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October 17, 2009

Credit Card Tricks

In today's editorial titled "Last-Minute Credit Card Tricks", the New York Times takes credit card issuers to task for "driving already outrageous interest rates still higher and imposing fees that are pushing struggling families further into debt." The editorial urges passage of pending legislation that would accelerate the effective date of credit card legislation signed into law earlier this year.

October 16, 2009

Bank of America's Card Services Unit Sees Purchases Decline 14%

BankofAmerica_logo-140px.jpgBank of America reported financial results this morning for the third quarter of 2009. In its Global Card Services unit, the bank reported card purchase volumes declined over 14% year over year from $63.3 billion to $53 billion. The charge-off rate doubled - from 6.4% to 12.9% compared to the same quarter last year. Debit card purchase volume grew slightly about 3% from $53.2 billion to $54.7 billion.

A Look at US Credit Card Issuer Losses

In an article titled "Credit-Card Losses Underscore Challenges Facing Lenders", Aparapjita Saha-Bubna writes for the Wall St. Journal on the financial results reported by major US credit card issuers - noting that "the latest numbers indicate that consumers continue to struggle amid high joblessness, as delinquency rates, a key gauge of future losses, continue to rise for most card issuers."

October 15, 2009

Barclays Posts Video Demonstrating Contactless Card Usage

In the UK, Barclays has posted a video demonstrating the use of its contactless cards at point of sale. Barclays says it's "the first bank to issue contactless debit cards as standard to the majority of current account customers."

M-Com Positioned as a Leader in Magic Quadrant for Mobile Banking

International mobile banking solution provider, M-Com, announced today that it has been positioned by Gartner Inc. in the ‘Leaders’ quadrant of the Magic Quadrant for North American Mobile Retail Banking report.

“In my opinion, our positioning in this report mirrors what our customers and partners have been saying since we first launched mobile payment services in 2002,” comments M-Com CEO and Founder, Adam Clark. “I believe it is a testament to the dedication of our valued team and the commitment our customers and partners have had over the last decade in helping us build a better product for financial institutions”.


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Hiring? Be sure to list your positions on!

Citi Cards Reports 13% Decline in Sales, 11% Decline in Accounts

Citi_logo-140px.jpgCitigroup reported financial results for the third quarter of 2009 this morning. In its Citi Cards unit, end of period open accounts were 54.6 million, down 11% from 61.1 million a year ago. Purchase volume on its cards was $65.5 billion, down 13% from $75.5 billion. Managed net credit losses were 10.29% vs 6.39% a year earlier.

MasterCard Introduces Online Money Manager

MasterCardWW-small.jpgMasterCard Worldwide has announced the launch of MasterCard Money Manager™ - calling it "a new, interactive financial management tool that enables MasterCard cardholders to quickly and efficiently monitor debit card spending for themselves and members of their household. Using the web-based tool, consumers have the ability to review signature and PIN-based MasterCard transactions by merchant category, and create customized categories, making it easy to identify spending patterns and compare actual spend to an allocated budget." READ MORE »

Headline News - October 15, 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.

October 14, 2009

White Paper: Service Oriented Architecture in Payments

ISTS Worldwide, Inc., a retail and payment technology consulting and services organization, has published a new white paper titled "Service Oriented Architecture in Payments". According to the company, this paper is part of a series of white papers ISTS plans to publish around topics related to payments and high transaction low latency systems.

A Look at Arbitration of Credit Card Debts

In an article titled "Turmoil in Arbitration Empire Upends Credit-Card Disputes", Carrick Mollenkamp, Dionne Searcey and Nathan Koppel write for the Wall Street Journal about credit card consumer debt dispute handling via arbitration - and, in particular, about Minneapolis-based NAF - National Arbitration Forum.

PayPal Adds VC Panel to PayPal X Innovate 2009 Conference

PayPal_logo-140px.jpgPayPal has announced that a panel of leading venture capitalists will discuss "breakthrough opportunities in payments" available to entrepreneurs at the upcoming PayPal X Innovate 2009 developer conference in San Francisco on Nov. 3-4.

Moderated by GigaOm blogger Om Malik, the panel will include Brian Ascher from Venrock, Roger Lee from Battery Ventures, Eric O'Brien from Lightspeed Venture Partners and Dana Stalder from Matrix Partners. READ MORE »

TSYS Focuses on Card Programs for Smaller Financial Institutions

tsys_top_logo.gifTSYS has announced formation of a new division, TSYS Program Solutions, that will provide turnkey credit card programs for regional and community financial institutions — both banks and credit unions — in the United States.

According to TSYS, the new division "will provide the program development, implementation and ongoing delivery to make it easy for smaller banks to enter or re-enter the credit card market. Key to the offer is the strategic consulting services that TSYS will provide from newly-recruited card industry executives with years of experience in running profitable card programs." READ MORE »

The Launch of Visa Debit in Canada

visa_logo-140px.jpgVisa Canada has published survey results finding that "Canadian consumers welcome more choice in the country's debit marketplace. The survey, commissioned by Visa Canada between June 26 and July 5, 2009, found that three out of four (74 per cent) respondents said they would be interested in a debit card that offers enhanced features and two out of three (66 per cent) believe that consumers should have more choice when it comes to direct debit payments in Canada." READ MORE »

JP Morgan Chase Reports Third Quarter 2009 Financial Results

Chase_logo-140px.jpgJP Morgan Chase has reported financial results for the third quarter of 2009 - reporting net income of $3.6 billion, compared with net income of $527 million in the third quarter of 2008.

