Eric Dash reports for the New York Times on why many consumers still prefer paper checks.

Most are concerned with the security of their personal information and the perceived loss of control of paying their bills online, according to a survey of 1,000 Internet users who do not currently bank online. It was conducted in August by Synergistics Research, a consumer market research firm.

• Global Payments Appoints Kevin Schultz Chief Sales and Marketing Officer
• 'Online Payment Alternatives to Credit Cards Such as iDEAL Enthuse Customers!' says GlobalCollect
• 2005 AFP Annual Conference Will Tackle Payments Fraud Prevention Issues
• WSJ: Credit-Card Firms Review Audit Of Processor's Security Fixes

The Economist speculates on reasons behind MasterCard's upcoming IPO.

But why, you might ask, would MasterCard's owners, who know a thing or two about finance, want to let it go? Why sell a fast-growing business, especially one whose scale and open, co-operative structure has allowed individual member banks to run their own, nicely profitable credit-card operations?

• First Data to Host Investor Conference September 15
• Los Angeles to implement contactless fare cards as first step toward regional system
• ING DIRECT Offers Consumers Free Credit Report Reviews at All ING DIRECT Cafes
• Postini Reports 90 Percent Decrease in Phishing Attacks in August
• Stored Value Systems Takes Gift Cards Global
• First Data Announces Departure of Jim Schoedinger
• CardSystems auditor completes compliance report

Robin Sidel reports for the Wall St. Journal on MasterCard's plan for an initial public offering early next year.

Analysts and consultants were scrambling yesterday to calculate a potential valuation for MasterCard. Craig Maurer, an analyst at Fulcrum Global Partners in New York, estimated MasterCard in its entirety could be valued at $7 billion, or just under 2.5 times projected revenue for 2005.

Carrick Mollenkamp reports for the Wall St. Journal on a lawsuit recently filed in federal court in New York City alleging credit card companies held secret meetings where they colluded to promote arbitration.

MasterCard today announced plans for a "new corporate governance and open ownership structure that will include the appointment of a new board of directors comprised of a majority of independent directors, the establishment of a charitable foundation and a transition to being a publicly traded company."

The Smart Card Alliance has announced the formation of a Contactless Payments Council to facilitate the adoption of contactless payments in the U.S. through education programs for consumers, merchants and issuers.

Chase has announced it has entered into an agreement to purchase the credit card operation of Sears Canada including both its private-label Sears credit card accounts and its co-branded Sears MasterCard® accounts. The credit card operation includes approximately 10 million accounts and CAD$2.5 billion in outstandings.

"This purchase offers many opportunities for Chase, including partnering with another of the world's leading brands, expanding our private-label business and entering a new and exciting market in Canada," said William I. Campbell, Chairman, Chase Card Services. "We look forward to working closely with Sears Canada and its employees to offer great products and services that consumers find valuable."

• Financial DNA Provides Insight on MasterCard's Proposed Demutualization and IPO
• MasterCard Delays Plans to Charge Fees On Overseas Card Use
• PayPal Introduces New Micropayments Pricing to Increase the Convenience of Purchasing Digital Goods
• Providian Financial Shareholders Approve Merger with Washington Mutual
• Las Vegas Drivers Can Use Credit Cards and Cell Phones at New Parking Meters
• VASCO Receives MasterCard's Chip Authentication Program Type Approval 2004 for Its Digipass Secure Card Readers

Andrew Brown reports for the Wall St. Journal on China's credit card industry.

An industry survey by McKinsey, which hasn't yet been released to clients, backed up optimism about the market, which is still in its infancy but growing exponentially. The report estimates more than 12 million credit cards have been issued in China, up from three million in mid-2003. (There are also hundreds of millions of debit cards that don't offer credit.)

American Express has announced a new Membership Rewards program benefit allowing cardmembers to use Membership Rewards points to book travel directly on the American Express travel website without blackout dates or restrictions for airlines, hotels or cruises.

