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May 29, 2009

Facebook and Payments

In a post titled "It’s Heeerrre: ‘Pay With Facebook’ Is In The Wild", MG Siegler writes for TechCrunch that Facebook appears to be updating its Payments Terms to support the purchase of Facebook Credits - and has enabled a few specific applications that support the use of Facebook Credits once purchased.

ID Insight, Patria Services Launch MoveManager

ID Insight and Patria Services Corp. have announced they have formed a joint venture to provide “MoveManager,” a solution for address change requests that delivers both risk management and portfolio optimization. A webinar on the new offering is scheduled for Wednesday, June 3, from 2-3 PM EDT.

According to the two companies, "the “MoveManager” technology platform combines the industry best practices of regulatory compliance and fraud prevention related to a customer’s address change with patent-pending marketing solutions that enhance portfolio performance. An address change request signals one of the most critical events in the life cycle of a client relationship. From a risk perspective, relocation represents an exposure to potential account takeover fraud and identity theft. From an opportunity perspective, relocation indicates a significant opportunity to meet the evolving needs of existing customers by targeting and delivering relevant incentives to generate new revenues."

Voltage Security Introduces Data Breach Index

Voltage Security has introduced the Voltage Data Breach Index, a single at-a-glance view into the state of national and global data breaches.

According to Voltage, "the visual map brings data breach reporting to life, summarizing historical and real-time breaches, size and scope, types of records, regions affected, industry and more. Perhaps most interesting is that patterns in the data enable the creation of a predictive data breach model. This model predicts, for example, that 14 data breaches will, over the next year, each expose 1,000,000 or more records to potential use by criminals. And, at least one breach of over 10,000,000 records will affect nearly 5 percent of the U.S. population." A white paper is also available.

Headline News - May 29, 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 28, 2009

Gartner Forecasts Rapid Growth in Mobile Payments Users

In a press release, Gartner says that "the mobile payment industry will experience steady growth, as the number of mobile payment users worldwide will total 73.4 million in 2009, up 70.4 percent from 2008 when there were 43.1 million users. Gartner predicts that the number of mobile payment users will reach more than 190 million in 2012, representing more than 3 percent of total mobile users worldwide and attaining a level at which it will be considered "mainstream." READ MORE »

Yet Another Example of Consumers Preferring Debit Cards

A report in today's Business Standard (India) titled "Consumers prefer debit cards in slowdown" notes that, according to data from the Reserve Bank of India, consumers are preferring to use debit cards over credit cards. In fact, the number of credit cards in circulation in India actually declined from 28.3 million cards a year ago to 24.6 million cards today.

Western Union Forecasts Changes in Consumer Spending Behavior

Western Union has announced results from a new survey finding that "79 percent of consumers favor regulations that place limits on credit card fees, such as interest rates and late payment penalties. Another 60 percent of consumers are strongly in favor of tighter regulations. In addition, 27 percent of consumers reported using cash more often than in the past."

The company also forecasts that, "as The Credit Card Accountability, Responsibility and Disclosure Act is implemented, businesses will witness a change in consumer spending, with cash and pre-paid cards being a more desirable option among consumers." READ MORE »

PayByCash Introduces PayByCash Code Option

PayByCash, a subsidiary of PlaySpan, has announced the availability of the PayByCash Code, a pre-paid product for consumers in 180 countries that provides a streamlined way to make Internet purchases. According to the company, "using a PayByCash Code is similar to using a credit-card but without the activation hassles that make store-purchased prepaid cards challenging for many consumer demographics." READ MORE »

INSIDE MicroPass 2006 Contactless Payment/Access Control Platform

INSIDE Contactless has introduced the MicroPass 4006 that combines ID and physical access control applications with Visa payWave, Visa’s contactless payment technology. The MicroPass 4006 is designed for next-generation, converged contactless applications on university and corporate campuses, where students, staff and employees can use a single, all-purpose card for branded payment, identification (including biometrics), ticketing and access control transactions. READ MORE »

