First Data Positions for Payments Industry’s Changing Landscape

January 13, 2011 11:30 AM Eastern Time 

Regulatory changes expected to transform the payments marketplace;

Company consolidates operations and management of its business

ATLANTA--(BUSINESS WIRE)--In order to best serve its financial institution and merchant customers, and manage its global business with a focus on local delivery, First Data Corporation, today announced that it will consolidate the operations and management of its North American business and its business outside North America through the leadership of two executives.

“First Data will continue our strategy of managing our operations and technology on a global basis.”

“We are making these changes in order to serve our customers better and position the company for regulatory changes and other recent developments impacting the dynamic payments industry,” said First Data CEO Jon Judge. “Today’s action will help First Data maximize opportunities and leverage its considerable assets for the benefit of our customers, including issuers, acquirers, card networks and merchants across all industries. For example, U.S. regulatory changes that will occur in 2011 will transform relationships between financial institutions and merchants and are expected to create new and exciting business and product opportunities including mobility, networks, and routing optimization.”

Today, First Data:

• Named Ed Labry to the position of President, First Data – North America; it is a market that contributes over 85 percent of the company’s consolidated revenue. An executive with First Data and its predecessors since 1985, Labry has led a wide range of businesses at the company serving both financial institutions and merchants. Since 2006, Labry has served as president of First Data’s Retail and Alliance Services division. In his new position, Labry will continue to report to the CEO.

• Started a search for an executive to lead its business outside North America, including markets that offer First Data opportunities for long-term growth and investment. In the interim, Executive Vice President John Elkins will lead the company’s business in the Asia Pacific; Europe, the Middle East and Africa; and Latin America regions. Elkins has served as the company’s chief marketing officer since joining First Data in 2009.

• Announced that Kevin Schultz is retiring as executive vice president effective Jan. 31, 2011, and will work with Labry and Elkins to manage a smooth transition of his responsibilities. He has led the company’s Financial Services division since joining the company in 2009.

“Our objective is to serve our financial institution and merchant clients more holistically across the globe,” said Judge. “First Data will continue our strategy of managing our operations and technology on a global basis.”

Around the world, every second of every day, First Data makes payment transactions secure, fast and easy for merchants, financial institutions and their customers. First Data leverages its vast product portfolio and expertise to drive customer revenue and profitability. Whether the choice of payment is by debit or credit card, gift card, check or mobile phone, online or at the checkout counter, First Data takes every opportunity to go beyond the transaction.

Contacts

First Data
Chip Swearngan, 1+404-890-3000
Chip.Swearngan@firstdata.com

Permalink: http://www.businesswire.com/news/home/20110113005827/en/Data-Positions-Payments-Industry%E2%80%99s-Changing-Landscape

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Electronic Payments Coalition Statement on Impact of Durbin Amendment on Small Financial Institutions

WASHINGTON, Jan. 13, 2011 /PRNewswire/ -- Recent media reports have mischaracterized the impact of a so-called "carve out" for community institutions from the Federal Reserve's proposed rule on debit interchange fees. Below is a statement from the Electronic Payments Coalition spokeswoman Trish Wexler, clarifying the position of our members, which include credit unions and small community banks that fall below the $10 billion threshold and supposedly benefit:

"The so-called 'carve out' for smaller card issuers will simply not work, given the way the law is constructed. Merchant discrimination and market forces will pressure small issuers out of the marketplace and consumers will be left with fewer options. Let's be clear – this was added to secure votes on an amendment that was a gift to the top 1.5% of giant retailers who accept 81% of debit volume. You cannot decimate the economics of a thriving, growing market like debit cards and then expect to protect a portion of the market from the fallout. Even the Federal Reserve staff who drafted the rule acknowledged that smaller financial institutions may not ultimately be protected."

SOURCE Electronic Payments Coalition

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• Fed proposes 12-cent cap on merchant debit fees (sfgate.com)
• Merchant Debit Fees: Fed Proposes 12-Cent Cap, Visa, MasterCard Could Take Big Hits (huffingtonpost.com)
• P-to-P Payments at Financial Institutions: Not Micro, Not Mobile, Not Personal (prweb.com)

Braintree Launches Card-Not-Present End-to-End Encryption Solution

January 13, 2011 11:44 AM Eastern Time 

CHICAGO--(BUSINESS WIRE)--Braintree recently launched the first end-to-end encryption solution of its kind for merchants accepting credit card payments online (aka card-not-present or CNP). Like Braintree’s Transparent Redirect solution, CNP End-to-End Encryption eliminates the transmission and storage of credit card data from the merchant environment. This significantly reduces the scope of PCI compliance, often allowing merchants to achieve compliance by completing the quickest and least intrusive of the Self Assessment Questionnaires, SAQ A.

