THE VERDICT
USE TECH FOR
GOOD NOT
One possible retirement
spot is disaster recovery.
PFM-style products
grow for entrepreneurs.
SEPTEMBER 2010
TECHNOLOGY INNOVATION. BUSINESS RESULTS.
VOL. 23 NO. 9
Tossing A
Staple
Bonneville says losses
make signature debit
risky in some states
SECURITY
BONNEVILLE BANCORP IS TAKING
an unusually drastic—and
seemingly counterintuitive—
approach to fighting fraud. To
make sure its customers use
their PINs and to shore up se-
curity for debit purchases, it
is prohibiting signature debit
payments in some states.
Though PINs provide an
additional layer of security,
signature debit transactions
generally earn issuers more
money, and observers say
it is unheard of for a bank
to consider its fraud losses
severe enough to switch off
that revenue stream.
According to a notice on
Bonneville’s Website warning
of “high amounts of fraudu-
lent card activity in California,
Florida and Georgia,” cus-
tomers in those states must
use their PINs for any debit
transactions. “No signature
transactions will be allowed,”
the notice asserts.
“All I can think of is that
the fraud was so high that the
lost interchange revenue is
worth it compared to the cost
of issuing new accounts,” says
Leading Off, page 12
Joint Venture
Aims to Break
NFC Logjam
PAYMENTS
Banks and carriers are finally teaming up, but are
merchants and consumers ready for the offer?
COVER STORY PAGE 20
Authentication is the No. 1 issue in bank security—
whether it’s customers, checks, or online transactions.
Five technologies to meet the challenges.
THE BIG NE WS LAST MON TH WAS THAT DISCOVER AND BARCLAYS WOULD
partner with AT&T, Verizon and T-Mobile to create a mobile
proximity payments platform—code-named “Mercury”—and
set for trials in Texas, Minnesota and Utah next year, according
to reports by Bloomberg. The enabling software and hardware
are rumored to come from little-known mobile wallet maker C-
SAM, based in Chicago with ties to India, and France-based
Gemalto, which acts as a Trusted Service Manager in a number
of other similar ventures, according to sources with knowledge
of the arrangement.
The outlines of the plan are sketches at this point, but an-
alysts are divided as to whether the joint venture will launch
a revolution in mobile NFC payments in the U.S., or fall flat
Leading Off, page 11
An ‘Overwhelming’ App
MasterCard’s new lure to mobile is steep short-term discounts
ADOPTION
MASTERCARD’S PATH TO THE
hearts of nascent mobile
payments customers are
time sensitive opportunities
to save money that simulta-
neously build comfort with
using smart phones to make
purchases based on action-
able information.
BY THE
NUMBERS
UP IN THE SKY
CLOUD COMPUTING investments will
increase to $21.9 billion in 2012,
up from $4 billion in 2010.
$21billion
