Keeping members virtually safe – Should credit unions issue virtual cards?

first_imgIt’s fairly well known that as chip cards and chip card readers are putting a big dent in fraud conducted at the point-of-sale (counterfeit fraud), the bad guys are shifting their efforts to committing fraud online. E-commerce fraud (52%) clearly outweighs swiped fraud (28%) on credit cards, with debit card fraud still experiencing swiped fraud, since not as many debit cards have been reissued with chips – that will change by the end of this year. Meanwhile, ecommerce breaches are popping up in the news with increasing frequency. What can a credit union do to help members stay safe when shopping online? One solution is to offer virtual cards. A virtual card is a separate temporary card number, associated with the member’s credit card account, randomly generated. The temporary card number has no real-life plastic version – it only exists as a number, an expiry and a CVV2. When a member wants to shop online at a site that is not known or trusted, or give a card number over the phone to a merchant that the member has reason to believe may not keep the card number secure, the member goes online, requests a virtual card, copies the card number onto the e-commerce site, or reads the card number over the phone. Think of the virtual card number as a token representation of the real card – a token that looks like and works like a credit card. Virtual cards come in three types: 1) Burner cards, which are single use cards. Once the virtual number is charged, the card is expired. If it is breached, it cannot be authorized. 2) Single merchant cards, which can be used multiple times, but only with a single merchant. If a member is planning on ordering multiple items, or multiple items will ship at different times, the card will authorize for that merchant. But after the first authorization, the card cannot be used with any other merchant. 3) Limited time cards, in which the member sets an expiry date, in order to shop at multiple sites, but only within a strict period. For example, the virtual card could be authorized for use over a two-day period or up to a one-year period.  The card could also be used for a Netflix subscription or for monthly deliveries of meal kits. In addition, each of the cards typically have a spending limit, for both a single transaction and total card usage. If the virtual card number is compromised, the true card number remains safe, and the breached virtual card number is limited by its expiry, or merchant or both, making it virtually worthless to a fraudster. Virtual cards are in the market today, but consumers who want this have two choices. For a true virtual credit card, a consumer can get a credit card with a financial institution that also offers virtual cards. Bank of America calls their virtual card program ShopSafe, while Citi refers to their program as Virtual Account Number. Both are free. The other option is from various third-parties that offer different forms of virtual cards. Privacy.com allows anyone to enroll their checking/saving/share draft account, and after installing a browser extension and following the instant account validation, immediately access virtual cards. The drawback to this approach is that each transaction using the virtual card draws immediately from the consumer’s account, much like a debit card works. Another third party that offers virtual cards is netspend, which is primarily a prepaid debit card, but also offers the ability to generate a temporary card number online and then cancel the temporary card online. Although virtual cards seem like a panacea for keeping a member safe when shopping online, there are a few drawbacks and some major criticisms against this unique capability. There are some hotels and some car rental agencies that validate a reservation by requesting to see the same card used to make the reservation. If a virtual card is used, not only is there no plastic representation of the card to show, but most likely the member didn’t write down or capture separately the full card number. If a member makes a purchase online, then returns an item to a brick and mortar store, the credit for the purchase is typically put back on the same card, by swiping or inserting the card at the returns desk. With no card to show, the only option the consumer may have is to accept store credit. Setting an expiry date provides a level of protection but can also cause unintended problems. Some merchants charge upon shipping, which could be several days or even weeks after the order. If the expiration date is set too soon, the order may be cancelled when the card doesn’t authorize. And most importantly, virtual cards offer very little protection over the real credit card. Visa and Mastercard both offer zero liability in case of fraud, and many issuers offer next day replacement for cards that need to be reissued. Some issuers who used to offer virtual cards, including AmEx, Discover, and Chase, found that the low number of users did not justify the cost of maintaining the functionality and subsequently dropped the service. Benefit to credit unionsThe key reasons why a credit union would consider offering virtual credit cards to its members is to help reduce fraud and to create a “sticky” member service. There is a cost to offer this service, but there is a cost of fraud – reissuing cards, shipping a replacement card overnight, refunding amounts to a breached debit account. And this service is popular with those who use it – so much so that it may keep a member from leaving just because virtual cards are offered. Luckily, virtual cards are not the only option to protecting members from card-not-present fraud. Using Apple Pay in-app and in browser where merchants have added Apple Pay as a payment acceptance method assures the user that a secure token is used in the transaction, if you are shopping from your phone. If shopping from a desktop or laptop or from a phone, using Visa Checkout or Masterpass also affords the same level of protection as Apple Pay where accepted – again the payment is tokenized. And the best part, the cost to the credit union to enroll in Apple Pay, Visa Checkout and Masterpass is less than creating virtual cards. 72SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr,Lou Grilli Lou Grilli is a Senior Innovation Strategist. Lou is tasked with building and shaping a superior payment and member experience capability for PSCU and its Owner credit unions. Lou’s … Web: https://www.pscu.com Detailslast_img read more

