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February 28, 2010

Glenbrook's 9th Birthday!

March 1, 2010 is the ninth birthday of Glenbrook Partners! Along with our strategy consulting and payments education services, we bring you PaymentsNews.com and PaymentsViews.com.

Thanks to all of our clients who we've served and the many friends we've been fortunate to meet over the last nine years!

We're looking forward to many more years in your service! Let us know if we can help you!

PayPal and Seller Reserves

In a very comprehensive post titled "Beware of ‘the Paypal call’ and what to do today to mitigate large Paypal reserves" on his eBay Strategies blog, Scot Wingo writes about an increasing focus by PayPal's risk team on sellers if certain triggers appear on a seller's account. Once that happens, there's an in-depth analysis initiated and Wingo writes that "the typical verdict we’ve seen is Paypal putting a reserve on the seller’s account – usually in the 5% range, but we've seen it as high as 20%."

In a second post, Wingo shares a response from Paypal's Ed Eger, SVP and GM of PayPal's North American business (Eger's response is also posted on The PayPal Blog). Eger writes: "We are selectively addressing a small fraction of the highest risk merchants in our portfolio—merchants who we believe may struggle to meet their commitments to their customers." He also says: "The vast majority of our sellers get access to their funds immediately." Eger says he's looking for seller feedback: ed@paypal.com.

February 26, 2010

What's Coming Up at Glenbrook!

Russ Jones will be conducting a Glenbrook Payments Essentials webinar on eCommerce Segmentation and Sizing for the U.S. Market this coming Thursday, March 4th, 10:30 - 11:30 PST. Russ will define the four key subsegments of the eCommerce market, describe their size and growth characteristics, and discuss how each segment's payments requirements and decisions differ. Register Now - Fee $249."

FFIEC Updates Retail Payment Systems Booklet

The Federal Financial Institutions Examination Council (FFIEC) has released an updated Retail Payment Systems Booklet that replaces the version issued in March 2004. The booklet is one of 12 that, in total, comprise the FFIEC IT Examination Handbook. The OCC commented: "The updated booklet incorporates developments in various aspects of retail payments activities since the first edition was issued and provides guidance on the risks and risk-management practices applicable to national banks. The booklet’s enterprise-wide perspective makes it a valuable tool to an entire organization in addition to an information technology department."

Green Dot Files S-1 Registration Statement for Initial Public Offering

Green Dot Corporation has filed an SEC Form S-1 Registration Statement for an initial public offering of its class A common stock.

Virtual Visa Debit Card Program Launched in Japan

Visa has announced the launch of the first virtual Visa Debit card program in Japan. Japan Net Bank’s (JNB) two million customers will be able to use a virtual Visa Debit card to make payments at any online merchant that accepts Visa globally. READ MORE »

Headline News - February 26, 2010

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

February 25, 2010

February 24, 2010

Boston Fed Policy Paper: Person-to-Person Electronic Funds Transfers

The Federal Reserve Bank of Boston has published a Public Policy Discussion Paper by Oz Shy titled "Person-to-Person Electronic Funds Transfers: Recent Developments and Policy Issues". Oz Shy is a senior economist at the Federal Reserve Bank of Boston and a member of the Consumer Payments Research Center in the research department.

From the abstract: "The paper investigates the reasons why person-to-person electronic funds transfers are still not very common in the United States compared with practices in many other countries. The paper also describes recent enhancements to online and mobile banking that provide account holders with low-cost interfaces to manage person-to-person electronic funds transfers via automated clearing house (ACH). On the theoretical side, the paper characterizes the critical mass levels needed for payment instruments to become widely adopted. Given the Fed's long-term heavy involvement in check clearing, the paper concludes with policy discussions of whether intervention is needed."

Headline News - February 24, 2010

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

February 23, 2010

Mobile Payment Service GoPayforit Is Now ImpulsePay in the UK

Payforit, he UK mobile payment service that provides a simple way for content owners to generate revenue by directly billing users mobile phones, has changed its name to ImpulsePay. According to the company, "the change marks a new stage for the company after the recent success of its service, based on Payforit, that offers an alternative to credit card and Premium SMS payments." READ MORE »

FICO Finds Consumers Defaulting on Mortgages Before Credit Cards

In a press release, FICO announced that it is finding that "mortgage default risk for consumers with high FICO scores now exceeds their credit card default risk, even though most credit cards are unsecured credit and mortgages are secured by real estate. The company observed a parallel rise in mortgage delinquencies for higher-scoring U.S. consumers." READ MORE »

A Look at Mocapay Payments at POS

In an article titled "NFC vs. Not-NFC, or “Why Put Card Data on the Phone?” A look at Mocapay" on our sister website PaymentsViews.com, Glenbrook's Carol Coye Benson takes a look at Mocapay who earlier this morning announced their new secure mobile payments at POS solution.

She asks: "Instead of going through huge contortions to store [payment card] data securely on the phone – and possibly paying through the nose for it – why not simply avoid putting the card data on the phone?"