CNP End-to-End Encryption enables a merchant to encrypt credit card data at the moment the customer enters it, without requiring immediate transmission of the data to the payment gateway. This gives merchants the option to process payments asynchronously, avoiding many of the limitations inherent in working with an external service."Modern online businesses invest significantly in the reliability and performance of their web applications, but to process payments, a merchant is forced to depend on an external service,” says Dan Manges, CTO of Braintree. “This ties a merchant’s customer experience to the performance and reliability of its payment gateway. We strive to build the best gateway technology in the industry to meet this challenge, but with CNP End-to-End Encryption, we now provide a tool that empowers merchants to fully solve this problem."

Unlike end-to-end encryption in the card-present space, card-not-present merchants have no hardware constraints and can quickly implement Braintree’s solution.

"We’re really excited about this innovation because it solves some of the most fundamental and vexing problems in the payments industry,” says Bryan Johnson, CEO of Braintree. “Merchants need a payments partner that can stay ahead of the curve and deliver cutting edge solutions, and we’re proving to be just that.”

CNP End-to-End Encryption is currently in closed beta.

About Braintree

Based in Chicago, Braintree provides merchant account, payment gateway, recurring billing, and credit card storage services for Web 2.0 companies. Braintree has changed the payments industry for tech companies with its exceptional support, innovative software, and credit card data portability initiative. Braintree provides developers a platform for payments integration with both website and mobile applications, and works with some of the most promising and fastest-growing companies in U.S. Learn more about Braintree at http://getbraintree.com/.

Contacts

Braintree
Monica O’Brien, 636-432-3001
monica@getbraintree.com

Permalink: http://www.businesswire.com/news/home/20110113006047/en/Braintree-Launches-Card-Not-Present-End-to-End-Encryption-Solution

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PayFair new CEO to Drive Development of the new European Payment Scheme

LONDON, January 14, 2011 /PRNewswire/ --

Payment Expert Appointed to Drive PayFair's Continued European Expansion

PayFair, the European payment scheme providing consumers, merchants and banks with next generation electronic payments has announced the appointment of electronic payment expert Stephan Becker as new Chief Executive Officer. With over 20 years' experience, Stephan's initial focus will be to increase PayFair's uptake by banks within the SEPA world and continuing the expansion throughout Europe and globally.

PayFair is the new SEPA compliant payment scheme offering a European alternative to other schemes such as MasterCard and Visa that are well established in the payments arena. PayFair's business model is organised around a SEPA and PSD-compliant system that allows it to make payments simpler, faster and safer. PayFair differentiates itself from the competition through the cost, speed and security of its service. Card fraud is often e-payment related with customers complaining that current systems are not safe enough and payment processes are too long and complicated. Merchants are asking for reliable and affordable payment means and banks are struggling with higher costs related to fraud damages. PayFair is easy to enrol and implement within a current system giving consumers comfort and security while providing banks with an efficient alternative that secures the profitability of their card payment activities.

Dominique Buysschaert, Founder & President of PayFair Group said, "We are delighted to bring Stephan on board. His knowledge and expertise within the international payment sector will be a real asset for our development. Our current focus is to secure issuing banks across Europe and Stephan's expertise within this sector is a perfect fit in driving our expansion plans."

Stephan Becker said, "With growing demands on compliance, competitiveness and security, PayFair is ideally positioned to succeed within the competitive world of electronic payments. I know how fast innovative and flexible smaller companies can react to market demands. I am looking forward to using my experience to enable PayFair to be the real European alternative to other initiatives like EAPS and Monnet whilst also challenging US schemes such as MasterCard and Visa."

Prior to joining PayFair, Stephan has previously worked in the Payment Industry for firms like Pluscard, First Data and MasterCard. He also acts as an independent consultant to a number of payment service providers advising on strategic management and product development.

