Engaging, Enabling and Evolving Commerce in Canada since 1989

June 2007 ACTion Newsletter


1. Editorial Comment
2. TD Canada Trust Completes Canada's First Transaction With A Chip Debit Card
3. Hbc Stores Unveil Plans To Accept MasterCard Chip Cards
4. Gemalto To Deliver 35 Million E-Health Cards For German Citizens
5. LaserCard Helps Employers Resolve Critical Problem Of Employment Eligibility
6. Swedish Banks Opts For One-Time Online Passwords
7. SCM Microsystems' Ehealth100 Terminal First To Receive Gematik Qualification For Use With German Electronic Health Card
8. Tap And Go Donuts
9. Iran Issues First Biometric Passports
10. Finger Veins Tapped For Biometric ID
11. Additional Stories Available In Members Only Section



LaserCard Corp. ~ member since 1999
MasterCard Canada ~member since 1999


World eID
Sept.19 - 21, 2007
Sophia Antipolis, French Riviera
ACT Canada members receive 25% delegate discount (including early-bird & renewal rates). Contact andrea@actcda.com for more details.

Smartcards in Transport
October 1 & 2, 2007
Paris, France

Smart Card Alliance Annual Conference
October 8 - 11, 2007
Boston, MA, USA

Cartes & IT Security
November 13 - 15, 2007
Paris, France

Source: Catherine Johnston, President & CEO, ACT Canada (07/27)

Media and Your Bottom Line

While there are few things better than good press, bad press does not always pose the biggest media risk. Most educated readers can recognize bad or sensationalized writing. More damage is caused by small inaccuracies, incomplete information or misused terminology. This happened recently when a reporter attacked Citizenship and Immigration Canada, erroneously claiming that they were using a surveillance technology.

Sometimes the problem is not the media but the person being interviewed, as was the case when a federal communications person referred to counterfeit government smart cards. The cards in question were not smart cards and the counterfeits were simply plastic with copied artwork - no advanced technology involved.

One of the saddest cases was caused by a headline writer. The headline, "Smart cards, dumb idea" appeared in a magazine and days later a major ID project for which smart cards had already been purchased, was changed to a magnetic stripe program. Ironically, the body of the story did not support the headline, but politically the damage was done.

As chip cards move forward within the financial sector and contactless technology rolls out for transit and payment, we need to ensure that the media has access to solid sources. This includes 24/7 access to electronic information as well as to knowledgeable contacts to interview.

ACT Canada is increasing its content for media use. Although we have always been a source for both print and broadcast media, we see an increase in the number and depth of interviews we have done this year and expect it to continue to grow.

Members are invited to discuss messaging with us.

Did You Know That:
identity theft or fraud is not a criminal offence in Canada?
a google search for EMV Canada results in 237,000+ sites?

Did You Know That:
ACT Canada members use us to help develop:
Communication messaging
And deliver:
Briefings for senior management and other areas of their organizations
As well as provide:
Insights to help solve problems and identify new opportunities
A knowledgeable and independent media voice

Source: CNW (07/09)

TD Canada Trust today announced it has completed Canada's first transaction with a chip debit card. The transaction was made at a Green Machine automated banking machine (ABM) located in TD's Creekside Corporate Office in Mississauga, Ontario. TD becomes the first organization in Canada to be able to conduct a transaction using a chip debit card at a chip-enabled ABM that adheres to EMV standards.

While many other countries including Britain and France have already migrated to chip technology, Canada has just begun, with critical mass of cards, ABMs and point-of-sale (POS) terminals in market expected to be reached by 2010. Over the next several years, TD will issue millions of chip-enabled TD Visa Cards and TD Canada Trust Access Cards to its customers.

TD Merchant Services has already deployed tens of thousands of chip-enabled POS terminals to merchants in preparation of chip cards entering the market.

"We've made great progress internally to ready TD for the transition to chip, and being the first bank in Canada to be able to complete a transaction with a chip debit card is both a satisfying and proud moment," said Chris Stamper, Vice President, Core Banking and Debit Payments, TD Canada Trust. "With last year's upgrade of our network of more than 2,500 ABMs, today's announcement sets the stage for the final software implementation at Green Machines to accept chip debit and credit cards."

"Because we offer both debit and credit card issuing and payment processing services, we feel we're particularly well positioned to assist customers in the transition to chip technology," said Jeff van Duynhoven, Vice President, TD Merchant Services. "Businesses that process their card payments through TD can gain an advantage by tapping into the high level of confidence consumers have with the TD brand at the point-of-sale."

Source: CNW (07/12)

Hudson's Bay Company (Hbc) and MasterCard Canada announced that they have entered into an agreement to bring MasterCard chip card technology to Hbc national retail locations, including the Bay, Zellers, Designer Depot, Home Outfitters and Fields stores. In order to prepare for the introduction of chip cards at their stores across Canada, select Hbc locations in the Kitchener-Waterloo area will be participating with MasterCard in a chip card market trial early in 2008.

