Arcot supports MasterCard to lower cost, increase convenience of securing e-banking and e-commerce
SUNNYVALE, Calif., - Arcot announced a new EMV authentication solution for cardholders to authenticate "Card Not Present" transactions using their mobile phones. This new solution -- ArcotOTP -- lowers the cost of providing EMV authentication and increases the convenience for cardholders on the go.
(Logo: http://www.newscom.com/cgi-bin/prnh/20100113/LA36872LOGO)
ArcotOTP can be used by the hundreds of millions of EMV cardholders and allows them to use their mobile phones to secure e-banking, e-commerce, telephone orders or a whole host of other transactions where the customer is not face-to-face with the bank or merchant. The new ArcotOTP mobile application, combined with the Chip Authentication Program (CAP) solution from MasterCard, increases security, reduces the risk of fraud and makes it easy for cardholders to shop or bank online no matter where they are in the world.
The ArcotOTP mobile solution extends the range of devices available for MasterCard CAP authentication and provides customers with the ability to authenticate with an application that runs on their mobile phones. Because ArcotOTP is compliant with MasterCard CAP, it can be used in conjunction with other EMV authentication devices. For instance, a consumer may authenticate with a personal card reader at home but use the mobile ArcotOTP while on the go.
Now that an EMV authentication solution is available on a mobile phone, cardholders do not have to carry an extra hardware device to authenticate their e-banking or e-commerce transactions. With this latest solution from Arcot, the mobile phone can be used in place of the card reader to generate the single-use password, making it convenient for commuting or traveling.
The Chip Authentication Program (CAP) solution from MasterCard allows cardholders to authenticate themselves using their existing EMV banking cards and a personal card reader or the ArcotOTP mobile application issued by their banks. The reader or ArcotOTP application generates a single-use password that can be used for "Card Not Present" transactions. Unlike a standard authentication token or paper-based system, CAP allows part of the transaction data to be included in generation of the password – resulting in a unique signature for each cardholder transaction which is a major leap forward in the prevention of man-in-the-middle attacks, a growing problem in e-banking and e-commerce.
"Arcot's goal is to provide solutions that make it easy for businesses and consumers to reduce fraud. Our latest offering, ArcotOTP, is a breakthrough in convenience. Cardholders can now use their mobile phones with MasterCard CAP to protect themselves when shopping or banking online. Financial institutions can deploy this protection to more customers without having to issue cumbersome card readers that can be lost or broken resulting in additional cost," said Ram Varadarajan, President and CEO of Arcot Systems, Inc. "Arcot has a long history of partnering with MasterCard to provide increased security in 'Card Not Present' transactions."
With its patented "cryptographic camouflage" key-concealment technology, Arcot has created a way to provide protection for "Card Not Present" transactions on the mobile phone while remaining fully compatible with the existing EMV infrastructure.
"Innovative partners such as Arcot play a key role in achieving MasterCard's vision of secure, convenient commerce and banking available on PCs and mobile phones," said Art Kranzley, chief emerging technology officer, Advanced Technology, MasterCard Worldwide. "The ArcotOTP mobile authentication application allows us to expand the choices available to our customers for protecting online financial transactions from internet theft and fraud. This application also increases the value that EMV brings to merchants, financial institutions and consumers worldwide."
ArcotOTP is available immediately and works on the world's leading mobile platforms including Apple iPhone, BlackBerry RIM, Google Android and Windows Mobile. The ArcotOTP solution also works on most Nokia phones, and with most feature phones by Samsung, LG, Motorola and Sony Ericsson that are equipped with Java, MIDP 2.0 and CLDC 1.1.
About MasterCard Worldwide
MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes approximately 21 billion transactions each year, and provides industry-leading analysis and consulting services to financial-institution customers and merchants. Powered by the MasterCard Worldwide Network and through its family of brands, including MasterCard®, Maestro® and Cirrus®, MasterCard serves consumers and businesses in more than 210 countries and territories. For more information, go to www.mastercard.com.
About Arcot
Arcot is the Cloud Authentication Leader. Our solutions make Web transactions and online access safe for over 70 million consumer, enterprise, and e-Commerce users. Organizations can transparently protect their users from fraud without requiring expensive hardware. Arcot fraud prevention, strong authentication, and e-Document security solutions can be deployed with software-as-a-service (SaaS), internal or mobile applications delivering the right balance of cost, convenience and strength. Arcot SaaS offerings are hosted in our SAS 70 certified, PCI DSS-Compliant Data Center. For more information, go to www.arcot.com.
