Friday, June 25, 2010

Interchange Limits to Cost Issuers at Least $5 Billion

American Banker  |  Friday, June 25, 2010


With Congress expected to approve the regulatory reform bill next week, including the much-debated interchange amendment, banks are bracing for a significant hit to their debit card revenue. While the ink is barely dry on what is now known as the Dodd-Frank Act and it's far from clear exactly how the Federal Reserve will adjust debit interchange fees, but bankers and analysts agree that the fees are all but certain to come down — and probably by a lot.  By some estimates, the interchange regulations cut vaporize more than $5 billion of banks' annual debit fee revenue just for banks that issue Visa Inc. and MasterCard Inc. cards.  "Revenue is going to drop like a brick," said Gary Jewell, an executive vice president of Carrollton Bank.


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PCI Council Grants an Extra Year to Implement New Versions of Standard

PCI Council Grants an Extra Year to Implement New Versions of Standard



Merchants, processors, and others in the card industry will have more time to review and implement new versions of the Payment Card Industry data-security standard under a new schedule announced on Tuesday by the PCI Security...

                 

http://www.digitaltransactions.net/newsstory.cfm?newsid=2562



Read the Press Release (PDF) below:

https://www.pcisecuritystandards.org/pdfs/pr_100622_lifecycle.pdf



HomeATM is PCI 2.1 PED Certified:  To learn more about PIN security read below:



PIN Transaction Security

To gain approval by PCI Security Standards Council, PIN transaction security must comply with the requirements and guidelines specified in the following documents. Vendors preferring to complete forms electronically should download the appropriate documents.



List of PCI SSC Approved PIN Transaction Security Devices



Payment Card Industry Resources
  • Testing and Approval Program Guide (PDF)

Security Requirements



Evaluation Vendor Questionnaires



FAQs



  • General Frequently Asked Questions (PDF)

  • Technical Frequently Asked Questions 2.0 (PDF)

For questions please contact, pcipts@pcisecuritystandards.org.


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Visa Is to Blame for Debit-Fee Cap Plan, Discover’s Nelms Says

By Peter Eichenbaum



June 24 (Bloomberg) -- Visa Inc., the world’s biggest payments network, is to blame for a U.S. Senate proposal that would cap fees merchants pay to accept debit cards, Discover Financial Services Chief Executive Officer David Nelms said.





“Visa has tremendous market power in this area, and that’s how we ended up here,” Nelms said in an interview today after Riverwoods, Illinois-based Discover posted second-quarter results. “Visa raised prices quite a bit and, I think, took the actions that have led to the legislation in the first place.” <<read more>>


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NRF Welcomes Conference Committee Approval of Debit Card Swipe Fee Fix

WASHINGTON--(BUSINESS WIRE)--The National Retail Federation today welcomed a House-Senate conference committee’s decision to include a fix for rapidly rising debit card swipe fees in the final version of financial services reform legislation approved early this morning.





“This bill will take us a lot closer to a dollar really being a dollar again.”
“The conference committee has struck a blow for small retailers and their customers,” NRF Senior Vice President and General Counsel Mallory Duncan said. “For years, these soaring fees have been taking billions of dollars out of consumers’ pockets and driving up prices. This is unsustainable. With this conference report in hand, Congress has an opportunity to stand up for Main Street businesses and consumers and rein in the greed of the big Wall Street banks and credit card companies.”
“If adopted by Congress and properly implemented by the Federal Reserve, this legislation will put an end to retailers being forced to accept ‘Visa dollars’ that are only worth 98 cents today and whatever Visa decides they’re worth tomorrow,” Duncan said. “This bill will take us a lot closer to a dollar really being a dollar again.”
A House-Senate conference committee negotiating over financial services reform legislation voted 27-16 this morning to approve its final version of the bill, setting the stage for a House vote excepted to take place on Tuesday and a Senate vote later next week.
The conference report includes an amendment sponsored by Senate Majority Whip Richard Durbin, D-Ill., that would require the Federal Reserve to set regulations resulting in “reasonable and proportional” swipe fees for debit cards. The Fed would be required to take into account banks’ actual costs for processing the transactions and the fact that paper checks drawn on the same accounts are paid at face value. The amendment would also make it easier for merchants to offer discounts or other benefits for customers who don’t use credit cards, and to set minimum purchase amounts for credit cards.
Swipe fees – officially known as interchange fees – are a percentage of the transaction charged by card company banks each time a card is swiped to pay for a purchase. The fees average between 1 and 2 percent for debit cards and 2 percent or more for credit cards. Overall swipe fees charged to retailers and other business by Visa and MasterCard banks totaled $48 billion in 2008 and resulted in higher prices estimated by NRF at $427 for the average household. Debit swipe fees alone amount to about $20 billion of the annual total.
As the world's largest retail trade association and the voice of retail worldwide, NRF's global membership includes retailers of all sizes, formats and channels of distribution as well as chain restaurants and industry partners from the United States and more than 45 countries abroad. In the United States, NRF represents the breadth and diversity of an industry with more than 1.6 million American companies that employ nearly 25 million workers and generated 2009 sales of $2.3 trillion. www.nrf.com