"Having a leading national, diversified retailer like Hbc participate in the Kitchener-Waterloo trial will certainly help us to prepare for the national roll-out of chip technology for the Canadian market," said Kevin Stanton, President of MasterCard Canada.

"At Hbc, we continue to work with partners like MasterCard Canada, to enhance the shopping experience for our customers," said Stephen Knight, Senior Vice President, Credit and Business Development, Hbc. "The Kitchener-Waterloo trial of MasterCard Canada's chip card technology is another key step towards bringing enhanced payment security to Hbc customers. By 2011, with the assistance of MasterCard Canada, we have committed to making our retail locations chip-ready by upgrading our proprietary payment processing systems and point-of-sale payment terminals."

MasterCard Canada is a member of ACT Canada; please visit http://www.mastercard.ca.

Source: ICMA Daily News (07/12)

Gemalto announced it has been awarded the tender held by insurance organization AOK (Allgemeine Ortskrankenkasse) to supply and personalize e-health-cards for their insured in Germany. The contract win comes after Gemalto took part in Germany's first healthcare pilot program based on highly secure microprocessor cards.

Gemalto's new advanced digital healthcare solution will avoid duplicate examinations and therefore lessen unnecessary use of healthcare services. In addition, the new health card will be able to carry electronic prescriptions, which will reduce significantly paperwork. Finally, by allowing data update once the card is in the field, the new system enables insurance funds to potentially adjust their cost of ownership.

Gemalto's latest-generation card will also act as an active security device to perform strong authentication of the patient therefore contributing to reducing fraud costs and increasing privacy. It will enable secure access to an electronic medical file that will include emergency data such as blood group, allergies alerts and ongoing treatments records. Authorized healthcare professionals can read personal information only if the patient consents by entering the card's Personal Identification Number.

Gemalto is a member of ACT Canada; please visit http://www.gemalto.com.

Source: LaserCard (07/23)

LaserCard Corporation announced the introduction of its "Green Card Authenticator," the ultimate support to employers, law enforcement, and state and federal agencies seeking to authenticate the U.S. Permanent Resident Card, commonly referred to as the "Green Card."

The Green Card is probably the most famous - and most sought after - identity card in the world. It confirms the holder's right to permanently reside and work in the United States. LaserCard Corporation is proud to be the manufacturer of this highly-counterfeit resistant card which includes some of the most sophisticated overt and covert security features available today.

The Green Card Authenticator provides three levels of assurance. The first is to confirm or question the authenticity of the card; the second is to verify whether an authentic card is still valid; and the third is to read and display on a standard PC screen the facial image, name, gender, date of birth, and nationality of the legitimate cardholder. A printed record of the results is automatically generated for future reference if required.

"Following the recent demise of immigration reform legislation, Secretary of Homeland Security, Michael Chertoff expressed regret that DHS would not receive additional funding to support employers in their need to verify the right of prospective employees to work in the United States," said Richard Haddock, President & CEO, of LaserCard. "With DHS becoming much more proactive in worksite raids and enforcement, honest and diligent employers across the U.S. are looking for a means to verify the employability of foreign job applicants. LaserCard Corporation is pleased to be able to contribute to these efforts by providing employers and government agencies with authentication technology for U.S. Permanent Resident Cards," added Mr. Haddock.

LaserCard Corporation is a member of ACT Canada; please visit http://www.lasercard.com.

Source: Market Wire Canada (07/10)

Scandinavia's Nordea is planning to secure online payments with chip-and-PIN card readers that generate one-time passwords. The bank is to supply its customers in Sweden with readers from Swedish security firm Todos Data System this autumn.

Nordea's new online payment security system is based on the 3-D Secure standard which is the underlying technology for the Verified By Visa, MasterCard SecureCode and JCB J/Secure platforms. 3-D Secure uses passwords to authenticate online shoppers.

The Nordea implementation adds another level of security to 3-D Secure by using one-time-use passwords instead of passwords that are selected by customers. Nordea is using Arcot Systems' TransFort technology to implement its chip and PIN-based 3-D secure authentication system.

When making an online purchase, Nordea cardholders will receive a random challenge number, Arcot says. They will then have to insert their card into their bank-issued card reader and unlock the card by entering their PIN. Next, they will have to enter the random challenge number into the reader and obtain a unique number that is calculated on the smart card's microprocessor and has to be entered online to complete the payment process.

Arcot says Nordea's implementation provides a high level of protection for online payments against fraud, because without the card, the reader and the PIN, online payment with the card is not possible.

MasterCard Canada and Visa Canada are members of ACT Canada; please visit http://www.mastercard.ca & http://www.visa.ca.

Source: SCM Microsystems (07/05)

SCM Microsystems, Inc. announced that its eHealth100 is the first health card terminal to receive approval for participation in release 1 of the field tests of the electronic health card program in Germany. The German e-Health card program is the largest electronic healthcare project in the world to date, with planned deployment of 82 million electronic health insurance cards and thousands of health provider cards over the next few years.

