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U.S. Bank and CheckFree have announced they are collaborating "to encourage consumers to save time, reduce stress and make children smile this holiday season by paying bills online. For every five bills that a customer pays via U.S. Bank Internet Banking now through Dec. 31, 2007, U.S. Bank and CheckFree will donate $10 to Toys for Tots." » Continue Reading
The TJX Companies has announced that "it has entered into a Settlement Agreement with Visa U.S.A. Inc. and Visa Inc. Under the agreement, an alternative recovery offer will be made to eligible U.S. Visa issuers that issued payment cards potentially affected by TJX’s previously announced unauthorized computer intrusion(s), and Visa will recommend the offer." » Continue Reading
In an article titled 'Target card or Target Visa? Which is better?', Gregory Taggart of Bankrate.com takes a look and compares private label cards vs. co-brand cards - both from retailers.
APACS has announced it expects holiday shoppers to spend over £5 billion online this December - with next Monday, December 3, expected to be the busiest online shopping day. APACS estimates that total spending on cards, cash and cheques will reach £53.0 billion in December. APACS figures show that the number of adults shopping online has more than doubled in the last five years to almost 30 million. "To help online shoppers stay free from fraud this Christmas, APACS has also launched http://www.shopsafeonline.org.uk, which contains details about Verified by Visa and MasterCard SecureCode – systems that make online shopping payments more secure for both consumers and online retailers."
As part of its2007–08 review of the reforms to Australia's payments system, the Reserve Bank of Australia co-hosted a Payments Systems Review Conference (several papers available for download) today in conjunction with the Centre for Business and Public Policy at the Melbourne Business School. » Continue Reading
Bank of America has announced that it has teamed with the organization Brighter Planet to "offer a credit card that helps customers reduce their contribution to climate change and invest in the development of clean, renewable energy projects." » Continue Reading
Alliance Data Systems has announced signing "a multi-year agreement with 7-Eleven, Inc. to provide payment processing services to more than 5,500 7-Eleven-branded convenience stores nationwide. Headquartered in Dallas, 7-Eleven is the largest chain of retail convenience stores, operating, franchising or licensing more than 33,200 stores in 17 countries and one U.S. territory, with worldwide sales in 2006 exceeding $44 billion." » Continue Reading
The Reserve Bank of India has released its first Report on Oversight of Payment Systems in India 
. "Though Visa and MasterCard are not under the regulatory purview of the Bank, the Reserve Bank as the regulator and supervisor for banks has published guidelines for the issuance of cards by the card issuing banks. The compliance with the Guidelines is assessed during the inspection of these card issuing banks by the RBI. Also, RBI is in regular dialogue with the Visa and MasterCard affiliates in India."
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The mobile banking race is on. Bank of America has announced that, six months after rolling out its Mobile Banking service to consumers nationwide, it has reached a record 500,000 active mobile customers. The bank says that "according to a recent TowerGroup report, that's more than all other U.S. banks combined." » Continue Reading
Fair Isaac and Associacao Comercial de Sao Paulo (ACSP), one of the largest credit bureaus in Brazil, have announced ACSP’s launch of Global FICO Score for Brazilian businesses - saying that "the launch of this innovative consumer credit-risk score makes Brazil the first South American nation to access Fair Isaac’s global-standard FICO credit risk scoring technology." » Continue Reading
In an article titled 'An Old-Time Touch for the Modern Shopper', Catherine Rampell writes for the Washington Post about how Bill Me Later is attractive to shoppers who don't want to provide their credit card details to online ecommerce merchants. According to the article, Bill Me Later has 3 million customers.
In an article titled 'Online Lending Gets Easier and Safer', Jane J. Kim writes for the Wall St. Journal about Zopa's entry into the US market. Rather than doing everything itself, Zopa will be "working with several credit unions to offer person-to-person loans to prospective borrowers."
