Card, mobile credential, payment and security
By Ryan Kline, Contributing Editor
The use of biometrics for identification and authentication is taking hold throughout the country and in our schools.
Way back in 1972, far before many people were even thinking of using biometrics in conjunction with daily authentication, the University of Georgia began using biometrics in their dining halls. The campus had decided to simplify their mealplan offerings—from a ticket-based program to an enrollment program—and they needed a way to accurately identify paid customers The same goal of simplification remains a core motivator when colleges, universities, and K-12 schools decide to use biometrics in their facilities.
Biometric identification is not a new concept. “The ancient Egyptians used bodily characteristics to identify workers to make sure they didn’t claim more provisions than they were entitled—just like governments today are looking at biometrics to lessen benefit fraud,” says Jay Fry, CEO of biometric developer, identiMetrics. And just like the University of Georgia has been doing for years.
Lower costs and increased accuracy has many school administrators looking to biometric as means of authenticating students. According to Mr. Fry, “price is no longer an obstacle…. Today, biometrics can actually be priced competitively with barcode readers, swipecard (magnetic stripe) readers and PIN pads.”
Though the number of schools utilizing biometrics is not known, Mitch Johns, CEO/President, Food Service Solutions, reports that his company has 65 school districts using their solution.
Bud Yanak, VP Marketing, BIO-key International, stresses that the advantages of biometrics far exceed those of other authentication techniques.
CR80News spoke with the three men in an effort to determine the state of biometrics in college and university as well as K-12 settings. Both are convinced that biometrics hold the key to solving the challenges of authentication in campus environments.
An interview with Charles Yanak, VP Marketing, BIO-key
What advantages do you think there are with a biometric system?
First, convenience … With biometrics, there is no need to remember a password or carry an ID card. You simply place your finger on a biometric reader that takes a picture of your finger, digitizes it and then compares it against a database of templates. For students, this is a major plus, since it eliminates the need to constantly be replacing lost or stolen IDs and it eliminates the possibility of sharing ID cards.
Second, security … Biometrics are far superior to current passwords/PINs and ID cards identification techniques for establishing identity. It’s very easy to “share” a password or PIN with someone and worse yet, they are easily forgotten or unknowingly obtained by someone looking to access your personal records or assume your identity. In the campus environment, biometrics can help eliminate:
Is this a cost effective strategy to implement in schools?
Definitely … The cost to deploy biometrics has gone down significantly over the past 2 years. Three years ago, the average cost of a fingerprint reader was over $100. Now, they are included in most new laptop computers. External USB readers cost less than $40 today, one-third the price they were two years ago.
The cost to deploy a fingerprint biometric system is far lower than the costs to issue and manage ID cards and passwords. And they provide far better security since you can’t “borrow” or loose a finger like you can an ID card or password/PIN.
Why do you think so many people are afraid of using such secure technology?
Great question. There is still a lot of misinformation about biometrics and “Big Brother” concerns. The reality is we all use biometrics every day. Biometrics are defined as the ability to recognize someone by their physical attributes. You intuitively use biometrics when you pick up the phone and recognize the voice at the other end, or when you meet a friend on the street and recognize their face. However, people are concerned about how biometrics can be misused with “Big Brother” being able to track your every move. Banks, retailers and other institutions store and track a lot of information about us every day. Biometrics can protect access to this information! With biometrics deployed to access this information, our lives would be safer, since they would reduce or eliminate unlawful acts such as identify theft. Biometrics provide better security and confirm who has access to critical information and can improve your privacy since it can virtually eliminate or substantially reduce unlawful/unwanted access to your private information.
What sort of stereotypes can biometrics eliminate in the lunchroom?
Another great question. When two students are traveling down the lunch line side-by-side, they look identical to the system. When they get to the cashier, they both place their fingers on the reader to establish their identity and the system electronically debits their account. One of these students may in fact be buying his lunch with government aid. (With biometrics, there is no) negative stigma among peers. Another example … very young students often forget or lose their ID. With biometrics, the lunch line flows faster and eliminates the embarrassment when the student discovers he has forgotten or lost his ID or password.
An interview with Mitch Johns, CEO, Food Service Solutions
Have parents expressed apprehension to using biometrics with children?
The association with fingerprint-based biometrics is generally associated with law enforcement. AFIS systems store actual fingerprints while commercial applications only store a numerical template of the enrollment scan. Post 9-11 events including the Patriot Act and war on terrorism have elevated concerns over the Americans the loss of privacy. Using Opt In or Opt Out at time of implementation gives parents a choice.
