N E W S L E T T E R
CommerceNet�s Security & Internet
Payments Newsletter
April 2001
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In This Issue
Commentary: Overcoming the Barriers in Internet Payments
In Recent News
Upcoming Events
About This Newsletter
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Commentary: Overcoming the Barriers in
Internet Payments
In last month�s issue, I provided you with background on why
CommerceNet is focusing on Internet payments and some of the challenges I
see on the horizon. This month I will share some of my thoughts on
how we might collectively overcome some of the barriers in Internet
payments.
The Internet was built around rough consensus and working code. We
should extend this proven approach to Internet payments and use
proof-of-concept pilots to demonstrate the viability and applicability of
new Internet payments systems. However, because new payment systems
need to be grounded in the real world, these pilots should also address
business concerns, policy matters, and integration with both upstream and
downstream eCommerce transactions.
Any interested party should be able to propose a pilot to
CommerceNet. We will evaluate each proposal, help steer the
proposals with the most promise, and work hard to involve other
CommerceNet members through pilot participation. The barriers to
new Internet payment systems can only be overcome through a working
relationship between financial institutions, government agencies,
technology vendors, and both large and small users of payment
services.
We should also work to initiate projects to evaluate emerging standards
for new payment services or the technical building blocks necessary to
build payment applications. Other projects should study what
policies should govern Internet payments, and how such policies might be
incorporated into payment systems. All of the projects should
deliver recommendations and guidelines for implementers and operators of
new Internet payment services.
One of the challenges confronting anyone working on new payment
approaches is that information about payments is scattered across many
sources, and what information is available is often very narrow in scope.
CommerceNet will work with the community to develop effective Web-based
guides to relevant information and articles that help new players
understand the many vital issues affecting payment systems. This
effort should also include discussion lists, workshops, and seminars that
will be used to share information about payments throughout the broader
eCommerce community.
If you think we�re on the right track, let me know. If you would
like to propose a proof-of-concept pilot, let me know. If you have
other ideas how we might collaboratively overcome the barriers we all
face, drop me a line.
Chuck Wade
[EMAIL PROTECTED]
+1 (508) 625 1137
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In Recent News
Remarks by U.S. Federal Reserve Vice Chairman Roger W. Ferguson,
Jr.
Roger Ferguson recently spoke at Vanderbilt University�s Owen
Graduate School of Management about the role of the U.S. Federal Reserve
in payments systems. Although he�s pleased with how the current
payment infrastructure is supporting Internet commerce, he still
questions whether existing and evolving payment instruments satisfy all
of the needs of C2B marketplace.
http://federalreserve.gov/boarddocs/speeches/2001/20010214/
Electronic Commerce: Who Carries the Risk of Fraud?
Much debate about the risk of fraud in eCommerce takes place without
any clear understanding about who bears the corresponding risk in
conventional commercial transactions. This paper from The Journal of
Information, Law and Technology examines risk in the context of both
Internet and conventional commerce. The analysis is based on
English law; your mileage may vary.
http://elj.warwick.ac.uk/jilt/00-3/bohm.html
Information Security: Advances and Remaining Challenges to
Adoption of PKI Technology
The U.S. federal government is increasingly promoting PKI technology
as the cornerstone of secure applications. Given the importance of
PKI, the General Accounting Office (GAO) recently concluded an
investigation into PKI progress to date and the remaining challenges to
be overcome before it can be put into widespread use.
http://www.gao.gov/daybook/010227.htm
Online Debit on the Internet: Models and Guidelines
The Electronic Funds Transfer Association (EFTA) has issued an
initial set of guidelines to help financial institutions, terminal
manufacturers, merchants, payment processors and software developers
develop and bring to market products that facilitate real-time online
debit as a consumer payment option. The guidelines were developed by the
Advanced Payments Group task force.
http://www.efta.org/release.htm
Understanding Internet-Initiated ACH Debits
NACHA recently issued new operating rules that permit companies to
originate ACH debits that have been authorized by consumers over the
Internet. A corresponding publication is available to give Internet
merchants a grounding in the ACH rules applicable to the Internet, an
understanding of the rationale behind the new rules, and best practices
and practical advice for complying with the rules.
http://www.nacha.org/news/news/pressreleases/2001/PR031601/pr031601.htm
OCC Issues Guidance on Bank-Provided Aggregation Services
The Office of the Comptroller of the Currency (OCC) recently issued a
bulletin providing guidance to banks regarding risks and appropriate
management controls required when offering account aggregation
services. Account aggregation is a service that gathers consumer
financial records from many Web sites and presents that information in a
consolidated format to the customer.
http://www.occ.treas.gov/ftp/bulletin/2001-12.doc
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Upcoming Events
Tower Group 2001 Financial Services Business and Technology
Conference
April 17- 19, 2001 / Boston, Massachusetts
Complete conference track devoted to Commercial Banking and Global
Payments. Sponsored by the Tower Group.
http://www.towergroup.com/public/Conf01/Conference_Announcement.htm
Payments 2001
April 22 - 25, 2001 / Washington, D.C.
Over 90 sessions on the latest advances in ACH, electronic check,
eGovernment and international payments. Sponsored by NACHA.
http://www.nacha.org/conferences/Payments2001/
Digital Money Forum
April 25 - 26, 2001 / London, England
4th annual conference devoted to digital money issues in Europe.
Sponsored by Consult Hyperion.
http://www.consult.hyperion.co.uk/forum/digmon4.htm
CTST 2001
May 14 -17, 2001 / Las Vegas, Nevada
Tradeshow and conference oriented towards smart card or biometric
technology. Sponsored by CardTech/SecurTech.
http://www.ct-ctst.com/CTST2001/
NACHA Internet Council General Meeting
May 16 - 18, 2001 / Washington, D.C.
Members and Invited Guests only. Sponsored by NACHA.
http://internetcouncil.nacha.org/
Electronic Commerce World Spring 2001
May 29 - June 1, 2001 / Santa Clara, California
Broad eCommerce conference and tradeshow. Sponsored by Electronic
Commerce World Magazine.
http://www.ecmediagroup.com/confer/ecw/
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CommerceNet is a global, not-for-profit organization of leading
business, government, technology, and academic minds working together for
the advancement of eCommerce worldwide. As guided by its partners and
sponsors, CommerceNet focuses on five initiative areas: Evolving Supply
Chains; Next Generation Internet; Security and Internet Payment;
Government, Public Policy and Advocacy and Pervasive and Wireless
Internet Access. In these areas CommerceNet is developing important new
technologies and practices that will chart the course for the way
companies conduct business.
Through pilot projects around the world, CommerceNet�s members are
exploring the viability and applicability of new Internet payment
systems. Rather than merely demonstrating technical solutions,
these pilots also address business concerns, policy matters, and
integration with both upstream and downstream eCommerce transactions.
Pilot participants include financial institutions, government agencies,
technology vendors, and both large and small users of payment services.
For more information, visit
http://www.commerce.net/.
Copyright � 2001 CommerceNet. All rights reserved.
