--- begin forwarded text Sender: e$@thumper.vmeng.com Reply-To: iang@hotlava.net Precedence: Bulk Date: 6 Jun 1997 15:20:35 -0000 From: iang@hotlava.net To: Multiple recipients of <e$@thumper.vmeng.com> Subject: First shots in Smart Wars Folks, the smart wars have started. This recently erupted in the Dutch press after bubbling along in the committee rooms for the last year. What follows is a translation and I may have lots of errors in there... This is significant because it signals a new phase in the industry of head-to-head competition for reputation and market share, using all the FUD and scare tactics that big ignorant players have available to them. At this point we can conclude that anyone who is not already fielding systems has probably missed the boat. Although this is only a boat travelling up the Amstel for now, there are some famous people waving tearfully from the wharf. It doesn't necessarily mean the end of DBBs as they are a concept that promise efficiency gains over the current mechanism. But it does mean that it will be a long drawn out battle, as any usage of same must be supported by other innovations in order to compete with large, well-heeled and scared competitors. iang ------- On Wednesday, Postbank announced introduction of the combined debit-card and Chipper-chip with two codes: one PIN code (as meant in ISO 9564-1) and one chipcode (10202-6). The PIN code is for debit-cards with magstripe and the chipcode for using the smartcard functionality (including purse). They stated that using two codes was a requirement from the central bank and that they were suprised that the other smartcard initiative (chipknip) was allowed to use only one code for both debit-card and purse-application. DNB (the Dutch National Bank) were asked for comment (Wednesday) and they denied that they instructed Postbank to use two codes. Postbank did not want to explain any further in the open press about why they chose 2 codes and kept on referring to DNB. Meanwhile a spokesman for RABO, one of the banks in the competing initiative, spoke out publicly (and frequently) that chipknip only used one code and that there was no requirement to use two codes for the two applications. The spokesman also stated that it would be possible to use this one code in a user's smart card "home-loading" devices (the so-called 'chipknipper'). On Thursday (so in the Friday newspapers) DNB informed the press that DNB uses international standards as a reference point in their review of card schemes. Operators of schemes make their own decisions within the framework of these standards. DNB only checks, depending on the choice made, which part of the standards apply and whether the implementation complies to the relevant part of the standard. The ISO-standards used will basically relate the use of a code to the security level of loading device. If a scheme operator chooses to synchronize the chipcode with the PIN-code, the more stringent PIN-code protection regime applies for that chipcode: it should be physically secure instead of merely tamper-evident. DNB stated that in the case of PIN-synchronisation one could view the use of loading terminals in or attached to banks as compliant with the ISO standards. DNB also stated that in the case of PIN-synchronization it had not been demonstrated that other (home-loading) equipment would comply with the requirements in the international standards. Volkskrant, the Dutch daily newspaper, concluded that RABO might want to reconsider using one code, since the use of this code in a home environment did not seem to comply with international standards. Trouw, another daily, analyzed that in the chipcard battle Postbank had scored a point as they were able to use their chipper in home environments with the chipcode and other banks obviously were not in that position. RABO meanwhile continued to state that they would roll out the home-loading devices at the end of the year and that these devices were technically superior, which would be the reason that no other code was necessary. --- ---------- The e$ lists are brought to you by: Intertrader Ltd: "Digital Money Online" <http://www.intertrader.com/library/DigitalMoneyOnline> Where people, networks and money come together: Consult Hyperion http://www.hyperion.co.uk info@hyperion.co.uk Like e$? 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