What do you think the future holds for identification at schools around the nation?
More and more schools are considering doing away with ID cards and using biometrics in the lunch process. Schools are currently testing/using biometrics and GPS for tracking bus attendance. As security becomes an even bigger issue for schools biometrics will be used for door entry and attendance.
An interview with Jay Fry, CEO, identiMetrics
What about privacy issues?
Biometric technologies don’t conjure up the Orwellian fears they used to. Of course, some people still grumble at the mention of systems that scan fingerprints because of misunderstood privacy fears, but overall the acceptance of biometrics has risen substantially over the past few years. In fact, people are now realizing that biometrics actually protect their privacy and that in many biometric applications, including the one identiMetrics employs, their fingerprints are not stored anywhere and their fingerprints can never be recreated from the digital template. Minutiae based systems, like ours, use flat images to create templates. Flat images reveal the center of the finger and require only a minimum of unique identifying points in order to make a match. The purpose is to identify a person already enrolled in the software. Fingerprints can never be recreated.
Why would a school use biometrics?
Quite simply, to save time and money, and improve the accuracy of reporting. Biometric technology can provide benefits in terms of convenience, safety and security. There are two areas of identification that schools have to manage: students and employees. Biometrics are beginning to be used in both of these areas.
In some schools, teachers, staff and employees (use biometrics) for time & attendance, making record keeping very accurate. It can be used to identify people that come into the school on a regular basis, like substitute teachers, contractors, parents, so you know who is in your school and when they left.
Biometrics can be used to identify students as well. The cafeteria is usually the first area in the school to embrace biometrics. With up to 80% of students forgetting or losing their cards on a daily basis or forgetting or sharing their PINs, lines are slowed and mistakes are made. Biometrics will be used:
How do you begin to implement biometrics on campus?
Start by making small improvements. You want to improve productivity, record keeping and of, course, safety. Take baby steps! Identify and assess your “pain.” Where in your school could the use of finger scanning instead of cards and PINs save you time and money? We have found that in most schools it’s in the cafeteria.
Why the cafeteria?
About 65% of purchasing that is not facilities-related in schools is done by food service departments. Food service is a business and it needs to run efficiently.
There’s a growing interest in the use of biometrics for student ID in school cafeterias nationwide. By just about every measure, finger scanning biometrics outpace other options for efficiency and ease. When a child presses a finger into a scanner, there’s no doubt about his or her identity. There’s no risk of lost ID cards or forgotten PIN numbers. There’s no chance of fraudulent use of the child’s meal account by someone else. Biometric ID also provides anonymity and eliminates any stigma for the children who receive free or reduced-price lunches, (therefore increasing) participation in the National School Lunch Program. And increased participation – can translate into more funding for districts.
Another key area of focus is healthier vending. Instead of going to the cafeteria, a student can purchase a prepaid, reimbursable meal from a vending machine. The machines being tested are tied into a point-of-sale system, and they can track the purchases to prevent a student from buying two lunches on the same day. And biometric finger scanning will ensure accurate record keeping – a must for federal and state reimbursement.
What should a school think about when choosing the right biometric solution?
Any concluding thoughts for institutions considering biometrics?
Cost-effective biometric technology is here today with practical uses for schools. It’s a perfect solution for schools who are dissatisfied with the current student identification systems in place such as PINs and swipecards. Biometrics, and in particular finger scanning systems, provide irrefutable proof of identification. Unlike the complicated and expensive government systems in the past, biometric finger scanning systems can be simple, cost-effective and technology friendly. If children can do it, you can, too. It’s just smart business!
This spring, students at New Mexico State University will be able to add a Visa debit card option and Wells Fargo bank account to their campus ID. Via RFP, the school selected Wells Fargo to provide financial services to the Aggie Access Card program.
WELLS FARGO TO PROVIDE ENHANCED CAMPUS CARD BENEFITS, FINANCIAL SERVICES TO NEW MEXICO STATE UNIVERSITY
Enhancements link NMSU Aggie Access Card to Wells Fargo accounts
LAS CRUCES – Jan.29, 2007 - New Mexico State University has selected Wells Fargo to provide financial services opportunities to faculty, staff and students through the university’s new Aggie Access Card, which also will serve as an official campus ID card.