SOURCE Arcot RELATED LINKS
http://www.arcot.com
http://www.mastercard.com
Friday, January 15, 2010
2009 Holiday Results: Retailers See Digital Gift Card Sales Surge as Consumers Look for Last Minute Gifts
Christmas Eve Top Selling Day of the Entire Year for Online Gift Cards
PORTLAND, Maine--(BUSINESS WIRE)--CashStar, the digital gifting and incentives platform company, today shared online gift card sales trends from the 2009 holiday season. Based on aggregated data from tens of thousands of customers making millions of dollars worth of purchases across CashStar’s digital gifting and incentives platform, online gift cards proved to be a profitable last minute sales tool for retailers. In fact, Christmas Eve was the highest selling day of the year, with an eye-catching 39 percent being purchased after 6pm Eastern.
Online gift card sales increased more than twelve-fold (1129 percent) between Black Friday (November 27) and Christmas Eve. Sales increased 682 percent between the first week of December and Christmas Eve, and December 18 through Christmas Day represented the top eight sales days of the year, with a combined 40 percent of the sales for the year.
“The Container Store introduced eGift Cards just in time for the 2009 holiday season,” said Margery Hurlbut, customer solutions director at The Container Store. “We were thrilled to see a tremendous spike in gift card sales during the week leading up to Christmas because customers could have the eGift Cards e-mailed immediately. That week, historically, has been a valley for online sales of traditional gift cards due to shipping deadlines. It was definitely a great solution for the last minute holiday shoppers.”
Other Notable Statistics from 2009 Holiday Season
- Cyber Monday: Of those consumers who purchased online gift cards on Cyber Monday, 15 percent chose to send the card at a later date
- Top Selling Hours: The most active selling times were consistent throughout the year: Noon Eastern was the highest selling hour of the day with 8 percent of daily sales; the highest number of transactions occurred between 11am – 5pm (44 percent of sales)
- Face Value: For the week of Christmas, the average face value of CashStar gift cards was 69 percent higher than the industry average for specialty retail gift cards and 151 percent higher for general gift cards (compared to sales info provided by First Data). This trend represents a demographic of affluent, Internet-savvy female buyers in the 31-50+ age range, who are more likely to purchase digital gift cards
- Future Send: Nearly one in five purchasers (18 percent) opted to send online gift cards at a later date
- Personalization: CashStar retailers offer shoppers the most enhanced gifting experience available online. This year, more than 97 percent of all CashStar-powered gift cards carried a personalized message attached. And, on average, more than one in ten consumers uploaded their own photo or image as their gift card design for an increased level of personalization
About CashStar, Inc.
CashStar is the leading digital gifting and incentives company. Its powerful e-gifting, marketing and promotions platform helps leading brands increase online and in-store traffic and improve lift. CashStar makes it possible for businesses and consumers to securely e-mail monetary value such as eGift cards, rewards, incentives and rebates. The Company offers the market’s strongest dynamic, customizable messaging system, enabling consumers and marketers to deliver the most personal gifting experience online. Leveraging its exclusive affiliation with Coupons, Inc., the leading global solutions provider of consumer print-at-home coupons, CashStar offers its partner brands unparalleled online reach for promoting their unique eGift Card offerings. CashStar’s roster of clients now includes leading retail brands including The Home Depot, The Container Store, CVS, Brinker International Restaurants, Papa John’s and Travelocity. For more information about CashStar, please visit www.cashstar.com or e-mail info@cashstar.com.
Emergency Relief for Haiti: Members of Electronic Payments Coalition Pledge to Help
WASHINGTON, /PIN Debit Blog/ -- The sixty member companies of the Electronic Payments Coalition share the sorrow and shock of the worldwide community over the devastating earthquake in Haiti. Our thoughts are with the victims, their families, and the thousands of aid workers who have traveled to Haiti to help with recovery.
All of the members of the EPC are making efforts to provide assistance to the relief effort, from waiving the cost of online donations made with debit and credit cards, to making cash donations to the Red Cross and other charitable organizations, to matching employee donations.
We hope that these efforts help to bring immediate aid to the groups that can use them most effectively, as they work to provide some measure of relief to the victims and their families.
