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Payday Loans

Welcome to the News View for "Payday Loans".

Here, on these archive pages, you'll find all of the articles on Payments News for Payday Loans listed in date sequence beginning with the most recent article at the top of the page.

Click here for a complete listing of what's available in the Payments News Archive - organized by both posting date and subject category.

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August 12, 2014

Headline News from PaymentsNews.com - August 12, 2014

On the Web:

  • Back to Square One - Fast Company (Austin Carr) - "There's need for the urgency. Square's Reader and Register products are no longer unique; a slew of upstarts and big rivals such as PayPal, NCR, and VeriFone now offer their own equivalent iPad systems, which threaten to eat away at Square's merchant share and payments business."
  • Reviewed: Xapo’s Bitcoin Debit Card - CoinDesk - "Upon debut, CoinDesk finds that the Xapo Debit Card has potential to be a useful bitcoin spending tool, but there are a few hiccups it must overcome first."
  • Shift Is Developing A Debit Card That Lets You Spend Digital Currency, Loyalty Points And Regular Money - TechCrunch - "In the San Francisco Bay Area and elsewhere in the world, 100 people are testing out a debit card that lets them pay with bitcoin and Ripple, and, in the future, regular money and loyalty points."
  • Partnering with Clover & First Data - GoodLabs Blog - "With such massive scale, we were obviously thrilled to launch our first in-store integration on their Clover platform, and we can’t say enough awesome things about partnering with them."
  • First Data: Gyft Deal Will Help Us Evaluate Bitcoin - CoinDesk - "...though the focus of the acquisition was Gyft’s mobile gift card platform, the company intends to take advantage of Gyft’s position in the bitcoin space to further its knowledge of emerging payment methods."
  • Black Hat 2014: A New Smartcard Hack - IEEE Spectrum - "The U.S. scheme is a mixture, with some banks issuing chip-and-PIN cards and others going down the signature route. We may therefore be about to see a large natural experiment as to whether it is better to authenticate transactions with a signature or a PIN."
  • Improving Mobile Security with Biometrics - Portals and Rails Blog - "No matter what biometric authentication methodology a system uses, the most important step is validating each customer's biometrics upon enrollment in the program."
  • New York Prosecutors Charge Payday Loan Firms With Usury - New York Times - "Beneath the dizzying corporate structure, prosecutors said, was a simple goal: make expensive loans even in states that outlawed them."

On the Wires:

  • FleetCor Agrees to Acquire Comdata for $3.45 Billion - "As an issuer and a processor, Comdata provides fleet, virtual card, and gift card solutions to over 20,000 customers. It has approximately 1,300 employees and enables over $54 billion in payments annually."
  • Square Announces New Accounting and Inventory Integrations for Canadian Businesses - "Square's partner platform connects Square sellers with new applications that complement Square's register service. Continuing to build upon Square's powerful, affordable and accessible business solutions, the QuickBooks Online, Xero and Stitch Labs integrations are designed to simplify operations for businesses throughout Canada."
  • Digital River Expands Its Brazil Payments Offerings for Online Merchants - “Brazil is the fourth largest payment card market in the world,” said Souheil Badran, senior vice president and general manager of Digital River World Payments. “A number of our clients view Brazil as a strategic growth opportunity. We can help them navigate this highly complex market for cross border commerce, improve their authorization and conversion rates, and control overhead costs and risks associated with managing their own local entities.”
  • TSYS Enables Secure Commerce with Tokenization - "The proliferation of “card-on-file” models, both remote and proximity, has created an industry need to produce and use tokens including: card-on-file at a merchant’s cart, digital wallets, QR and Bar codes, NFC and chip."
  • CFPB Warns Consumers About Bitcoin - "“Virtual currencies may have potential benefits, but consumers need to be cautious and they need to be asking the right questions,” said CFPB Director Richard Cordray. “Virtual currencies are not backed by any government or central bank, and at this point consumers are stepping into the Wild West when they engage in the market.”
  • Fiserv White Paper Outlines the Unique Mobile Banking Needs of Business Customers - “With more businesses using digital banking services, there is a focus on providing specialized mobile banking capabilities which cater to the needs of this attractive market segment,” said Teri Carstensen, division president, Bank Solutions, Fiserv.
  • American Express unveils The Centurion(SM) Lounge in New York LaGuardia Airport - “New York might be the city that never sleeps, but our Card Members can now find an oasis at LaGuardia Airport to relax and refresh when they’re traveling into and out of the city,” said Lisa Durocher, Senior Vice President, Consumer Charge Cards & Benefits at American Express. “As our third Centurion Lounge, opening the LaGuardia Airport location marks a huge milestone for us, and brings us closer to our goal of creating a better airport experience for our Card Members.”
  • Commerce Bank Introduces the USA Triathlon Visa® Rewards Credit Card - “We are excited to enter into a relationship with USA Triathlon and to offer their members a customized credit card as way to show their support for the organization and enthusiasm for one of the fastest growing sports in the U.S. Olympic movement,” said Chad Doza, Senior Vice President of Consumer Credit Card.

