Payments News from Glenbrook Partners
Glenbrook   Book   Education   Views   Archives   Store   Advertise   About         SUBSCRIBE:

« May 10, 2009 - May 16, 2009 | Main | May 24, 2009 - May 30, 2009 »

May 23, 2009

The Hidden Cost of Credit Cards

In an article titled "Revealing the Hidden Cost Of Credit Cards" in tomorrow's Sunday Washington Post, Michelle Singletary writes that "transactors" (those who pay off their credit card bills every month - sometimes called "convenience users") may soon see the return of "widespread annual fees" on their credit cards.

Could this result in a further acceleration of spending away from credit cards and toward debit cards - as transactors finally decide the float/rewards benefits of their credit cards just aren't worth the new money they might cost?

Who wins in that scenario? Debit cards are cheaper for merchants to accept. Would they be the beneficiaries?

May 22, 2009

New CCH White Paper: An Analysis of the Credit Card Act

CCH has issued a new white paper analyzing the Credit Card Accountability Responsibility and Disclosure Act of 2009, known as the Credit CARD Act. Credit Card Reform: An Analysis of the Credit CARD Act, authored by CCH Banking Law Analyst Katalina M. Bianco, JD, examines the Act. CCH is part of Wolters Kluwer Law & Business. READ MORE »

President Obama Signs Dodd's Credit CARD Act

Here's the YouTube video of President Obama signing the just passed Credit Card Act.

The final text of the bill as passed and presented to the President is available online.

Banks and Their Usage of Twitter

Here's a table of major US banks and what we know about their usage of Twitter. The table is sorted in descending amount based on the number of followers who are subscribed to a particular bank's Twitter feed. If you have updates, please post them as a comment below!

"A Once-Glittering Business Loses Its Shine"

That's the subtitle on a pretty pessimistic story titled "Knocked off balance" in this week's Economist about credit cards in America. "These days lenders are in a spin as they struggle to cope with write-offs, a regulatory crackdown and changes in consumer behaviour."

Separately, the Wall St. Journal covers the credit card regulatory changes with two articles today: "U.S. Banks Risk Losing Trump Card" and "Card Firms' Loss Tally: Billions of Dollars in Fees".

A Look at Intuit's New GoPayment Mobile Acceptance Solution

Earlier this year, Intuit "soft launched" its new GoPayment mobile card acceptance solution for merchants. Yesterday, Intuit officially announced the new service - "GoPayment helps small businesses improve sales and cash flow by using their mobile phones to accept credit card payments. GoPayment is affordable and hassle-free. All that’s needed is a mobile phone with access to the mobile Web, or the easy-to-download GoPayment application, and an Intuit GoPayment merchant account." READ MORE »

May 21, 2009

Canada Proposes New Credit Card Regulations to Protect Consumers

Jim Flaherty, Canada's Minister of Finance, has announced proposed new regulations on credit cards that he says are "aimed at limiting business practices that are not beneficial to consumers and providing clear and timely information to Canadians about credit cards." READ MORE »

Wither the Empire? - A Look Back

With all of the news recently about the just passed credit card legislation in the US Congress, we were reminded that there were some pretty obvious signals flashing a few years ago that things might just be headed off the cliff. Just for fun, read (or re-read) our colleague Bryan Derman's article from January 2005 - over 4 years ago - titled "Wither the Empire?" Bryan's article concludes: " may indeed be growing late in the days of the great credit card empire." Indeed.

May 20, 2009

MasterCard Discussion at J.P. Morgan Global Technology Conference

Earlier today, MasterCard CEO Bob Selander spoke at the J.P. Morgan 37th Annual Global Technology, Media and Telecom Conference.

JP Morgan Introduces ISO 20022 Payment, Reporting Capabilities

J.P. Morgan’s Treasury Services business has announced it is offering ISO 20022 payment initiation and reporting capabilities. ISO 20022 is the core message standard for SEPA and represents the next generation of SWIFT message formatting. J.P. Morgan says it is one of the first to adopt this new messaging standard format that allows clients to integrate core treasury, payable and receivable applications with banking and other financial partners. READ MORE »

Last Call: New Opportunities in Business-to-Business Payments

At Glenbrook, we're spending a lot of time looking at the move towards electronics for B2B payments. Join us at our New York City workshop NEXT WEEK, "New Opportunities in B2B Payments", on May 27th & 28th. If you have any questions about this workshop, please contact Glenbrook's Carol Coye Benson."

Recommended Podcast: Eckhard Ortwein on Mobile Payments

One of my favorite weekly things to do is to listen to the excellent weekly podcasts that Dave Birch from Consult Hyperion produces. This week's edition features an interview with Eckhard Ortwein, one of the original founders of payBox who can rightly claim he's spent ten years working on mobile payments.

Dave's interview of Eckhard is great - as they walk through the evolution of payBox over the ten years - its failures and successes - leading to its acquisition by Sybase 365 late last year.

If you're at all interested in the evolution of mobile payments, be sure to give this 25 minute podcast a listen! Here's a link to the podcast in the iTunes Music Store.

