News April 23, 2012 • Issue 12:04:02 Industry Update .........................................14 Global Payments, payments community respond to reported breach .....................24 Tablets, Gift card providers pull out of N.J. ...............27 Trade Association News. ............................82 smart phones Features or the cloud for The Mobile Buzz: Mobile payment experts disagree mobile payments? on NFC dominance ................................31 SellingPrepaid: Prepaid in brief ......................................32 Demands of a standardized fee disclosure box ...................................... 33 How consumer segmentation leads to success .....................................35 Seven essential steps for creating a successful social media strategy By Marc Beauchamp Performance Training Systems .................. 80 Research Rundown .................................... 84 Views Has payment fraud become SOP? using on the sizeable role Apple Inc. is playing in the evolution By Patti Murphy, ProScribes Inc. ............... 38 of mobile commerce, Meritus Payment Solutions Principal and ISOs and MLSs: How banking changes co-founder Alan Kleinman said Apple's mobile device inno- vations centered on the desire by late Chief Executive Officer will affect you M Steve Jobs to improve the delivery system of music to consumers. The payment By Brandes Elitch, CrossCheck Inc. ........... 42 functionality of the iPhone via the App Store and iTunes accounts was "just a Education byproduct of everything else," Kleinman said. Some byproduct. The explosion in smart phone – and now tablet computer – Street SmartsSM: usage by consumers is quickly being matched by merchants and sales profes- Lessons for a lifetime sionals adopting the devices to reduce payment "friction" and increase revenues. By Jeff Fortney, Clearent LLC .................... 62 A Retail Info Systems News survey revealed that nearly two thirds of national Moving mobile payments to the next level and large regional retailers will either test or deploy tablets in 2012. Remember, Jobs only introduced the first iPad to the U.S. market in the spring of 2010. By Nicholas P. Cucci Network Merchants Inc. .......................... 66 A main driver of this trend is that retailers are threatened by consumers armed In search of an ethical corporate culture with smart phones in-store, according to RIS News. With a few taps on smart By Dale S. Laszig phone touch screens, shoppers can compare prices on in-store merchandise with potentially better deals in cyberspace – and have more information at their Castles Technology Co. Ltd. ..................... 70 disposal than the stores' own salespeople. "The only option is to use tablets to The challenge of data breach reporting level the playing field," the report said. By Mark Brady, CSR ............................... 72 A moveable feast What matters most in a restaurant POS system? By Jerry Cibley, The POS Man ................. 74 The general retail sector is only one new battleground for mobile POS suprem- acy. Another is food service, where tablets seem to be becoming the dominant Continued on page 3 See Mobile payments on page 55 AdvisoryBoard NotableQuote » Andrew Altschuler–AmeriMerchant » Kristof Anderson–Connect Merchant Payment Services Can we get beyond watching » John Arato–MagTek Inc. the watchdogs to a place of core » Adam Atlas–Attorney at Law values, where people do the right thing because they want to and » Clinton Baller–PayNet Merchant Services Inc. not because they're afraid of » Steve Christianson–All Card Processing Inc. getting caught? » Steve Eazell–Secure Payment Systems Inc. » W. Ross Federgreen–CSR See story on page 70 » Noel Fundora–First Data Corp. » Ed Freedman–Total Merchant Services » Marc Gardner–North American Bancard » Darrin Ginsberg–Super G Funding LLC » Glenn Goldman–Capital Access Network Inside this issue: » Matt Golis–YapStone Inc. CONTINUED » Ben Goretsky–USAePay » Curt Hensley–Impact Payments Recruiting Company Profi le » Scott Henry–VeriFone Inc. » Rod Hometh–RocketPay LLC Chargeback Guardian Inc. » Jared Isaacman–Harbortouch Chargeback champions at your service ................................................49 » Kevin Jones–SignaPay Ltd. » Jerry Julien–Equity Commerce LP New Products » Lazaros Kalemis–Alpha Card Services Inc. » Dee Karawadra–Impact PaySystem Mobile check deposit ...........................................................................86 » Rod R. Katzfey–PayLeap Bundling mobile payments ......................................................................86 » Alan Kleinman–Meritus Payment Solutions » Andie Kolb–National Processing Co. Inspiration » Allen Kopelman–Nationwide Payment Systems Inc. » Greg