Updates from Glenbrook:

Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Do you have news to share? Tell us here: gotnews@paymentsnews.com!

January 21, 2014

Headline News from PaymentsNews.com - January 21, 2014

Next Glenbrook Payments Boot Camps: Feb 4-5 in Palo Alto, CA; March 18-19 in New York City. Alternatively, you can request a private Payments Workshop held on-site at your location.

On the Web:

On the Wires:

Updates from Glenbrook:

Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Do you have news to share? Tell us here: gotnews@paymentsnews.com!

January 17, 2014

Headline News from PaymentsNews.com - January 17, 2014

Next Glenbrook Payments Boot Camps: Feb 4-5 in Palo Alto, CA; March 18-19 in New York City. Alternatively, you can request a private Payments Workshop held on-site at your location.

On the Web:

On the Wires:

  • Retailers Urge Appeals Court to Make Federal Reserve Follow the Law - The Merchants Payments Coalition, a group of merchants fighting for a more competitive and transparent bank-card industry, said today: “Judge Leon struck a blow for fairness with his original ruling. We think the evidence will also prove as compelling to the appeals court. We look forward to that court reaffirming the Durbin Amendment as passed and sending the Federal Reserve back to the drawing board to ensure it actually follows the law.”
  • "NRF Asks Appeals Court to Uphold Order for Lower Swipe Fee Cap - "The National Retail Federation today asked an appeals court to uphold a judge’s ruling that the Federal Reserve set its cap on debit card swipe fees far higher than intended by Congress and that the cap needs to be recalculated at a lower level."
  • Retailers Comment On The Data Security Act - "PIN-and-chip cards are widely used across the globe, and it’s time for the bankcard industry in the United States to adopt that technology to better protect our consumers. We must transition away from 1960s technology and adopt a 21st century system that will help reduce and prevent fraud and protect customers from the threat posed by sophisticated cybercriminals, hackers and data thieves."
  • U.S. Bank Announces Plan to Wind Down Checking Account Advance - "U.S. Bank will begin to wind down its short-term, small-dollar deposit advance product, Checking Account Advance, to align with final regulatory guidance issued by the Office of Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC)."
  • FinCapDev 2014 Opens Call for Proposals - “Mobile technology has the potential to expand access to critical financial services and support, improving consumer financial health,” said Jennifer Tescher, President & CEO of the Center for Financial Services Innovation. “That’s what FinCapDev is all about: leveraging that potential and enabling innovators to build products for consumers who want and need better access to high-quality tools and information.”
  • Acculynk Gains Ground in Europe with Secure PIN-Based Authentication Patent Grant - "Acculynk, the first global PIN-debit authentication gateway, announced today that the European Patent Office granted Acculynk patent protection for the company’s propriety process for PIN based authentication over the Internet."

Updates from Glenbrook:

Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Do you have news to share? Tell us here: gotnews@paymentsnews.com!

October 04, 2013

Headline News from PaymentsNews.com - October 4, 2013

On Twitter:

On the web:

On the wires:

  • BitPay Adds 10 Languages and 150 Currencies to its Bitcoin Checkout - "Merchants servicing international customers can now present bitcoin payment instructions in the buyer’s native language, allowing merchants to more easily conduct business in emerging markets."
  • City National Bank to Introduce FIS Cardless Cash Access at ATMs - "The solution enables consumers to interact with the ATM from the privacy and security of their mobile devices, stage a transaction before stepping up to the ATM and then receive an eReceipt for the transaction on their devices, eliminating paper receipts."
  • Sterling Bank Launches Prepaid Card Products - "...with prepaid cards, cardholders do not take on debt as they would with credit cards, and they are not linked to a deposit account like debit cards, meaning no overdraft fees can occur. These cards simply hold a balance of funds loaded onto the cards by the cardholders until purchases draw them down to a zero balance, at which point the cards can be reloaded with funds."

Updates from Glenbrook:

  • Looking for consulting help from Glenbrook? Let us know your needs here - and we'll get right back to you!
  • Join us for our new series of Glenbrook Payments Boot Camps coming this October - 8th/9th in the San Francisco Bay Area and 23rd/24th in New York City!
  • Glenbrook's Allen Weinberg and Erin McCune will be at Money2020 in Las Vegas October 6-10 - please reach out to them directly to catch up in person or set up a briefing at the conference. Erin will be moderating an Invoicing, Billing & Collections panel with Bill.com CEO Rene Lacerte, Billtrust CEO Flint Lane and Billhighway Chairman Vince Thomas.
  • Glenbrook's Elizabeth McQuerry will be speaking at this year's NACHA Global Payments Forum on October 17-18 in New York City. She'll be speaking on the topic "Mobile Payments, Interoperability & Faster Funds Transfer".
  • Glenbrook's Carol Coye Benson will be speaking at this year's American Bankers Association Annual Convention on October 20-22 in New Orleans. She'll be participating in a panel discussion on The Future of the Payments Industry.
  • Join our mailing list for updates about Glenbrook events. Follow us on Twitter: @paymentsnews and @paymentsviews

Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated. Find something interesting to share? Tell us about it: gotnews@paymentsnews.com!