According to the gematik, which is the organization overseeing the implementation of the eHealth card program in Germany, SCM's eHealth100 terminal is compliant with gematik specification 1.1.0 for terminals for the program and fulfills all requirements for the secure use of the electronic healthcard. In addition, the terminal is compliant with SICCT (Secure Interoperable Chip Card Terminal) specification V1.03 - a catalogue of requirements for smart card terminals used in the German eHealth program's secure network, or "telematics" infrastructure. The SICCT specification was developed by the IT industry organization TeleTrusT e.V., in close relationship with gematik. Having successfully passed all technical and laboratory trials, the eHealth100 can now be used in field trials with actual healthcare system users as part of the testing process of the electronic health card.

SCM's eHealth100 terminal was developed specifically for the use with the electronic health card in Germany. It is based on the latest available processor technology and incorporates ergonomic features that anticipate frequent use by general practitioners, pharmacists and therapists, as well as other healthcare professionals. The terminal can be used with all card types of the new German health care telematics, including the electronic health card, which will be issued to insured individuals in Germany; the health professional card (HPC), which allows every professional in the health care sector to securely access and edit patient data; and the Secure Module Card (SMC) in ID-000 format for secure data communication. In addition, it also reads and operates with Germany's current health card.

The terminal's design allows for future applications currently planned. For example, using additional optional devices such as a fingerprint reader, healthcare providers will be able to authenticate themselves in the telematics network on a daily basis, rather than patient by patient, by providing a so called "convenience signature." In addition, mobile access to the telematics network is also planned, which would facilitate home healthcare visits and mobile rescue missions. SCM plans to develop enhanced terminals to address these new applications and others once gematik specifications are available.

SCM Microsystems is a member of ACT Canada; please visit http://www.scmmicro.com.

Source: CNW (07/03)

Tim Hortons, the coffee shop chain says it will begin accepting MasterCard payment cards, including PayPass contactless cards.

Tim Hortons says 500 of its restaurants across Canada have already installed POS readers with MasterCard capability. The company has 2,724 restaurants in Canada and 340 in the U.S.

The coffee shop chain says that it will accept MasterCard swiped cards as well as contactless cards at participating counter and drive-through locations in Canada. For a limited period, MasterCard will be the exclusive credit card accepted at Tim Hortons, MasterCard Canada says.

MasterCard says that 36,000 Canadian quick service merchants such as fast-food restaurants and convenience stores have installed the MasterCard Quick Payment Service (QPS) system.

MasterCard Canada is a member of ACT Canada; please visit http://www.mastercard.ca.

Source: Contactless News (07/12)

Iran has unveiled its first biometric passports, but only for diplomatic purposes, according to the Deputy Foreign Minister. The government plans to release e-passports for all applicants by the end of the Iranian year, reported PRESStv. After being pushed by by the International Civil Aviation Organization (ICAO) for the use of biometric passports, Iran has made every endeavor to prepare the high-tech documents. According to the article, only 34 countries have added biometric features to passports, although Iran is hoping that the new system will reduce security costs and discourage passport forgery as well as increase the speed at which passengers are processed through customs.

Source: epaynews (07/26)

Hitachi is teaming up with JCB to test biometric technology that uses cardholders' finger veins to authenticate them at the point of sale. Gerard F. Corbett, Hitachi America's Vice President, Branding and Corporate Communications Group, tells ePaynews that the two firms are initially planning an internal beta pilot.

According to a Nikkei article reported by Dow Jones Newswires, Hitachi's technology will let consumers pay for purchases via a finger reader instead of using credit cards at a card reader and signing their names. The data would then be matched with vein patterns that are held by credit card issuers. The verification process is expected to take just a few seconds, Hitachi says.

Hitachi and Japanese credit card issuer JCB plan to start a three-month trial in Japan this September. The Nikkei article says that Hitachi wants to start marketing its point-of-sale biometric authentication technology by March 2007, the end of its current financial year.

The technology will likely be used in locations such as theme parks, commercial facilities, video game arcades and gyms, The Nikkei says. The finger reader is expected to be priced at around 30,000 Yen (US$249).


These additional stories are available to ACT Canada members via the Members Only section of our web site. Click on the link below to access this section.
If you are a member of ACT Canada but do not have your login details please contact me - andrea@actcda.com.


Alaric International announced that its Authentic authorization and switching solution is being used to enable the first contactless EMV credit card launched in Europe…


The fast approaching EMV deadline is stepping up growth momentum in the world point of sale (POS) terminals market. The deadline for migration is encouraging…

For more information, please contact Andrea McMullen at 1 905 426-6360 ext 124 or email andrea.mcmullen@actcda.com.

Please forward any comments, suggestions, questions or articles to andrea.mcmullen@actcda.com. Please note that articles contained in this newsletter have been edited for length, and are for information purposes only.