ETD: 674 Chargebacks - credit or debit cards; The Buzz About Emerging RFID; California approaches Net sales tax; PayPal charged with breaking Patriot Act; Most wired for broadband and the design involved

E-Tailer's Digest etd_post@gapent.com
Thu, 03 Apr 2003 05:47:43 -0500


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  E-Tailer's Digest --- Everything for the  Retailer
  Issue #0674                     April 3, 2003
  George Matyjewicz, Moderator         mailto:georgem@gapent.com
  Published by:  GAP Enterprises, Ltd.  http://www.etailersdigest.com
===================================================================

  CONTENTS

  [1]  Greetings
  [2]  Chargebacks - credit or debit cards
  [3]  The Buzz About Emerging RFID
----- ---- --- -- -> Important Offer <- -- --- ---- ---- --
  [4]  California approaches Net sales tax
  [5]  PayPal charged with breaking Patriot Act
  [6]  Most wired for broadband and the design involved

===================================================================
  [1]  Greetings.
===================================================================
Hi All:

OK gang, California is  now closer to joining Streamlined Sales and Use Tax 
Agreement (SSUTA).   Which means the Internet Sales Tax will be here faster 
than a dotcom failure!  Get ready.

List member John Vinokur gives us some interesting information about 
chargebacks - things I never knew.  Beware.

You better start thinking about redesigning your site to get in line with 
the wide use of broadband globally.  And, guess what country has the most 
broadband usage?  (see 6 below).

The latest and greatest innovation in retailing is RFID.  Interesting and 
affordable stuff.  Now there is a rush to get on the bandwagon in order to 
lead the retail pack.  Better look carefully.

And PayPal (eBay) is in the news again.  This time for breaking the Patriot 
Act.

Now, let's get to everything for the retailer.


Sincerely


Dr. George Matyjewicz
Chief Global Strategist, GAP Enterprises, Ltd.
mailto:georgem@gapent.com
http://www.etailersdigest.com


===================================================================
  [2]  Chargebacks - credit or debit cards
===================================================================
With reference to the issue of chargebacks being allowed or not for 
purchases on debit cards, I thought that you and your readers might like to 
know that, when I met a while back with one of the top people in 
MasterCard's ecommerce division and brought up this point (my own 
understanding at the time was that, because debit cards are based on 
checking accounts, there *couldn't* be chargebacks), he made it quite clear 
to me that, so far as they were concerned, there was absolutely NO 
difference between credit cards and debit cards with respect to the 
handling of chargebacks.

Just my $0.02 ...

John Vinokur
Payment Central Inc.
Tel: 514-946-8825
mailto:arti@securenet.net
"The TRULY-secure payment-acceptance specialists!"

+++ [Moderator's Comments] +++
Interesting John.  I wonder if that applies only to MasterCard-labeled 
debit cards.  If I use my classic debit card, that does not have a Visa or 
MasterCard logo on it, can I have a chargeback?  If so, by whose authority?

With a logo, the debit card can be used as both a debit and credit 
card.  Without a logo, it is only a debit card.  So what's the advantage of 
the classic debit card?

George
===================================================================
  [3]  The Buzz About Emerging RFID
===================================================================
The day when consumers routinely roll a full cart of merchandise though POS 
and a couple seconds later their bill is printed and a signature is 
requested is still many years away. In the meantime, according to Target 
CIO Paul Singer, "RFID (radio-frequency identification) is something that 
will be happening in the near-term future."

It's a good bet that RFID tags for merchandise are going to happen. They 
work like electronic bar codes that get read without the labor of scanning 
and that identify and track each item rather than merely identifying the SKU.

Cost has been the chief reason RFID has not exploded in retail and consumer 
goods in the past, but major breakthroughs in tag costs are now emerging.

A few years ago, each RFID tag cost a few dollars. According to Texas 
Instrument's Bill Allen, raw RFID tags now cost below 50 cents, but a 
finished label with a tag embedded can be $1.

