Industry Self-Policing: a Lofty Goal?
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News July 11, 2011 • Issue 11:07:01 Industry Update ............................................. 14 Federal Reserve sets debit interchange at 21 cents .............................. 24 Visa to update forecast after Industry Fed sets debit interchange .......................... 26 More regs, requirements self-policing: from FFIEC, PCI council .............................. 28 Fraudsters nailed, proactive security initiatives needed ........................... 28 A lofty goal? The 25 most dangerous software errors in 2011 ............................. 30 By Patti Murphy Features ProScribes Inc. SellingPrepaid: ith government scrutiny of financial services intensifying and Prepaid in brief ......................................... 38 prospects of new regulatory oversight looming, talk of indus- Is the new AmEx prepaid try self-policing has assumed an added sense of urgency. But card a game changer? ............................... 40 W what is self-policing? How does it work? And can it work in Case study: Prepaid merchant acquiring? electricity metering ..................................... 43 "Self-policing is something anybody can do," said Mark Dunn of Field Guide The Mobile Buzz: Enterprises LLC. People can craft best practices, for example, and hope that The three R's of text message marketing everyone plays by those voluntary rules. Enforcement is different. "When you By Pal Flagg, Street Savings ........................ 44 start talking about policing others, that's where it really gets dicey," he added. FirstLook: ePaySpot Electronic billing for SMBs .......................... 47 During a recent interview, attorney Adam Atlas said, "Generally speaking, it's a Wal-Mart wants to bank the underserved good idea to have some self-regulation, but there are pitfalls. For example, you By Patti Murphy, ProScribes Inc.................... 81 would want to be careful about barriers to entry." Licensing, for instance, could Microfi nance and profi ts create barriers, he noted. By Patti Murphy, ProScribes Inc.................... 81 Today, anyone with the wherewithal and gumption to sell merchant services Views can find an ISO to work with and have a go at it, including individuals of ques- tionable character. Anyone who has spent time on GS Online's MLS Forum has Are you ready for the NFC paradigm shift? read about some of these. By Scott Henry, VeriFone Inc. ....................... 32 Education "What would you do?" asked CCGUY in a recent post. "Salesperson from XYZ … walks into a merchant location … tells merchant that they have been redlined Street SmartsSM: by XYZ … that their account has been taken over by XYZ company and if [they] Networking groups and do not sign these [contract] papers [they] will not be processing in 24 hours. … referral marketing – Part 1 I am so sick of sales reps doing this to merchants." By Bill Pirtle, MPCT Publishing Co. ............... 62 Use communication to cut merchant attrition A series of posts regarding "erroneous" charges assessed merchants using By Jeff Fortney, Clearent LLC ........................ 68 terminals that have not been confirmed as compliant with the Payment Card Industry Data Security Standard, as well as new tax reporting requirements, Finding the right payment processor and the associated fee schedules some ISOs have instituted in response, seem to By John Barrett, First Data Corp. .................. 72 have fueled the debate about the need for policing. Social media: Putting your company's best face forward Industry consultant Paul Martaus offered this potential scenario: a retailer pro- By Peggy Bekavac Olson vides the ISO its federal tax ID number, as required, but someone misplaces the Strategic Marketing .................................... 74 form, and the retailer gets hit with a monthly noncompliance fee. "Where's the What is my portfolio worth anyway? burden of proof?" he asked. "Stuff like this happens." By Adam Atlas, Attorney at Law ................... 79 Few self-policing examples Only a handful of professions have established self-policing mechanisms. The Continued on page 3 See Self-policing on page 55 AdvisoryBoard NotableQuote » Andrew Altschuler–AmeriMerchant » John Arato–MagTek Inc. Appropriate training and education » Adam Atlas–Attorney at Law can help ISOs become business » Clinton Baller–PayNet Merchant Services Inc. consultants to their customers and ultimately foster connections that » Steve Christianson–All card Processing Inc. promote merchant retention. » Steve Eazell–Secure Payment Systems Inc. » W. Ross Federgreen–CSRSI See story on page 73 » Ed Freedman–Total Merchant Services » Marc Gardner–North American Bancard » Russ Goebel–Quantus Health Solutions LLC » Glenn Goldman–Capital Access Network » Matt Golis–YapStone Inc. » Curt Hensley–Impact Payments Recruiting Inside this issue: » Scott Henry–VeriFone Inc. CONTINUED » Rod Hometh–RocketPay » Jared Isaacman–United Bank Card Inc. Company Profi le » Kevin Jones–SignaPay Ltd. » Jerry Julien–Equity Commerce LP Capital Access Network Inc. » Lazaros Kalemis–Alpha Card Services Inc. » Dee Karawadra–Impact PaySystem Merchant-specifi c capital advances ...................................................49 » Rod R. Katzfey–PayLeap New Products » Alan Kleinman–Meritus Payment Solutions » Allen Kopelman–Nationwide Payment Systems Inc. Award winning loyalty technology ........................................................86 » Greg Leos–Trustwave Less churn, more earn in health care ....................................................87 » Mitch Levy–Merchant Cash and Capital » Dan Lewis–AmeriBanc National Ltd. Inspiration » Douglas Mack–Payex » Paul Martaus–Martaus & Associates Make children your business ................................................................89 » Biff Matthews–CardWare International » Sonny McKinney–TransWORKS LLC Departments » Tim McWeeney–VeriFone Inc. » Justin Milmeister–Elite Merchant Solutions Forum ..................................................................................................5 » Michael Nardy–Electronic Payments Datebook ...........................................................................................88 » Steve Norell–US Merchant Services Resource Guide ..................................................................................90 » David Parker–Polymath Consulting Advertiser Index ...............................................................................102 » Bill Pittman–SoundPOS LLC. » David H. Press–Integrity Bankcard Consultants, Inc. Miscellaneous » Steve Rizzuto–TransFirst » Charles W. Salyer–Ladco Leasing Inc. QSGS: Quick Summary Green Sheet ......................................................8 » Jeffrey I. Shavitz–Charge Card Systems Inc. Bottom Lines .......................................................................................14 » Lisa Shipley–Ingenico North America ISOMetrics: Breaches across America ...................................................85 » Dave Siembieda–CrossCheck Inc. » Rick Slifka–Exec-Links LLC Water Cooler Wisdom ........................................................................89 » Nick Starai–Network Merchants Inc. » Theodore Svoronos–Merchant University » Scott Wagner–GO DIRECT Merchant Services Inc. » Patricia Walters–Hypercom Corp. » Dan D. Wolfe–Teledraft Inc. President and CEO: Paul H. 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