Chase Card Services reported a net loss of $700 million, a decline of $992 million from the third quarter of 2008. End-of-period managed loans were $165.2 billion, a decrease of $21.3 billion, or 11%, from the prior year and $6.3 billion, or 4%, from the prior quarter. Card charge volume was $82.6 billion, a decrease of $11.3 billion, or 12%, from the prior year. Merchant processing volume at Chase Paymentech was $103.5 billion, on 4.5 billion total transactions processed.

October 13, 2009

Annual Fees on Credit Cards

In an AP story titled "BofA to charge annual fees on rewards cards", Bank of America says it is testing annual fees ranging from $29 to $99 on its credit cards.

Fiserv Drives Paperless Bills with New E-mail and Mobile Presentment

Fiserv has announced that Biller Direct HV, a hosted solution that integrates electronic billing and payment (EBP) capabilities into company websites, has been enhanced with new delivery and alerting capabilities. New capabilities include a "push e-bill" option that enables the delivery of secure PDF e-bills via e-mail and mobile alerts that notify consumers via their mobile device when a bill has been received. READ MORE »

TransFS Awarded Grant for Merchant Processing Comparison Site

TransFS_logo-140px.jpgTransparent Financial Services (TransFS), a marketplace for businesses seeking financial services, has announced that it has been awarded a grant by the Chicagoland Entrepreneurial Center (CEC) to support the company's continuing national expansion. TransFS also announced that the customer base of its comparison-shopping site for credit card processing services has now grown into more than 12 vertical markets. READ MORE »

Equifax Details Credit Trends as Consumers Save, Cut Credit Cards

Equifax_logo-140px.jpgConsumers continue to fight the recession by saving more and paying off debt, banks are responding with more careful lending, and stressed homeowners increasingly are falling behind on mortgages on their primary residence, according to the latest Equifax Credit Trends Report for September 2009. READ MORE »

Marking Up the Consumer Financial Protection Agency Legislation

BrooxPeterson-100px.jpgIn a post on his Payments Industry Regulation blog titled "Note to Congress Re: CFPA Legislation - Clean up Your Act", Broox Peterson writes that, with the House Committee on Financial Services to begin mark-up of the bill tomorrow, "now is the time to point out a couple of flaws in the bill I hope are fixed during the mark-up. I am not advocating for or against creation of the CFPA, just expecting Congress to make the effort to draft legislation that does not lead to unnecessary confusion and bad policy."

US Payment Transactions Projected to Exceed 100 Billion in 2009

Economic research firm Moebs Services projects that, for the first time in US history, the number of checks and electronic transactions for debit cards, credit cards and automatic payments will exceed 100 billion by the end of 2009 from all transactions from consumers and businesses. Moebs based its projection on research and projections using information from the Federal Reserve for 1979 to 2006. READ MORE »

Plastyc Introduces iBankUP Money Management for Gen Y

Plastyc_logo-140px.jpgPlastyc has introduced iBankUp, a new online banking service that enables "GenY consumers to save money and keep their credit history clean by giving younger, Web-savvy people constant financial oversight and control with no risk of incurring credit card debt or overdraft fees." READ MORE »

European Payments Council Launches SEPA Direct Debit Schemes

The European Payments Council (EPC), the coordination and decision-making body of the European banking industry in relation to payments, has announced that the SEPA Core Direct Debit Scheme and the SEPA Business to Business Direct Debit Scheme will launch on 2 November 2009. READ MORE »

TSYS Introduces MobilePASS for SmartPhone Card Acceptance

tsys_top_logo.gifTSYS Acquiring Solutions has announced the introduction of MobilePASS - a payment application that gives merchants the ability to accept and process card payments any time, anywhere.

According to TSYS, "MobilePASS enables merchants to accept and process card payments while on-the-go. A convenient alternative to traditional and expensive payment applications such as wireless terminals, Interactive Voice Response (IVR) systems and old- fashioned knuckle busters, MobilePASS is designed for the 21st century merchant." READ MORE »

Headline News - October 13, 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.

October 12, 2009

A Look at Abandonment at the Virtual Checkout Counter

In an article titled "Closing the Deal at the Virtual Checkout Counter", Claire Cain Miller writes for the New York Times about how consumers sometimes load up their shopping carts online - and then just abandon them. She notes that "while there is no industrywide data, some e-commerce companies estimate that only about 3 percent of shoppers who visit an e-commerce site buy something, and when they do load their shopping carts, as many as two-thirds abandon them."

A Look at Consumer Credit Protections, Debit Cards, Overdraft Fees

Last week, WAMU's DIane Rehm hosted a program focused on Consumer Credit Protections - including overdraft fees. Participants included Kathleen Day, Center for Responsible Lending, Diane Casey-Landry, Chief Operating Officer, American Bankers Association, and Nancy Trejos, Washington Post Personal Finance Writer. I was surprised at some of the lack of understanding about how debit cards actually work - as expressed by one participant in particular on this program!


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