About PayFair

PayFair is the new SEPA compliant European payment scheme. Founded in 2007, it has been developed by an independent group of entrepreneurs and experts from the financial, IT and retailing sectors. PayFair offers a complete end-to-end and already operational system that can manage payments transactions from start to finish. As cards, mobile and electronic transactions are rapidly replacing cash as the primary payment tool in Europe, PayFair comes up with innovative solutions and provides everyday convenience to consumers, banks and merchants facilitating fast, safe and efficient payments. PayFair partners with all market players to promote real transparency, great price competitiveness and profitable payment activities in an open market environment.

For further information visit http://www.payfair.eu

    Press contact

    Metia
    Clare Anderson
    p: +44(0)20-3100-3601
    e: clare.anderson@metia.com

SOURCE PayFair

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Sell Anything Anywhere With 'Pay Anywhere' Free iPhone App & Reader from North American Bancard

First True "No Compromise" App Brings Affordability, Simplicity and Peace-of-Mind to Mobile Payment Market

TROY, Mich., Jan. 13, 2011 /PRNewswire/ -- No payment system is as simple as swiping a credit card.  Consumers expect it and businesses prefer it.  And now, "Pay Anywhere" from North American Bancard (NAB) allows anyone to take advantage of that simplicity to sell anything, anywhere – with no monthly or equipment fees.

NAB, an industry leader in credit card processing, today announced the launch of its Pay Anywhere (www.payanywhere.com) mobile payment application, which allows users to process credit card payments via mobile devices.  NAB currently processes more than$10 billion in electronic transactions annually for more than 100,000 merchants nationwide.

"Up to now people have had to compromise when picking a mobile payment option.  While some are flashy and free, they can lack critical financial and security resources on the back-end.  Others offer the reliability many consumers want, but are cost-prohibitive," said Marc Gardner, NAB founder and president.  

"Pay Anywhere is the first to offer the best of both worlds – superior hardware and technology, ease-of-use, an affordable pay-as-you-go platform and the peace-of-mind that comes with NAB's nearly 20 years of credit card processing experience."  

Features and highlights of Pay Anywhere include:

• Free software and hardware – The Pay Anywhere application is free from Apple's App Store.  Upon approval of a merchant account, the card reader accessory – a $149.95 retail value – also will be given to users free.  The card reader is included so that users can swipe cards to receive lower transaction rates.  Other comparable card readers are being sold from $75 to $195.

• Dependability and Security – Unlike other products on the market, Pay Anywhere users and their customers can swipe with confidence, knowing the application is backed by 24/7 support, NAB's 400-person staff and nearly 20 years of credit card processing experience.  Pay Anywhere uses the highest available level of encryption and the strictest standards of payment card industry security.

• Affordability – With Pay Anywhere, there are:
  • No setup fees
  • No application fees
  • No monthly service fees
  • No cancellation fees at any time
  • No monthly minimums required

Pay Anywhere charges a flat fee of 19 cents per transaction, and 2.69 percent and 3.49 percent in service costs for swiped and keyed entries, respectively.

• Convenience – The Pay Anywhere application is currently available for Apple iPhone 3G, 3GS and 4 users, as well as the Apple iPad and iPod Touch, and will soon be available for Android and BlackBerry mobile customers. The card reader accessory is currently available for iPhone 3G and 3GS, with an audio jack accessory for iPhone 4, the iPad and iPod Touch coming soon.  Pay Anywhere accepts all major credit cards.  

• Ease & Ability – The free Pay Anywhere app can easily be set up in a matter of minutes and offers a user-friendly interface with an impressive set of features.  Pay Anywhere users can set default tax and tip percentages, inventory and categorize items and services, take advantage of real-time sales tracking and reporting and "go green" with custom e-mail receipts.

"We want Pay Anywhere users to be confident every time they sell a product or service or pay for one, so we made the same NAB professional resources and expertise that our business customers receive accessible to everyone," continued Gardner.  "In addition to the free app and free reader, Pay Anywhere merchants will only pay when they use the service.  If their business is seasonal and they process transactions only three months of the year, they pay nothing for the other nine months."

Getting started with a Pay Anywhere account is easy.  iPhone, iPad and iPod Touch users download the free app from the App Store, set up a merchant account with NAB and a free card reader device, where applicable, is delivered directly to each customer.  For more information on Pay Anywhere or to get started, interested users can visit www.payanywhere.com.

