Forget Black Friday and Boxing Day: In the world of POS, the Friday before Christmas is the busiest day of the year

Oh, yes. The Friday before Christmas. That was yesterday.

If you’re in the point-of-sale business, as Moneris Solutions is, the busiest day of the year for transactions is usually going to be the Friday before Christmas – not Black Friday or Boxing Day. The exception might be when Christmas falls on a Saturday and the Friday before Christmas is Christmas Eve, Dec. 24. In that case, the Friday is falling too close to Christmas to be the busiest day of the year for point-of-sale vendors.  While you get last-minute shoppers Christmas Eve, many stores, at least the ones not owned-and-operated by proprietors named Ebenezer, are thinking about closing by mid-afternoon or shortly after Christmas Eve.

The reason the Friday before Christmas is the biggest bonanza of the year for debit and credit processors, is the huge volume of sales, not so much in high-end items such as big screen TV’s, which dominate Black Friday and Boxing Day sales, but rather smaller items such as groceries and liquor, that rack up record numbers for the year.

I worked briefly for Moneris back in 2005 and 2006 and was there for the Friday before Christmas in December 2005, which that year fell on Dec. 23, which while obviously not as late as Christmas Eve the following day, is still pretty late in the festive game for retailers.

In the Maritimes, Moneris Solutions is located in the old red brick historic Atlantic Wholesalers building at 2 Charlotte St. in Sackville, New Brunswick.  I always marvelled at how I could walk into the lunchroom at Moneris in the remodeled red brick building, and pick up a hard copy of the Harvard Business Review off a shelf to read at lunch, or maybe chat over lunch with a fraud detection specialist about things like the language of a purchaser one of our merchants was dealing with half-way around the world being different from the primary language spoken in the location where the true IP is registered, etc., raising red flags for us.

Moneris was a very different world than journalism, but not uninteresting by any means. I met a number of very bright and talented people at Moneris. Mind you, working in a business that is very much built on proprietary data where you couldn’t leave your computer without doing a “lock-and-walk,” took some getting used to. Documents had to be turned face down when you went away from your desk because there could be non-employee contractors or visitors in the building, although I can’t recall them letting many visitors in. Documents had to be paper shredded at the end of every shift.  Perhaps something like working on Area 51 or at Groom Lake, Nevada, I remember speculating to myself at the time.

My favourite story from that line of work was having a food and beverage manager from the Calgary Saddledome (now known as the Scotiabank Saddledome) call me at Moneris in Sackville because one of his concession clerks the night before at a Calgary Flames NHL hockey game had sold a fan a hot dog or something for $7 (in 2005-06) and the customer had paid by debit card.

The transaction had gone through not as $7 but $70,000 – immediately, of course, out of the customer’s bank account, courtesy of our Moneris point-of-sale (POS) hand-held terminal device.

Too many zeroes punched in, I guess. The manager was totally beside himself, desperate to refund the customer and credit his bank account before he found out about the mistake. It would have been a lot simpler, of course, if he had paid with a credit card, not a debit card, because you wouldn’t need the credit cardholder physically present with their card to do the refund, unlike a debit card. Although even a credit refund for $70,000 wouldn’t be that simple given the staggering sum.

I remember the manager asking me how it could possibly have been approved on our end and gone through and telling him presumably the customer had the $70,000 in the bank account linked to his debit card, and the bank had obviously not imposed a daily withdrawal limit for him, like most customer have. The poor manager said, “I’m not even sure I could get a mortgage right now for $70,000, much less buy something on my debit card for that amount.” I told him maybe do a quick refresher with his clerk on punching in numbers on the Moneris terminal keypad a bit more slowly.

Things like proximity or prox contactless cards with RFID (radio frequency identification) embedded chips, copper antenna coil, and capacitor, with each chip-card storing a unique binary number, were just arriving on the Canadian retail scene, while tokenization, which dated back to 1976 in the payment card industry (PCI), was also starting to make a real mark by 2005.

Tokenization is the concept of using a non-decryptable piece of data to represent, by reference, sensitive or secret data. In the payment card industry context, tokens are used to reference cardholder data that is managed in a tokenization system, application or off-site secure facility.