Wells Fargo Introduces Mobile Banking iPhone Application

Wells Fargo has announced a new Wells Fargo Mobile Banking service for iPhone and iPod touch users (opens in iTunes) - now available free from Apple’s App Store. Customers can check account balances, move money between Wells Fargo accounts and pay bills. In addition, Wells Fargo Mobile Banking is integrated with the iPhone and iPod touch built-in maps feature so customers can search for the nearest ATM or Wells Fargo banking store with the touch-of-a-button. READ MORE »

A Look at the Just Passed Credit Card Legislation

On the Credit Slips blog, Adam Levitin takes a look at the just passed credit card legislation - he worries that "within the next year we will see a host of new, creative fees: unused limit fees, high-risk transaction fees, account review fees, line increase fees, etc." and proposes a new model of regulation for the credit card industry.

May 19, 2009

US Senate Passes Credit Card Bill on 90-5 Vote

The US Senate voted overwhelmingly (a 90-5 vote) this afternoon to pass new limitations on the fees and practices of credit card issuers in the US. The bill, sponsored originally by Connecticut Senator Chris Dodd and called the Credit Card Accountability, Responsibility and Disclosure Act (CARD Act), will now go to conference to reconcile its provisions with those of an earlier House bill that also passed by a wide margin.

“This is a victory for every American consumer who has ever suffered at the hands of a credit card company,” said Dodd. “My bill that the Senate passed today will insist on consumer protections that are strong and reliable, rules that are transparent and fair, and statements that are clear and informative. I want to thank President Obama for working with me to get this over the finish line, and I urge my colleagues in the House to act quickly to pass this bill so we can get it to his desk as soon as possible.”

The New York Times has just published A Consumer's Guide to the New Credit Card Rules written by Ron Lieber - it compares the provisions of the House and Senate legislation and discusses where things may (or may not!) end up in a final bill to be sent to the President.

Credit Card Act Up for Vote in US Senate This Morning

Senator Chris Dodd tweets:

"On my way to the floor to vote for my historic Credit CARD Act. I expect it pass the Senate around 10:20."

See also Dodd's article today in the Huffington Post titled "Reform in the Age of Plastic".

C-SPAN2 provides live video coverage from the Senate floor beginning at 10 AM Eastern.

Wright Express Successfully Completes NFC Mobile Payment Pilot

Wright Express has announced that its multi-city NFC mobile payment pilot with Sheetz and ViVOtech has been successfully completed. According to the company, "during the trial, drivers used their Sheetz Fleet Business Advantage card loaded into their specially enabled Near Field Communication (NFC) mobile phones to make fuel and convenience store purchases at hundreds of Sheetz locations by just waving their NFC mobile phones at contactless-enabled readers. Wright Express was able to authorize and process the mobile transactions as easily as those done by drivers using plastic cards." READ MORE »

Headline News - May 19, 2009

Note: Throughout the day, as Payments News happens, this post is updated. For job opportunities available for payments professionals, visit Employers looking to hire payments professionals can post their job openings there as well.

May 18, 2009

How Will US Credit Card Issuers React to New Legislation?

Andrew Martin writes for the New York Times about how industry experts see US credit card issuers reacting to legislation likely to be approved shortly that would curtail certain fees and practices. One industry spokesman says "it will be a different business." Others see "transactors" (those who pay off their credit card bills in full each month) as losing some of their current benefits - and, perhaps, having to start paying new annual fees, etc.

TSYS Supports TransCash on Prepaid Money Transfer Card for France

TSYS has announced that it has signed an agreement with TransCash Corporation to launch a prepaid money transfer card. The prepaid card will initially be launched in France during Q3 2009 and will be sold by Midi France Telecom. To coincide with the agreement, TSYS has opened a new office in Paris to support the company’s expansion into France. READ MORE »

Learning from the Credit Card Crisis - in South Korea

Suki Kim writes an op-ed for the New York Times titled "Notes From Another Credit Card Crisis" that looks at the experience of South Korea - where credit card debt exploded in the early years of this decade.

Kim writes: "South Korea managed to weather the storm, albeit with no shortage of heartbreak. Today Seoul’s neon-lighted streets burst with credit-card friendly shops — but high household debt has depressed spending."

BillMyParents Launches Online Payment System for Teens, Parents

Socialwise, Inc. has announced the launch of BillMyParents, an online youth payment system that the company says "gives teens the freedom to shop online and parents the control over these purchases--all in a simple, automated system that keeps credit card numbers and other personal information safe and secure." READ MORE »

MasterCard Launches Marketing, Education Campaign for Hispanics

MasterCard has announced "a marketing and consumer education campaign that speaks directly to U.S. Hispanic consumers. As part of its ongoing efforts to educate consumers about the value of its myriad of payment products, MasterCard released a new 30-second Spanish language Priceless commercial entitled “Quebradita.” The commercial emphasizes how consumers can better manage their money through the use of debit and prepaid MasterCard cards. Translated as “little break,” quebradita is a modern, acrobatic Latin American dance style recognizable by its western clothing, hat tricks and daring flips." READ MORE »

Headline News - May 18, 2009

Note: Throughout the day, as Payments News happens, this post is updated. For job opportunities available for payments professionals, visit Employers looking to hire payments professionals can post their job openings there as well.

May 17, 2009

A Look at BillMyParents

In an article titled "BillMyParents makes it easy for kids to spend parents' money", CNet's Rafe Needleman takes a look at BillMyParents - saying that "I believe this service's primary challenge is one of sales. It needs to get some merchants on board."


News View

Payments Consultants