About Electronic Payments Coalition
The Electronic Payments Coalition is dedicated to protecting consumer value, choice, and competition in electronic payments systems. The coalition is a broad-based group of payment card networks, financial services companies, and financial services trade associations whose primary goal is to educate policy-makers, consumers, and the media about the value of electronic payments systems — including economic growth, convenience, speed, reliability, and security — and to ensure the continued growth of global commerce by promoting consumer choice and the stability of the vast payment networks that connect millions of consumers with millions of retailers each and every day.
SOURCE Electronic Payments Coalition RELATED LINKS
http://www.electronicpaymentscoalition.org
For the Record: Amex Completes Revolution Acquisition
(AFP) – 2 hours ago
WASHINGTON — American Express said Friday it had completed its acquisition of Revolution Money, a Web payments firm started in 2005 by Internet firm AOL founder Steve Case.
With the 300 million dollar acquisition, AmEx is taking aim at the growing market for online and alternative payments, in a challenge to recognized leader PayPal, according to analysts.
AmEx is believed to be interested in the so-called peer-to-peer services of Revolution, which enable low-cost money transfers among individuals and businesses.
PayPal, a unit of eBay, has been able to dominate in this area but others such as Google Checkout have struggled, say analysts.
Revolution Money issues cards without the use of names or account numbers, with transactions authorized using a personal code. It provides person-to-person payment accounts that can be used on social and instant-messaging networks as well as prepaid cards.
Florida-based Revolution Money sprung from the venture capital group led by Case, with the mission "to drive transformative change by shifting power to consumers," according to the group.
RBS WorldPay Introduces payUSAtax
payUSAtax(TM) Provides Last Minute IRS Estimated Tax Payments with a Credit Card at the Lowest Cost Ever Offered
With Estimated Taxes due on January 15th, RBS WorldPay, an IRS Authorized Payment Service Provider, offers taxpayers the only credit card tax payment service with a convenience fee rate less than 2%
ATLANTA, Jan. 13 /PRNewswire/ -- RBS WorldPay is offering federal taxpayers, who have a quarterly estimated tax payment, several low cost and convenient last minute electronic tax payment options prior to this quarter's January 15, 2010 tax deadline. Taxpayers can make secure federal tax payments 24 hours a day, seven days a week online at www.payUSAtax.com, or by calling RBS WorldPay's touch-tone phone system at 1-888-9-PAY-TAX (1-888-972-9829). Through the RBS WorldPay tax payment services, taxpayers can make quarterly estimated tax payments to the IRS with their MasterCard® and Discover® credit and debit cards as well as other payment methods for only 1.95% of their tax liability amount. In addition, taxpayers can also pay with a VISA®, STAR®, NYCE® or Pulse® debit card for a fixed convenience fee of only $3.89.
In addition to IRS Estimated Taxes (Form 1040ES), taxpayers can also process the following Personal and Business tax types at the new lower credit card convenience fee rate of 1.95%:
Federal Personal Tax Payments
- Form 1040 Series (including Prior Year payments)
- Installment Agreement Payments
- Form 4868 (Tax Extension)
- Trust Fund Recovery Penalty
- Form 1040X (Amended Tax Returns)
- Form 5329 - Additional Taxes on Qualified Plans and Other Tax-Favored Accounts (Return for Individual Retirement Arrangement Taxes)
Federal Business Tax Payments
- Form 940 Series - Employer's Annual Federal Unemployment Tax Return
- Form 941 Series - Employer's Quarterly Federal Tax Return
- Form 943 Series - Employer's Annual Federal Tax Return for Agricultural Employees
- Form 944 Series - Employer's Annual Federal Tax Return
- Form 945 Series - Annual Return of Withheld Federal Income Tax
- Form 1065 - U.S. Return of Partnership Income
- Form 1041 - U.S. Income Tax Return for Estates and Trusts
For more information visit www.payUSAtax.com.
About Value Payment Systems
Value Payment Systems provides electronic payment products and services to various industries including government and property management. Value Payment Systems' comprehensive e-payment services encompass a wide array of payment channels including the Internet as well as emerging payment methods such as Bill Me Later. For more information, visit www.valuepaymentsystems.com.
About RBS WorldPay, Inc.
RBS WorldPay is a leading, single-source provider of electronic payment processing services – including credit, debit, EBT, checks, gift cards, e-commerce, customer loyalty cards, fleet cards, ATM processing and cash management services.
RBS WorldPay is the US-based payment processing division of the Royal Bank of Scotland Group plc. For more information, please visit www.RBSWorldPay.us.
