• Managing the card
• Serving the cardholder
• Executing the transaction
• Getting the most from the platform.

A detailed discussion of each component provides decision-making guidance to prepaid issuers chartered with managing a program. The study also takes on several of the common misconceptions about the processor selection criteria, dispelling myths and setting the record straight based on perspectives from practitioners and current market trends

How to Start

Don’t start with the solution, start with the business objective. Find an experienced and consultative processor who can help crystallize your short-term and long-term needs and configure a tailored solution.

• Look for holistic processing. Companies entering the prepaid arena need to look at the full range of capabilities a processor offers and clearly understand how each component, from the platform to cardholder support, satisfies your operating requirements for the most effective program.
• Let customer preferences drive product innovation. As issuers develop new, niche products, find a processor with the flexibility and options to help satisfy customer needs expediently and reliably.
• Security and risk management are paramount. In prepaid card issuance, both with respect to fraud mitigation and also in terms of the scrutiny that issuers face to comply with money-laundering and homeland security standards, risk and compliance management can’t be overlooked.
• Plan for growth, anticipate evolution. As the market continues to mature, growth and change will follow. Prepaid issuers must look for a processor who has the foresight, scale and track record to help minimize growing pains.

Cundiff continues, “The evolution of the prepaid card segment will be driven by consumer needs and technology innovation that enhances functionality and security. Processors that continuously expand their offerings and essentially provide flexible solutions, will enable prepaid card issuers to strengthen and deepen their relationships with cardholders.”

MOST POPULAR ITEMS
1)  Credit card information - 31%
2)  Financial accounts - 20%
3)  Spam and phishing information - 19%
4)  Withdrawal service - 7%
5)  Identity theft information - 7%
6)  Server accounts - 5%
7)  Compromised computers - 4%
8)  Website accounts - 3%
9)  Malicious applications - 2%
10) Retail accounts - 1%

Credit card numbers have proved so popular among hi-tech thieves because they are easy to obtain and use for fraudulent purposes.  Many of the methods favored by cyber criminals, such as phishing schemes, database attacks and magnetic strip skimmers, are designed to steal credit card information, it said.

The existence of a ready market for any stolen data and the growing use of credit cards also helped maintain their popularity, it said.  "High frequency use and the range of available methods for capturing credit card data would generate more opportunities for theft and compromise and, thus, lead to an increased supply on underground economy servers," said the report.

The price card thieves can expect for the numbers they offer for sale also varied by the country of origin. US card numbers were the cheapest because they were so ubiquitous - 74% of all cards offered for sale were from the US.

By contrast numbers from cards issued in Europe and the Middle East commanded a premium because they were relatively rare. 

Universal Air Travel Program (UATP), the low cost payment network privately owned by the world's airlines, announced it has partnered with Moneta to support Moneta's online payment wallet for the 250 airlines utilizing UATP payment gateway services. Moneta offers consumers, airline and merchants a convenient, safe and affordable payment method which is distributed and marketed through the consumer's bank. Airlines using the UATP payment gateway connection can activate Moneta on their retail checkout site with no infrastructure investment and minimal configuration.

"The Moneta-UATP partnership provides a low-cost payment option for airlines while enhancing consumer confidence and loyalty for both airlines and banks," said Ralph Kaiser, president and chief executive officer, UATP. "As our network of airlines continues to grow, we look forward to assisting Moneta in expanding their airline distribution."

Initially, Moneta transactions will use the U.S. ACH debit network, enabling consumers to pay directly from their checking or money market accounts. In 2009, Moneta plans to offer additional payment options including international debit payments, credit cards, pay later and pay early functionality. The Moneta service is free to consumers and is available to customers in the United States, Puerto Rico and U.S. Virgin Islands.

"Partnering with UATP underscores the ease of implementing Moneta's online wallet for airlines," said Guido Sacchi, CEO of Moneta. "By integrating into the UATP gateway service, airlines can take immediate advantage of lower online transaction costs. Additionally, airlines offering Moneta will enjoy the ability to reach new customers through our bank partner network. Airlines selecting the UATP-Moneta solution will realize not only cost savings, but the ability to market their airlines through online banking customers either on a per-market basis or around the country."

About Moneta Corporation

Moneta Corporation is a leading payments company offering secure, convenient methods for consumers to pay online merchants directly from their checking or money market accounts. Moneta partners with online merchants to accept and process payments, while providing financial institutions branding opportunities during the transaction process. Moneta's rapidly growing partner network enables online retailers and travel providers to attract valuable customers with a preference for paying directly from their well-established bank accounts. Moneta is a privately-held company headquartered in Atlanta, Ga. For more information visit www.monetacorp.com

Rushing to rescue Citigroup, the government agreed to shoulder hundreds of billions of dollars in possible losses at the stricken bank and to plow a fresh $20 billion into the company.

Regulators hope the dramatic action will bolster badly shaken confidence in the once-mighty banking giant as well as the nation's financial system, a goal that so far has been elusive despite a flurry of government interventions to battle the worst global crisis since the 1930s.

Wall Street appeared encouraged as stock futures moved higher ahead of the market opening in New York. Dow Jones industrial average futures rose almost 2 percent. Stock markets in Britain and Germany gained more than 4 percent in afternoon trading. Citigroup shares themselves climbed 44 percent to $5.64 in premarket trading.

