ETD: 709 Need help?; Excellent free resources; Wal-Mart lets Web shoppers pay by check; Safe haven sunk?; Homeland Security warns of Windows security flaw

E-Tailer's Digest etd@gapent.com
Tue, 05 Aug 2003 07:35:36 -0400


  E-Tailer's Digest --- Everything for the  Retailer
  Issue #0709                     August 5, 2003
  George Matyjewicz, Moderator         mailto:georgem@gapent.com
  Published by:  GAP Enterprises, Ltd.  http://www.etailersdigest.com
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   CONTENTS

  [1]  Greetings
  [2]  Need help?
  [3]  Excellent free resources
  [4]  Wal-Mart lets Web shoppers pay by check
  [5]  Safe haven sunk?
  [6]  Homeland Security warns of Windows security flaw

==================================================================
  [1]  Greetings.
==================================================================
Hi All:

Today the theme is resources available.   Seems Wal Mart decided to accept 
checks online, something we've been doing for six years, and something that 
list member Jules Kaplan has been offering for a long time.  Maybe it's an 
alternative for you?

Look at some of the excellent free resources available at SCORE chapters, 
Small Business Development Centers, Women's Business Centers and Minority 
Business Development Centers.  I used SCORE and the SBA in my career, and 
learned a lot.  And, if you are concerned, or believe you have a unique 
issue, consider section 2 - "Need Help?"

Along the same line, a "safe haven" resource seems to be going away.  For 
those who may use "offshore" facilities, HavenCo may be in trouble.  I was 
always fascinated by that operation, or rather that country - 
Sealand.  Interesting story, and a dream of mine - to own an island, if not 
a country ;-).

Here's a first.  Homeland Security in the US reports a Windows security 
flaw that opens the Net to terrorism.

Now, let's get to everything for the retailer.

Sincerely


Dr. George Matyjewicz
Chief Global Strategist, GAP Enterprises, Ltd.
mailto:georgem@gapent.com
http://www.etailersdigest.com

==================================================================
  [2]  Need help?
==================================================================
I come across many, many people who have an idea for starting a new 
business, but can't get it kicked off.  Or they have the idea and the 
funds, but lack certain functions and the business takes a dip to 
failure.  Sound familiar?

In section 3 I list some excellent resources that may help.  They offer 
resources that you may lack, i.e., funding, marketing, accounting, 
administration, warehousing, etc.  As with any resources, the timeliness 
and quality of service may not be to your liking.  However, you can ask for 
others or use different services.  I used SCORE when I first started a 
business and had excellent results on the third go-round.

This got me to thinking.  We have enough resources available with all the 
gurus we know to offer assistance to many types of businesses. I posted a 
list of resources in a special report, and that list keeps growing.

Obviously, the help won't be free, but it would be quality work.  And, an 
initial consultation to determine what may be needed would be free.

Let me know.  You may be surprised at what's available.

George

==================================================================
  [3]  Excellent free resources
==================================================================
If you are looking for some resources to help you in your business, 
consider these:

The Service Core Of Retired Executives (SCORE) "Counselors to America's 
Small Business" is a nonprofit association dedicated to providing 
entrepreneurs with free, confidential face-to-face and email business 
counseling. Business counseling and workshops are offered at 389 chapter 
offices across the country. http://www.score.org/  When I first started a 
business I worked with SCORE and actually found my mentor there.  Great 
group.  In fact, I'm thinking about volunteering now to give back what I 
received.  Actually, I'm debating between that and mentoring individual 
business owners.

The SBA's Small Business Development Centers offer funding and 
counselling.  http://www.sba.gov/sbdc/

Women's Business Centers.  America's 9.1 million women-owned businesses 
employ 27.5 million people and contribute $3.6 trillion to the economy - 
yet women continue to face unique obstacles in the world of business. The 
U.S. Small Business Administration is doing more than ever to help level 
the playing field for women entrepreneurs, and the SBA's Office of Women's 
Business Ownership is leading the way.  http://www.onlinewbc.gov/

Minority Business Development Centers.  The Minority Business Development 
Agency (MBDA) is part of the U.S. Department of Commerce, specifically 
created to encourage the creation, growth and expansion of minority-owned 
businesses in the United States. The resources provided on this web site 
are a FREE service of the Minority Business Development Agency. 
http://www.mbda.gov/

Anybody have any others?