Syracuse to play Kansas State in inaugural Pinstripe Bowl

first_img Facebook Twitter Google+ Syracuse accepted an invitation to play in the inaugural New Era Pinstripe Bowl Thursday, SU Athletic Director Daryl Gross announced at an afternoon press conference. ‘We have such a great announcement,’ Gross said. ‘It’s not the biggest secret in the world, but we have accepted a bid to play in the Pinstripe Bowl.’ The Pinstripe Bowl will take place Dec. 30 at 3:30 p.m. at Yankee Stadium. The Orange will face off against Kansas State, which accepted a bid to the bowl Friday. In addressing the media Friday at an afternoon press conference, SU head coach Doug Marrone said the bowl trip was a ‘dream come true.’ ‘This team has accomplished a great deal, and this is a great reward for us,’ he said. ‘We talked about it all year. We have our goals that we all signed on for.’AdvertisementThis is placeholder text On Thursday, Gross rarely stopped beaming during a 14-minute press conference in which he wore cufflinks that displayed the interlocking ‘NY’ logo of the New York Yankees. After Syracuse’s season ended last Saturday with a 16-7 loss to Boston College, talks between the Yankees and Syracuse started to heat up. The Pinstripe Bowl gets the fourth selection from the Big East. But with the ‘mutual attraction’ between the two parties, Gross said it made sense to accept the bid now than to wait for other bowl possibilities. ‘We’re elated,’ he said. ‘We’re happy to be back at a bowl. To be in the Pinstripe Bowl is a really nice thing for us. Like Doug (Marrone) said, if we’re not going to be in a BCS bowl, there couldn’t be a more perfect bowl for us to be in.’ Later, Gross added that the novelty of the bowl made it such an easy choice for the department to accept. The bowl is the first in the New York City area since the 1981 Garden State Bowl in Giants Stadium in East Rutherford, N.J. It is the first bowl in New York since 1962, when Miami played Nebraska in the Gotham Bowl in the original Yankee Stadium. ‘It’s kind of a once-in-a-lifetime type of event,’ Gross said. For a team and program attempting to market itself as ‘New York’s college team,’ a trip to the Pinstripe Bowl in perhaps the most iconic stadium in New York can ‘only enhance that,’ Gross said. ‘It couldn’t be any better,’ he said. ‘There we are, for a whole week, to take over the town and paint it Orange. Not just taxi tops. We’ll be playing down there, as well.’ Marrone grew up in the Bronx, about nine miles from Yankee Stadium. His grandfather worked as an usher for Yankee Stadium. So for the SU head coach, the bowl will also be a trip home, making it all the more special. ‘I don’t know how many coaches get to play in a venue that they grew up around their entire life,’ Marrone said. ‘I think it is, without a doubt, a dream come true to go home.’ Mark Holtzman, the Pinstripe Bowl’s executive director, was on hand during the Syracuse men’s basketball game against North Carolina State Saturday to present Marrone and SU with an official invite. ‘We’re still high-fiving,’ Holtzman said of Syracuse’s inclusion to the bowl after the presentation. ‘The smile hasn’t worn off.’ In Marrone’s second season at the helm, the Orange returned to a bowl game for the first time since 2004. Its 7-5 record was the first winning season for the program since 2001. And it came after a 4-8 season last year that led to a preseason pick of seventh in the conference in the Big East media poll. But SU surprised with four road victories in the Big East, including signature wins at South Florida and West Virginia. In its final road conference win at Rutgers on Nov. 13, it clinched bowl eligibility with a 13-10 victory over the Scarlet Knights. [email protected] [email protected] Published on December 1, 2010 at 12:00 pmcenter_img Commentslast_img read more

Legacy continues… Kambi secures Kindred contract extension

first_img Mace launches EQ Connect to solve the industry’s ‘single view’ conundrum on identifying risk  August 10, 2020 Share StumbleUpon Kambi takes control of Churchill Downs BetAmerica sportsbook August 28, 2020 Related Articles Share Submit Kambi takes full control of LeoVegas sportsbook portfolio August 26, 2020 Kristian Nylén – Kambi GroupStockholm-listed betting software provider Kambi Group Plc has today confirmed that it has successfully renegotiated its lead platform partnership with Kindred Group Plc.The agreed long-term contract extension will be put before shareholders at Kambi’s forthcoming Annual General Meeting (Stockholm on 31 May), including revised terms for a convertible bond between the two enterprises.The parties renewed contract agreement is set to become effective on 1 January 2018, as Kambi maintains its longest-running lead platform partnership with Kindred Group and its subsidiary sports betting verticals.This Q1 2018, Kambi successfully delivered the ‘Stan James player migration project’ for Kindred flagship brand Unibet – completing a key 2018 initiative for the online gambling group.Kristian Nylén, Kambi Group CEO, commented: “We are delighted to continue developing the successful partnership we have had with Kindred over the last five years and look forward to further contributing to its future success.“During this time, Kindred has gone from strength to strength with its Sportsbook, demonstrating the quality of the service provided by Kambi.“This contract extension is evidence of the quality, relevance and stability our scalable Sportsbook offers our customers as we continue to develop the best Sportsbook in the market.”Should the contract extension receive shareholder approval, Kambi will have extended contracts with five of its largest customers within the last 12 months, securing key sources of revenues for the foreseeable future.Backing Kambi as platform supplier, Henrik Tjärnström – Kindred Group CEO – stated: “With the extension of Kindred Group’s strategic relationship with Kambi, I am confident that we will be able to continue to build on our strong positive momentum and continue to take market share.”last_img read more