The Fact That A Credit Card Is Patented Is A Selling Point?

from the what-has-the-world-come-to dept

In the (snail) mail this week I happened to get an ad for the Visa Black Card, which Visa is pitching as "exclusive," though I'm guessing that exclusivity is mostly based on finding enough suckers to pay a $500 annual fee for the card. Anyway, as I was tossing the application into the shredder, one thing caught my eye. The pamphlet cover lists out six marketing bullet points, with the fourth one being that the card is "patent pending." This struck me as odd on a couple of fronts:

1. Why is the fact that it's patent pending a marketing point? I could maybe sorta barely understand it if it was an issued patent. But a pending one? That means next to nothing other than that you spent some money to file a patent application. To me, that means you may have wasted a lot of money -- which could explain the $500 fee.
2. A patent on what? On the idea of a "black card" or some other swanky exclusive credit card? Or on the physical card itself?

So, I did a little Googling, and turned up the following: apparently the patent filing (at the time of this announcement, just a provisional patent filing) is is on the physical card itself because it includes "carbon and/or carbon based material." I guess if you're the sort of person interested in spending so much money on a credit card, perhaps you'll pay extra to have carbon in your credit card. Still doesn't make much sense here...

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Visa Accidentally Charges People $23 Quadrillion

from the yes,-that's-a-real-number dept

I saw a couple of days ago on Consumerist that a teen had apparently discovered a debit of $23,148,855,308,184,500.00 on her debit card for a purchase at the local drug store. That's $23 quadrillion -- or 2,000 times the national debt. CNN is now reporting that a bunch of folks were hit with this charge (the identical number). Most are also dealing with insufficient funds charges. Visa, not surprisingly, is apologetic, promising to sort things out and agreeing to get rid of any excess charges due to this. However, it does make you wonder... shouldn't Visa's debit cards have some sort of "reality check" included?

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Store Payment Info In Your Online Store? Watch Out For Patent Infringement Lawsuits

from the pay-now dept

Bill Squier alerts us to the news that a bunch of companies have been sued for daring to store consumer payment information and allow either stored value payments or one-click payments on their site. The article linked here focuses on Apple as a defendant, and notes 14 other companies were sued as well, but in researching this, I found that Joe Mullin actually wrote about another batch of companies (20 of them) that were sued back in April. The earlier lawsuit included Google, Wal-Mart, Bank of America, Capital One, JP Morgan Chase, Mastercard, Visa, Vivendi, Disney and Western Union among others. The more recent lawsuit has (as mentioned) Apple, Best Buy, Amazon, American Express, Barnes & Noble, Citigroup and eBay among others. So... basically any online e-commerce site, credit card company or big bank.

As for the patents in question, they're all a variation on a "method and apparatus for conducting electronic commerce transactions using electronic tokens." The specific patents are 7,376,621, 7,249,099, 7,328,189 and 7,177,838. Reading through the claims, this seems like an incredibly typical online system for storing payment info and seeing if the person can actually pay. Since the patent system defenders among our readers get quite upset whenever I say something seems "obvious" to me, let's flip this around. Can anyone explain how these concepts were not obvious at the time of filing?

Not surprisingly, the cases have been filed in Marshall, Texas... and as Joe Mullin figured out, the guy who is running "Actus" is a lawyer known for representing some infamous patent hoarding companies. He also discovered that the lawyer representing Actus in these lawsuits appears to share an office (or at least the same address) with the son (who is also a patent attorney) of the judge handling the case. At some point, do people start questioning whether or not there's a conflict of interest there?

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Visa Tests New Anti-Fraud Card Device, But What About The Data Leaks?

from the finger-in-the-dike dept

Visa is testing a new type of credit card that's got additional security measures built in as a means of cutting down on "card not present" (CNP) fraud -- the fraudulent sales rung up using stolen credit-card numbers and the security codes that are normally printed on the cards. Visa's new cards have a small screen on the back that displays a six-digit code when the cardholder enters a PIN on the card's keypad, making it sound like Visa has basically built in a tiny version of something akin to the SecurID, a popular two-factor authentication device for corporate computer networks. The devices generate an additional one-time password using an algorithm synced with the system on the other end; the user enters this password when they attempt to log on, or in Visa's case, make a CNP transaction. If the passwords match, the transaction goes ahead. It sounds like a good way to cut down on CNP fraud, but is it just a way to try and gloss over the massive data leaks that see millions of credit-card numbers lost out into the world? It almost seems that if these new anti-fraud cards make it to market, the party line will be "the data leaks don't matter anymore" -- but criminals will still be able to obtain credit-card numbers and make fake cards with the stolen info (for card-present fraud). It might make criminals' lives a little more difficult, but it won't make credit-card fraud impossible. Raising the level of security on credit cards is, without question, a good thing. But unless it involves doing more to stop massive data leaks, it's not enough.

Carlo Longino is an expert at the Insight Community. To get insight and analysis from Carlo Longino and other experts on challenges your company faces, click here.

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SMS Alerts Over Credit Card Transactions? Patented! Visa Sued

from the innovation-at-risk dept

Let's say you were an engineer at a major credit card company like Visa, and put in charge of watching over new technologies, and thinking about ways that you could make the credit card process better and more secure for card holders. It probably wouldn't take you all that long to come up with a variety of useful measures for checking to make sure certain transactions were legit -- such as alerting cardholders to transactions via SMS. That's nothing particular special or unique, but it's a nice obvious addition, thanks to the fact that SMS text messaging has now become popular. So, you go ahead and implement it... and promptly get sued by some small company that claims a patent on the "invention" of alerting cardholders of transactions by SMS. I'm sure the angry patent system defenders will be quick to show up in the comments claiming that Visa "stole" this "invention," but I'm having a really difficult time understanding how you can support innovation and allow this sort of result to happen.

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Escaped The Largest Credit Card Data Breach Ever? Well, Here's Another One...

from the just-assume-someone-else-has-your-cc-info dept

Remember last month when a credit card payment processor was forced to admit a security breach that could impact 100 million people? Well, if you were lucky enough not to get caught up in that breach, there's apparently another one to worry about. Visa and Mastercard are issuing a new warning over a different payment processor whose system was apparently compromised as well. At this rate, it's getting silly to have static credit card numbers, since it seems like we're replacing our cards every few months anyway.

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Russian Court Says Visa Can't Cut Off AllofMP3 Unit

from the denied dept

Earlier in the month, Russian authorities shut down the well-known Allofmp3.com site, following complaints from the US government -- and the implication that if they didn't do so, the US would make it hard for Russia to join the World Trade Organization. Of course, the people behind Allofmp3 quickly set up shop at another URL, and went about their business selling dirt-cheap digital music. It's today been reported that Alltunes, another site owned by Allofmp3's parent company, has won a court case against Visa's Russian agent, after Visa refused to process its payments. As the company points out, it's never been convicted of illegal activity, and Visa cut it off after complaints from the IFPI, the international equivalent of the RIAA. It's not clear to what extent Visa and its agents can be forced to =offer their services to a business, however the Allofmp3 folks are correct when they assert that it's not Visa's -- nor the IFPI's -- right to decide when copyright's been violated, particularly when they don't hold any of the copyrights in question.

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