About The Royal Bank of Scotland Group (RBS)
The RBS Group is a financial services company providing a range of retail and corporate banking, financial markets, consumer finance, insurance, and wealth management services. The RBS Group operates in the Americas, Asia and the Middle East serving more than 40 million customers. For more information, please visit www.RBS.com.
AmEx Donates $250K, Waives Discount Rate for Haiti Relief
New York, Jan. -PIN Debit Blog- In response to the devastation caused by Tuesday's massive earthquake in Haiti, American Express Company today announced that it will donate $250,000 to assist the following organizations with their relief efforts: the American Red Cross, Doctors Without Borders, International Rescue Committee and the United Nations' Friends of the World Food program. American Express will also match employee donations for relief efforts.
In addition, American Express will rebate the merchant discount rate for charitable contributions made on the American Express Card directly to any of the non-profit organizations listed on the USAID website in support of Haiti relief. The rebate is effective retroactively from January 12 through February 28, 2010.
American Express Company (www.americanexpress.com ) is a leading global payments, network and travel company founded in 1850.
Source: Company press release.
HomeATM Headline News through January 15th
Google and PayPal to Drop Maestro Support
Moovin On Up (blog) In a recent email sent out to all customers who use PayPal to process orders PayPal have announced that they will no longer be accepting Maestro for certain
CompSource Chooses Mazooma Debit-Based Payment Solution
Earthtimes (press release) Cardinal Centinel® enables payment brands such as Verified by Visa, MasterCard® SecureCode(TM), PayPal(TM), Bill Me Later®, Mazooma(TM),
Google Pulling Out of China? Don't Bet On It
PC World In June 2008, state-owned China Mobile, the world's largest mobile phone service provider, reported it had just over 600 million phone subscribers--a report
Fraud prevention is crucial
Illawara Mercury (blog) Despite the recent spate of card skimming in the northern suburbs of Wollongong, the rate of credit card fraud in Australia has been statistically low
Gartner forecasts mobile web access will surpass PCs by 2013
Mobile phones will overtake PCs as the dominant web access device worldwide by 2013 according to a new forecast issued by research firm Gartner. Based on Gartner's PC installed base forecast, the total number of PCs in use should top 1.78 billion units in 2013--by that time, the combined installed base of smartphones and browser-equipped enhanced phones is expected to exceed 1.82 billion units, and the gap will continue to grow in the years to follow. Gartner adds that mobile web users are typically prepared to make fewer clicks on a website than PC users, contending that most websites not yet optimized for smaller device screens will need to be rebuilt and their content reformatted. Looking even further ahead, Gartner anticipates that by 2015, context will be as critical to mobile consumer services and relationships as search engines are to the traditional web. Gartner argues that context will provide the key to delivering hyper-personalized experiences across smartphones in the same way search enables web users to organize information and services, adding context will center on observing patterns, particularly location, presence and social interactions. Gartner also notes that while search is predicated on pulling information from the web, context-enriched services will typically prepopulate or push information to users.
ProPay to Host 2010 Data Security Summit
Business Wire (press release) “The payment industry is under constant attack, and sensitive payment data continues to fall into the hands of hackers,” said Gary Goodrich, CEO of ProPay
New Entrants Attacking the Financial Industry
In a post titled "Is the Internet Finally Robbing the Greedy Financier’s Gravy Train?", Sarah Lacy writes for TechCrunch about the many traditional industries the Internet has wrecked - and how she sees the recent activities among startups (and acquisitions) indicative of a new trend - companies that are "finally aligning interests between the finance professionals and the users." Lacy goes on to note that "finance has been so anti-innovation and so anti-consumer for so long, these companies don’t have to be perfect to be huge."
Secure Remote Payment Council Announces Formation
The Secure Remote Payment Council, (SRPc) held its formation meeting and inaugural Board of Directors meeting in Dallas in December to install its Board, elect officers and set its 2010 agenda. The SRPc says it is "dedicated to the growth, development and market adoption of secure eCommerce and mobile payment methods."
Security firm outlines how attack against Google was pulled off
San Jose Mercury News However, if you do use cloud computing you should make sure your provider is using industry standard processes and solutions to automate and secure their
Card Industry Has a Compelling Case for Data Encryption, Report Says
End-to-end encryption of cardholder account data during the transaction process is an imperfect solution to payment card fraud, but it’s the most practical out there now for the U.S., a new report about fraud management from Aite Group LLC... http://www.digitaltransactions.net/newsstory.cfm?newsid=2420
Mobile commerce services 'will make wallets obsolete'
Velti News Mobile commerce services will begin to replace cash transactions and credit card payments over the next year, according to a new report. ...
