Proximity Payment Systems Get An Olympian Effort

Artist Conception - Olympic Stadium, London. Image Credit: Evening Standard (UK)

Proximity Payment Systems Get An Olympian Effort

From cellphones, credit/debit cards, to kiosk pay systems … the 2012 Olympic Games hosted by England will be run as a cashless, contactless payment affaire.

London already boasts more than 5,000 retailers from quick transaction food to specialty retail working with the new systems that feature the use of a special Visa “wave and pay” card that goes by the name Oyster.

The larger plan for the Olympic venues is to have all that attend, carry absolutely NO CASH and be able to go from venue to venue in a utopian, controlled instant and/or pre-paid environment.

Contactless payment systems known as "wave and pay". Image Credit: The Retail Factory (UK)

This from the Evening Standard (UK) -

The plastic Olympics: visitors to 2012 told 'no cash is needed'
Mark Prigg, Science Correspondent - 19.06.08

Visa is already using the technology and has distributed more than 100,000 "wave and pay" cards to its customers in London. More than 5,000 retailers, including McDonald's, Krispy Kreme and Eat have signed up to the scheme.
----
From today, the cards can also be used to pay for an Evening Standard simply by tapping them over electronic readers at vendors' kiosks. This uses GPRS-based technology developed in conjunction with Lloyds TSB Cardnet. Guido Mangiagalli of Visa said: "By the end of the year we hope to have over 13,000 retailers signed up but we see the 2012 Games as being our chance to really showcase this technology. Every Olympic venue will have contactless readers in retailers and we aim to make the Games entirely cash-free for visitors."
----
For visitors to the Olympics who do not own a credit card, prepay cards will be sold. Payments with the cards will be limited to £10 and Visa hopes they will be used for smaller purchases.
----
Mr Mangiagalli said: "We knew there would need to be a significant cultural shift for consumers and retailers to fully embrace the concept of using cards to make low-value payments - traditionally the preserve of cash.
----
"In retail environments, such as coffee shops, express grocery stores and newsagents, where purchases are lowvalue and speed of service is essential, Visa payWave offers a secure, convenient and quick alternative to cash and it is revolutionising how consumers pay for items in London and across Europe."

Mobile phone firm O2 has also been testing the technology with a mobile that acts as a credit card and Oyster card. Users simply swipe the back of the phone over a reader to make payments.
Reference Here>>

RFID “Regulation E” Payment Receipt Requirements Reviewed

Gilbarco's Contactless Payment system accepts either contactless or magnetic stripe payment. Credit card companies currently supported include: American Express, MasterCard, and VISA. Image Credit: Gilbarco Inc.

RFID “Regulation E” Payment Receipt Requirements Reviewed

Technology creep may end up becoming a threat to proof of transaction for many purchases.

The proposed dollar amount for greenlighting a transaction without a proof of purchase receipt may be small but the truth is, that number is arbitrary.

Frankly, so are the standards that govern non-signature credit card transactions, but to do away with the requirement of proof of purchase receipt at the option of the system providers and card companies appears to erode transaction accountability.

Excerpts from CR80News -

Feds may yank Regulation E's receipt requirement for small dollar transactions
Change could open floodgates for contactless and other payment cards in vending, transit, unattended locations
By Chris Corum, Editor, CR80News - February, 2007

Regulation E, the rule outlining consumer rights with regard to electronic financial transactions, can make things tough on new payment offerings – but many argue that is its mission. Electronic payment providers have to make a slew of disclosures, they have to guarantee against fraudulent usage, they have to provide periodic statements, and they have to provide receipts for transactions. But this receipt requirement may be loosening. The Federal Reserve (Fed) is considering a change that would exempt transactions under $15 from the need to provide a receipt. Big deal you say? Read on.

Here is the Fed’s summary description:

“The Board is proposing to amend Regulation E, which implements the Electronic Fund Transfer Act ... The proposed amendments would create an exception for certain small-dollar transactions from the requirement that terminal receipts be made available to consumers at the time of the transaction.”

What was some of the justification suggested for the change?

Consumers are using electronic payments where they used to use cash as the dollar value ‘threshold’ for card payments has been lowering in consumer eyes. The idea is that consumers ‘want’ to use cards to pay for things that, in the past, would have required cash. Examples include vending machines, transit tickets, parking facilities, and other small ticket items and unattended locations.

According to the proposed rule change:

“Merchants, financial institutions and payment card associations have responded to the shift in consumer preferences towards non-cash methods of payment for small-dollar transactions in various ways. Payment card associations have changed their rules to enable quicker processing of transactions for both debit and credit cards.

For example, these associations have waived the signature and personal identification number (PIN) authorization requirements for certain types of purchases under $25.