The program, to be introduced this spring by Wells Fargo and NMSU, will offer the option of selecting the enhanced Aggie Access Card – a Visa debit card issued by Wells Fargo and linked to a Wells Fargo checking account. The card will provide access for ATM, debit and point-of-sale (POS) transactions everywhere Visa debit cards are accepted. As an official campus ID card, it also will provide access to NMSU’s library and select campus buildings, entry to university events and programs and more.
“As we launch our new Aggie Access Card, effective for the fall 2007 semester, we are thrilled to be able to offer this additional opportunity with Wells Fargo for our faculty, staff and students,” said Angela Throneberry, assistant vice president for auxiliary services at New Mexico State University. “After a competitive request for proposal process, we selected Wells Fargo because of the company’s commitment to the community and successful track record in the campus card market. We look forward to a successful relationship.”
“We are pleased to provide our market-leading campus card program to New Mexico State University,” said Mike Cheney, Wells Fargo Regional Banking president for Southern New Mexico. “We are committed to building lasting relationships with our customers that help them succeed financially, and this new service is a step in that direction for the NMSU community.”
Along with Wells Fargo checking and savings account access, NMSU Aggie Access cardholders also can choose the convenience of Wells Fargo Online® Banking and organize their finances with My Spending Report, a new online tool that categorizes purchases. In addition, financial aid disbursements will be accessible through the NMSU Aggie Access Card when linked to a free Wells Fargo College Checking® account.
Wells Fargo has the third-largest network of ATMs in the nation, with nine ATMs in Las Cruces and more than 6,500 ATMs in 23 states nationwide. Members of the NMSU community will be able to conveniently access cash through their NMSU Aggie Access Card on campus at Wells Fargo ATMs and at all Wells Fargo banking locations. The NMSU Aggie Access Card also can be used at merchants that accept Visa debit cards or PIN-based transactions.
NMSU is the first New Mexico campus to team up with Wells Fargo and offer optional access to financial services through an official university ID card. Wells Fargo has similar programs at other college campuses in California, Nebraska, Colorado, Texas and Arizona. Wells Fargo also offers a wide range of accounts and services especially developed for students including the Wells Fargo College Checking account, Wells Fargo College Visa® Credit Card, student loans, insurance, financial education workshops and the Hands On Banking® financial literacy training program available in English and Spanish at www.handsonbanking.org and www.elfuturoentusmanos.org.
Wells Fargo will provide onsite account opening services for university students, faculty and staff during peak registration and orientation times at NMSU and will participate in the Welcome Back Event in the International Mall on Jan. 31.
“By establishing relationships with students at New Mexico State University, we are helping them build healthy financial habits that will serve them well over their lifetimes,” Cheney said. “We want to be their financial services provider now, when they’re students, and throughout their lives, as their needs for banking, mortgage, investments and insurance – all their financial needs – evolve.”
In New Mexico, Wells Fargo has nearly 2,000 team members and more than 102 stores. Wells Fargo & Company is a diversified financial services company with $482 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,000 stores and the internet (wellsfargo.com) across North America and internationally. Wells Fargo Bank, N.A. has the highest possible credit rating, “Aaa,” from Moody’s Investors Service and the highest credit rating given to a U.S. bank, “AA+,” from Standard & Poor’s Ratings Services
Change could open floodgates for contactless and other payment cards in vending, transit, unattended locations
By Chris Corum, Editor
Regulation E, the rule outlining consumer rights with regard to electronic financial transactions, can make things tough on new payment offerings – but many argue that is its mission. Electronic payment providers have to make a slew of disclosures, they have to guarantee against fraudulent usage, they have to provide periodic statements, and they have to provide receipts for transactions. But this receipt requirement may be loosening. The Federal Reserve (Fed) is considering a change that would exempt transactions under $15 from the need to provide a receipt. Big deal you say? Read on.
Here is the Fed’s summary description:
“The Board is proposing to amend Regulation E, which implements the Electronic Fund Transfer Act … The proposed amendments would create an exception for certain small-dollar transactions from the requirement that terminal receipts be made available to consumers at the time of the transaction.”
What was some of the justification suggested for the change?
Consumers are using electronic payments where they used to use cash as the dollar value ‘threshold’ for card payments has been lowering in consumer eyes. The idea is that consumers ‘want’ to use cards to pay for things that, in the past, would have required cash. Examples include vending machines, transit tickets, parking facilities, and other small ticket items and unattended locations.