Retail Decisions reports that the "online retail market received a double dose of good news as merchants kicked-off the 2007 Holiday season. Purchase value of goods sold on Black Friday was up 83% and on Cyber Monday was up 80% year on year." » Continue Reading
Intuit has announced the release of the latest version of QuickBooks Point of Sale retail management software that replaces the traditional cash register and gives small retailers features that help them provide great customer service and improve inventory management. » Continue Reading
Blackhawk Network has announced it has "signed an exclusive agreement with The Kroger Co. to bring Blackhawk Network's award winning Gift Card Mall program to the nation's largest grocery chain in time for the holiday season." » Continue Reading
Heartland Payment Systems has announced it has "filed an antitrust action against MICROS Systems, Inc.; Merchant Link, LLC; and Chase Paymentech, owner of Merchant Link. The suit, filed in United States District Court in New Jersey, alleges the three companies have caused increased processing prices for table-service restaurants through an anti-competitive tying arrangement which violates the Sherman Antitrust Act and New Jersey's unfair competition laws." The text of Heartland's complaint is available online.
Monitise Americas and Metavante have announced the launch of Monitise Americas' mobile financial services in the United States. According to the two companies, "the service, which is fully integrated into the industry leading NYCE Payments Network to deliver a highly secure connection to the nation’s leading financial institutions, allows financial institutions of all sizes to offer mobile financial services to their customers without significant investment in new technology." » Continue Reading
VeriFone Holdings has announced "formation of VeriFone Access to provide merchant hosted services for managing electronic payments, beginning in Mexico. VeriFone Access was formed with VeriFone’s investment and in partnership with Tienda-kit, an innovative Mexican third-party acquirer and merchant services provider, which now operates as VeriFone Access." » Continue Reading
Verizon Wireless has announced that it will "provide customers the option to use, on its nationwide wireless network, wireless devices, software and applications not offered by the company. Verizon Wireless plans to have this new choice available to customers throughout the country by the end of 2008."
With this move by Verizon, the implications for mobile banking and mobile payments will be fun to ponder. What's not mentioned in Verizon's press release is what the cost might be to qualify an open device on its network.
What's an example of a non-traditional mobile device? Amazon's Kindle
Speaking of labs, Hugo Olliphant, the head of PayPal Labs, blogs about his groups activities. You'll find PayPal Labs at www.x.com.
You've probably already seen the ads. Capital One Financial Corporation has announced the launch of the Capital One Card Lab, calling it "a convenient online tool designed to help consumers select from a menu of terms and options to build their own credit card. The Capital One Card Lab site offers an array of options related to interest rate, annual fee, rewards and even the design on the front of their card and allows consumers to select the combination of features that are most important to them." » Continue Reading
Global Payments has announced that "it has activated the first of its Independent Sales Organizations (ISOs) relationships - EVO, Mercury Payments, North American Bankcard and Total Merchant Services - to acquire Discover Network merchants in a manner consistent with Visa's and MasterCard's acquiring programs." » Continue Reading
Today is Cyber Monday - expected to be the busiest online shopping day of the year. As a reminder, some of the online ecommerce payments companies have special offers setup to save you money doing this year's holiday shopping. These include PayPal's Holiday Shopping site, Bill Me Later's holiday store, and Google Checkout's Holiday Offers.
The Payments Council, the organisation that sets strategy for UK payments, has announced the launch of a public consultation on its proposals for a UK National Payments Plan. The National Payments Plan will set the strategy for how payments will develop in the UK over the next five to ten years and will cover current payment methods like plastic cards, cash and cheques and innovative technologies like contactless, pre-paid and mobile payments. » Continue Reading
NACHA has announced that its voting membership has approved the Network Enforcement Rule as an amendment to the NACHA Operating Rules. "The implementation of the Network Enforcement Rule, the first rule change under NACHA’s comprehensive risk management strategy, is intended to give NACHA and the ACH Rules Enforcement Panel greater ability to enforce the NACHA Operating Rules." » Continue Reading
Aite Group has announced a new report titled "The State of the Merchant Acquiring Industry" that "provides an overview of the state of merchant acquiring in the U.S. market. The report looks at the impact of discount rates and interchange in the merchant acquiring space, reviews vendors, overviews sampled acquirers' portfolios and fraud and PCI DSS compliance, and considers the future of acquiring." » Continue Reading
Kevin Bullis writes for Technology Review about Kovio's new technology for printing transistors - and forecasts its use in making disposable smart cards.