To protect data over its full life cycle, tokenization is often combined with end-to-end encryption to secure data in transit to the tokenization system or service, with a token replacing the original data on return. For example, to avoid the risks of malware stealing data from low-trust systems such as point of sale (POS) systems, as in the Target breach of 2013, cardholder data encryption must take place prior to card data entering the POS and not after. Encryption takes place within the confines of a security hardened and validated card reading device and data remains encrypted until received by the processing host, an approach pioneered by Heartland Payment Systems as a means to secure payment data from advanced threats, now widely adopted by industry payment processing companies and technology companies. The PCI Council has also specified end-to-end encryption (certified point-to-point encryption—P2PE) for various service implementations in various PCI Council Point-to-point encryption documents. 

Tokenization and “classic” encryption effectively protect data if implemented properly, and an ideal security solution will use both. While similar in certain regards, tokenization and classic encryption differ in a few key aspects. Both are cryptographic data security methods and they essentially have the same function, however they do so with differing processes and have different effects on the data they are protecting. 

Tokenization is a non-mathematical approach that replaces sensitive data with non-sensitive substitutes without altering the type or length of data. This is an important distinction from encryption because changes in data length and type can render information unreadable in intermediate systems such as databases. Tokenized data is secure yet it can still be processed by legacy systems which makes tokenization more flexible than classic encryption.

Another difference is that tokens require significantly less computational resources to process. With tokenization, specific data is kept fully or partially visible for processing and analytics while sensitive information is kept hidden. This allows tokenized data to be processed more quickly and reduces the strain on system resources. This can be a key advantage in systems that rely on high performance.

My old boss, Tom Rusted, had a M.Sc. in entomology, and was a black fly specialist, and who in a career as a banker, had been involved in the pioneering roll out of mbanx in 1996 for Bank of Montreal, which was the first North America-wide virtual, full-service bank.

Moneris Solutions, established in 2000, is a joint investment between RBC Royal Bank and BMO Bank of Montreal, and with more than three billion transactions a year from over 350,000 merchant locations, is Canada’s largest processor and acquirer of debit and credit card payments.

You can also follow me on Twitter at: https://twitter.com/jwbarker22

 

 

Libraries and hotels: Different sectors, but value-added information is a hot, proprietary commodity for both

In late 2006 and early 2007, I did some work in Trenton, Ontario for TeleTech Holdings Inc., an Englewood, Colorado-based company, as a high-speed Internet specialist offering technical support to their client, St. Louis-based Charter Communications, owned not by Bill Gates, but by Microsoft’s less famous co-founder, Paul Allen. The facility, which had just opened in May 2006 with more than 200 employees, had superb computers and desks and chairs, which ergonomically would put to shame any newsroom I’ve ever worked in.

Sadly, TeleTech closed that Trenton facility on Aug. 31, 2009, little more than two years after I arrived in Thompson, Manitoba. Why? “There is a change in the needs of the client. The work will be moved around to other centres,” TeleTech explained, adding the closure is “not a reflection” of quality of work completed at the Trenton centre. The closure came sandwiched somewhere between Outsourced, the 2006 romantic movie comedy, which won the best film award at the 2007 Seattle International Film Festival, and the one-season NBC sitcom by the same name that aired in 2010-11, telling the story of a fictional all-American company, Mid America Novelties of Seattle, outsourcing its call centre operation to Gharapuri in India.

Apparently newspapers aren’t the only type of business to go out of business. Or outsource their work to India. Although in the news biz it is more likely to be layout and production work, increasingly editing, and to a limited degree, at least so far, local reporting. The old real estate adage, “location, location, location,” which once seemed to apply to community newspapers, as much as your home, as where both were located was the most important factor in giving them value, in the case of papers for what was thought to be a unique commodity – local news – not so much anymore. Still, call me a Luddite, but it is hard to picture local council and school board meetings being covered remotely from 12 time zones away. Technically possible, yes; But likely on a wide scale? Probably not, although it has been done with some fairly unimpressive results to date.

Not long before I worked for TeleTech, I spent some time in 2005 and 2006 living in Amherst, Nova Scotia and Sackville, New Brunswick, both on the saltwater Tantramar marshes, and worked as a financial agent at Moneris Solutions in Sackville. I always marvelled at how I could walk into the lunchroom at Moneris in the remodeled red brick historic Atlantic Wholesalers building at 2 Charlotte Street, and pick up a hard copy of the Harvard Business Review off a shelf to read at lunch, or maybe chat over lunch with a fraud detection specialist about things like the language of a purchaser one of our merchants was dealing with half-way around the world being different from the primary language spoken in the location where the true IP is registered, etc., raising red flags for us. The other nice thing about both Moneris and TeleTech was they were “inbound” call centres – the client is calling you for help, as apposed to “outbound.” If you want to know the difference, ask a telemarketer.