Contacts

National Retail Federation

J. Craig Shearman, 202-626-8134

shearmanc@nrf.com
Permalink: http://www.businesswire.com/news/home/20100625005779/en/NRF-Welcomes-Conference-Committee-Approval-Debit-Card

ePINDebit.com

Debit Fee Cap to Cost Issuers at Least $5 Billion Dollars

American Banker  |  Friday, June 25, 2010
With Congress expected to approve the regulatory reform bill next week, including the much-debated interchange amendment, banks are bracing for a significant hit to their debit card revenue. While the ink is barely dry on what is now known as the Dodd-Frank Act and it's far from clear exactly how the Federal Reserve will adjust debit interchange fees, but bankers and analysts agree that the fees are all but certain to come down — and probably by a lot.  By some estimates, the interchange regulations cut vaporize more than $5 billion of banks' annual debit fee revenue just for banks that issue Visa Inc. and MasterCard Inc. cards.  "Revenue is going to drop like a brick," said Gary Jewell, an executive vice president of Carrollton Bank.

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Read more: http://pindebit.blogspot.com/2010/06/interchange-limits-to-cost-issuers-at.html#ixzz0rtpIWzTH

ISOs’ Volume Shortfalls Trigger First Data Demands for Fees

Image representing First Data Corp as depicted...


Digital Transaction News:  



In a move that could have a bottom-line impact for an untold number of independent sales organizations, First Data Corp. is sending letters to client ISOs notifying them they owe fees to the Atlanta-based processing giant to compensate for shortfalls in processing volumes. While it’s not clear how many such letters First Data has sent, the notices are apparently aimed at ISOs whose volumes in 2009 fell short of minimum levels set by contract. The letters ask recipients to remit sums to First Data equal to the processing fees it would have earned on the shortfall.  <read more>>


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PYMNTS.com: You Can't Spell Payment Without an "E'



The title is a little confusing given the source, yes? They can spell it without any vowels whatsoever...  Nonetheless, that's not what got my attention.  It was the interview with MasterCard's President of U.S. Markets who opines on the future of e-payments.



















FEATURED INTERVIEW
MC LogoYou Can't Spell Payment Without an 'E'

Do we take for granted the convenience of electronic payments? Imagine mailing cash or check to Apple to purchase the latest Britney Spears album.


MasterCard's President of U.S. Markets weighs in on the future of e-payments.
Listen (T)here

ICBA Statement on Conclusion of House-Senate Conference on the Financial Reform Bill



ICBA News Release



ICBA Independent Community Bankers of America
Media ContactAleis Stokes

(202) 821-4457
Media Contact

Karen Tyson

(202) 821-4454
FOR IMMEDIATE RELEASE

ICBA Statement on Conclusion of House-Senate Conference on the Financial Reform Bill

Washington, D.C. (June 25, 2010)—Independent Community Bankers of America (ICBA) Chairman Jim MacPhee, CEO of Kalamazoo County State Bank in Schoolcraft, Mich., and Camden R. Fine, ICBA president and CEO, issued this statement today following the conclusion of the House-Senate Conference on the financial reform bill.
“Congress has nearly completed work on the most monumental financial regulatory overhaul legislation since the Great Depression. This financial and economic crisis has clearly demonstrated that reform of Wall Street is needed to safeguard our financial system, the nation’s taxpayers and our communities from a future catastrophe. ICBA has grave concerns with some sections of the final bill and opposed them throughout the process, but we are pleased that the bill also includes many other provisions that we have long advocated.

“While the bill could go further to restructure megafirms and hold nonbanks that were the root cause of this crisis accountable, it does include powerful language that will help rein in these culprits from their excessive size and risks they pose to our financial system. In particular, ICBA is pleased that Congress adopted a version of the Volcker Rule that will bar megabanks from propriety trading and investing in or sponsoring a hedge fund or private-equity fund. Ultimately, this will help prevent major financial firms from putting customers, taxpayers and the financial system at risk by conducting risky activities solely for their own profit.
“ICBA also appreciates that Congress recognizes the differences between Main Street community banks and Wall Street by ensuring megabanks pay their fair share for the risk they pose to the FDIC’s Deposit Insurance Fund (DIF), and ultimately our entire financial system. The change in the deposit insurance assessment base, which ICBA advocated, will save community banks roughly $4.5 billion over the next three years—capital that will be reinvested in the communities they serve. ICBA is pleased that other measures such as the permanent increase in the FDIC insurance limit to $250,000 and the extension of the Transaction Account Guarantee (TAG) program for an additional two years were also included in the bill. Many other sections of the bill recognize the value of a tiered regulatory system that differentiates between small and large banks. Additionally, ICBA is pleased that conferees modified an amendment that would have prevented all financial institutions from including trust-preferred securities in their Tier 1 capital. With the modification, bank holding companies with less than $15 billion in assets, and institutions organized as mutual holding companies, will be able to grandfather the TruPS they issued before May 19, 2010. These provisions will go a long way to help community banks continue to do what they do best—serve the needs of their local communities.
“However, ICBA is gravely disappointed that debit interchange language was included in the bill. This ‘compromise’ proposal will only compound the harm to consumers and Main Street by imposing new and onerous burdens on debit card issuers, and will fail in any way to adequately account for the significant operational costs and losses incurred by community banks due to fraud and merchant data breaches. Now is not the time to change a proven interchange system just so big-box merchants can reap higher profits and pass their costs of doing business on to America’s consumers. Consumers have already suffered enough thanks to this economic crisis that was triggered by too-big-to-fail.
“ICBA also continues to have serious concerns about a separate Consumer Financial Protection Bureau (CFPB). While we appreciate that community banks will have some exemptions from the proposed CFPB, we fought hard for further changes and are disappointed that further changes were not included in the legislation. Community banks have always viewed consumer protection as a cornerstone to their business model, so it makes sense that the CFPB focus on those too-big-to-fail and shadow institutions that were at the heart of the financial crisis.”