Details at...
http://www.risnews.com/issue/march03_art2.htm

===================================================================
  [4]  California approaches Net sales tax
===================================================================
California this week took a step closer to collecting tax on sales of 
consumer goods over the Internet.  A tax committee of California's Senate 
on Wednesday approved two bills that would clear the way for the state to 
collect sales tax on goods sold by out-of-state vendors to its residents 
via the Web, a move that could help it recoup an estimated $1.75 billion in 
lost annual tax revenue.

The first Internet tax bill would require California to join a group of 35 
states and the District of Columbia, working to help states tax remote 
sellers, including those that operate online and via mail-order.

Members of that group known as the Streamlined Sales Tax Project were key 
players in a February deal in which eight major online retailers agreed to 
begin collecting taxes on behalf of about three dozen states. As part of 
that deal, the vendors were granted amnesty for any prior uncollected taxes.

California did not participate in that settlement and has remained on the 
sidelines on the issue.

"This isn't about 'taxing the Internet,' it's about equity, because people 
should be taxed on what they buy, not how they buy it," bill sponsor Sen. 
Debra Bowen, a Democrat, said in a statement.

Bowen said the current tax system gives every out-of-state businesses an 
instant 7.25 percent to 8.5 percent price advantage over California-based 
retailers that collect that sales tax at the point of sale depending on 
where it is made.

A second pending tax bill would require retailers with brick-and-mortar 
locations in California to collect state sales tax on Internet transactions 
with California customers through their online subsidiaries and partners.

California residents are currently required to report and pay such sales 
taxes, although few do.

Details at...
http://news.com.com/2100-1019-994471.html

===================================================================
  [5]  PayPal charged with breaking Patriot Act
===================================================================
A U.S. Attorney's office has alleged that PayPal violated laws regarding 
the processing of online gambling payments, and is asking parent company 
eBay to hand over nine months of the gambling-related earnings in settlement.

The U.S. Attorney for the Eastern District of Missouri told eBay that its 
online payment service violated provisions in the USA Patriot Act between 
October 2001 and July 2002, according to eBay's annual report, filed Monday 
with securities regulators. Under the act, it is prohibited to transmit 
funds known to have come from a criminal offense, or that are intended to 
promote or support unlawful activities.

The agency is seeking to collect any earnings that PayPal received from 
online gambling merchants during the nine-month period, as well as 
interest. Last year, PayPal received 6 percent of its revenue from online 
gambling, according to its filing with the Securities and Exchange Commission.

Details at...
http://news.com.com/2100-1018-994810.html

And in a related article, PayPal was designated as a category 
killer.  PayPal has more customers than their top four rivals combined -
Citibank, Wells Fargo, Yahoo, Microsoft and the U.S. Postal Service.  They 
have been growing at the rate of 20,000 new members per day before it was 
even a year old, a pace it generally maintained until the eBay takeover 
last year, shortly after PayPal's IPO.

Details at...
<http://www.ecommercetimes.com/perl/story/21149.html>http://www.ecommercetimes.com/perl/story/21149.html 


==================================================================
  [6]  Most wired for broadband and the design involved
==================================================================
According to Nielsen/Net Ratings the percentage of global households with 
Web access using high-speed, non-dial-up Internet modems are:

Hong Kong  - 54%
Germany - 39%
Sweden - 33%
Netherlands - 20%
Italy - 18%
Spain -18%
France  - 17%
Brazil -15%
Britain - 9%
U.S. - 5%

And in an article in ECommerce Times, it was reported that companies that 
conduct business online are starting to update their Web sites to serve a 
"faster" audience.  However, broadband design strategies are different for 
corporate Web sites than for consumer-oriented ones. Even though companies 
that run business-to-business (B2B) sites generally assume that their 
customers have high-speed connections, design constraints are still fairly 
stringent.

As broadband becomes more ubiquitous in coming months and years, the owners 
of Web sites that cater to business users and consumers alike should think 
about how to address this high-speed evolution.