JPMorgan Chase Reaches Out to Aid Victims of Haitian Earthquake
NEW YORK--PIN Debit Blog--Following a devastating earthquake in Haiti this week that resulted in yet untold casualties and severe infrastructure damage, JPMorgan Chase announced today that it would commit $1 million to the relief and recovery of the country and encourage employees to contribute to the rescue efforts.
“This is an extremely serious situation. We currently have 133 personnel on the ground in Haiti and are deploying additional staff immediately to distribute food, hygiene kits and water, as well as to deliver emergency health services”
“Our deepest sympathies go out to the people of Haiti,” said JPMorgan Chase CEO and Chairman Jamie Dimon, who offered his condolences and the bank’s support to Haitian Ambassador Raymond Joseph yesterday. “JPMorgan Chase is offering our support today because a quick response following a disaster like this is critical to saving lives. The American Red Cross, CARE and World Vision are trusted organizations that are on the ground now and will be there to support Haiti as they work through the aftermath.”
JPMorgan Chase will provide a total of $250,000 for urgent relief care from humanitarian aid organizations The American Red Cross and CARE. This will assist with efforts such as setting up temporary shelters, offering medical assistance, helping with sanitation and handling the most pressing issues immediately following the disaster.
The bank will donate an additional $500,000 for future recovery and rebuilding efforts, split between CARE, The American Red Cross and aid organization World Vision. Exact allocations will be determined in the coming weeks following a full assessment of the earthquake’s damage and the country’s needs.
The bank also will encourage its more than 220,000 employees to contribute to the relief efforts, matching up to a total of $250,000 of employee contributions made to The American Red Cross or CARE via a special employee donation website. Contributions eligible for the match must be made via the website.
“The American Red Cross is rushing supplies and disaster management staff to Haiti in the aftermath of this earthquake, and the generous contribution of JPMorgan Chase is critical to our ability to provide help and hope for people during their time of need,” said Gail McGovern, President and CEO of the American Red Cross. “We are grateful for this support of our humanitarian mission.”
“This is an extremely serious situation. We currently have 133 personnel on the ground in Haiti and are deploying additional staff immediately to distribute food, hygiene kits and water, as well as to deliver emergency health services,” said Helene Gayle, President and CEO of CARE USA. “We are extremely grateful to JP Morgan Chase for this tangible expression of concern for the people of Haiti in this time of dire need.”
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
Contacts
JPMorgan Chase & Co.
Jennifer R. Zuccarelli, 212-270-7433
jennifer.r.zuccarelli@jpmchase.com
American Airlines Expands Cashless Cabins to All Flights
FORT WORTH, Texas, Jan. 14 /PRNewswire-FirstCall/ -- Effective Feb. 1, American Airlines, a founding member of the global oneworld® Alliance, will be cashless onboard all flights. American will accept Citi® / AAdvantage® MasterCard, as well as other major credit and debit cards, for purchases made inflight. Cash will not be accepted.
In an effort to streamline the inflight sales process, American first implemented cashless cabins on flights within the continental United States, as well as flights to and from Hawaii, Alaska, and Canada in June 2009.
"The implementation of cashless cabins on select flights last summer has simplified the inflight transaction process for both customers and flight attendants," said Lauri Curtis, American's Vice President – Onboard Service. "For this reason, we look forward to going cashless onboard all American Airlines flights on Feb. 1."
Flight attendants utilize a hand-held Onboard Sales Recorder, devices American has used since May 2006, to charge credit and debit cards, eliminating the need to search for small bills or change. Receipts are provided to passengers upon request.
American Eagle and AmericanConnection flights will continue to accept only cash for onboard purchases.
About American Airlines
American Airlines, American Eagle and AmericanConnection® serve 250 cities in 40 countries with, on average, more than 3,400 daily flights. The combined network fleet numbers more than 900 aircraft. American's award-winning Web site, AA.com®, provides users with easy access to check and book fares, plus personalized news, information and travel offers. American Airlines is a founding member of the oneworld® Alliance, which brings together some of the best and biggest names in the airline business, enabling them to offer their customers more services and benefits than any airline can provide on its own. Together, its members serve nearly 700 destinations in more than 130 countries and territories. American Airlines, Inc. and American Eagle Airlines, Inc. are subsidiaries of AMR Corporation. AmericanAirlines, American Eagle, AmericanConnection, AA.com, We know why you fly and AAdvantage are registered trademarks of American Airlines, Inc. ( AMR)
AmericanAirlines® We know why you fly®
Current AMR Corp. releases can be accessed on the Internet.
