This week CBA member banks announced that they have re-issued 17.2M cards following the Target breach costing banks over $172M. It also appears that investigators have identified the entry point the hackers used, Target's computerized heating and cooling software.

In mobile news, Starbucks goes for the gold with recent estimates saying they had $1B in sales from smartphone transaction in its stores in 2013, while Chipotle aims for silver by investing $10M towards integrating mobile payments in its branded application.

Lastly, be sure to check out TSG's roundtable below on the Target Breach, EMV and the ramifications.

Other highlights include:

• Apple Removes the Last Remaining Bitcoin Wallet App from the App Store
• Google Wallet Adds Geolocated Loyalty to iOS, Combats Passbook
• Majority of Business Owners Optimistic for 2014
• First Data Reports Q4 2013 Financial Results

The Target data breach has so far cost US banks over $172 million in re-issued plastic cards, according to figures from the Consumer Bankers' Association. The cost to replace each card comes to an average of $10.00, with a total of 17.2 million cards substituted so far by CBA members. According to data collected from CBA member banks, the average cost to replace a credit or debit card includes: the card itself, informing consumers of a card reissuement, shipping and activating the card, and often supplemental communication via call centres and the internet.

Encryption gaps in retail payment card transactions were highlighted at a U.S. House hearing Feb. 5 called that examined security in the aftermath of malware attacks against point-of-sale systems at Target Corp. and Neiman Marcus. At the hearing of the Energy & Commerce Committee's Subcommittee for Commerce, Manufacturing and Trade, executives from Target and Neiman Marcus testified that their breaches occurred when data from the magnetic stripes on credit and debit cards was collected in the clear at the point of sale before being encrypted as payment transactions were processed.

Featuring The TSG Team, including Kurt Strawhecker, Jamie Savant, Gerritt Kerkstra, Linda Perry, Chuck Fillinger, Cliff Gray, and John Kirkpatrick

Given the growing number of very public and large merchant Data Breaches, is EMV the answer?

•  It is logically true that card data will be safer with a full implementation of EMV at the point-of-sale, removing personal data from the decade old technology of the mag-stripe certainly makes sense.
• However this solution has shortcomings as well, such as Card Not Present (CNP) transactions which will be unaffected by this technology change, which today accounts for 8% of U.S. card payments. Potentially under EMV, fraud will be directed to CNP transactions - and consumers may feel misled by the inevitable continuing data breach stories.
• There are also major operational and technology related issues to solve - such as implementation in restaurants where the transaction still primarily takes place at the table (where's the PIN pad?). 
• Mobile commerce may also become a target just as it is about to gain traction in the marketplace.

It's a payment ritual as familiar as handing over a $20 bill, and it's soon to go extinct: prepare to say farewell to the swipe-and-sign of a credit card transaction. Beginning later next year, you will stop signing those credit card receipts. Instead, you will insert your card into a slot and enter a PIN number, just like people do in much of the rest of the world. The U.S. is the last major market to still use the old-fashioned signature system, and it's a big reason why almost half the world's credit card fraud happens in America, despite the country being home to about a quarter of all credit card transactions.

Recent security breaches lead the news and consumers are increasingly suspicious of possible credit card fraud. When it comes to data security, retailers run the gamut from perfect to poor. The keys that protect consumers' personal data are the passwords they use for retail sites, and weak passwords can prove disastrous for personal data security. Dashlane ranks the top 100 e-retailers' password policies and reveals some concerns in the first edition of its quarterly Personal Data Security Roundup.

Investigators say they believe they have identified the entry point through which hackers got into Target's systems, zeroing in on the remote access granted through the retailer's computerized heating and cooling software, according to two people briefed on the inquiry. The latest revelation highlights the reality that a large company is actually a sprawling network of interconnected vendors, and that weak security at any one vendor can lead to a breach that costs hundreds of millions of dollars. 

Despite several high-profile security breaches at major retailers, the government should let the private sector continue to set the rules for protecting credit- and debit-card data, a standards body says. Bob Russo, general manager for the Payment Card Industry (PCI) Security Standards Council, was scheduled to tell a congressional committee Wednesday that it's unlikely any government agency could duplicate "the expansive reach, expertise and decisiveness of PCI," referring to the standards set by the council.

EMVCo., the international standards body for chip cards based on the EMV specification, is fast-tracking a specification for card-number tokenization in the wake of recently disclosed data breaches at major retailers, including the theft of card and other information on 110 million customers of Target Corp. The chip card organization expects to have a so-called tokenization architecture document ready in four weeks and a first draft of the specification done by June.

It's still unclear what New York's planned "BitLicense" actually is, but the New York Department of Financial Services says its license is meant to encourage Bitcoin businesses to operate and innovate in the state. 

Bitcoin businesses include companies that exchange the digital currency for government-issued currency, store it in wallets that facilitate its use or help merchants accept payments. However, since Bitcoin wasn't created by a government, it has sometimes been seen as operating outside the law. Several state and national regulators have made moves to bring Bitcoin and other digital currencies under their oversight.