B2C e-commerce sites, meanwhile, should start to develop richer types of 
information for consumers. For example, textural photography can give an 
online shopper a much better idea of an item's color, content and design. 
Other improvements might include three-dimensional pictures or mini videos 
that show products in action.

Details at...
http://www.ecommercetimes.com/perl/story/20293.html


===================================================================
  Links to follow
===================================================================

GAP Enterprises, Ltd.                   http://www.gapent.com/
Global Pay Systems LLC          http://globalpaysystems.net
E-Tailer's Digest                       http://www.etailersdigest.com
ETD Archives:                           http://topica.com/lists/etailer/read
Prior to 29 Dec 
1999                    http://etailersdigest.com/archives/index.htm
Marketing Your Web                      http://www.gapent.com/myweb/
Automated Press Releases                http://www.automatedpr.com  
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<body>
&nbsp;E-Tailer's Digest --- Everything for the&nbsp; Retailer<br>
&nbsp;Issue
#0674<x-tab>&nbsp;&nbsp;&nbsp;&nbsp;</x-tab><x-tab>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</x-tab>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
April 3, 2003<br>
&nbsp;George Matyjewicz,
Moderator&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<a href="mailto:georgem@gapent.com" eudora="autourl">mailto:georgem@gapent.com</a><br>
&nbsp;Published by:&nbsp; GAP Enterprises, Ltd.&nbsp;
<a href="http://www.etailersdigest.com/" eudora="autourl">http://www.etailersdigest.com</a><br>
===================================================================
<br><br>
&nbsp;CONTENTS <br><br>
&nbsp;[1]&nbsp; Greetings<br>
&nbsp;[2]&nbsp; Chargebacks - credit or debit cards<br>
&nbsp;[3]&nbsp; The Buzz About Emerging RFID<br>
----- ---- --- -- -&gt; Important Offer &lt;- -- --- ---- ---- -- <br>
&nbsp;[4]&nbsp; California approaches Net sales tax<br>
&nbsp;[5]&nbsp; PayPal charged with breaking Patriot Act<br>
&nbsp;[6]&nbsp; Most wired for broadband and the design 
involved<br><br>
=================================================================== 
<br>
&nbsp;[1]&nbsp; Greetings.<br>
=================================================================== 
<br>
Hi All:<br><br>
OK gang, California is&nbsp; now closer to joining Streamlined Sales and
Use Tax Agreement (SSUTA).&nbsp;&nbsp; Which means the Internet Sales Tax
will be here faster than a dotcom failure!&nbsp; Get ready.&nbsp;
<br><br>
List member John Vinokur gives us some interesting information about
chargebacks - things I never knew.&nbsp; Beware.<br><br>
You better start thinking about redesigning your site to get in line with
the wide use of broadband globally.&nbsp; And, guess what country has the
most broadband usage?&nbsp; (see 6 below).<br><br>
The latest and greatest innovation in retailing is RFID.&nbsp;
Interesting and affordable stuff.&nbsp; Now there is a rush to get on the
bandwagon in order to lead the retail pack.&nbsp; Better look
carefully.<br><br>
And PayPal (eBay) is in the news again.&nbsp; This time for breaking the
Patriot Act.<br><br>
Now, let's get to everything for the retailer.<br><br>
<br>
Sincerely<br><br>
<br>
Dr. George Matyjewicz<br>
Chief Global Strategist, GAP Enterprises, Ltd.<br>
<a href="mailto:georgem@gapent.com" eudora="autourl">mailto:georgem@gapent.com</a><br>
<a href="http://www.etailersdigest.com/" eudora="autourl">http://www.etailersdigest.com</a><br><br>
&nbsp; <br>
=================================================================== 
<br>
&nbsp;[2]&nbsp; Chargebacks - credit or debit cards<br>
===================================================================<br>
With reference to the issue of chargebacks being allowed or not for
purchases on debit cards, I thought that you and your readers might like
to know that, when I met a while back with one of the top people in
MasterCard's ecommerce division and brought up this point (my own
understanding at the time was that, because debit cards are based on
checking accounts, there *couldn't* be chargebacks), he made it quite
clear to me that, so far as they were concerned, there was absolutely NO
difference between credit cards and debit cards with respect to the