The address is http://www.aa.com
SOURCE American Airlines RELATED LINKS
http://www.aa.com
NFL Supreme Court Case Should Worry Bankcard Networks
Gerson Lehman Group published an analysis of a recent NYTimes post. The analysis points out "antitrust" analogies between the NFL and V/MC, and how the Supreme Court ruling may effect both... Summary
The issue yesterday before the US Supreme Court was whether the National Football League should be treated as a "single entity" for antitrust purposes. The outcome would determine how far a joint venture like the NFL can go in limiting member business practices, e.g., via exclusive dealing arrangements. Prior to their IPOs, Visa and MasterCard were JVs that set interchange pricing that has been challenged in an antitrust lawsuit.
Analysis
If the NFL prevails, it will strengthen the hands of Visa & MasterCard against their merchants' multi-billion dollar lawsuit.. The latter will argue that they, too, were (and perhaps still are) single entity joint ventures that deserve similar rights to set various prices, limit membership, restrict merchants discrimination, etc.
If the NFL loses, Visa's and MasterCard's liabilities could increase, depending on the decision the Supreme Court adopts. If it is narrowed to cover only the unique facts related to the NFL and similar sports leagues, it probably won't help either side in the card case. But if it comments in any way (expansively or narrowly) on the limitations on JV pricing, it could prove explosive.
In an editorial two days ago, the NY Times urged the Court to rule against the NFL, in part on the hope that its defeat would open the door for further setbacks against the bankcard industry.
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
If the NFL loses, Visa's and MasterCard's liabilities could increase, depending on the decision the Supreme Court adopts. If it is narrowed to cover only the unique facts related to the NFL and similar sports leagues, it probably won't help either side in the card case. But if it comments in any way (expansively or narrowly) on the limitations on JV pricing, it could prove explosive.
In an editorial two days ago, the NY Times urged the Court to rule against the NFL, in part on the hope that its defeat would open the door for further setbacks against the bankcard industry.
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
Duncan MacDonald consults with leading institutions through GLG
MasterCard Worldwide Waives Fees on Donations to Haitian Aid Efforts
PURCHASE, N.Y., Jan. 14 /PRNewswire/ -- MasterCard Worldwide announced today that it will waive interchange fees on Haitian relief donations that are made using U.S. issued MasterCard cards to the following organizations: The American Red Cross, AmeriCares, UNICEF, Save the Children and CARE USA. "Americans are opening their hearts to help the victims of this terrible tragedy, and we want to ensure that their contributions go as far as possible," said Chris McWilton, president, U.S. Markets, MasterCard Worldwide.
In addition, MasterCard has also made a corporate donation to the American Red Cross and is double-matching employee contributions to the Haitian disaster relief fund of the American Red Cross.
About MasterCard Worldwide
MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes approximately 21 billion transactions each year, and provides industry-leading analysis and consulting services to financial-institution customers and merchants. Powered by the MasterCard Worldwide Network and through its family of brands, including MasterCard®, Maestro® and Cirrus®, MasterCard serves consumers and businesses in more than 210 countries and territories. For more information go to www.mastercard.com. Follow us on Twitter:@mastercardnews.
SOURCE MasterCard Worldwide RELATED LINKS
http://www.mastercard.com
Visa Inc. Responds to Haitian Earthquake
As part of Visa's response, through the end of February, Visa will also donate revenues generated by charitable contributions to the crisis in Haiti directly to the American Red Cross.
In addition, Visa will waive interchange fees through the end of February on donations made to a select group of major, U.S.-based charities that are providing support to Haitian relief efforts. Eligible charities are:
- American Red Cross
- AmeriCares
- CARE USA
- Direct Relief International
- Habitat for Humanity
- International Rescue Committee
- Mercy Corps
- Oxfam America
- Save the Children
- US Fund for UNICEF
- World Vision
About Visa
Visa is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the world's most advanced processing networks—VisaNet—that is capable of handling more than 10,000 transactions a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank, and does not issue cards, extend credit or set rates and fees for consumers. Visa's innovations, however, enable its financial institution customers to offer consumers more choices: Pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit www.corporate.visa.com.
