Judge Barbara Jones ruled that Visa's Settlement Service Fee (“SSF”), implemented in the wake of the settlement of the merchant lawsuit in 2003, was unlawful and must be repealed, MasterCard reported today.

“This is a significant win forMasterCard and its customers,” said Noah J. Hanft, MasterCard general counsel. “With this roadblock out of the way, financial institutions will not be deterred by this coercive fee and can make decisions based on their best judgment about quality of service, strength of brand and other competitive factors that benefit their cardholders.”Mr.Hanft continued, “Banks that were prevented fromfully evaluating MasterCard’s debit offering because of the SSF will now be permitted to terminate their agreements with Visa in order to issue MasterCard debit cards.”

In addition to requiring that Visa repeal the SSF, Judge Jones also issued an order allowing all of Visa’s top 100 debit issuers, with Visa debit agreements that were signed while the SSF was in place, to terminate such agreements in the event that they enter into a new agreement with MasterCard to issue debit cards on MasterCard’s network. In the coming months, all issuing financial institutions in the United States must be notified of the remedy in Judge Jones' decision.

Judge Jones found that the SSF effectively prevented Visa’s top 100 debit issuers from issuing on MasterCard’s network. Mr. Hanft said Visa's intention to put in place a coercive fee to block issuers frommaking independent brand decisions was unmasked by the Court through extensive evidence, including Visa’s own internal documents.


Alliance Data’s Canadian Loyalty Business Signs Multi-Year Agreement with Leading Insurance Company

St-John, NF, June 7 2007 – Alliance Data Systems Corporation, a leading provider of loyalty and marketing solutions derived from transaction-rich data, announced that Roins Financial Services Limited (RFSL) has signed a multi-year agreement in which its affiliates Royal & SunAlliance and Johnson Inc. will become national sponsors in Alliance Data's Canadian AIR MILES® Reward Program. Beginning June 1st, eligible collectors receive reward miles on premiums paid for home or auto insurance policies underwritten and distributed through participating RFSL affiliate companies.

As a leading home, car and business insurance company, Royal & SunAlliance will offer the AIR MILES Reward Program through a large network of independent insurance brokers representing Royal & Sun Alliance Insurance Company of Canada andWestern Assurance Company.

TheAIRMILES Reward ProgramisCanada's premier coalition loyalty program, with approximately two-thirds of Canadian households actively collecting reward miles. AIRMILES collectors earn reward miles at more than 100 leading brand-name sponsors representing thousands of retail and service locations across Canada. AIR MILES reward miles can be redeemed for more than 800 different rewards, such as travel, movie passes, entertainment attractions, electronic merchandise and more.

Founded in 1880, Johnson Inc. is today one of Canada's leading insurance and benefit providers. Headquartered in St. John's, Newfoundland, the company has more than 60 locations across Canada from which it will offer the AIR MILES Reward Programtogether with its award-winning customer service. Johnson Inc. will offerAIR MILES rewardmiles on regularmarket home and auto insurance policies underwritten by Unifund Assurance Company. Johnson Inc. and Unifund Assurance Company share common ownership.


EMC Announces Acquisition of Verid

Toronto, June 4, 2007 – EMC Corporation, the world leader in information infrastructure solutions, announced that it has acquired Verid, Inc., a privately held information security technology leader based in Florida that delivers knowledge-based authentication solutions to millions of users worldwide, through some of the largest consumer-facing financial institutions, telecom providers and retailers. The acquisition is complete and further details of the transaction are not being disclosed.

The addition of Verid marks a significant enhancement in EMC's commitment, through its RSA division to providing protection, visibility and business acceleration at every point of the user verification process. RSA is now strongly positioned to offer continuous security. Starting with the initial user identity verification and maintaining perpetual vigilance throughout the lifecycle of the relationship, across the various channels of user interaction.

The comprehensive RSA® Adaptive Authentication suite will now cover the identity verification process from end-to-end, through a new two-tier approach:

1. Initial Authentication: Verification at the time of enrolment or when an account is opened. This initial stage determines the level of trust that can be applied to an identity, its account and all future transactions.

2. Ongoing Authentication: Once the initial relationship has been established with certainty and a credential has been issued, all subsequent authentication activities can be managed and tailored individually, using appropriate levels of security according to specific scenarios and risk.

Verid's technology and expertise adds advantages to RSA and EMC customers in both of these tiers. Initial authentication will be established using knowledge-based techniques, in conjunction with RSA's recognized risk engine and the RSA® eFraudNetworksm community.


NCR Study Shows Consumers Are Driving Self-Service

Mississauga, June 21 2007 –On-the-go consumers prefer to handle an increasing number of transactions themselves through self-service devices, and are more likely to do business with companies that make it easier to for them to do so, according to a major new study conducted by BuzzBack Market Research for NCR Corporation.

More than three out of four (77%) of the 633 U.S. and Canadian consumers polled said they aremore likely to do business with organizations that offer self-service, and 92% value combining mobile devices with the Internet and self-service kiosks or ATMs to improve their overall service experience.

Some of the more frequently cited transactions respondents said they would like to see automated through multipurpose kiosks include: renewing drivers’ licenses or vehicle registration (76%); checking the status of items ordered online (71%); purchasing transit or airline tickets (62%); making photo copies (57%); and ordering flowers, books and other items (54%). The top-three locations where respondents would like to see this type of convenience are in airports (70%); malls (65%); and grocery stores (55%).