handling of chargebacks.<br><br>
Just my $0.02 ...<br><br>
John Vinokur<br>
Payment Central Inc.<br>
Tel: 514-946-8825<br>
<a href="mailto:arti@securenet.net" eudora="autourl">mailto:arti@securenet.net</a><br>
&quot;The TRULY-secure payment-acceptance specialists!&quot;<br><br>
+++ [Moderator's Comments] +++<br>
Interesting John.&nbsp; I wonder if that applies only to
MasterCard-labeled debit cards.&nbsp; If I use my classic debit card,
that does not have a Visa or MasterCard logo on it, can I have a
chargeback?&nbsp; If so, by whose authority?&nbsp; <br><br>
With a logo, the debit card can be used as both a debit and credit
card.&nbsp; Without a logo, it is only a debit card.&nbsp; So what's the
advantage of the classic debit card?<br><br>
George<br>
=================================================================== 
<br>
&nbsp;[3]&nbsp; The Buzz About Emerging RFID<br>
===================================================================<br>
The day when consumers routinely roll a full cart of merchandise though
POS and a couple seconds later their bill is printed and a signature is
requested is still many years away. In the meantime, according to Target
CIO Paul Singer, “RFID (radio-frequency identification) is something that
will be happening in the near-term future.”<br><br>
It’s a good bet that RFID tags for merchandise are going to happen. They
work like electronic bar codes that get read without the labor of
scanning and that identify and track each item rather than merely
identifying the SKU.<br><br>
Cost has been the chief reason RFID has not exploded in retail and
consumer goods in the past, but major breakthroughs in tag costs are now
emerging.<br><br>
A few years ago, each RFID tag cost a few dollars. According to Texas
Instrument’s Bill Allen, raw RFID tags now cost below 50 cents, but a
finished label with a tag embedded can be $1.<br><br>
Details at...<br>
<a href="http://www.risnews.com/issue/march03_art2.htm" eudora="autourl">http://www.risnews.com/issue/march03_art2.htm</a><br><br>
=================================================================== 
<br>
&nbsp;[4]&nbsp; California approaches Net sales tax<br>
=================================================================== 
<br>
California this week took a step closer to collecting tax on sales of
consumer goods over the Internet.&nbsp; A tax committee of California's
Senate on Wednesday approved two bills that would clear the way for the
state to collect sales tax on goods sold by out-of-state vendors to its
residents via the Web, a move that could help it recoup an estimated
$1.75 billion in lost annual tax revenue. <br><br>
The first Internet tax bill would require California to join a group of
35 states and the District of Columbia, working to help states tax remote
sellers, including those that operate online and via mail-order.
<br><br>
Members of that group known as the Streamlined Sales Tax Project were key
players in a February deal in which eight major online retailers agreed
to begin collecting taxes on behalf of about three dozen states. As part
of that deal, the vendors were granted amnesty for any prior uncollected
taxes. <br><br>
California did not participate in that settlement and has remained on the
sidelines on the issue. <br><br>
&quot;This isn't about 'taxing the Internet,' it's about equity, because
people should be taxed on what they buy, not how they buy it,&quot; bill
sponsor Sen. Debra Bowen, a Democrat, said in a statement. <br><br>
Bowen said the current tax system gives every out-of-state businesses an
instant 7.25 percent to 8.5 percent price advantage over California-based
retailers that collect that sales tax at the point of sale depending on
where it is made. <br><br>
A second pending tax bill would require retailers with brick-and-mortar
locations in California to collect state sales tax on Internet
transactions with California customers through their online subsidiaries
and partners. <br><br>
California residents are currently required to report and pay such sales
taxes, although few do. <br><br>
Details at...<br>
<a href="http://news.com.com/2100-1019-994471.html" eudora="autourl">http://news.com.com/2100-1019-994471.html</a>
<br><br>
=================================================================== <br>
&nbsp;[5]&nbsp; PayPal charged with breaking Patriot Act<br>