SOURCE Visa Inc. RELATED LINKS
http://www.corporate.visa.com
Citi Pledges $2 Million to Haiti Recovery Efforts
Citi CEO Vikram Pandit said: “Our thoughts and prayers are with the people of Haiti and the families and friends of Citi employees in Port-au-Prince. Citi has been operating in Haiti since 1971. Citi’s relief efforts will help aid organizations on the ground facilitate the preservation of life and the rebuilding of the country. I would also like to thank Citi employees in Haiti and from around the world who have been so generous in their efforts to help.”
The bank has partnered with the Pan American Development Foundation (PADF) for the past 20 years to keep pre-deployed supplies in warehouses in Miami which are released in disaster situations across Latin America and the Caribbean. Citi and PADF have today deployed supplies to Haiti.
The company has opened an appeal fund for employees to donate, provided details of partner organization relief funds for donations and are encouraging employees to help with volunteer efforts in their communities.
Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 140 countries. Through Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. Additional information may be found at www.citigroup.com or www.citi.com.
Oberthur Technologies Acquires Service Center in Colombia to Expand EMV Delivery Into Latin America
CHANTILLY, Virginia, January 14 /PRNewswire-FirstCall/ -- Oberthur Technologies, the world's second largest provider of smart card based solutions, has acquired the payment card personalization assets of Dyetron S.A., a provider of smart card-based technology solutions for the transportation, communications, government and financial sectors.
Oberthur Technologies and Dyetron formed a partnership in June of 2009, utilizing Dyetron's local presence and Oberthur's end-to-end common personalization system, to create a service center that could assist with Colombia's migration to EMV- which was scheduled to start at the first of this year. Oberthur is now leasing the Bogota-based, MasterCard and Visa certified service center. The service center, which will operate under the name Oberthur Technologies Ltda., offers seamless migration for local banks and easy EMV deployment for international banks with customers in Colombia.
"As a global provider of payment solutions, Oberthur Technologies is committed to the Colombian and South American payment markets," said Martin Ferenczi, Managing Director, Americas, Card Systems Division of Oberthur Technologies. "By leveraging our expertise in providing over 200 EMV migrations worldwide, we see this acquisition as a focused solution to meet the needs of our banking customers in Latin America."
Arturo Sesana, General Manager for Dyetron, has agreed to assist Oberthur Technologies during Colombia's EMV migration. "Oberthur Technologies will make the migration to EMV for local banks and credit unions an easy and painless one," Sesana said, adding "Oberthur Technologies is one of the first international companies investing in the future of Colombian payments market. Their experience will significantly help in EMV migration."
About Oberthur Technologies
With sales of 882 million Euros in 2008, Oberthur Technologies is a world leader in the field of secure technologies. Innovation and high quality services ensure Oberthur Technologies' strong positioning in its main target markets: - Card Systems: The world's second largest provider of security
and identification based on smart card technology and associated
services for mobile, payment, transport, digital TV and convergence
markets.
- Identity: Leading international supplier for the manufacture andpersonalization of secure identity documents such as passport, identity card, driving license or health care card - traditional and electronic - and associated services for both governmental and corporate markets.
- Security printing: World's third largest private security printer specialized in high security for the production of banknotes, checks and other fiduciary documents in more than fifty countries.
- Cash protection: World leader in the emerging market of intelligent systems to secure cash-in-transit and ATM.
Close to its customers, Oberthur Technologies benefits from an industrial and commercial presence across all five continents.
Website: http://www.oberthur.comSOURCE Oberthur Technologies
FSV Payment Systems Expands Management Team
FSV Payment Systems Expands Management Team, Appointing Stephen W. Reesing CFO and Naming Matthew P. Frye Chief Commercial Services Executive
Leadership Team of Prepaid Industry Veterans Expanded to Support Accelerating Growth
“I am delighted that Steve and Matt have decided to join FSV,” stated Jonathan Palmer, FSV’s President and CEO. “Steve brings a wealth of experience and insight to the CFO position, and Matt, similarly, brings many years of senior leadership experience in prepaid debit to his new executive position at our company, in which he’ll be responsible for leading our prepaid debit processing business.”
Reesing, a Texas native, served for over five years as CFO of Netspend Corporation, a leading prepaid debit provider. He will be based in FSV’s Jacksonville, Fla., office. Reesing is replacing Mark Brockelman, of Jacksonville, who is retiring. Frye, a current Texas resident, and most recently a senior executive with PreCash, will be based in FSV’s Houston headquarters.