Mocapay Introduces Secure Mobile Payments at Merchant POS

Mocapay has introduced what it claims is "the only mobile solution in the marketplace that enables secure, hardware infrastructure agnostic, mobile payments regardless of tender type and transaction location." The company was issued patent US 7,657,489 B2 on February 2, 2010 for this solution. READ MORE »

Wednesday's Glenbrook Webinar on Chargeback Management

For eCommerce merchants and payments professionals that provide solutions for eCommerce merchants - register now to hear Glenbrook's Allen Weinberg and Jay DeWitt talk about New Approaches to Chargeback Management. The Glenbrook Payments Essentials Webinar is on Wednesday February 24th at 10:30-11:30PST. Fee $149.

Headline News - February 23, 2010

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

February 22, 2010

Frictionless - and Almost Free - Payments?

In an article titled "The Future of Money: It’s Flexible, Frictionless and (Almost) Free", Daniel Roth writes for Wired.com about the world of electronic payments...

Moving money, once a function managed only by the biggest companies in the world, is now a feature available to any code jockey. Ivey is just one of hundreds of engineers and entrepreneurs who are attacking the payment ecosystem, seeking out ways small and large to tear down the stronghold the banks and credit card companies have built."

Payments Friction

Wired Magazine has published an article titled "From Credit Card to PayPal: 3 Ways to Move Money" that graphically depicts the payments process for a) credit cards, b) iTunes and c) PayPal. Can you guess who's most "frictionless" - according to Wired?

Fed Provides New Online Publication re: Overdraft Rules for Debit Cards

The Federal Reserve has provided a new online Federal Reserve Board publication titled What You Need to Know: New Overdraft Rules for Debit and ATM Cards intended to help consumers better understand rules that provide additional protection when a debit card or automated teller machine (ATM) transaction causes an account to be overdrawn. READ MORE »

A Look at Global eCommerce and Declining Fraud Rates

CyberSource reports that its 11th annual Online Fraud Report shows that among U.S./Canadian merchants accepting international orders, 21% of their online orders came from abroad, up from 17% the year before and 8% in 2005. According to the company, "this steady growth is supported by dramatic progress in meeting the increased fraud challenge of international orders, with 50% lower fraud rates and 30% lower order rejection rates." READ MORE »

Acculynk Forms Internet PIN Debit Advisory Council

Acculynk has announced an Internet PIN Debit Advisory Council to "establish the processes, procedures, rules and best practices around PaySecure for Internet PIN debit." The company says that the PIN debit networks ACCEL/Exchange, Alaska Option, Credit Union 24, PULSE and SHAZAM are participating in the Council. READ MORE »

Visa Appoints Bill Gajda as Head of Mobile

Visa has announced that Bill Gajda, currently Chief Commercial Officer at the GSMA, will join Visa as head of mobile. Visa said that Gajda’s position "is designed to further advance Visa’s mobile strategy, working in collaboration with the wireless and financial services industries to bring mobile payments and related services to consumers around the globe." READ MORE »

Headline News - February 22, 2010

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

February 21, 2010

Roundup: Credit Card Accountability, Responsibility and Disclosure Act

On Monday, February 22, 2010 several new rules take effect regarding how credit cards are issued and how cardholders are treated by issuers. Here's a roundup of articles from across the country about the new rules:

Surging Growth in Credit Card Usage in China

In an article titled "Shoppers find plastic fantastic", Zhang Fengming writes for ShanghaiDaily.com about the surging growth in credit cards and credit card transactions in China according to figures cited from China Unionpay.

February 20, 2010

Credit Card Issuers Focus on Heavy Transactors, Not Revolvers

In an article titled "Banks Focus on People Who Can Pay More for Credit Cards", Eric Dash reports for the New York Times on how US credit card issuers are focusing on heavy "transactors" - "the moneyed users of rewards programs who spend big and pay their bills on time." Dash sees issuers charging higher fees for new rewards programs targeting these users - as issuers emphasize a focus on spending vs. lending.

Credit Card Currency Conversion Fees Untouched by CARD Act

In an article titled "A Card Fee Still Hides in the Luggage", Ron Lieber writes for the New York Times how the Credit Card Accountability, Responsibility and Disclosure Act that is now US law does not address currency conversion fees charged on transactions outside the US. He fears that because "the banks stand to lose a lot of revenue" because of the new law that "they’ll want to make it up somewhere, so they may feel emboldened to raise the currency conversion fees further."

February 19, 2010

A Look Ahead at the New World of Credit Card Issuing in the USA

In an article titled "A New Day Dawns for Credit Card Lending" in Monday's American Banker, Maria Aspan writes about the new world of credit card issuing in the United States - post the February 22 implementation date of the Credit Card Accountability, Responsibility and Disclosure Act. She notes that "issuers go from complaining to complying with new law" and talks to executives of Bank of American, Discover and Capital One.

Federal Reserve Launches Credit Card Website for Consumers

The Federal Reserve Board has announced the launch of "a new interactive website to help consumers better understand the new credit card protections that will take effect on February 22. These rules ban several harmful practices and require greater transparency in the disclosure of the terms and conditions of credit card accounts."

The site summarizes the main provisions of the rules and explains how they will affect credit card users. Two interactive features will allow consumers to learn more about the terms and fees of credit card offers and about the new features of their monthly statements. READ MORE »

Headline News - February 19, 2010

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

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