According to the proposed rule change:
“Merchants, financial institutions and payment card associations have responded to the shift in consumer preferences towards non-cash methods of payment for small-dollar transactions in various ways. Payment card associations have changed their rules to enable quicker processing of transactions for both debit and credit cards. For example, these associations have waived the signature and personal identification number (PIN) authorization requirements for certain types of purchases under $25. Moreover, to encourage merchant acceptance of payment cards, these associations have also reduced their debit and credit card interchange rates for certain small-dollar transactions. In addition, some card issuers have integrated new technologies into their products which allow consumers to swipe or wave radio frequency-enabled cards or other devices to authorize payment in “contactless” transactions. These initiatives have reduced the amount of time consumers spend at checkout, which has in turn allowed merchants to process more transactions in the same amount of time.”
Arguments for and against the change …
The comment period on the proposed change ended on January 30, 2007, and more than 30 comments were received in response to the proposed changes. As one might expect, consumers submitting comments tended to react negatively to the proposed change while industry came down in favor of the change. Of course, this should, in no way, be deemed a true representation of either group’s opinion as only those with a vested interest or extremely strong opinions are likely to take the time to comment.
The arguments against the proposed change centered on the following themes:
Arguments in favor of the change centered around the fact that this could help to open up the use of the payment cards at new locations and venues, to the benefit of the modern consumer.
Additionally, many industry comments suggest that the threshold for the receipt exception be raised from $15 to $25:
David DeMedio, commented as a representative of USA Technologies, a leading manufacturer of payment readers for unattended devices. He explained the potentially insurmountable challenges to providing receipts at many unattended devices:
“Deploying a credit/debit payment option, with the requirement to provide a receipt, would be a major, if not insurmountable impediment to industry wide acceptance. In vending, for example, many of the makes and models of the estimated 8 million vending machines installed in the U.S. do not have the required space to accommodate the additional receipt printer and paper roll. Also, since the newly introduced contactless credit/debit readers utilize the existing, available power from the host vending machine, adding a receipt printer would now require an additional power source to power the printer.“
He also addressed the service challenges that we have all likely experienced when trying to get a receipt from unattended gas pumps, stating:
“Significant servicing issues arise with offering receipts because of the unattended, distributed nature of these machines and the infrequency in which they are serviced. Malfunctioning printers, empty paper rolls and litter from discarded receipts, which could go uncorrected for the reasons above, could actually cause the consumer to have a negative experience while purchasing from the machine, thereby negating the purpose to install the printers in the first place.”
What happens next?
According to a spokesperson for the Federal Reserve, the proposed change will follow an established process. Staff will review the comments and consider them as they prepare a final recommendation. This will be presented to a Board committee for consideration and, if approved, will be presented to the Board of Governors for final consideration.
Though a timeline is not available, other proposed changes have taken as long as eighteen months from start to finish. Several things, however, work in favor of this change being accepted or rejected in a more rapid period. First, it is the only proposed change to Reg E currently under consideration. Second, it is fairly straightforward issue for consideration and does not possess the degree of complexity of many other proposals.
Stay tuned.
Additional resources:
To download a copy of the proposed rule change as published in the Federal Register on December 1, 2006, click here.
To view comments submitted for consideration by the Board, click here.
The pay-for-print solution stands alone or integrates with Blackboard, CBORD, Nuvision, more
By Andy Williams, Contributing Editor
Forty years ago, a new automobile cost about $3,500 and a printed page–at that time using a daisy wheel, dot matrix, or copying machine–cost about 10 to 15 cents. Today, the price of cars has more than quadrupled, but that same printed page of much higher quality–costs the same.
GoPrint Systems’ Steve Haber’s point–that he makes when visiting with college students–is simply that the pay for the print and copying process has evolved tremendously over those 40 years but the price has not. “When I was going to college, paying a dime or 15 cents for a printed page was the single biggest bargain you could ever come across,” he said. “I ask students to tell me one thing they can still pay the same thing for 40 years later. And I have little trivia contests in our company to find something that costs the same.”
Mr. Haber, GoPrint president, created his company 10 years ago. “I was hiring myself out as part-time COO and I ran across a company making print utility software. They were developers for Hewlett Packard. I came in as a CFO and within a couple of years I was president of the company. In 1997, I left to form GoPrint Systems (a print management company) and began to build a network printing solution using card readers for libraries and colleges. I literally took a year and we created a whole new product from scratch. I hired programmers, but I designed the concept, the look and feel and its key components.”
While developers typically sell through resellers, Mr. Haber didn’t want to do that. “I wanted a direct relationship with our customers, so I developed over the top servicing. We live and breathe it every day.”
