Security

PayPal Suspends Operations After Discovering ‘Security Vulnerabilities’

PayPal shuts down TIO's system. 

PayPal said it had shut down TIO’s system after the discovery of a security issue. Neither PayPal nor TIO released details about the issue. In a statement, PayPal said it involves “security vulnerabilities on the TIO platform and issues with TIO’s data-security program that do not adhere to PayPal’s information-security standards.” On its home page, TIO released a statement on the matter, as well, with nearly identical language. A PayPal spokesperson on Monday told Digital Transactions News no further information, including any indication of when the suspension might be lifted, is available.The PayPal statement also hints that the payments company may now re-examine the deal under which it acquired TIO. PayPal paid $233 million for the Vancouver, British Columbia-based company in an agreement announced in February. The deal closed in July. PayPal said it has begun in internal investigation of the security issue and has also brought in outside cybersecurity experts to inspect TIO’s platform.

MASTERCARD TO BID FAREWELL TO SIGNATURE REQUIREMENT IN 2018

Mastercard Inc. will no longer require signatures on transactions. 

ETA member Mastercard Inc. will drop its rule requiring merchants to get signatures for transactions made with its credit and debit cards in North America. The change will go into effect April 13, 2018, Mastercard Executive Vice President of U.S. Development Linda Kirkpatrick announced in a blog post, citing state-of-the-art security systems like tokenization and new biometric authentication capabilities as reasons for the signature’s growing obsolescence.

“While security remains paramount, we know that convenience is also a large part of what consumers want when they are shopping and paying,” Kirkpatrick said in the post, “The move will help merchants speed customers through checkout, provide more consistent experiences for every customer with every purchase and should decrease costs associated with safely storing signatures. ”

The move away from the original payment card authentication tool is an indication of overall market trends as ultra-secure yet frictionless payment experiences continue to be in high-demand from merchants and consumers alike.

Slamming and the Chip

Slamming and the Chip

The Better Business Bureau (BBB) is warning business owners about a new scam that has surfaced in some parts of the U.S. It’s related to the ongoing rollout of microchip-embedded EMV® payment cards and a fraudulent activity known as slamming.