eBay reported second quarter 2008 financial results earlier today - saying that "PayPal had a strong quarter with $602 million in net revenue, an increase of 33% year-over-year. Net total payment volume (TPV) for the quarter was $14.93 billion, an increase of 35% year-over-year. Global active registered accounts increased to 62.6 million, representing 19% year-over-year growth."

44% of PayPal's payments revenue was from international. PayPal's transaction revenue rate was 3.89% - essentially flat from last year - while its transaction loss rate declined from 31 basis points to 27 basis points. PayPal's transaction processing expense rate increased slightly to 1.23%.

The Merchants Payments Coalition (MPC) issued the following statement in response to the House Judiciary Committee passing the Credit Card Fair Fee Act, H.R. 5546, today. The Committee voted 19 to 16 in favor of the Act.

“We applaud the House Judiciary Committee’s leadership with the passage of the Credit Card Fair Fee Act of 2008, H.R. 5546. Today’s victory is a landmark decision that reaches far across party lines in reining in Visa and MasterCard’s stranglehold over merchants and consumers alike. The Committee issued a loud, bipartisan wake-up call to credit card and financial services industry with the reporting of H.R. 5546, which they boasted would never see the light of day. The Committee not only reported the bill with 10 Democrats and 9 Republicans voting to report it, but defeated every poison pill amendment by similar bipartisan margins."   » Continue Reading

Visa Europe has announced signing a five year managed services contract with BT to migrate its transaction network onto BT’s 21CN Global network. According to Visa Europe, "the agreement will move Visa Europe onto an efficient Internet Protocol (IP) based network, promising its 4,600 member banks in 36 countries a superior level of service through increased support, improved business continuity and enhanced network security."   » Continue Reading

Cardbeat, a syndicated market research report from Auriemma Consulting Group, reports that "contactless credit cards that allow cardholders to wave-and-pay at checkout terminals fitted with contactless technology sensors is not yet the smash-hit that industry leaders had expected." According to the report, "consumers have indicated that contactless technology is not an easy sell. In light of the credit crunch, and increasing insecurity about the risk of identity theft, consumers need additional encouragement to acquire a new card – even if it features a compelling new technology."   » Continue Reading

In an article titled "On credit card fees, blame game begins", Chris Frates writes from Politico. com about the legislative battle underway on Capitol Hill over interchange fees and whether pending legislation to provide merchants a way to directly negotiate interchange fees should be passed. According to Frates, "the debate has sparked a huge lobbying campaign marked by Capitol Hill visits and briefings, coalitions and ad campaigns."

• Reuters: Lawmakers seek to ban 401(k) debit cards
• CA: Only Eight Percent of Americans are 'Very Confident' Their Personal Data is Safe With Retailers, Banks and Governments
• CA: As Security Threats Proliferate, U.S. Organizations Report More Incidents of Confidential Information Loss and Decreasing Levels of Customer Satisfaction
• MasterCard Worldwide Names Stephanie Voquer Chief Human Resources Officer
• HealthTransaction Network Selects Hypercom's HBNet Service, Optimum Payment Terminals
• New Juniper Research Report: Mobile Africa & Middle East Opportunities, Markets & Forecasts 2008-2013
• New Aite Group Report: Resources for Anti-Money Laundering Compliance: Retail Banks on Technology and Staffing Trends
• Sacramento Bee: Six women arrested in $1 million gift card scam - sacbee.com
• Bloomberg: New 20% Down Payment Makes Savers From Profligate U.S. Spenders
• The Grand Rapids Press: Gift cards must be good for five years under new state law
• Comdata Processing Systems (CPS) Unveils New Robust Transaction Processing Payments Platform from Kabira
• Arizona Republic: Fry's credit-card signup effort worries attorney general's office

We have received news of the following recent management changes:

• Tom Wills has joined Javelin Strategy & Research to focus on strategic risk management, security, fraud, and compliance advisory services. Wills has served as a director, advisory board member, or strategic consultant for NTT Data Corporation, Wells Fargo Merchant Services, PayCycle.com, Hyundai and several startup ventures in the security arena.