having any online, ubiquitously connected system with easy rule update and
change is an interesting challenge no matter who or how it is deployed
(especially with strict security and audit control for what is permitted
and/or changed, aka the whole objective of the system in the first place,
problem is also that traditionally, 90percent of fraud has been insider
fraud)

some of the larger corporations are starting to even have further
deployment of  p-cards with the infrastructure providing statement->edi
translation that flows everything directly into the backend accounts
payable system.  auto-industry with possibly 60,000 suppliers is one that
comes to mind.

a couple issues:

1) making it easier for the low-to-mid-range companies ... aka standard
skewed scenario ... majority of the value flow thru relatively small number
of operations.  This is somewhat of a dichotomy between the major financial
processors and possibly software vendors. The market that represents the
majority of value and number of transactions would tend towards a small
number of frequently roll-your-own and/or custom implementations which is
possibly contrasted to web-oriented software vendors focusing on the volume
(in terms of unit sales), cookie-cutter, mass-market (but possibly having
lowere aggregate total number of transactions and value)

2) when p-cards are platformed on credit association infrastructures ...
there is significant invention typically required regarding traditional
fees (watching some of the GAO stuff on the various federal p-card awards
comes to mind).

3) network that is optimized at processing thousands of 60-100byte
authorizatiion transactions per second securely and in real time would be
impacted by any significant increase in level-3 data. Note however, with
various consolidation & outsourcing that it is approaching 90% of
transactions are handled in possibly half-dozen to dozen centers ...
increasing that inter-center bandwidth capacity  would be relatively
straight-forward (I believe that there have already been announcements
about 20% of the traffic being moved off the traditional association
networks to inter-center direct links).

Note that X9.59 financial standard with token that works identically the
same at POS and non-face-to-face (internet, etc) could be considered even
more secure and ubiquituously applicable.

Not only does not having seemless end-to-end transaction authentication in
conjunction with transaction authorization an invitation for fraud ... but
also making it really simple and easy for insiders to access the system and
make rule changes is also an invitation to fraud. Typically, if you aren't
worried about insiders and fraud/skimming/etc  ... then you probably aren't
good candidate for p-card rules in any case; just direct transaction
presentment to backend automated accounts payable may be sufficient (x9.59
at POS and network supporting seemless, end-to-end strong transaction
authentication).

misc. refs:
http://www.garlic.com/~lynn/subtopic.html#fraud Risk, Fraud, Exploits
http://www.garlic.com/~lynn/aadsm2.htm#useire2 U.S. & Ireland use digital
signature
http://www.garlic.com/~lynn/aadsm4.htm#01 superfulous & redundant (addenda)
http://www.garlic.com/~lynn/aadsm4.htm#9 Thin PKI won - You lost
http://www.garlic.com/~lynn/aadsm5.htm#spki4 Simple PKI
http://www.garlic.com/~lynn/aadsm6.htm#echeck Electronic Checks
http://www.garlic.com/~lynn/aadsm6.htm#websecure merchant web server
security
http://www.garlic.com/~lynn/aadsm6.htm#terror9 [FYI] Did Encryption Empower
These Terrorists? (addenda)
http://www.garlic.com/~lynn/aepay3.htm#smrtcrd Smart Cards with Chips
encouraged ... fyi
http://www.garlic.com/~lynn/aepay7.htm#netbank2 net banking, is it safe??
... security proportional to risk
http://www.garlic.com/~lynn/ansiepay.htm#aadsach NACHA to Test ATM Card
Payments for Consumer Internet Purchases
http://www.garlic.com/~lynn/2000e.html#19 Is Al Gore The Father of the
Internet?^
http://www.garlic.com/~lynn/2001c.html#8 Server authentication
http://www.garlic.com/~lynn/2001h.html#61 Net banking, is it safe???




Anders Rundgren <[EMAIL PROTECTED]> at 9/30/2001 10:02 AM wrote:

Having a local security device that can "connect back" to the buyer's
own organization, a single virtual account and schemes like 3D Secure
can eliminate the need for external user administration as well as
supporting immediate updates, revocation and enablement.  In
addition you get full transaction record for free.

Reply via email to