In an article titled 'Getting the Best From Cards Teaser Rates', Jane J. Kim writes for the Wall St. Journal about the latest offers from credit card issuers who she says have "started rolling out a spate of eye-opening teaser offers."
In an article titled 'Mobile Web: So Close Yet So Far', Michael Fitzgerald writes for the New York Times about the trials and tribulations of the mobile web - concluding that "for now, widespread use of the mobile Web remains both far off and inevitable."
Gosh, it's that time of year again - what many (including me) think of as just the best holiday in the US - Thanksgiving. At Glenbrook, we've got a lot to be thankful for this year. Our colleagues of payments professionals across the payments industry have all worked hard to make sure everything's ready for the upcoming annual "Black Friday" onslaught of volume. Chase Paymentech's index will be tracking things over the weekend - so you can see how the consumer economy is doing vs. the last two years. Meanwhile, enjoy the holiday with friends and family! Remember, it's just the best!
After rampant speculation earlier in the week, late today PayPal officially introduced the "PayPal Plug-In" - describing it as "a free download for your Internet browser that allows you to pay with PayPal anywhere MasterCard is accepted online." » Continue Reading
Florence Fabricant writes for the New York Times Dining section about portable POS terminals - they've been used heavily in Europe for the last 10 years and are now beginning to be seen in restaurants here in the US. Your card never leaves your hand.
The Federal Reserve Bank of New York has published a new research paper titled "Understanding Risk Management in Emerging Retail Payments" by Michele Braun, James McAndrews, William Roberds, and Richard Sullivan.
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Montgomery County, Maryland’s Office of Consumer Protection has released its fifth annual gift card study called, “Gift Cards 2007: Best and Worst Retail Cards; A Deeper View of Bank Cards Doesn’t Improve Their Look .” The report contains valuable information and recommendations regarding gift cards issued by 22 stores and restaurants and 20 banks/financial institutions.
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In an article titled 'One More Thing Cellphones Could Do: Replace Wallets', Dan Fost writes for USA Today about using mobile phones for payments. "It's relatively easy to make cellphones very secure devices," said Allen Weinberg, managing partner at Glenbrook Partners, a Menlo Park, Calif., financial services and electronic payments consulting firm. He said the encryption is "as good as or better than what you do with an ATM or at-home banking. No one is going to pick up your phone and start moving money around the world. It's just not going to happen."
In an article titled 'Credit Cards Lose Ground to PayPal', Catherine Holahan writes for Business Week that "PayPal's payment service is likely to show up on a lot of unusual sites this holiday season." She cites a professor who says that "fear of identity theft and payment fraud is driving the adoption of PayPal and Google Checkout in the U.S."
Fronde Anywhere, a provider of mobile products for the financial services and corporate sectors, has launched BusinessMobile as part of its Bank Anywhere suite, making it easier for businesses to maintain control of their cash flow while on the move. » Continue Reading
Mercator Advisory Group has announced its latest report titled "Mobile Financial Services Security: A New Ecosystem at Risk." » Continue Reading
CPNI has announced an agreement with PROSA (Promocion y Operacion, S.A. de C.V.), the largest provider of electronic transactions in Latin America, in which PROSA will provide financial institutions in Mexico with the centralized payments processing backbone for CPNI's Phone Authorized Transfer (PAT) mobile payment solutions. » Continue Reading
FIrstBank of Lakewood, Colorado, has announced the launch of Mobile Banking from FirstBank that the bank says "gives FirstBank's Internet Banking customers the ability to quickly check their account balances and transfer funds across accounts using their mobile phones, even while waiting for a flight and in jam-packed shopping malls." The bank says that Mobile Banking is currently available to AT&T Wireless customers, and Verizon customers are expected to gain access in December. » Continue Reading
Nielsen Online has announced that "online shopping's primary appeal is the convenience it offers. In an online survey, out of nearly 1,000 respondents, 81 percent indicated that the ability to shop anytime during the day was why they chose to shop online during the holiday season. Saving time was the next most popular reason to shop online, with 77 percent of respondents, followed by the ability to comparison shop and find things easily, with 61 percent and 56 percent, respectively." » Continue Reading
American Express has announced results from a new gift card survey finding that Americans plan to spend nearly a quarter of their gift-giving budgets on gift cards this year, up from 18% last year and 13% in 2005. » Continue Reading
Jane J. Kim writes for the Wall St. Journal about new credit cards from Capital One, Chase Card Services and Discover that offer more "flexibility and convenience" in their rewards programs - intended to make their cards "top of wallet" in terms of consumer preference.