April 25, 2013

Headline News - April 25, 2013

On the web:

On the wires:

Note: Headline News is compiled by Glenbrook Partners. Throughout the day, as we spot interesting developments, this post is updated.

July 13, 2010

Payday Loans Are a Better Deal for Consumers Than Overdraft Fees

Consumers who are frequent users of overdraft (OD) fees at banks and credit unions could save money by bridging their cash gap with a 14- day payday advance loan, rather than paying checking account OD fees, according to a recent national study by Moebs Services.

“The average amount overdrawn on checking accounts by about 70% of consumers, according to the General Accounting Office and the FDIC, is less than $100,” said Michael Moebs, economist and CEO of Moebs $ervices. “Consumers who use a payday advance loan for $100 or less will pay an average of $17.97, which is 33 percent less than the $27.01 it costs for an overdraft of that same amount from a checking account,” he explained.
READ MORE »

December 14, 2009

Convenience is Trump

One of Glenbrook's rules about innovating in payments is that "convenience is trump" when it comes to consumer adoption.

Reading Nicole Sturgill's post titled "The Underbanked – Are we making cross-selling efforts or are they just not working?" on the Counting on Currency blog this morning about the FDIC's recently issued report on the Un/Underbanked brings this into focus again:

"The #1 reason the underbanked participants cited was that it was easier to get a payday loan or borrow from a pawn shop than it was to get a bank loan."

December 23, 2008

The Effects of Restricting Consumer Credit Access

The Payment Cards Center of the Federal Reserve Bank of Philadelphia has published a new paper titled "Restricting Consumer Credit Access: Household Survey Evidence on Effects Around the Oregon Rate Cap" icon_PDF_small.gif by Jonathan Zinman of Dartmouth College. READ MORE »

November 09, 2008

Check Cashing, Pay Day Loans and Banks

In a very interesting article titled "Check Cashers, Redeemed", Douglas McGray writes for the New York Times Sunday Magazine about check cashers, pay day loans and banks.

McCray writes that about how the combined collection of check cashers and pay day lenders have "more outlets, in total, than all the McDonald’s restaurants in the United States plus all the Starbucks coffee shops. Inside, it’s like banking turned upside down. Poor customers are commodities, deposits are irrelevant, bad credit makes for a good loan candidate and recessions can be boom times."

In particular, he looks at Nix Check Cashing, a southern California-based company that was acquired last year for $45 million by one of the country’s largest credit unions, Kinecta.

July 01, 2008

CFSI Releases New Research on Small-Dollar, Short-Term Credit

The Center for Financial Services Innovation has released a new paper titled “A Fundamental Need: Small-Dollar, Short-Term Credit” by CFSI’s Michael J. Herrmann and Jennifer Tescher that explores "recent trends in small-dollar value, short-term credit, placing it within the context of the longstanding demand for these loans and the successes and failures of those who have provided them. Regulatory pressure and market changes are spurring private-sector innovation in this market niche. Herrmann and Tescher identify factors that are likely to lead to success in developing and delivering new products that are profitable for the provider and fair to the consumer."

June 10, 2008

Annals of Money and Morals

In his column today titled "The Great Seduction", New York Times columnist David Brooks writes about how, in his view, the US has moved from "industrious, ambitious, and frugal" to "financial decadence, the trampling of decent norms about how to use and harness money." He's stimulated by a recent report titled "For a New Thrift: Confronting the Debt Culture" from the Institute for American Values - a summary of which is available online in this article titled "A Nation in Debt" by Barbara Dafoe Whitehead.

June 09, 2008

NetSpend, QC Financial Enter Agreement for Prepaid Debit Cards

NetSpend has announced an agreement with QC Financial, provider of payday loans, for a prepaid debit card program. READ MORE »

May 07, 2008

Pew to Promote Fair Bank Account Standards For 'Underserved'

The Pew Charitable Trusts have announced a new project aimed at 'helping America's workers underserved by mainstream financial institutions secure access to safe, affordable, fair, and empowering bank accounts. The Pew Safe Banking Opportunities Project, a two-year $2.1 million initiative, will develop and promote standards for bank accounts so that moderate- and low-income households that are new to or have been left out of the mainstream banking system are less likely to have to rely on overly expensive, income-stripping financial products.' READ MORE »

April 03, 2008

A Look at Consumer Debt

Research analyst Kristie M. Engemann and economist Michael T. Owyang of the Federal Reserve Bank of St. Louis have published an article in the April issue of The Regional Economist titled "Extra Credit: The Rise of Short-term Liabilities".