About North American Bancard

Headquartered in Troy, Michigan, North American Bancard is a multi-faceted payment solutions provider dedicated to providing the latest technology as well as committing to the highest service levels.  As a registered MSP/ISO since 1992, North American Bancard provides its clients with a full suite of products and services including Credit, Debit, EBT, Check Conversion and Guarantee, ATM, Gift and Loyalty Cards and Online Payment Gateway solutions.  NAB processes over $10 billion in electronic transactions annually for over 100,000 merchants nationwide.  For more information, visit www.nabancard.com.

SOURCE North American Bancard

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• Sell Anything Anywhere With 'Pay Anywhere' Free iPhone App & Reader from North American Bancard (prnewswire.com)

Cartera Commerce and Vesdia Announce Merger

January 14, 2011 08:00 AM Eastern Time 

Combination Creates Market Leader in Multi-Channel Merchant Networks and Performance Advertising Solutions

LEXINGTON, Mass. & ATLANTA--(BUSINESS WIRE)--Cartera Commerce, the leading provider of multi-channel shopping solutions and merchant-funded rewards, and Vesdia, a pioneer in partnership marketing and the leading provider of in-store merchant-funded rewards, today announced that the two companies have signed a definitive merger agreement. The terms of the transaction were not disclosed.

The combined company is now the industry’s top provider of multi-channel merchant networks and performance advertising solutions, with an advertising reach of more than 150 million consumers and a blue-chip client roster, including 4 of the top 5 U.S. card issuers and 3 of the 4 largest U.S. airlines. The combined company will retain the Cartera Commerce brand and will be headquartered in Lexington, MA with significant operations in Atlanta, GA.

“There is unprecedented market demand for multi-channel merchant networks, performance advertising and transaction marketing solutions, especially given the impact of the Durbin Amendment on debit card interchange fees,” said Tom Beecher, president and CEO of Cartera Commerce. “With more comprehensive solutions, a larger merchant network and greater overall scale, the merger of Cartera and Vesdia allows us to fully capitalize on this compelling market opportunity, driving incremental revenue for merchants, banks and loyalty programs.”

Tom Beecher, president and chief executive officer of Cartera Commerce, will continue in this role, leading an integrated management team for the combined company. Jim Douglass, president and chief executive officer of Vesdia, is now the executive vice president of retail advertising and partnerships and a board member of Cartera Commerce. Pete Kight, chairman of the board for Vesdia, co-chairman of the Comvest Group and previously the founder, Chairman and CEO of CheckFree Corporation, has also joined Cartera’s board of directors.

Cartera and Vesdia bring together synergistic and complementary capabilities, merchant networks and client bases. Vesdia’s industry-leading “brick-and-mortar” merchant network features “always-on” offers from more than 1,000 national, regional and local in-store retailers, delivering value and differentiation to some of the world’s largest travel, hospitality and loyalty programs. Cartera’s award-winning multi-channel shopping and transaction marketing platform has powered the company’s tremendous revenue growth, partnerships with “everyday spend” merchants, and adoption by leading financial services firms.

The merger will create significant benefits for clients and partners of both companies, including:

• Largest Merchant Network and Offer Inventory: More than 3,000 national, regional, local and online merchant partners, including the industry’s best inventory of “always-on” brick-and-mortar rebate offers, and access to over 75,000 local coupons.
• Product Leadership and Innovation: A best-in-class multi-channel shopping and transaction marketing platform featuring a compelling, personalized user experience and targeted offer delivery across multiple digital marketing channels including mobile, web, online banking statements, email, social media and browser apps.
• Scale, Investment and Growth: The consumer reach, network scale and combined resources needed to optimally develop and service client and merchant partnerships, while accelerating innovation and expansion.

About Cartera Commerce

Cartera Commerce is the leading provider of multi-channel merchant networks and performance advertising solutions that increase revenue and drive incremental sales for retailers, banks, card issuers and loyalty programs. With a robust transaction marketing platform and a world-class network of national, regional, local and online merchant partners, Cartera Commerce powers personalized online and in-store shopping programs across multiple digital marketing channels including web, mobile, online banking statements, email, social media and browser apps. Cartera’s performance advertising network now integrates more than 3,000 merchant partners and reaches more than 150 million consumers. Industry leaders including American Airlines, Wells Fargo, Delta Airlines, SunTrust, USAA, Citizens Bank, Upromise and United Airlines rely on Cartera to build loyal, profitable customer relationships. Cartera was rebranded from Mall Networks in August 2010 and merged with Vesdia in January 2011. The company is headquartered in Lexington, Mass. For more information, visit www.cartera.com.