===================================================================<br>
A U.S. Attorney's office has alleged that PayPal violated laws regarding the processing of online gambling payments, and is asking parent company eBay to hand over nine months of the gambling-related earnings in settlement. <br><br>
The U.S. Attorney for the Eastern District of Missouri told eBay that its online payment service violated provisions in the USA Patriot Act between October 2001 and July 2002, according to eBay's annual report, filed Monday with securities regulators. Under the act, it is prohibited to transmit funds known to have come from a criminal offense, or that are intended to promote or support unlawful activities.<br><br>
The agency is seeking to collect any earnings that PayPal received from online gambling merchants during the nine-month period, as well as interest. Last year, PayPal received 6 percent of its revenue from online gambling, according to its filing with the Securities and Exchange Commission.<br><br>
Details at...<br>
<a href="http://news.com.com/2100-1018-994810.html" eudora="autourl">http://news.com.com/2100-1018-994810.html</a> <br><br>
And in a related article, PayPal was designated as a category killer.&nbsp; PayPal has more customers than their top four rivals combined - <br>
<font face="arial" size=2>Citibank, Wells Fargo, Yahoo, Microsoft and the U.S. Postal Service.&nbsp; They have been growing at the rate of 20,000 new members per day before it was even a year old, a pace it generally maintained until the eBay takeover last year, shortly after PayPal's IPO.<br><br>
Details at...<br>
<a href="http://www.ecommercetimes.com/perl/story/21149.html">http://www.ecommercetimes.com/perl/story/21149.html</a></font> <br><br>
================================================================== <br>
&nbsp;[6]&nbsp; Most wired for broadband and the design involved<br>
==================================================================<br>
According to Nielsen/Net Ratings the percentage of global households with Web access using high-speed, non-dial-up Internet modems are:<br><br>
Hong Kong&nbsp; - 54%<br>
Germany - 39%<br>
Sweden - 33%<br>
Netherlands - 20%<br>
Italy - 18%<br>
Spain -18%<br>
France&nbsp; - 17%<br>
Brazil -15%<br>
Britain - 9%<br>
U.S. - 5%<br><br>
And in an article in ECommerce Times, it was reported that companies that conduct business online are starting to update their Web sites to serve a &quot;faster&quot; audience.&nbsp; However, broadband design strategies are different for corporate Web sites than for consumer-oriented ones. Even though companies that run business-to-business (B2B) sites generally assume that their customers have high-speed connections, design constraints are still fairly stringent. <br><br>
As broadband becomes more ubiquitous in coming months and years, the owners of Web sites that cater to business users and consumers alike should think about how to address this high-speed evolution. <br><br>
B2C e-commerce sites, meanwhile, should start to develop richer types of information for consumers. For example, textural photography can give an online shopper a much better idea of an item's color, content and design. Other improvements might include three-dimensional pictures or mini videos that show products in action. <br><br>
Details at...<br>
<a href="http://www.ecommercetimes.com/perl/story/20293.html" eudora="autourl">http://www.ecommercetimes.com/perl/story/20293.html</a><br><br>
<br>
=================================================================== <br>
&nbsp;Links to follow<br>
=================================================================== <br><br>
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Global Pay Systems LLC<x-tab>&nbsp;&nbsp;</x-tab><x-tab>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</x-tab><a href="http://globalpaysystems.net/" eudora="autourl">http://globalpaysystems.net</a><br>
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Prior to 29 Dec 1999 <x-tab>&nbsp;&nbsp;&nbsp;</x-tab><x-tab>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</x-tab><x-tab>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</x-tab><a href="http://etailersdigest.com/archives/index.htm" eudora="autourl">http://etailersdigest.com/archives/index.htm</a><br>
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