My Moneris boss, Tom Rusted, had a M.Sc. in entomology, and was a black fly specialist, who in a career as a banker, had been involved in the pioneering rollout of mbanx in 1996 for Bank of Montreal, which was the first North America-wide virtual, full-service bank. Moneris Solutions, established in 2000, is a joint investment between RBC Royal Bank and BMO Bank of Montreal, and with more than three billion transactions a year from over 350,000 merchant locations, is Canada’s largest processor and acquirer of debit and credit card payments.

Moneris was a very different world than journalism, but not uninteresting by any means. I met a number of very bright and talented people at Moneris. Mind you, like the hotel industry where I devote my efforts now (along with the university library), Moneris is very much built on proprietary data – as much or even more so than the hotel business – and you couldn’t leave your computer without doing a “lock-and-walk.” Documents had to be turned facedown when you went away from your desk because there could be non-employee contractors or visitors in the building, although I can’t recall them letting many visitors in. Documents had to be paper shredded at the end of every shift. I remember not so long ago Googling the remodeled Moneris red brick historic Atlantic Wholesalers building at 2 Charlotte Street and no images came up for it! Sort of like Area 51 or Groom Lake, Nevada. My favourite story from that line of work was having a food and beverage manager from the Calgary Saddledome (now known as the Scotiabank Saddledome) call me at Moneris in Sackville because one of his concession clerks the night before at a Calgary Flames NHL hockey game had sold a fan a hotdog or something for $7 (in 2005-06) and the customer had paid by debit card.

The transaction had gone through not as $7 but $70,000 – immediately, of course, out of the customer’s bank account, courtesy of our Moneris point-of-sale (POS) hand-held terminal device.

Too many zeroes punched in, I guess. The manager was totally beside himself, desperate to refund the customer and credit his bank account before he found out about the mistake. It would have been a lot simpler, of course, if he had paid with a credit card, not a debit card, because you wouldn’t need the credit cardholder physically present with their card to do the refund, unlike a debit card. Although even a credit refund for $70,000 wouldn’t be that simple given the staggering sum.

I remember the manager asking me how it could possibly have been approved on our end and gone through and telling him presumably the customer had the $70,000 in the bank account linked to his debit card, and the bank had obviously not imposed a daily withdrawal limit for him, like most customer have. The poor manager said, “I’m not even sure I could get a mortgage right now for $70,000, much less buy something on my debit card for that amount.” I told him maybe do a quick refresher with his clerk on punching in numbers on the Moneris terminal keypad a bit more slowly. One of my favourite non-journalism true work stories.

Whether community newspapers can continue to monetize with much success their local information remains something of an open question, but much of the rest of the world is ever increasingly living on proprietary data and value-added information. For hotels, think cloud-based hotel property management systems.

But the phenomenon is, of course, much, much bigger than the for-profit private sector payment processing and hotel industries. Here at the university library, where we’re part of the institutional not-for-profit public sector, we’re also always dealing with proprietary information and data, albeit of a different type sometimes, in terms of copyright and intellectual property issues. Make no mistake; libraries monetize information. Want an inside-the-ballpark library term? Think GOBI3 (Global Online Bibliographic Information).

GOBI3 is an information source and bibliographic database that enables research libraries and consortia to have access to print and electronic titles.

A company called EBSCO, founded in 1944 and headquartered in Ipswich, Massachusetts, supplies a fee-based online research service with 375 full-text databases, a collection of 600,000-plus e-books, subject indexes, point-of-care medical references, and an array of historical digital archives. Last February, EBSCO bought Yankee Book Peddler, Inc. (YBP Library Services), located in Contoocook, New Hampshire, and founded in 1971 as a bookseller for academic libraries, providing books, collection management, and technical services in print and electronic formats to academic, research, and special libraries in the United States and internationally. There is also Midwest Library Service, out of Bridgeton, Missouri, a book jobber serving libraries since 1959.

You can also follow me on Twitter at: https://twitter.com/jwbarker22