Respondents also showed a strong preference for self-service when it comes to printing on-the-go. An overwhelming majority (85% to 94%) of respondents indicated they would prefer to use self-service to print items such as maps, tickets, schedules, coupons and other items while banking, shopping, travelling, dining or visiting a medical clinic.

Most consumers showed a preference for serving themselves across a number of industries. However, results indicate many respondents prefer to obtain personal assistance with more consultative, financial transactions. For example, 74% said they would prefer to speak with someone to obtain investment advice, 73% would prefer this option for purchasing insurance, and 69% would like assistance obtaining mortgage advice.

Background on survey methodology:

A total of 633 U.S. and Canadian respondents, at least 18 years old, participated in this study. The total sample is representative for age, gender, household income and region.


Hayton Systems Chooses Precidia for Mobile Asset Tracking

Ottawa,May 30 2007 – Precidia Technologies Inc., a global leader in the design and manufacture of Internet Protocol (IP) payment and networking devices, announced that the iPocket232 has been selected by leading industrial data collection and management provider Hayton Systems. The solution provided by the iPocket232 tracks assets nation-wide for key customers including Verizon Communications. The iPocket232 works withHayton System’s complete handheldmobile scanning package, providing the reliable network connectivity required to transmit status data on company assets from any location nationwide, directly to corporate head office.

Hayton Systems customizes a Handheld Products (HHP) handheld computer with its software and a modem. Customers like Verizon depend on Hayton Systems’ solution to track assets such as power supplies and circuit cards via transactions carried out on theHHP handheld device.With the iPocket232 embedded in the device, users have two options for mobile connectivity: internet and dial, depending on what type of service is available to them. These mobile transactions, which include installs, removals, modifications and movements between locations, are carried by the iPocket232 over an Ethernet network for real-time updates to a central office database.

Precidia president Deepak Wanner points to Hayton Systems as an example of using internet technology to improve customer solutions: “Hayton Systems has designed a mobile solution that is ideal for a wide range of industries, including industrial”, said Mr.Wanner. “By integrating networking capability into this solution, customers have a greater range of options available to them with respect to the transmission of asset tracking data to a central office”.


Cognera Corp. in the Top 4 Meter-to-Cash Business Process Outsourcing Vendors in North America

Calgary, May 31 2007 – Cognera Corp. announced that its outsourced energy billing solution has been recognized as one of the Top 4 Meter-to-Cash Business Process Outsourcing (BPO) solutions in the North American market, as per the 2007 Technology Vendor Analysis Matrix (TVAM) rankings released by UtiliPoint International, Inc.

The TVAM is a survey and analysis tool that is based on describing and evaluating utility and energy technology, not just on a "features and functions" basis, but around the more important metrics of architecture, cost of ownership, service delivery, and the cultural relationship between technology suppliers and utilities. The TVAM report ranked Cognera highly in several BPO metric categories including Commitment to Outsourcing, Organizational Strengths, Insurance and Risk Mitigation, and Platform Surety.

Cognera is a leading provider of settlement and retail billing solutions for competitive energy retailers and regulated utilities using a combined Business Process Outsourcing and Software as a Service model. Headquartered in Calgary, Alberta, Canada, Cognera delivers a unique and modular software solution that manages complex billing processes, while allowing clients to retain access to their core customer data.


Barclays Canada Launches New iShares ™ Small Cap ETFs

Toronto, May 15 2007 – Barclays Global Investors Canada Limited announced the launch of Canada's first small cap Exchange Traded Funds (ETFs): iShares CDN SmallCap Index Fund (XCS) and iShares CDN Russell 2000(R) Index Fund (XSU).

"With the introduction of the new iShares small cap funds, investors will now have unprecedented access to the equity market in Canada, while also accessing the US small capmarket without the currency risk," saidHeather Pelant,Head of Business Development, iShares, while introducing the new funds to investment advisors during a briefing in Toronto.

Pelant explained that a small-cap company is generally a newer and faster growing company. In Canada, small-cap companies generally have a market capitalization between $100 million and $1.5 billion. In the US, which is a much larger market, the average small-cap company has a market capitalization of about $150 billion. The funds are the first of their kind to be traded in Canada.

"Until now, we have not had a good small cap benchmark in Canada," John De Goey, CFP. Senior Financial Advisor, Burgeonvest Securities and author of The Professional Financial Advisor II. "The new iShares small cap ETFs will provide an important diversifier for any investment portfolio and greatly benefit investors who find themselves heavily over weighted in large cap. Essentially, it is the cure for what has ailed Canadian investors to date."

The new iShares Small Cap funds include:

iShares CDN SmallCap Index Fund, XCS will be the first exchange traded fund to track the new S&P/TSX SmallCap Index. XCS is expected to give investors a better ability to express their views on Canadian equity exposure based on market capitalization.

iSharesCDNRussell 2000 Index Fund, XSUwill provide increased flexibility for investors to choose US small cap exposure without currency risk. Through XSU, Barclays Canada is offering Canadian-dollar hedged exposure to the Russell 2000 Index, which is comprised of smaller US public issuers.

The launch of iShares small cap funds was coupled with the launch of Canada's first Socially Responsible ETF: iShares CDN Jantzi Social Index(R) Fund (XEN). All three funds will began trading on the Toronto Stock Exchange on May 18, 2007.

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