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Banks can bring class-action suit against Target over data hack
Target's legal woes continue to mount over its now-infamous data breach in 2013, which exposed the credit card numbers and personal information for as many as 70 million shoppers. A District Court judge in Minnesota ruled on Wednesday that Target was negligent in its credit card data security and is therefore liable to a class-action suit brought by banks affected by the hack. That $5 million lawsuit seeks to defer the cost of covering fraudulent charges made with the stolen data. Wednesday's decision allows the primary five plaintiffs -- Umpqua Bank, Mutual Bank, Village Bank, CSE Federal Credit Union and First Federal Savings of Lorain -- to represent the rest of the class in its action.
Samsung Pay beta arrives on every major carrier but Verizon
Samsung has opened the public beta of its new phone-based Pay service ahead of its official launch late next month. Beta participants will need to have a Galaxy S6, S6 Edge, Note 5, or S6 Edge+ (unrooted, mind you) as well as a credit or debit card from US Bank (Visa) or Bank of America (Visa or MasterCard). Additionally, they'll need cellular service from AT&T, T-Mobile, Sprint, or US Cellular. Verizon subscribers are SOL as the company is still "evaluating" Samsung's system. There's no word yet on when or if Verizon will actually participate. [Image Credit: FilmMagic]
MasterCard is testing a new way for you to pay with your face
MasterCard announced on Thursday that it's looking to add a layer of biometric security to its credit cards and all user will need to do is simply take a selfie. The system will create a digitized map of your face, convert that map into a hash and compare it to the hash stored on Mastercard's servers. Users will be able to pay through a mobile app with either their fingerprints or by staring into the device and blinking once. The blink is used to prevent someone from just holding up a picture of you to spoof the system. What's more, "They're storing an algorithm, not a picture of you," Phillip Dunkelberger, who runs Nok Nok Labs, told CNN Money. "And I'm sure they're doing the appropriate stuff to guard it."
Apple Pay to launch in the UK in July
Apple's take on mobile payments has been available in the US for the better part of a year, but here in the UK, we've been left with the faint hope that it'll one day arrive. Rumors suggested it could be announced at WWDC 2015, and it turns out they were correct: Apple Pay will come to this side of the Atlantic next month. Most of the big-name banks are on board, with Lloyds, Halifax, Natwest, HSBC and Santander all supporting Apple Pay, but Barclays is a notable omission. Apple says that the service will be available in 250,000 locations, including Lidl, McDonald's, Nando's and the Post Office, covering more retailers at launch than were originally available in the US. For commuters and tourists, Transport for London has confirmed it will also support the NFC technology inside its barriers, allowing you to travel on the Tube and the city's buses without the need for a wallet.
MasterCard Send is a new way to distribute funds quickly
Let's face it: checks aren't convenient. If you're using them to pay for something, there's all the extra writing and mailing. If you're receiving them, there's a whole process for getting them into your account. Well, MasterCard says it solved the convenience issue with Send: a new system that allows businesses and individuals to securely exchange funds in minutes. This means that you'll no longer have to wait for a check to clear or for the transfer to go through. While businesses looking to send refunds, claims payments and rebates are a key focus, MasterCard is letting regular folks leverage the system to send money to friends and family, too. What's more, you don't have to be one of its customers to opt in, and you can use Send to pay for goods at participating retailers.
Visa wants to track your travels abroad to prevent declined payments
Yes, banks sometimes decline credit card transactions abroad for your own protection, but it sure can be annoying, especially when you're not carrying money in the local currency. Visa has a new service for card holders in the US that could prevent that from happening again: one that instantly cross-references your phone's location with the transaction. If the location data matches, the bank automatically approves your payment, so you can use your cards even in places with high CC fraud rates. The feature will come bundled with banks' mobile apps starting in April this year, but Visa says it's completely optional, and you can leave it deactivated in case of privacy concerns.
MasterCard rolls out new Apple Pay commercial featuring Gwen Stefani
MasterCard today posted a new video touting the fact that iPhone 6 users who make Apple Pay transactions will find themselves eligible for the company's "priceless surprises" promotion, a sweepstakes that bestows unsuspecting customers with some pretty cool gifts such as concert tickets, shopping vouchers, golf trips and more. The commercial, featuring Gwen Stefani, can be seen below. This, of course, isn't the first time MasterCard has touted the benefits of using Apple Pay. The credit card company in late October aired an Apple Pay ad during the World Series.