GoPrint can provide its customers the software, hardware, including computers, and touch screen monitors. “It’s a full on-site turnkey service,” he said. “If any component ever fails for any reason, we replace it overnight, freight-free with a plug and play device. They simply plug in power and they’re up and running. It’s all cost-free for the life of the service contract.”
Middle Tennessee State University was GoPrint’s first client. “It has had every upgrade since,” said Mr. Haber. The school has the company’s software running in libraries and computer labs. “They bought everything from us,” he added, “including custom security kiosks.”
The newest release fights “wasteful network printing”
Last year, the San Ramon, Calif.-based company introduced its new GS-4 product–an enhanced, automated and scalable pay-for-print management solution equipped with a host of customer-requested advancements and new features.
The GS-4 is designed to help campuses recover costs associated with what it calls “excessive and wasteful network printing,” said Mr. Haber. The GoPrint solution is server based and supported on Windows, Linux, Macintosh X, Novell, Sun Solaris, and Thin-Client platforms with a web enabled control center. GoPrint offers both a release station and non-resident client workstation popup option for easy release and or payment of print jobs. He says that implementation of GoPrint products can result in customer print cost reductions of 30% to 50%.
All of the GoPrint software is written in Java. “That gives us the portability for Macs, Linux and Windows. We wanted to be multiple platform-driven.”
The program is also certified to work with some of the major campus card systems–CBORD, Blackboard, NuVision, ITC and various payment systems, such as debit or stored value, cash acceptors, user quota accounts, online transactions and one-card systems. In addition, it supports PayPal and other credit card gateways for self-serve funding of user accounts with a credit card. Use of credit cards to add value to a user account is supported from any web accessible workstation.
GoPrint currently services more than 200 colleges across the country plus one university in Japan and two U.S. Air Force bases in Germany. “They (the Air Force bases) found us on the Internet. They loved our product and wanted it for their libraries because they needed a secure pay system for their printers,” said Mr. Haber.
Creating an intuitive, game-like user experience
He said when he initially designed the software, he wanted something that was student-friendly, “that they would love, like a vending machine or a game.”
The result is “a simple three screen release station. “I’m a student at a workstation in a library. I hit print at my work station and the job is directed to the GoPrint server, where it’s paused. The release station, which has a game-like user interface, is where (I) go to release that job. Typically that release station is located near a cluster of printers. It’s like walking up to an ATM.”
At the touchscreen (designed for rapid access and to support students with disabilities) the job is selected and priced according to the print rules built into the system. “The student clicks on the jobs they want to print and the third screen comes up and lists the amount … requests the student to insert their card or choose another payment method such as cash or account number depending on how the system is configured.”
But jobs can also be released directly from the workstation, he adds. “Hit print and up comes this Web interface dialog box which acts as the release station. The user selects the jobs he wants to print. In this case, he has to use a student account. Our system supports purses. I took this idea from chip cards where they were offering multiple purses. We have soft purses … so schools can give students individual quotas that can only be used for labs … or individual departments could give out individual quota accounts.”
He further explained it this way: “If you’re printing out your class notes, it prompts you for payment. Now you can choose how you’re going to pay. You know the science lab gave you a student quota. You scroll through the purses until you come to science and charge it there.”
Extreme customer focus facilitates quick response to user needs
GoPrint employs just 14 people, including three developers, four customer support representatives, and the rest in sales and administration.
“Here’s another little secret,” he added. “When you send an email to support at GoPrint, I am copied on every single one, both incoming and outgoing.”
Like the Avis car rental ads used to claim, he considers GoPrint as “one of the other guys. One of the benefits of not selling through a reseller is you can add specialized programming features. If you’re dealing with resellers, it might take eight months to get the changes you need made. We can get it out fast.”
This example of GoPrint being able to act, or react is one of the company’s main advantages, said Mr. Haber. “I can set a print rule that you pay 10 cents a page or half dollar. I can set something that every third page in color is charged a 15% premium or every Thursday from midnight to 4 a.m. you can receive a 50% discount. These are just some examples of the power built into the algorithms.”
“Our job is to build a great package of tools and then allow the customers to use those tools most efficiently as they grow; we’re always looking five years out,” said Mr. Haber.
By then, the average price of an automobile may be approaching $50,000 or more, but it’s likely the cost of a printed page will still be hovering around the 10-cent mark.
Additional resources:
For further information, visit www.goprint.com.