Leos–Trustwave Community and the payment pro .............................................................89 » Mitch Levy–Merchant Cash and Capital Departments » Dan Lewis–AmeriBanc National Ltd. » Paul Martaus–Martaus & Associates Forum ..................................................................................................5 » Biff Matthews–CardWare International Datebook ...........................................................................................88 » Tim McWeeney–VeriFone Inc. » Andy Meadows–SignaPay Ltd. Resource Guide ..................................................................................90 » Justin Milmeister–Elite Merchant Solutions Advertiser Index ...............................................................................102 » Michael Nardy–Electronic Payments Miscellaneous » Steve Norell–US Merchant Services » David Parker–Polymath Consulting QSGS: Quick Summary Green Sheet ......................................................8 » David H. Press–Integrity Bankcard Consultants, Inc. » Chester Ritchie–WorldPay Bottom Lines .......................................................................................14 » Steve Rizzuto–TransFirst ISOMetrics .........................................................................................61 » Jeffrey I. Shavitz–Charge Card Systems Inc. 10 years ago in The Green Sheet .........................................................85 » Dave Siembieda–CrossCheck Inc. » Rick Slifka–Exec-Links LLC Water Cooler Wisdom ........................................................................89 » Nick Starai–Network Merchants Inc. » Theodore Svoronos– Atlantic Pacific Processing Systems Inc. » Cliff Teston– Signature Card Services » Scott Wagner–GO DIRECT Merchant Services Inc. » Patricia Walters–Hypercom Corp. » Dan D. Wolfe–Teledraft Inc. » Cody Yanchak–First American Payment Systems 4 President and CEO: Paul H. Green..................................................paul@greensheet.com General Manager and Chief Operating Officer: Kate Rodriguez ................................................kate@greensheet.com CFO/Vice President Human Resources & Accounting: Brandee Cummins [email protected] Assistant VP, Editorial: Laura McHale Holland ................................... [email protected] Senior Editor: Patti Murphy ....................................................patti@greensheet.com Associate Editor: Dan Watkins ................................................... [email protected] Staff Writers: Jim McCaffrey ...................................................jim@greensheet.com Ann Train .........................................................ann@greensheet.com Production Manager: Lewis Kimble...................................................lewis@greensheet.com Assistant VP, Advertising Sales: Danielle Thorpe ..........................................danielle@greensheet.com National Advertising Sales Manager: Rita Francis ...................................................... [email protected] Office Manager: Kat Doherty .......................................................kat@greensheet.com Director of Information Technology: Wolf Dean Stiles ..............................................wolf@greensheet.com Correspondence: The Green Sheet, Inc. 800-757-4441 • Fax: 707-284-1968 1160 N. Dutton Ave., Suite 200, Santa Rosa, CA 95401 Send questions, comments and feedback to [email protected] Send press releases to [email protected] NOTE – Please do not send PDF versions of press releases. Print Production: Hudson Printing Company Contributing Writers: Mark Brady .............................................mbrady@csrcorporate.com Jerry Cibley ....................................................jerry@theposman.com Nicholas P. Cucci ....................................................ncucci@nmi.com Brandes Elitch ..........................................brandese@cross-check.com Jeff Fortney............................................................jeff@clearent.com Dale S. Laszig ....................................... [email protected] The Green Sheet (ISSN 1549-9421) is published semi-monthly by The Green Sheet Inc., 1160 N. Dutton Ave., Suite 200, Santa Rosa CA 95401. Subscription is FREE to participants in the payment processing industry, an annual subscription includes 24 issues of The Green Sheet and 4 issues of GSQ. To subscribe, visit www.greensheet.com. POSTMASTER: send address changes to The Green Sheet Inc., 1160 N. Dutton Ave., Suite 200, Santa Rosa CA 95401. Any questions regarding information contained in The Green Sheet should be directed to the Editor in Chief at [email protected]. Editorial opinions and recommendations are solely those of the Editor