ETD: 785 Need a new payment method; Office Conferencing;
Protectionism vs Free Trade
E-Tailer's Digest
etd_post at gapent.com
Thu May 13 11:50:36 GMT 2004
E-Tailer's Digest --- Everything for the Retailer
Issue #0785 May 13, 2004
George Matyjewicz, Moderator mailto:georgem at gapent.com
Published by: GAP Enterprises, Ltd. http://www.etailersdigest.com
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CONTENTS
[1] Greetings
[2] Need a new payment method
[3] Office Conferencing
[4] Protectionism vs Free Trade
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[1] Greetings.
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Hi All:
Today we have some excellent comments on credit cards from Javilk. He
makes some excellent points, which you should heed, Also consider the
alternatives. It makes for good discussion. Comments?
Have you tried office conferencing yet? IMHO, it's one of the best
technological advances this decade.
We have talked about outsourcing to India, and the manufacturing jobs going
offshore, and other issues related to free trade. Interesting to note how
free trade has increased jobs in some areas of the U.S. - actually brought
in higher paying jobs. What do you think? Should countries embrace free
trade or protectionism?
Tell us about your business which will remain for posterity at
our "Members: Who Are You?" site. We just updated all those postings that
we were delinquent with the
updates. http://etailersdigest.com/resources/members/index.htm And we have
a form there for you to tell us about you. As I said when I first proposed
this idea, we have "known" each other for a long time, yet we often don't
know anything about each other. So, tell us who you are and what you do.
Now, let's get to everything for the retailer.
Sincerely
George Matyjewicz, PhD
Chief Global Strategist, GAP Enterprises, Ltd.
mailto:georgem at gapent.com
http://www.etailersdigest.com
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[2] Need a new payment method
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The best system is to use multiple modes of identification. Some systems
are already in use, e.g. warnings some credit card companies issue on
out-of-area and Internet transaction which may even suspend the card till
the user calls.
As for me, I never sign the electronic pads, demanding a paper document to
sign, and usually add the date over my signature. One client, having had
her signature photocopied and applied to other documents, recommends
everyone write the date clearly over their signature each time. It
requires more sophistication of the forger to clear, and if customarily in
all signatures, adds a warning that this may not be a valid signature.
Do not EVER sign a UPS, FedEx or other delivery pad!!! Those signatures
are put over the web for the sender to see, and easily captured by any
third party knowing the shipper address code portion of the transaction
code used to retrieve transaction status information. (One client believing
his mailing list stolen that way, worked out how to return the favor. I
dissuaded him...)
Since some kind of mark is required, I initial the pad, adding "received"
to fill out the signature space. Not valid for a purchase, it's adequate
for an acceptance.
Here are a few ideas:
PHOTO CREDIT CARD: Long overdue, is the credit card with your photograph or
at least some minor biometric data, such as skin, eye, and hair color,
height, and maybe weight. Some of this should be encoded in the card
number, or at least the extended card numbers on the back; and merchants
made aware of that. Although only useful for on-site retail purchases, it
is a start which causes merchants and card holders to respect the card
more, and discourages small-time thieves.
The down side is that a photo credit card would rapidly become the de facto
universal ID card, much the same way your social security number once was,
and often still is despite federal legislation making that illegal.
For the following, it is necessary that recurrent transactions be separated
from one-time transactions, creating two classes of credit card acceptors:
1.) providers of scheduled recurrent service and/or supplies who can
bypass some of these
2.) regular retailers.
PER-TRANSACTION ENCRYPTION: Each final credit card number transaction
record should be encrypted in the card reader firmware and kept encrypted,
with the merchant unable to decrypt the card number. The encryption key
should be part merchant ID, part transaction id issued by the credit card
company and/or aggregator at time of purchase. This renders captured
numbers unusable for other transactions, even by the same merchant, unless
he seriously compromises the card reader.
In one case, a crooked gas station tapped the line to capture and re-use
card numbers to buy gas and goods elsewhere. With card reader / acceptance
transaction encryption, the captured codes can not be re-used without
sophisticated code breaking work, thus limiting fraud to larger criminal
organizations.
FINGERPRINT ID: USB Fingerprint readers are available, and many cash
registers are computers of some sort, many even PCs. Not as secure as some
of the others because it is in-band (same media), and hence able to be
captured; but a start. Per transaction encryption in the fingerprint reader
firmware itself is required, or it's just the equivalent of a longer credit
card number that some hacker can capture.
