The MAG Quarterly: Volume One, Issue Two
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Mark Horwedel
Letter from the CEO

by Mark Horwedel

A couple of years ago, Digital Transactions carried a cover story proclaiming the "Rise of the Merchants". The story sited the Durbin amendment as well as several other examples of merchant assertiveness related to payments. more

Board Member Corner

by Dean Sheaffer

The Visa forum held in Hollywood Florida May 12-15 sent mixed messages to the merchant attendees more

News From Around the Industry
Bank's Lobbyists Help in Drafting Financial Bills
ico Source: NYT
Supermarkets and Banks Hold the Key to Mass Adoption of Mobile Payments
ico Source:
Group of Big U.S. Retailers Breaks off from Visa and MasterCard Settlement
ico Source: JDJournal
Hybrid Mobile Payment Products Open up Security Risks, Warns Frost & Sullivan
ico Source: Fierce Mobile IT
Visa, MasterCard Sue Interchange-Fee Settlement Dropouts
ico Source: Business Standard


The MAG is celebrating our 5th Anniversary - Let's all gather and celebrate in the Big Easy! The annual conference will feature educational sessions covering hot topics and special interest group meetings categorized by industry verticals. Registration will be opening on the MAG website in Mid-July.

EMV Update: Best Practices & Common Pitfalls
June 20, 2013

Register Today

Payments+ Planning for Tomorrow's Payments: Consumer Engagement, EMV, Routing
Presented by W.Capra
June 26, 2013

Register Today

Cardware 2013
The MAG collaborates with organizations in the payments industry to provide members additional education and networking opportunities. Cardware 2013 is an educational event you don't want to miss! View more information.

MAG Past Events

MAG members have access to past webinars and educational sessions and recordings. Please contact the MAG if you need your log-in information.

Best Practice: Cards with an Unreadable Magnetic Stripes

Most cards with unreadable magnetic stripes are legitimate; however, many forged cards also have unreadable mag stripes. In a study at a large regional department store, it was determined that fraud and chargeback rates on hand-keyed account numbers at the Point of Sale were approximately 10 times the rate for swiped cards. The department store modified its POS program to require and validate both the customer provided zip code, through the card associations' Address Verification Service (AVS), and the CID/CVV2 as part of the authorization request. Transactions with hand keyed account numbers that fail either AVS or CID/CVV2 verification are automatically declined by the department store. Post implementation the department store's fraud/chargeback loss rate for hand-keyed transactions dropped to nearly the same rate as swiped transactions. If a card doesn't swipe, ask for another form of payment first before you start keying. If a customer refuses, you know that this could be an indication of possible fraud so follow the rules to the letter to avoid chargeback.

Key Performance Indicator (KPI): What is your chargeback rate for swiped vs. hand-keyed transactions?

Action: Based on the KPI above, consider additional validation (AVS and/or CID/CVV2) for hand-keyed transactions. Look for stores/registers/selling associates with high percentages of hand-keyed transactions; this could be an indicator of hardware failure, training issues, or internal fraud.

More News From Around the Industry
Retailers Sue Visa and MasterCard for Collusion
ico Source: Courthouse News Service
What do Consumers Really Want from Mobile Payments?
ico Source: Finextra
Retailers Ready for Showdown Over Credit-Card Fee Deal
ico Source: Bloomberg
EMV Could Make Prepaid Cards Prohibitive to Issue, Unless..
ico Source: American Banker
Top 3 Barriers to Adoption in Mobile Payments
ico Source: MobileMarketingWatch
NAFCU Disputes Fed Report on Durbin Amendment
ico Source:
WorldPay Makes Cross-Border Payments Less Costly for E-Commerce Merchants
ico Provided in partnership with
Tablets Prove Popular Mobile Payments Platforms for Travelers
ico Source: Mobile Commerce Press
Callaway Gardens Alerts Customers about Credit Card Security Breach
ico Source: Atlanta Journal-Constitution
Intel-Backed IP Commerce Shuts Payment Tool Used by Groupon
ico Source: Bloomberg
Google Continues to Reform its Mobile Commerce Approach
ico Source: Mobile Commerce Press
The Durbin Amendment Turns 3
ico Source: Casper Star Tribune
Understanding the Lifecycle of a Chargeback
ico Source:

MAG Member Perspective

by Kelly Andrus

Kelly Andrus has been a member of the MAG almost since 2008. She is a longtime veteran of payments and presently serves as the Manager of Card Services at Tesoro Refining and Marketing. Prior to joining Tesoro in 2004, Kelly spent over 10 years with a large acquirer.

My experience with the MAG started after I left ADS and joined Tesoro. As someone new to the merchant community, I immediately began to realize that many merchants had a superficial understanding of payments. more

MAG Payments Industry Advocacy

The MAG CEO, Mark Horwedel, has been busy representing MAG merchants at various industry events the past several months.

  • BAI Payments - Panelist
  • Murtec - Panelist
  • EMV Forum - Atlanta
  • RAMP - Panelist
  • IRUG - Keynote Speaker
  • Cartes - Panelist
  • VISA Meeting
  • CNP Expo - Panelist and Moderator
  • Fed mobile industry workgroup participant

CNP Expo Conf. Recap

The 2013 CNP Expo at the Omni Orlando Resort in ChampionsGate, Fla. welcomed 80 percent more attendees than last year's inaugural show. Our attendees, more than 40 percent of whom were merchants, enjoyed an expanded educational program that included a new Boot Camp for card-not-present foundational learning, 20 percent more content than last year and a new demonstration stage that provided insight into cutting-edge CNP solutions right on the expo floor. Feedback has been outstanding so far, citing unconventional keynotes and networking opportunities. The week was capped by the second annual CNP Awards and celebration, which honored 18 outstanding service providers in the CNP space.

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