Commerce Bank adds Apple Pay support for personal MasterCards
Apple can add another name to the list of banks supporting its new Apple Pay service. Commerce Bank is now offering support for the service with one major caveat. Commerce customers can only use Apple Pay with a personal MasterCard credit card. Sorry Visa users... give it some time. If you haven't heard of Commerce Bank before, that makes sense, as it is mostly a regional operation. The bank serves a large chunk of North American Midwest including Missouri, Kansas, Illinois, Oklahoma and Colorado, but doesn't have offices outside of those states. Commerce has yet to publicly announce its support for Apple Pay, but the bank is currently listed on the Apple Pay support site. If you're a Commerce Bank customers with a MasterCard, now's your chance to try out Apple Pay.
First Apple Pay ad (from MasterCard) aired during yesterday's World Series game
The first nation-wide advertisement (or perhaps mention is more appropriate) for Apple Pay hit the airwaves yesterday during game one of the World Series. The ad was a MasterCard production, with a narrator stating that Apple Pay users are eligible for MasterCard's ongoing "Priceless Surprises" sweepstakes. I managed to record the ad, albeit with some questionable sound quality. That MasterCard would mention Apple Pay during a commercial break isn't all that surprising. Yesterday we relayed that MasterCard helped roll out Apple Pay enabled NFC terminals to food and concession stands at both stadiums involved in the World Series. The larger takeaway here is that Apple Pay hasn't even been out for a full week and we've already seen it in a commercial, during the World Series no less. As we've mentioned before, Apple Pay is in a unique position to succeed because it enjoys unprecedented support from both banks and credit card companies. The degree to which these financial institutions have been promoting Apple Pay (on Twitter, via email, on their own websites) is unprecedented compared to what we've seen for previous mobile payment platforms.
New MasterCard combines a fingerprint sensor with NFC
For awhile now, there's been a number of companies trying to simplify payments for everyone. Google did so with Wallet and, most recently, Apple announced it would be doing something similar with the soon-to-be-launched Apple Pay, among others. Not surprisingly, MasterCard's, synonymous with paying for stuff, is working on a product of its own. In partnership with Zwipe, a company that focuses on biometric tech, MasterCard has built a charge plate with a built-in fingerprint sensor and NFC, albeit for trial purposes. The Zwipe MasterCard, as it is currently known, is said to be extremely secure -- all data is stored directly on the card, rather than an outside database, for example.
Apple Pay could make everyone's mobile wallet purchases cheaper
Have you stopped to consider what impact Apple Pay will have on the credit card industry? Don't worry, we hadn't either, but Bank Innovation believe that the service might just send mobile payments mainstream. Currently, tapping your phone on a reader incurs a transaction fee of 2.75 percent, far higher than the 1.5 percent that's imposed when you swipe a card. Because the issuing bank's card isn't there, there's a greater risk of fraud that banks multinational financial services corporations like Visa and MasterCard then have to shoulder. According to the report, however, the biometric security in the new iPhones might have convinced both institutions that mobile payments aren't a huge risk anymore. The site goes further, to suggest that both will create a "Cardholder Present" transaction fee which either matches the card rate, or is close enough to mean that you won't be pulling out a calculator to work out if it's cheaper to use your phone or card to buy subway tokens. Naturally, both financial institutions have denied that any such discussions are taking place, but hopefully it won't be long before these systems reflect the real world.
Apple is reportedly teaming up with American Express on iPhone payments (update: MasterCard too)
Those longstanding rumors of Apple building a mobile payment service may be coming true sooner than you think. Recode's sources claim that the folks in Cupertino have struck a deal with American Express to work on an iPhone payment system, hot on the heels of The Information's report of a similar agreement with Visa. Details of the system aren't clear beyond a tie-in with the next iPhone (and likely your iTunes account), but Apple is supposedly ready to spill the beans at its September 9th event -- if the leak is accurate, you're going to get the full story pretty quickly.
FTC busts up $275 million credit card scam, sues the folks behind it
The folks down at the Federal Trade Commission are busy helping all of us these days, whether they're weighing in on patent disputes or forcing firms to help cover your child's lack of parental supervision. Today, the FTC charged several companies and individuals with participation in an elaborate shell game from 2010 that was really just a $275 million dollar credit card scam. According to a separate, ongoing lawsuit filed by the Commission, a company called I Works did the stealing, but wouldn't have been able to take $26 million of the total without the aid of the defendants in this new lawsuit.