Discover Introduces Mobile Account Activity Reminders

Discover Financial Services has announced the launch of Mobile Reminders -"designed to help cardmembers stay on top of their accounts and help manage debt better. This new service allows cardmembers to have more control over their finances and easier access to their Discover® Card accounts. registered users can log in and select to receive any of eight Account Activity reminders via text (SMS) message or email. The Mobile Reminders provide cardmembers with important account information that is sent directly to their mobile device." READ MORE »

May 27, 2009

US Bank Introduces Visa Card for Payments, ID, and Facility Access

U.S. Bank has announced that it is "the first card issuer in the United States to pilot an innovative new product that allows cardholders to use a single card for traditional magnetic stripe purchases, Visa payWave transactions and to gain access to secure facilities. U.S. Bank is currently piloting the program with employees in Minneapolis. Those involved in the pilot can make purchases and enter their secure work location using a U.S. Bank AccelaPay Visa Card, a prepaid payroll account. The cards contain the MicroPass 4006 platform consisting of two applications: the Visa payWave application, which allows for contactless payment at the point of sale, and the HID iCLASS application, which allows for contactless access to secure facilities at U.S. Bank." READ MORE »

Billeo, NetSpend Announce Online Bill Pay Service for Prepaid Cards

Billeo and NetSpend have announced an online service designed to help consumers pay their bills using their NetSpend cards, giving them access to financial tools that the majority of Americans now enjoy. Under the terms of the agreement, consumers that have a NetSpend card will be able to access a searchable online directory of billers that accept the card. Billeo will also provide a free, downloadable toolbar to help cardholders manage their bills. READ MORE »

A Look at American Express

In an article titled "Amex chief sticks to playing cards he knows", Matthew Garrahan writes for the Financial Times about American Express and CEO Ken Chenault.

Mr Chenault says: “In a crisis what you don’t do is hunker in the bunker. I’m very focused on the core advantages of our business model, what changes need to be made . . . and how to emerge stronger.”

Sony Music Selects GlobalCollect as Payment Service Provider

Sony Music has announced it has signed an agreement with GlobalCollect and Materna GmbH to create a retail offering on its labels’ artist websites across the EMEA region to enable consumers to download digital content. According to the two companies, Sony Music is using GlobalCollect’s portfolio of local and international payment methods to facilitate all related e-payment transactions. With the help of a widget, Sony Music is driving traffic directly to the website of an artist to allow fans to share information and to download the artist’s repertoire. GlobalCollect’s single-interface online payment platform, WebCollect, offers fans a broad array of payment products from credit cards to alternative payment methods to purchase MP3 music downloads. At a later stage, the e-commerce offer will be expanded to include artist merchandise, concert tickets, and more. READ MORE »

May 26, 2009

RocketBux, nFinanSe Partner for Mobile Coupons

RocketBux has announced an agreement with nFinanSe to provide coupons and offers to nFinanSe cardholders’ mobile phones. According to the two companies, "the partnership will leverage RocketBux’ patent-pending technology to deliver scannable bar code coupons to “opted-in” nFinanSe cardholders who simply swipe their card at a retailer’s POS." READ MORE »

Blue Bamboo Selects KORE Telematics for Wireless POS

KORE Telematics, a digital wireless services provider specializing in machine-to-machine (M2M) communications, has announced it has teamed with Blue Bamboo to help power electronic payments using the H50 Terminal, a new entry in the wireless point-of-sale (POS) marketplace. READ MORE »

Mocapay Launches Mobile Gift Application for iPhone

Merchants with existing plastic gift card programs can now take advantage of Mocapay's recently launched mobile gift card iPhone application, available on iTunes. READ MORE »

How Are Credit Card Issuers Responding to the New CARD Act?

In a story titled "Beyond Rate Hikes: How New Law Reshuffles Cards", Maria Aspan writes for the American Banker about how credit card issuers are adjusting to the "new reality" following the signing of The Credit CARD Act of 2009 last week.