George

==================================================================
  [4]  Wal-Mart lets Web shoppers pay by check
==================================================================
Wal-Mart Stores announced Tuesday it is accepting electronic checks for 
online purchases, becoming the latest retailer to widen Web payment options 
in an effort to boost sales.

The retail giant said it is allowing shoppers to use encrypted checks for 
purchases at its Web site, Walmart.com. Once customers choose "pay by 
check," they will be required to provide personal information as a 
safeguard, company spokeswoman Cynthia Lin said.

"People have been asking for (electronic checks) for some time now and 
we've been working to make them available," said Lin, who noted customers 
were previously allowed to use only major credit cards and Wal-Mart store 
cards to make online purchases. "We expect to have many people paying with 
checks online, like they do in our stores."

Online retailers are becoming more comfortable with offering electronic 
checks as an alternative to credit cards, third-party payment services and 
bank debit cards in making online payments, industry watchers say.

Electronic checks tend to attract people who do not have credit cards or 
debit cards, or prefer to play the float that checks provide, said Mary 
Waggoner, vice president of investor relations for Certegy, which provides 
electronic check processing for Wal-Mart.

Wal-Mart will ask customers to select a desired payment method. Once the 
"pay by check" option is selected, customers need to enter the name of 
their bank, account and routing numbers, drivers' license information, 
address and their name, Lin said.

Wal-Mart plans to continue accepting debit cards, credit cards and Wal-Mart 
store cards for online purchases, Lin said. Earlier this year, Wal-Mart and 
several other notable retailers reached a $1 billion settlement with 
MasterCard in a dispute over the fees they were charged by the credit card 
processor for handling debit cards.

Waggoner noted electronic checks allow customers to issue payment a day or 
so before the funds come into their account to cover the check, otherwise 
known as "floating" a check. But online debit card payments draw down a 
customer's checking account immediately.

Consumers are gaining an affinity for using both electronic checks and 
debit cards when making online purchases. Visa USA, for example, has found 
that 35 percent of its e-commerce transactions are conducted with a debit 
card, spokeswoman Camille Lepre said.

She added Visa USA's version of an electronic check is a debit card that 
can be used as a charge card. "It's similar to electronic checks. It 
receives its funds from the same bank account and offers greater 
protections (for security)," Lepre said.

Electronic checks are gaining traction, as well, Waggoner said. She added: 
"We now have 75 clients from Wal-Mart to specialty stores to apparel stores 
to electronics makers like Gateway and Dell. Last year, we did $1.3 billion 
in check transactions over the Internet and phone--that was up 37 percent 
from the prior year."

http://news.com.com/2100-1019-5053060.html

+++ [Moderator's Comments] +++
Good move on their part, as it gets a large part of the consumer 
market.  Surprisingly enough, not everybody has a credit card, even in the 
credit-happy U.S.  There are 28 million people in the US who don't have a 
bank account - Wal Mart's target.

Perhaps our resident check service guru Jules Kaplan would like to comment?

George

==================================================================
  [5]  Safe haven sunk?
==================================================================
I was always amazed with the country of Sealand and the one company there - 
HavenCo, a "safe haven" for controversial Web businesses.  Sealand is a 
rusting, basketball-court-size fortress erected by the British military 
during World War II to shoot down Nazi aircraft.  In 1966, Roy Bates, the 
quirky "crown prince" of "Sealand" landed on the abandoned platform and 
claimed it as an independent nation with its own currency, stamps and flag. 
http://www.sealandgov.com/

Although its legal status is unclear, Sealand lies within the territorial 
boundary of 10 miles claimed by England. Yet England has not fought 
Sealand's sovereignty.

Apparently HavenCo has failed due to political, technical and management 
problems, one of the company's founders said. Ryan Lackey, former chief 
technology officer of HavenCo, said on Sunday afternoon that he left the 
project because his business partners had become nervous about hosting 
objectionable material and were leading the company toward financial ruin, 
with only about six customers remaining.