Moreover, to encourage merchant acceptance of payment cards, these associations have also reduced their debit and credit card interchange rates for certain small-dollar transactions.
----
The arguments against the proposed change centered on the following themes:

Consumers need receipts to keep track of expenditures, dispute incorrect charges, and reimburse expenses with employers.

The proposed changes would benefit industry but have no real value for consumers, so this is no longer a consumer protection regulation but rather an industry expansion effort.

Arguments in favor of the change centered around the fact that this could help to open up the use of the payment cards at new locations and venues, to the benefit of the modern consumer.

Additionally, many industry comments suggest that the threshold for the receipt exception be raised from $15 to $25:

Keep the amount consistent with the payment card association’s dollar value for no-signature requirements

Keep the amount consistent with common corporate travel policies for no receipt required for expense reporting purposes.

David DeMedio, commented as a representative of USA Technologies, a leading manufacturer of payment readers for unattended devices.
----
“Deploying a credit/debit payment option, with the requirement to provide a receipt, would be a major, if not insurmountable impediment to industry wide acceptance. In vending, for example, many of the makes and models of the estimated 8 million vending machines installed in the U.S. do not have the required space to accommodate the additional receipt printer and paper roll. Also, since the newly introduced contactless credit/debit readers utilize the existing, available power from the host vending machine, adding a receipt printer would now require an additional power source to power the printer.“
----
“Significant servicing issues arise with offering receipts because of the unattended, distributed nature of these machines and the infrequency in which they are serviced. Malfunctioning printers, empty paper rolls and litter from discarded receipts, which could go uncorrected for the reasons above, could actually cause the consumer to have a negative experience while purchasing from the machine, thereby negating the purpose to install the printers in the first place.”

What happens next?

According to a spokesperson for the Federal Reserve, the proposed change will follow an established process. Staff will review the comments and consider them as they prepare a final recommendation. This will be presented to a Board committee for consideration and, if approved, will be presented to the Board of Governors for final consideration.

Though a timeline is not available, other proposed changes have taken as long as eighteen months from start to finish.
----
Stay tuned.
Reference Here>>

RFID And "Speedpassing" Payment Hits The Slopes

Planet Snow Tools comes thru big time, installs over eleven rails and two jumps on Mainline Trail just above Main Lodge. Image Credit: Snö Mountain

RFID And "Speedpassing" Payment Hits The Slopes

Just when you thought "sketching" couldn't get any hotter, along comes a way you can hit the slopes without money or ID to get lost or stolen after pulling off a Stiffy air-Fakie in the half-pipe.

Wrist bands with RFID proximity antennas and memory allow you to be counted as a paid up member for the lifts and while you're at it, a contactless ATM/Credit Card for all of your incidentals.

Skiers at a Pennsylvania ski lodge won’t have to worry about carrying cash when they show up on the slopes. One wrist band will do the trick, providing entry to the ski lift as well as allowing them to make purchases. Image Credit: Precision Dynamics

So, with a wave of the wrist, I'll just pay for the Mountain Dew to go with that cheeseburger ... and while I'm at it, I'll buy those new Oakley, SHAUN WHITE SIGNATURE SERIES A FRAME goggles I've been meaning to get.

This from Contactless News -

Snö Mountain implements Precision Dynamics' RFID wristbands for ski lift passes and cashless purchases
Contactless News - Wednesday, January 24 2007

SAN FERNANDO, CA -- Precision Dynamics Corporation (PDC), a global leader in automatic wristband identification, announces the implementation of its Smart Band RFID Wristband System at the recently renovated Snö Mountain (formerly Montage Mountain) in the Pocono Mountains, Pennsylvania. Snö Mountain, an alpine ski and multi-season recreation center, opened on January 12, 2007.

The RFID wristband system provides added conveniences to guests including automated ski lift tickets and cashless point-of-sale (POS). Purchasing food and beverages at the ski park is a breeze using Smart Band's contactless payment feature. Guests can load money onto their wristband at POS stations using cash, credit or debit cards. Smart Bands work well in any environment -- wet or dry -- making them a great addition to any ski resort.

"Implementing PDC's RFID system will allow us to focus on the customer's overall experience and added convenience, setting Snö Mountain apart from the competition," says Denis Carlson, President of Snö Mountain. "Also, having a cashless payment option will help increase spending at POS locations such as the Snö Grill."


Snö Mountain expects over 175,000 visitors to the ski park this winter season and approximately 500,000 visitors during the summer season at Snö Cove waterpark. The Pocono Mountains are a popular resort and vacation area for residents of Pennsylvania, New York, New Jersey and Maryland. This is PDC's second RFID implementation in this area, with Great Wolf Lodge being the first. For more information on Snö Mountain, visit www.snomtn.com.
Reference Here>>