Small Business Economic Confidence Drops Sharply in May

After reaching its highest level in 14 months, the economic confidence among small business owners fell in May as owners reported cash flow concerns and expect to cut back on business development spending, according to the latest Discover Small Business Watch. The monthly index dropped more than 10 points to 78.1, down from 88.5 in April. READ MORE »

Mobile Banking Hits Mainstream in 2009 Says TowerGroup

Despite the general downturn in the banking industry, new research from TowerGroup finds that 2009 will be a pivotal year for mobile banking as it turns from a niche channel to a mainstream channel for consumer banking. TowerGroup estimates that mobile banking usage will grow from 10 million active users in 2009 to over 53 million active users in 2013, representing a compound annual growth rate of 51.8%. READ MORE »

Headline News - May 25, 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 25, 2009

OneTouch Online Purchasing Adds Facebook Payment Plugin

eBIZ.mobility has announced a new Facebook payment plugin for its OneTouch Online Purchasing payment processing system. According to the company, "the new payment plugin allows application developers to monetize their Facebook traffic in 26 countries by adding an alternative payment option into their offerings." OneTouch says it "provides developers with a 77% revenue share and settles monthly." READ MORE »

A Look at Details in The Credit CARD Act of 2009

In addition to the major provisions affecting credit card issuers and their practices, The Credit CARD Act of 2009 contains a number of other provisions that will affect various aspects of the payment card industry. We've covered several of them in accompanying posts today - including:

In addition, there are several other provisions including:

  • Board review of small business credit plans and recommendations
  • Small business information security task force
  • Study and report on emergency pin technology
  • Study and report on the marketing of products with credit offers
  • Financial and economic literacy

New CARD Act Requires Limits, Disclosures on Gift, Prepaid Cards

Title IV of The Credit CARD Act of 2009 imposes limits on issuers of gift cards and prepaid cards with respect to dormancy fees and expiration dates to become effective within 15 months. Dormancy fees can't be charged unless fully disclosed and only after a one year period of domancy. Expiration dates cannot be less than five years from either the original date of purchase or from the date of the most recent reload to the card and must also be fully disclosed to the purchaser. The Act requires that the Federal Reserve within 9 months prescribe regulations to carry out this section ... "including such additional requirements as appropriate relating to the amount of dormancy fees, inactivity charges or fees, or service fees that may be assessed and the amount of remaining value of a gift certificate, store gift card, or general-use prepaid card below which such charges or fees may be assessed."

New CARD Act Requires Treasury Review of Stored Value Cards

The Credit CARD Act of 2009 in Section 503 requires that the Secretary of the Treasury in consultation with the Secretary of Homeland Security shall, within 270 days, "issue regulations in final form implementing the Bank Secrecy Act, regarding the sale, issuance, redemption, or international transport of stored value, including stored value cards."

New CARD Act Requires Fed to Examine Credit Card Issuer Practices

The newly signed Credit CARD Act of 2009 in Section 505 requires the Federal Reserve Board in consultation with several other agencies to study and report to Congress within one year "the extent to which, during the 3-year period ending on such date of enactment, creditors have reduced credit limits or raised interest rates applicable to credit card accounts under open end consumer credit plans based on (1) the geographic location where a credit transaction with the consumer took place, or the identity of the merchant involved in the transaction; (2) the credit transactions of the consumer, including the type of credit transaction, the type of items purchased in such transaction, the price of items purchased in such transaction, any change in the type or price of items purchased in such transactions, and other data pertaining to the use of such credit card account by the consumer; and (3) the identity of the mortgage creditor which extended or holds the mortgage loan secured by the primary residence of the consumer."

New CARD Act Requires Study of US Interchange Fees by GAO

The newly signed Credit CARD Act of 2009 in Section 501 requires the Government Accountability Office (Comptroller General) "conduct a study on use of credit by consumers, interchange fees, and their effects on consumers and merchants." The study findings are to be presented within 180 days to the "Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives containing a detailed summary of the findings and conclusions of the study required by this section, together with such recommendations for legislative or administrative actions as may be appropriate." The act doesn't specifically state whether the study is to be limited to credit card interchange fees or is to include debit card interchange fees as well. READ MORE »

May 24, 2009

A Proposal for Clearly Disclosing Key Credit Card Terms

In an op-ed piece titled "Healthy Credit" in the New York Times, David Gibson, Carla Hall and Sylvia Harris propose a simple Credit Card Facts disclosure box modeled along the lines of the mandated nutrition labels that we're all familiar with.


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