Contacts

Cartera Commerce
Jessica Hoffman, 925-296-6161
jhs@carteracommerce.com

Permalink: http://www.businesswire.com/news/home/20110114005191/en/Cartera-Commerce-Vesdia-Announce-Merger

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Bonneville Bank Selected as Prepaid Debit Card Issuer for U.S. Department of Treasury Pilot Tax Refund Program

January 13, 2011 05:13 PM Eastern Time 

Bonneville Bank Selects Green Dot Corporation as Program Manager

Program Provides E-Refund Option for Unbanked and Underbanked Taxpayers

MONROVIA, Calif.--(BUSINESS WIRE)--Green Dot (NYSE: GDOT), a leading prepaid financial services company, today announced it will serve as program manager for a U.S. Department of the Treasury pilot program whereby Americans can receive their federal tax refunds via direct deposit to a prepaid debit card. Named the MyAccountCard Visa® Prepaid Card, the card will be issued by Bonneville Bank acting in its capacity as a Treasury-designated financial agent. Green Dot was selected by Bonneville Bank to provide program manager services and the Green Dot Network will also serve as the exclusive reload network for the prepaid debit cards.

The MyAccountCard Visa® Prepaid Card offers Americans who do not have a traditional bank account a safe, convenient and low-cost option to receive their tax refund. In addition, the card may be used to receive wages by direct deposit, obtain cash, make purchases and pay bills online.

“We believe that all Americans should have access to safe, low-cost, FDIC-insured banking products to handle their daily transactional needs. Green Dot is proud to partner with Bonneville Bank and the U.S. Treasury to help more Americans enter the financial mainstream with their own prepaid debit card account and avoid the cost and the time involved in otherwise waiting for and cashing a tax refund check,” said Steve Streit, Chairman and CEO, Green Dot Corporation. In February, 2010, Green Dot entered into a definitive agreement to purchase Bonneville Bank, subject to regulatory approval.

Beginning the week of January 18, 600,000 letters will be mailed nationwide to low- and moderate-income individuals, who are likely to be unbanked, inviting them to have their 2010 federal tax refund direct deposited to a MyAccountCard prepaid debit card. The MyAccountCard is a reloadable, prepaid Visa® debit card that is accepted at stores, online and everywhere Visa debit is accepted. The card can also be used to conduct everyday financial transactions. The cards feature free online bill pay, free ATM cash withdrawals at nearly 15,000 ATMs nationwide, free cash back at participating retail stores and free customer service. Furthermore, like all Green Dot products, there are never any penalty fees or overdraft fees of any kind. MyAccountCard debit cards can be loaded with proceeds from payroll or government direct deposit and can be reloaded with cash at over 50,000 retail stores nationwide via the Green Dot Network.

In addition to the prepaid debit card program making the tax refund process more efficient, the program is designed to give moderate and low-income Americans the opportunity to use an FDIC-insured reloadable prepaid debit card as a safe convenient and cost-effective tool to manage their daily financial needs. The MyAccountCard Visa® Prepaid Card can be used for everyday financial transactions, such as receiving wages by direct deposit, withdrawing cash, making purchases, paying bills and more. More information on the MyAccountCard can be found atwww.myaccountcard.gov.

ABOUT GREEN DOT

Green Dot is a leading prepaid financial services company providing simple, low-cost and convenient money management solutions to a broad base of U.S. consumers. Green Dot also owns and operates the Green Dot Network, the nation's leading prepaid card reload network. Green Dot products are available online at www.greendot.com and at approximately 50,000 retail stores, including Walmart, Walgreens, CVS, Rite Aid, 7-Eleven, Kroger, Kmart, Meijer, and Radio Shack. Green Dot is headquartered in the greater Los Angeles area. For more details, visithttp://www.greendot.com.

ABOUT BONNEVILLE BANK

Bonneville Bank, a subsidiary of Bonneville Bancorp, is located in Provo UT, and has been serving the Utah valley community since 1978. In February, 2010, Green Dot entered into a definitive agreement to purchase Bonneville Bank, subject to regulatory approval.

Contacts

Media:
ICR, for Green Dot
Kim Paone, 646-277-1216
Cell: 917-363-4176
kim.paone@icrinc.com

Permalink: http://www.businesswire.com/news/home/20110113006295/en/Bonneville-Bank-Selected-Prepaid-Debit-Card-Issuer

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