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PIN Debit News Blog Top Stories

With support of the bipartisan House-Senate Conference Committee, American consumers and small businesses clear another hurdle on the path towards commonsense swipe fee reformWASHINGTON, June 25 /PRNewswire-USNewswire/ --  Dennis Lane, single store 7-Eleven Franchise owner and national spokesman for Reform Swipe Fees NOW!, released the following statement regarding today's House-Senate Conference Committee decision to include...
POSTED BY JOHN B. FRANK
Retailers and customers secure important victory in financial reform debateARLINGTON, Va., June 25 /PRNewswire-USNewswire/ -- The Retail Industry Leaders Association (RILA) applauded the inclusion of language to reform the swipe fees charged to merchants by credit card companies and big banks, as part of the Wall Street regulatory reform legislation approved by a conference committee today.  The negotiated language will give...
POSTED BY JOHN B. FRANK
Russell Simmons also sells the Rush CardCINCINNATI, June 25 /PRNewswire/ -- There have been many stories in the press about how I had a 'victory' on Capitol Hill in relation to the "Durbin Amendment" that regulates debit cards.  Many of these articles, however well intentioned, missed the point and misstated key facts.  If there was a victory it was for the people who have been left out of the financial and healthcare...
POSTED BY JOHN B. FRANK
Research and Markets: Case Study: The Underground Economy of the Zeus Banking Trojan Horse DUBLIN--(BUSINESS WIRE)--Research and Markets has announced the addition of the "Case Study: The Underground Economy of the Zeus Banking Trojan Horse" report to their offering.“Case Study: The Underground Economy of the Zeus Banking Trojan Horse”The banking Trojan horse ZeuS is one of todays biggest threats towards online banking. Being used...
POSTED BY JOHN B. FRANK
  Friday, June 25 2010, is the last day to register at a discount for the 4th Airline & Travel Payments Summit, Co-Hosted by UATP. ATPS is the only event to bring together the Payments Industry with the Airline/Travel Industry to discuss how to best cut payment and fraud-related costs and improve the bottom-line profits of travel & hospitality providers. With payment & fraud costs accounting for as much...
POSTED BY JOHN B. FRANK THURSDAY, JUNE 24, 2010
Constantine and Cannon's Antitrust Today Blog posted an article on the Debit Legislation which leaves them to conclude that "Visa's days of dominating the debit card market may be numbered." That's not good news since debit will continue to "dominate" the payments space for years to come. While you're here, take a look at this piece:  Can Innovation Break Up the Visa/MasterCard Duopoly? June 23, 2010House-Senate Conferees Take...
POSTED BY JOHN B. FRANK
A Frost and Sullivan White Paper sponsored by TNS Card data security is becoming increasingly important as a business enabler for retailers, consumer billing organizations and other participants in the payments industry. Managing the growing security threats and ensuring compliance in an IP world impacts an organization’s ability to retain customers and to acquire new ones. Reliable broadband connections, either wired or wireless, offer...
POSTED BY JOHN B. FRANK
SAN FRANCISCO (DOW JONES)--Chinese ecommerce giant Alibaba.com (1688.HK) has expanded its U.S. presence by agreeing to acquire Vendio Services, Inc., a small software-as-a-service startup that helps merchants sell their goods on sites such as Amazon.com Inc. (AMZN) and eBay Inc. ... Here's the official Press Release from Business Wire: Alibaba.com Acquires Vendio, Continues to Advance Global E-Commerce PlatformAcquisition Integrates AliExpress...
POSTED BY JOHN B. FRANK
"The Australian Government Standing Committee on Communications has released the results of a year long enquiry into cybercrime in a report titled Hackers, Fraudsters and Botnets: Tackling the Problem of Cyber Crime.  Here's an overview: House Standing Committee on CommunicationsCommittee activities (inquiries and reports) Inquiry into Cyber CrimeInquiry home | Terms of reference | Submissions | Public...


Read more: http://pindebit.blogspot.com/#ixzz0rt01zVS5
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