PayPal has launched its holiday shopping site - where "you’ll find a variety of special offers from terrific merchants, including free shipping and other special discounts to make your holidays more affordable." Beginning next Monday, PayPal will be offering 20% cash back (up to $50) when shopping at some merchants.
ValleyWag couldn't resist pointing out that all of the buzz about PayPal's virtual debit card was actually just a reprise of the same product PayPal rolled out six years ago! I suspect the folks at PayPal don't view it quite the same way!
Chase Card Services has announced "the expansion of Chase Clear & Simple, an ongoing program designed to help Chase customers better understand and manage their accounts, with the adoption of new, clearer pricing practices. Chase is eliminating a practice, commonly used in the industry, of increasing interest rates for individual cardholders when their credit-bureau scores decline. This change is effective on March 1, 2008." » Continue Reading
Capital One and NetSpend have announced that "they have mutually agreed to the termination of their previously announced acquisition agreement and that they have entered into a Letter of Intent to expand their existing strategic relationship. As part of the expanded strategic relationship, Capital One intends to acquire a minority interest in NetSpend, a leading retail marketer of prepaid debit cards, along with an option to purchase additional shares of the company. In addition, the parties expect that a Capital One representative will join the NetSpend Board of Directors." » Continue Reading
Bill Me Later has announced holiday deals including "free shipping at more than 80 merchants, extended payments, holiday travel promotions and exclusive discounts and offers from leading retailers." Consumers can visit http://www.billmelater.com to register for free shipping, find “Daily Steals,” read holiday shopping tips, and more information on Bill Me Later, which allows consumers to make online and phone purchases at hundreds of top merchants without using a credit card." » Continue Reading
The California Reinvestment Coalition (CRC) announced a new report that it says "reveals how the complicated and deceptive overdraft policies at California's biggest banks allow them to reap huge profits from their mostly working class account holders." » Continue Reading
The Federal Reserve has announced Federal Reserve Consumer Help, a new centralized resource that consolidates and streamlines the Federal Reserve’s consumer complaint and inquiry program. Helpful customer service professionals are available to answer questions and assist with a wide range of issues relating to financial products and services and consumer protection laws. » Continue Reading
The Electronic Payments Coalition says that, "with holiday spending expected to top $470 billion, the National Retail Federation predicts more than 70 percent of shoppers will primarily use electronic payments for their holiday purchases. Whether using a debit or credit card this holiday season, electronic payments provide a safe, reliable and convenient form of payment that benefits both consumers and merchants." » Continue Reading
Chase Paymentech has announced it has launched an updated version of its Chase Paymentech Pulse Index to track online shopping activity throughout the 2007 holiday shopping season. » Continue Reading
According to MasterCard's Worldwide Holiday Shopping Insights Report, "Black Friday was the busiest day for holiday shopping last year in the top five traditional gift-buying categories (brick-and-mortar department, discount, clothing, electronics/appliances and sporting goods/toy stores), with more than one- third of MasterCard payment transactions occurring before 10 AM Central." » Continue Reading
Bob Tedeschi reports for the New York Times about ecommerce retailers adopting PayPal, Bill Me Later and Google Checkout as online payment options. One retailer quoted says "“So we’re a big supporter of these other payment methods. Somebody has to keep the MasterCards and Visas honest.”