Payment security and compliance service provider ControlScan today announced a newly-released survey report that highlights findings from its third annual survey of merchant acquirers. "Building Momentum: The Third Annual Survey of the Acquirer's Perspective on Level 4 Merchant PCI Compliance" was produced in partnership with Merchant Acquirers' Committee (MAC) and reveals important areas in which ISOs, acquirers and other merchant service providers (MSPs) are missing opportunities to help merchants close payment security gaps.      

Another disappointing employment report this morning. The economy added just 113,000 jobs in January. The average prediction by economists surveyed by Bloomberg was for a gain of 180,000. The weak report is better than the 74,000 jobs created last month, which was the worst month of job creation in three years, but it shows December's weakness was more than just an aberration.  The hope was that historically bad weather in December led to a bizarrely low number that would soon get revised up. And it did get readjusted, just not by that much.

Newtek Business Services, The Small Business Authority�, with a portfolio of over 100,000 business accounts, announced the findings of its SB Authority Market Sentiment Survey, a monthly window into the concerns of independent business owners. Based on a poll of over 1,500 respondents, one of the key findings from the January survey is that 62% of business owners have an optimistic outlook for 2014. Of the remaining, 12% have a pessimistic outlook and 26% feel neutral. Additionally, in regards to headcount, 62% of business owners plan to keep headcount the same, while 30% plan to hire more staff and 8% plan to decrease headcount. 

According to eMarketer's latest forecasts, worldwide business-to-consumer (B2C) ecommerce sales will increase by 20.1% this year to reach $1.500 trillion. Growth will come primarily from the rapidly expanding online and mobile user bases in emerging markets, increases in mcommerce sales, advancing shipping and payment options, and the push into new international markets by major brands.

First Data Corporation reported its financial results for the fourth quarter ended Dec. 31, 2013. Consolidated revenue for the fourth quarter was $2.8 billion, up $40 million, or 1%, compared to a year ago, primarily driven by a $47 million increase in reimbursable debit network fees, postage and other. Adjusted revenue, which excludes certain items including debit network fees, was flat, year-over-year at $1.8 billion.

Heartland Payment Systems, Inc. announced Adjusted Net Income and Adjusted Earnings per share from continuing operations of $20.5 million and $0.55 per share, respectively, for the quarter ended December 31, 2013. Adjusted Net Income and Adjusted Earnings per share from continuing operations were $17.7 million and $0.45, respectively, for the quarter ended December 31, 2012. GAAP net income was $17.4 million, or $0.46 per share, for the three months ended December 31, 2013. 

Shift4 Corporation, provider of DOLLARS ON THE NET�, the world's largest independent payment gateway, celebrates 20 years of payments industry innovation and merchant advocacy. The Shift4 story begins back in the early 1990s when the Shift4 Founders, who were then running a successful accounting software business, accepted a challenge to help a customer integrate her new credit card processing system with their accounting software. 

Weve, the joint venture between the UK's three largest mobile operators, is partnering with the global leader in innovation, MasterCard, to accelerate the development of the UK's most comprehensive contactless mobile payments system. The partnership announced today will provide consumers with a fast, safe and convenient way to pay via their mobile phones at point of purchase and receive the offers they love.  The partnership will allow consumers to take the next step in the contactless journey by tapping their mobile phone to make a payment.

JetPay� Card Services, a division of JetPay Corporation, is pleased to announce the addition of Ralph A. Bianco as Executive Vice President and General Manager. Mr. Bianco is leading the Company's pre-paid card division that will offer Visa branded reloadable cards plus Visa branded and private label gift cards. The prepaid card division will focus on delivering high value low cost products to consumers. The first products launched by this division, which will be announced later this month, will be aimed at consumers with or without a traditional bank account that need a safe and secure way to shop, save or budget for household expenses. 

Mercury Payment Systems, LLC, an award-winning provider of payment technology and services for small to mid-sized businesses (SMBs), today introduced the Mercury Developer Network, a broad technical resource program for POS developers who want to connect with a community of peers in building commerce solutions into their systems. 

USAePay, a premier payment gateway solution, has released a new mobile payment application serving Infinite Peripherals (IPC) mobile peripheral devices, now available in the iTunes� App Store. Dedicating a new integrated application for Linea Pro users, the USAePay Linea Pro (LP) app makes accepting credit cards through a handheld device simple and secure with the USAePay Point of Sale Credit Card Payment System. The easy-to-use app processes a quick sale or refund, scans barcodes, and securely swipes for payment.

Online payment solutions provider BlueSnap today announced the appointment of 25-year finance executive Bill Sobo as Chief Financial Officer. Sobo's background includes COO, CFO and VP positions at high-growth companies that have undergone acquisitions and IPOs under his guidance. The addition of Sobo to the BlueSnap team follows 18 months of rapid growth fueled by BlueSnap's industry-leading 180-country global payment processing capabilities.

PayNearMe, the electronic cash transaction network, today announced that it has closed a $20 million round of financing led by GSV Capital. August Capital, Khosla Ventures, Maveron and True Ventures also participated in the round. PayNearMe will use the funds to continue expansion into existing categories while launching into new vertical markets.