READ MORE »

January 24, 2008

Beyond Payday Loans

In today's Wall St. Journal, former president Bill Clinton and California governor Arnold Schwarzenegger have an op-ed piece titled "Beyond Payday Loans" - where they write about efforts they're backing to help reduce the $8 billion spent on check cashing services, payday loans, etc. They write: "Here is one initiative that can unite progressives and conservatives as well as business leaders and community activists: helping the "unbanked" enter the financial mainstream by opening checking and savings accounts, and working collaboratively with financial institutions and community groups to develop and market products that work for this untapped market."

July 31, 2007

January 24, 2007

Defining and Detecting Predatory Lending

Donald P. Morgan of the Federal Reserve Bank of New York has published a staff report titled "Defining and Detecting Predatory Lending" (PDF). From the abstract: "We find that in states with higher payday loan limits, less educated households and households with uncertain income are less likely to be denied credit, but are not more likely to miss a debt payment. Absent higher delinquency, the extra credit from payday lenders does not fit our definition of predatory. Nevertheless, it is expensive."

November 30, 2006

Payday Lenders React To Criticisms

The Community Financial Services Association of America (CFSA), a national trade group of responsible payday
advance companies, has issued a press release "dismissing a report by the Center for Responsible Lending (CRL) as misleading and lacking perspective."

READ MORE »

August 15, 2006

Concerns About Grocery Credit Card

Nichole Monroe Bell writes for the Charlotte Observer about some concerns being raised about a new grocery credit card called BonusPay that was introduced in all South Carolina Bi-Lo grocery stores last week. The card is issued by Purpose Solutions, a subsidiary of CompuCredit, and the First Bank of Delaware. According to Bell, "with BonusPay, shoppers are given a credit line of $50 to $200 and are charged $3 or $5 each time they use the card at the checkout, plus $4.99 for each month they use the card. The balance and fees are deducted from their checking account when they get their paychecks."

June 20, 2006

The High Cost Of Being Poor

On Sunday, the Buffalo News ran the first story in a four part series by staff reporters Rob Watson and Jonathan Epstein about the "high cost of being poor." The story introduction commented "every day, the working poor face a kind of Alice-in-Wonderland reality where those who can afford the least pay the most." A must read.

March 18, 2006

The High Cost Of A Low Income

The Institute for Public Administration at the University of Delaware yesterday held a conference titled "The High Cost Of A Low Income" to explore financial services in under-served markets.

READ MORE »

February 07, 2006

Courting The Cash-Strapped

Gail Liberman and Alan Levine report for MarketWatch.com on so-called "bank alternatives" including payday loan companies seeking to target the financial strapped middle class.

READ MORE »

February 05, 2006

Payday Loans in Virginia

Jay Speer, acting director of the Virginia Poverty Law Center, writes an op-end piece for the Daily Press in Hampton Roads, VA about the rapid growth in payday loans in that state and reform he wants to see to address the problems he sees.

READ MORE »

December 23, 2005

North Carolina Rules Against Payday Lending

Binyamin Appelbaum reports for the Charlotte Observer on a ruling yesterday by the North Carolina banking regulators that payday lender Advance America violated state law by charging excessive interest rates on short-term loans.

READ MORE »

December 11, 2005

South Dakota: A Haven For Fast Credit

images-6.jpgThe Sioux Falls (SD) Argus Leader reports on the consumer lending business in South Dakota - where the industry is relatively "loosely regulated" and where payday lending is booming.

READ MORE »

March 20, 2005

Military Combating Payday Lenders

Anita Powell of the Cox News Service writes in the Philadelphia Inquirer about initiatives to help troops avoid compounding their debt.

Since last year, officials with Army Emergency Relief, a private nonprofit organization, have been working on a new national program called Commanders Referral that will debut at Fort Hood this year. The program, which offers soldiers two no-interest $500 loans a year, is an attempt to undercut the aggressive payday-loan business, military officials said.

January 11, 2004

Payday Loans - Forever in Debt

Kathy Kristof reports in this morning's Los Angeles Times on payday lenders.

The payday lending industry, virtually nonexistent a decade ago, accounts for roughly $25 billion annually in loans, according to a recent study. More than 90% of payday loans are made to repeat borrowers such as Monti, whose short-term cash crisis was only worsened by the quick fix.

The article goes on to say:

The typical annual effective percentage rates on payday loans range from 391% to 443%, according to a study (PDF) released last month by the Center for Responsible Lending. Payday lenders get around state usury laws by characterizing the cost as a fee rather than an interest rate.

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