The Identity Theft Resource Center has released a new report today discussing the impact of identity theft victimization. "This report was not based on a census survey but rather one that invited confirmed victims of identity theft in 2006 to respond to a series of 44 questions. These ranged from the emotional impact this crime has had on their lives and their ability to recover their good name to the financial loss to the business community in goods and services." » Continue Reading
In an article titled 'Gift cards are go-to holiday present', Nichole Monroe Bell writes for the Charlotte Observer about gift cards - nothing that consumers are expected to "spend a record-breaking $35 billion on them this holiday season, according to the National Retail Federation."
Ron Lieber, managing editor of the new FiLife personal finance site, writes for the Wall St. Journal about how to be credit card smart - starting with "lining your credit cards up on a table. Turn them over, call the phone numbers listed and ask what interest rate you're currently paying." He goes on to suggest how to negotiate a better rate - what one of my partners calls the "just ask for it" discount. Lieber's favorite credit card? His Starwood Preferred Guest American Express card.
On November 8, 2007, Aite Group hosted a round-table discussion on mobile banking, which considered aspects of the service such as potential for acceptance and possible security threats. Held at Bayard's in lower Manhattan, the event, titled "Mobile Banking 2.0: Time for the Perfect Storm?" attracted an international audience of more than 80 guests interested in the direction mobile banking will take in the United States, having failed to catch on several years ago. » Continue Reading
Dave Birch from Consult Hyperion interviews Jack Selby about the early days of PayPal where Jack was a senior vice president and his current involvement with FreedomPay. This is a GREAT interview - highly recommended.
The Economist looks at mobile banking in an opinion piece in its November 15, 2007 issue - mostly discussing the regulatory aspects of banking on a mobile phone. "The regulatory approach being taken in the Philippines provides a good model for other countries. Rather than trying to work out the best rules in advance, which could hamper innovation, the regulator is working closely with the banks and operators behind the country's two m-banking schemes."
Business Week's cover story by Michael Mandel this week is titled "The Consumer Crunch" and reviews the issues facing the economy as a result of tightened consumer credit. "What comes next could be scary—the largest pullback in consumer spending in decades, perhaps as much as $200 billion to $300 billion, or 2%-3% of personal income. Reduced access to credit will combine with falling real estate values to hit poor and rich alike."
Earlier this week, Discover Financial Services CEO David Nelms presented at the Merrill Lynch Banking & Financial Services Investor Conference. A replay and the presentation slides are available online.
In a report titled "Debit-Card Purchasers Penalized for PIN Use", Bob Sullivan writes for MSNBC.com about $0.25 fees being charged to some US Bank customers for using their debit cards with PINs instead of signature.
Mark Jewell reports for the AP that "half of more than 3,000 retail stores that a wireless security company secretly monitored at major shopping areas in the U.S. and Europe use wireless data systems vulnerable to hacking."
Reuters and others are reporting that First Data yesterday cut 1,700 jobs - representing about 6 percent of its workforce.
Earlier this week, TSYS held an investor day for analysts - a webcast along with accompanying slides of the presentations are available online.
Tyfone and i-flex Solutions (majority-owned by Oracle) have announced a partnership to implement mobile banking and other mobile financial services for a new client, West Coast Bank. » Continue Reading
Bank of America has announced the launch of a new "Bank the Way you Live" online banking microsite. The bank says it enables "customers with on-the- go lifestyles can learn how to break free of conventional banking and find the freedom and control to manage their personal finances online or via mobile or smart phone, courtesy of the number one online bank." » Continue Reading
ClairMail and mFoundry have announced a strategic partnership to offer "the industry’s most comprehensive mobile banking service that includes the “triple play” of mobile user interfaces – messaging (SMS and email), mobile web and client applications." » Continue Reading
NACHA’s CEO search committee has announced the search criteria for its next chief executive officer and president. Comprised of members of the NACHA Board, the search committee has retained Korn/Ferry International to manage the search process. » Continue Reading
Qualcomm has announced it has agreed to acquire Atlanta-based Firethorn Holdings for approximately $210 million in cash. Completion of the acquisition, which is subject to certain closing conditions, is expected within 30 days. » Continue Reading
Experian Consumer Direct has announced a collaboration with Discover Financial Services "to provide Credit ScoreTracker, a comprehensive credit score tracking product, for its more than 50 million cardmembers." The service will cost $7.99/month. » Continue Reading