"If they didn't help, the damage would be beyond imagination," said Teck-Kin Suan, economist at United Overseas Bank in Singapore.

The action, announced late Sunday by the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp., is aimed at shoring up a huge financial institution whose collapse would wreak havoc on the already fragile financial system and the U.S. economy.   - continue reading

ATLANTA - Based on both current and historical security trends, IBM Internet Security Systems (ISS) today announced five major areas of holiday security risk for consumers and businesses, along with four suggestions for avoiding these risks during the holiday season.



These risks include but are not limited to:



* A new wave of malcode-carrying spam - Throughout the year, the IBM ISS X-Force security research team has observed a growing wave of "parasitic" malcode. These are malicious email payloads that bypass end-user security software (anti-virus, personal firewalls, etc.) and compromise the target computer. Once compromised, the computer comes under the remote control of criminals. This holiday shopping season, the X-Force team expects a wave of socially engineered "holiday cheer" emails that pack a malicious punch.  (Editor's Note:  Bypass end user security...Computer under Remote Control?  Hmmmm....) 



* New phishing theme: Bank merger mania - As banks continue to struggle and merge, the X-Force believes criminals will exploit shaky consumer confidence in the banking industry with a wave of phishing attacks designed to fool banking customers into revealing personal information such as account numbers and passwords.



* Spoofed online portals - As Black Friday approaches, IBM ISS expects to see phishing gangs launch a new generation of fake online shopping portals that spoof well-known brands, in an effort to steal credit card information. They also will likely promote these counterfeit sites with emails, offering steep discounts or "special sales."  (Editor's Note:  Steal credit card information?  Can they do that?)



* Tainted toys and gadgets - Every Christmas brings an abundance of electronic gadgets, smart-phones and auto-play DVDs. Past X-Force research has shown that some of these toys are loaded with malware and can be used by cybercriminals as a backdoor for entry into corporate networks.

• Web Browsers- Browsing is risky business.  In the past year, cybercriminals have increased their efforts to deface public Web sites by hiding malicious links on legitimate Web sites. When people visit these tainted sites, the hidden links automatically exploit vulnerabilities within their Web browsers and install malware that siphons off confidential end user information.

Editor's Note:  Wait a minute here...you mean to tell me that there's vulnerabilities within Web browsers that can allow our "confidential" end user info  such as credit/debit card information... to be siphoned off?  And now it's possible to "hide" a malicious link on a "legitimate" site?  You've got to be kidding right? 



This certainly couldn't be true could it? ...otherwise we'd have to equip online shoppers with their own personal card swiping device to ensure their card information remains secure! 



Continue Reading the Story at Dark Reading Here:  (will open in a new window)

Visa Inc., the world's largest credit-card company, said the U.S. Justice Department has opened its fourth investigation into a credit-card fee paid by retailers.

The Justice Department's document requests ``focus on certain Visa U.S.A. policies relating to merchant acceptance practices, including Visa U.S.A.'s policies regarding merchant surcharging and merchants' ability to steer customers to other forms of payment,'' Visa said in a filing today with the Securities and Exchange Commission. Visa said it's cooperating with the investigation.

Just last month, I posted that Visa and rival MasterCard Inc. settled with Discover Financial Services over a lawsuit accusing them of blocking banks from issuing their cards. A U.S. district judge ordered Visa and MasterCard in 2001 to stop forcing banks to choose between their cards and ones from Discover and American Express Co. Her order followed a Justice Department suit against the credit-card groups for antitrust violations. Visa sued in 2004, after the U.S. Supreme Court refused to hear the case.

With roots stretching back to 1812 and more than 200 million customer accounts in 106 countries, Citigroup is an icon of global capitalism.

It is getting battered by the same financial storm that has already remade the face of Wall Street, forcing the sale of Bear Stearns Cos. and Merrill Lynch & Co. earlier this year, and triggering the bankruptcy filing of Lehman Brothers Holdings Inc.

Mr. Pandit and other Citigroup executives have told colleagues they are frustrated and befuddled by this week's 50% stock decline. Investors have dumped bank stocks en masse on fears that economic woes will batter financial companies worse than previously expected.

Weighing down the shares has been the Treasury Department's decision last week not to buy troubled assets from banks. Citigroup's balance sheet includes battered securities and loans that many investors hoped could be offloaded to the government.  Click to read the full report at The Wall Street Journal

Executives at Citigroup Inc., faced with a plunging stock price, began weighing the possibility of auctioning off pieces of the financial giant or even selling the company outright, according to people familiar with the matter.

The internal discussions are at a preliminary stage and don't signal that Citigroup's board and management are backing down from their insistence that the New York company has ample capital, funding and strategic direction, these people said. But with the stock down another 26% Thursday, its worst one-day percentage decline ever, Citigroup officials have decided they need to reckon with a range of scenarios
that were unthinkable only weeks ago.

Citigroup's board of directors is scheduled to have a formal meeting Friday to discuss the options, according to people familiar with the situation. Directors also have been talking by phone about what could be done to reverse the stock's slide.

Top executives were locked in meetings Thursday to hash out a stabilization strategy. Chief Executive Vikram Pandit scheduled a conference call for 8 a.m. Friday to discuss the situation with senior managers.

A Citigroup spokeswoman said in a statement Thursday evening: "Citi has a very strong capital and liquidity position" and is "focused on executing our strategy," which includes cutting expenses and selling assets. "We believe the benefits will be seen over time."