What made HavenCo an ideal location was the ability to host a site without 
worrying about government intervention.  It was an ideal place for gambling 
sites, digital currency sites (although none are there) and other such 
sites, which are illegal or questionable in some countries ( PayPal,  will 
give the U.S. government $10 million to settle allegations that it 
knowingly transferred funds to unlawful offshore gambling sites; the 
PATRIOT act makes it illegal to transfer more than $5,000, whereas there 
are no limits in Sealand).  The downside is it's also an ideal place for 
illegal operations.

Bates, a former British Army major, has undertaken a string of failed 
business ventures in an attempt to profit from what he asserts is the 
world's smallest country. One Bates plan was to extend Sealand into a 
three-mile-long, man-made island with banks and its own airport. Another 
scheme included working with German investors to build a $70 million hotel 
and gambling complex--a scheme that fell apart after the Germans took over 
the fortress in 1978, and Bates regained control in a dramatic helicopter 
raid at dawn.  Of course, no other country recognizes Sealand as a country. 
http://geography.about.com/library/weekly/aa081100a.htm

When HavenCo launched in June 2000 to widespread press acclaim--including a 
http://www.wired.com/wired/archive/8.07/haven.html?pg=1">cover story in 
Wired magazine--its founders promised to transform a windswept gun tower 
anchored six miles off the stormy coast of England into a co-location 
facility that would be a virtual home for businesses that were too 
controversial to place their servers elsewhere. The name of the company was 
derived from the concept of a safe haven from governments around the world 
that have become increasingly interested in Internet regulation and taxation.

I almost bought an island once, but I still like the idea of having your 
own country ;-)

George

Details at...
http://news.com.com/2100-1028_3-5059676.html?tag=fd_top
http://news.com.com/2100-1019_3-5055237.html?tag=cd_mh

==================================================================
  [6]  Homeland Security warns of Windows security flaw
==================================================================
The Department of Homeland Security has issued an unprecedented second 
warning to millions of computer users about a critical flaw in Microsoft 
Windows that could affect as much as 75 percent of computers connected to 
the Internet.

Microsoft Windows users are being urged to download and install a software 
patch as soon as possible.

Government officials said Thursday that intelligence indicates that hackers 
have nearly completed designing a virus to exploit the flaw. And large 
numbers of government and civilian computer networks have been probed for 
the vulnerability in recent days -- indicating an attack may be in the works.

The flaw, which Microsoft acknowledged July 16, affects most versions of 
the Microsoft Windows operating system -- except for Windows 95 and Windows 
98 -- and could let hackers seize control of computers and use them to 
steal files, delay e-mails and disrupt cyberspace.

``We labeled it a critical flaw, and that's for a reason,'' said Sean 
Sundwall, a Microsoft spokesman.

Sundwall declined to say how many Microsoft users have installed the fix, 
but he said the company has worked even more aggressively than normal to 
contact customers and to urge corporations to download the patch. Microsoft 
has issued about 30 patches this year for flaws in its software. Last year, 
it issued about 70.

Alan Paller, of the SANS Institute, an organization that trains and 
certifies computer professionals for Internet security work, said he fears 
a complex attack exploiting the Microsoft flaw could be 20 times more 
devastating than Code Red, Slammer or any other virus launched in recent years.

``The attack scripts are being honed,'' said Paller, who has been 
monitoring cyber traffic among hackers. ``It's a hard one to write an 
exploit for, but there's an enormous amount of traffic and collaboration 
out there,'' he said. ``The hackers are communicating, `how's yours 
working?' `I got this part.' `Looks like that doesn't work.' ''

David Wray, the Department of Homeland Security's spokesman for 
cybersecurity said the fact that the agency has found tools being developed 
to exploit the vulnerability led in part to Wednesday's second warning to 
computer users, which followed a first warning July 24. The department has 
never before issued multiple warnings for a software flaw.

Wray said the agency is most concerned about home users who continuously 
leave their computers hooked up to the Internet through DSL or cable and 
haven't installed the patch. ``Those users can become the mechanism for 
spreading the problem everywhere, and they wouldn't even know it.''

http://www.bayarea.com/mld/mercurynews/business/6434435.htm

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