About FSV Payment Systems
FSV Payment Systems is a leader in the delivery of prepaid debit program management and processing services. Founded in 1999, the privately held company successfully delivers prepaid card programs for payroll, rebates, loyalty and promotions and general-purpose reloadable cards for retail, gift and healthcare. FSV is headquartered in Houston, Texas, and operates a state-of-the-art client and cardholder service center in Jacksonville, Fla. For more information, visit www.fsvps.com.
JPMorgan Chase Reports Fourth-Quarter 2009 Net Income of $3.3 Billion
Full-Year 2009 Net Income of $11.7 Billion, or $2.26 Per Share, on Record Revenue1 of $108.6 Billion- Ranked #1 in Global Investment Banking Fees for full-year 2009
- Completed Washington Mutual integration and maintained solid growth in Retail Banking, opening more than 6 million new checking accounts in 2009
- Delivered solid fourth-quarter results in other businesses, including Asset Management and Commercial Banking
- Credit costs remained high: added $1.9 billion to consumer loan loss reserves, resulting in firmwide credit reserves of $32.5 billion and loan loss coverage ratio of 5.5%1
- Balance sheet strengthened further: Tier 1 Capital of $133.0 billion, or 11.1%, and Tier 1 Common1 of $105.3 billion, or 8.8% (estimated), at year-end
- Continued focus on sound lending and efforts to prevent foreclosures:
- Extended more than $600 billion in new credit during 2009 to consumers, corporations, small businesses, municipalities and non-profits (including more than 18 million card, home equity, mortgage, auto and education loans)
- Launched new initiative during the quarter to expand lending to small businesses by up to $4 billion in 2010; adding 325 small-business bankers and 100 middle- market bankers to support increased lending
- Extended offers to modify approximately 600,000 mortgages and approved 120,000 modifications during the year
Jamie Dimon, Chairman and Chief Executive Officer, commented on the results: “We are gratified that we generated earnings of $3.3 billion for the fourth quarter and nearly $12 billion for the year. Though these results showed improvement, we acknowledge that they fell short of both an adequate return on capital and the firm’s earnings potential. We benefited from the diversity of our leading franchises, as demonstrated by the continued earnings strength of our Investment Bank, Commercial Banking, Asset Management and Retail Banking franchises. We are proud that, throughout these tumultuous times, we never stopped investing in the fundamental growth drivers of our consumer businesses – such as checking and credit card accounts in our Retail Banking and Card Services franchises – and have developed new products and services to meet the needs of consumers and small businesses. While we are seeing some stability in delinquencies, consumer credit costs remain high, and weak employment and home prices persist. Accordingly, we remain cautious.”
Editor's Note: Neither their Retail Financial Services nor Card Services divisions had a good fourth quarter, losing $705 million when provisioning for credit losses...
RETAIL FINANCIAL SERVICES (RFS)
| Results for RFS | | | | | 3Q09 | | 4Q08 | |||||||
| ($ millions) | | 4Q09 | | 3Q09 | | 4Q08 | | $ O/(U) | | O/(U) % | | $ O/(U) | | O/(U) % |
| Net Revenue | | $7,669 | | $8,218 | | $8,684 | | ($549) | | (7)% | | ($1,015) | | (12)% |
| Provision for Credit Losses | | 4,229 | | 3,988 | | 3,576 | | 241 | | 6 | | 653 | | 18 |
| Noninterest Expense | | 4,302 | | 4,196 | | 4,046 | | 106 | | 3% | | 256 | | 6% |
| Net Income/(Loss) | | ($399) | | $7 | | $624 | | ($406) | | NM | | ($1,023) | | NM |
CARD SERVICES (CS)(*)
| Results for CS | | | | | 3Q09 | | 4Q08 | |||||||
| ($ millions) | | 4Q09 | | 3Q09 | | 4Q08 | | $ O/(U) | | O/(U) % | | $ O/(U) | | O/(U) % |
| Net Revenue | | $5,148 | | $5,159 | | $4,908 | | ($11) | | -% | | $240 | | 5% |
| Provision for Credit Losses | | 4,239 | | 4,967 | | 3,966 | | (728) | | (15) | | 273 | | 7 |
| Noninterest Expense | | 1,396 | | 1,306 | | 1,489 | | 90 | | 7 | | (93) | | (6) |
| Net Loss | | ($306) | | ($700) | | ($371) | | $394 | | 56% | | $65 | | 18% |
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