CHANGING NUMBERS: Cards now have an extended number on the back, used for
some classes of transaction. Part of the extended card number could change
as a function of time and date. If too far out of sync, the transaction is
rejected. Plus or minus one day would be reasonable. This would limit
stolen card usability to one day, which would usually mean a sudden surge
in transactions triggering other fraud detection methods.
CHALLENGE RESPONSE: Already in use for high security computer access; the
card number is used to initiate the transaction. The aggregator or credit
card company issues a challenge number one keys in or otherwise inputs into
the card. The card outputs another number which is transmitted to the
credit card company to validate the card.
OUT-OF-BAND CONFIRMATION: Some credit card payment systems, such as phone
company, require a voice confirmation. Buyer receives number to call,
calls authorizing purchase by saying his name. Caller ID and voice clip
retained as part of transaction information. May require called ID to be
that of buyer's listed valid phone numbers, or one of merchant's valid
phone numbers.
-javilk-
Today's Photo: http://www.mall-net.com/today/
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+++ [Moderator's Comments] +++
Great stuff John! I agree with you on these, especially the photo ID on
credit cards. The technology is there.
Unfortunately many of these are for use with credit cards offline. Online
it becomes more difficult. Many methods have been tried, e.g.., USB
connection on both ends, which didn't work.
George
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[3] Office Conferencing
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IMHO, office conferencing is one of the best technological advances we have
seen this decade. It got a big push in retailing when the SARS scare hit
Hong Kong just when the international gift show was taking place. So
buyers stayed home and viewed products and listened to the presentations
online. The next year, they decided to save money and do the same thing.
We use Webex for conferencing and find it a Godsend. Years ago we had to
go to a prospect/client office to train or sell. Now we setup a
demonstration online, and give the organization a toll-free telephone
number to call and we do the presentation from the comforts of our
office. And we have had demonstrations with offices throughout the world,
with one demo including an office in London, Bermuda, Canada, and seven
offices in the U.S. Not only was it effective for us, but the prospect
also benefited in that 10 offices were able to view the products at one time.
Obviously you know it's a big deal when MCI and Microsoft Partner on
Office Conferencing. In an article in ECommerce Times, Meta Group senior
vice president Mike Gotta, who called the agreement a deepening of an
existing relationship, told TechNewsWorld that the MCI-Microsoft
partnership is evidence of a changing telecom and IT landscape that
requires changing business models.
Looking to blur business lines the same way that technology has blurred
traditional voice and data networks and solutions, MCI and Microsoft have
announced a deepening of their relationship to deliver converged
communication and collaboration technologies.
The companies will codevelop new real-time applications, such as access to
presence-based services for Voice over Internet Protocol (VoIP) and further
integration of PC and telephony technologies to enable the set-up of
conference calls from Microsoft Office applications. The work will center
on Microsoft's Live Meeting and the next version of MCI's Net Conferencing
services.
The companies said the new services, to be integrated with MCI
audioconferencing, will be offered globally to large and small companies
and will include collaboration on Web-conferencing services.
What do you think? Have you tried office conferencing?
Details of the ECommerce Times article at...
http://www.ecommercetimes.com/story/networking/33766.html
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[4] Protectionism vs Free Trade
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Many countries, including parts of the U.S., are considering protectionism
rather than free trade. Protect your core industries by taxing or
restricting imports to protect jobs.
In an article in the Wall Street Journal
(http://online.wsj.com/page/0,,2_1064,00.html), it was reported that the
Carolinas (U.S.), home of the U.S. textile industry have been petitioning
their politicians to implement protectionism, since free trade has lost
many jobs to Asian manufacturers. One politician wants to slap a 27.5%
tariff on all Chinese imports.
In North and South Carolina, the gains and losses from trade are mixed.
Since 1990, the Carolinas textile and apparel industry has shed 248,000
jobs, due to foreign competition and efficiency gains, according to the
Department of Labor. In February, unemployment in South Carolina reached
6.3%, the fourth-highest in the nation.
But foreign investment in both states also has increased dramatically,
producing an additional 109,000 jobs between 1990 and 1999, the most recent
year for which data are available, according to Economy.com, a consulting
firm. The foreign investments typically have been in the automobile and
chemical industries, which pay higher wages than textile and apparel.
So, what's the solution? The net loss of jobs per above is 139,000
jobs. However, the pay scale for the new jobs is triple what textile pays.
What do you think?
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