Chase and United United have announced that the United Mileage Plus Visa* card is the first airline rewards card to feature "contactless" technology called "blink." The United Mileage Plus Visa cards with blink were first issued this summer to over 200,000 cardmembers in Colorado.

"With blink technology we're giving our United Mileage Plus cardmembers yet another way to enjoy the power and versatility of this extraordinary card," said Joe Venuti, senior vice president for Chase's Card Services division.

"We're confident the idea will take flight with our cardmembers, who will enjoy gliding through check out lines while accruing mileage earning benefits."

Monee Fields-White reports for Bloomberg on American Express' relationship with MBNA to issue co-branded Amex cards and whether that relationship will continue after Bank of America's acquisition of MBNA.

MBNA and Bank of America officials have yet to say whether the American Express partnership will continue after Bank of America completes its buyout in late 2005 or early 2006.

• CardSystems could learn fate
• William Keiper Named Hypercom Chief Executive Officer
• Verizon Joins the Yodlee Biller Network
• Boston Clearing House Merged into The Clearing House
• Remote and Mobile Workers May Add to Security Woes for Banks Already Under Attack
• Cold Stone Creamery Serves Up VeriFone Premium Payment Solution
• Vending Industry Media Service Promotes Cashless as New Competitive Weapon
• Credit card industry helping Dakota Dunes grow
• Fundtech Introduces Corporate Banking Platform
• Scoot Mobile Money From SVC Financial Services Announces New Mobile Platforms at Intele-CardExpo Las Vegas

Michael Copeland writes for Business 2.0 in its September issue about venture capitalists looking to fund new companies in particular market segments. At the top of the list is John Occhipinti of the Woodside Fund who says he wants to fund a company providing "fraudproof credit card authorization via cell phones and PDA's".

Another request comes from Ryan Floyd of Storm Ventures who's looking for "a clever resurrection of the smart-card concept: a software platform for cell phones that allows consumers to make purchases or open doors by waving their phones in front of tiny infrared or RFID readers."

If other VCs are looking for people to pursue specific opportunities in the payments arena, contact us at Glenbrook and we'll be happy to post an item here.

Accenture has published a study on the use of smart card technology in public transportation (PDF).

Smart cards are the ticket to the future for most of the world’s transit operators. According to Accenture’s global research, some implementations have been successful, and many have achieved their original objectives. But smart card implementation was viewed by many respondents as being more complicated than originally anticipated: many viewed e-ticketing solely as a means of systems imple- mentation. This limited view increases the risk of a difficult implementation and limits the ultimate benefit to passengers.

• Gartner Says Financial Service Providers Must Use Outsourcing More Strategically to Enhance and Transform Their Business
• ISD Corporation Appoints Kevin Potrzeba Vice President of Sales
• Comdata and Fiscal Complete Marketing Alliance for Integrated POS/Back Office System
• Equifax Acquires BeNow, Industry-Leading Marketing Solutions Company
• Asia Pay Establishes Singapore Subsidiary
• Study: Transit smart cards aren't used to their full potential
• iLoop Mobile and MyMoneyPlus(TM) Sign Partnership to Provide Prepaid Content Cards and Credit Card Purchases for Mobile Content
• Axalto Takes the Lead in China to Provide More Secure Payment Experience
• Rrring! Your Parking Has Expired
• IRCTC, ICICI Bank launches Railway ticket booking via SMS
• GE plans Canadian bank
• Drive to Enhance Shopping Experience Creates Demand for Sophisticated Printers and Scanners

The BBC reports on a study conducted by Mike Bond, Steven Murdoch, and Jolyon Clulow of the security group at the Cambridge University computer lab regarding the security of PIN numbers mailed to customers in so-called PIN mailers.

Thuy-Doan Le reports for the Sacramento Bee on how bounced checks are still costly for small businesses.

About $5.5 billion worth of check fraud attempts were made in the United States in 2003, according to the most recent numbers from the American Bankers Association. The numbers include both counterfeit checks and those written without sufficient funds.