Russia invests in homegrown tech with Visa and Mastercard out of the picture
America's sanctions against Russia have already had an impact on high-level space and satellite projects, but it's clear this is just the beginning of the growing technological separation between East and West. Ordinary Russians are starting to be affected too, especially now that Mastercard and Visa are forbidden from processing many of their credit card transactions. According to Bloomberg, the Kremlin sees the disappearance of US-based financial services as a "betrayal." It's looking to wean the country off foreign banking services, starting with a law that would allow all state employees (more than 20 million people) to be paid via a totally new, homegrown card platform.
United States credit card system begins complete overhaul in the next 18 months
The United States is lagging behind most of the world when it comes to credit card technology, but luckily it's about to catch up. In the next 18 months, the US is gearing up to transition debit and credit cards away from the magnetic stripe to embedded chip technology, which is already widely used in Europe, Asia and beyond. Who can you thank for the long-overdue upgrade? Target, whose data security breach earlier this year highlighted the security flaws in the magnetic stripe system. It's a 50-year-old technology, after all, and it's much easier to counterfeit than the computer chip in your next Visa card.
MasterCard testing security feature that okays purchases based on phone location
Locking down those credit cards while globe-trotting is always a chief concern. Today at Mobile World Congress, MasterCard and Syniverse announced a joint effort to ease the fears of travelers. The pair is working on a pilot program that will only allow card-based transactions when a user's mobile device is in a specific location. This means that if you (and your phone) are in Barcelona and someone tries to use your card in Madrid, the purchase will be declined. In addition to the security measures, users will have the option of procuring prepaid data packages on said handset upon arrival to insure that the requisite GPS works. Of course, the setup is in testing at the moment, so there's no clear indication when or if the geolocation option will become available.
MasterCard and Visa users may soon flip the switch on KitKat NFC payments
With a consumer reception that could be described as lukewarm at best, mobile payments haven't exactly been a raging success. Despite Google's efforts, Wallet failed to take off, while Isis also continues to struggle, despite support from major US carriers. Now, MasterCard and Visa are readying yet another potential solution, this time tapping the new Host Card Emulation (HCE) support in Android 4.4. The service, which is only supported in NFC-enabled KitKat phones, stores credit card info remotely rather than on an embedded "secure element," expanding compatibility beyond pre-approved apps. With HCE, when you go to make a payment, your phone will transfer credit card data directly to the NFC terminal, without storing it in your handset. MasterCard and Visa are both working to finalize the specification, following various trials over the last few months. Ideally, a significant number of credit card holders will be able to take advantage of HCE-enabled payments beginning later in 2014, with more details to come in the first half of this year. (AP Photo/Manu Fernandez)
Daily Roundup: Apple iMac review, HP Chromebook 11 hands-on, Nest's Protect smoke detector and more!
You might say the day is never really done in consumer technology news. Your workday, however, hopefully draws to a close at some point. This is the Daily Roundup on Engadget, a quick peek back at the top headlines for the past 24 hours -- all handpicked by the editors here at the site. Click on through the break, and enjoy.
MasterCard opens EMV tech to US debit networks, hopes to spur adoption (update)
After almost sixteen years of trying to encourage EMV adoption in the US, MasterCard has hit upon a potential reason why it's not catching on: its closed, proprietary standard. But that's changing today, with the financial giant announcing it's making some of its circuit card tech open to other US debit networks instead of waiting on them to come up with their own solution. An alternative to magnetic strips, EMV claims to provide more secure payments thanks to the use of cryptographic algorithms and user-specific PINs, but hasn't captured much interest stateside. Perhaps in opening the standard, MasterCard and crew will spur its US adoption and thus garner more EMV followers. Of course, it has to catch on before NFC replaces cards entirely, rendering the issue moot. (Update: We erroneously stated EMV isn't popular outside of Europe and Asia -- it's actually prevalent in other parts of the world as well, just not in the US.)
Mastercard previewing smartphone web payment system with in-person security strength
Mastercard is already a big fish in the still tiny NFC contactless payment pond, and now it wants to take that same technology to a veritable ocean -- internet sales. The plastic purveyor is tag-teaming with ING in the Netherlands for PayPass-based smartphone internet payments that would have a "comparable level of security" to bricks and mortar purchases -- by transmitting an EMV-compliant cryptogram or QR code to merchants. That would theoretically make online shopping less risky, and the system would also allow coupons and vouchers to be applied, giving a "similar user experience in both the physical and digital world." The Dutch trial has already started and will continue until early 2013, but there's no word if new users can still jump in -- check the PR after the break to read the tea leaves for yourself.