Thursday, September 1, 2011

DRF Survey Reveals Merchant Uncertainty on Durbin's Impact


BROOKFIELD, Wis., Sept. 1, 2011 /PRNewswire/ -- A survey at the Direct Response Forum of 169 executives from some of the largest retailers in the world reveals continued uncertainty about how the recently passed Durbin bill will affect merchants' business practices. When questioned more about interchange fees and Durbin, 41% indicated they will not be passing on debit card fee savings to their customers, but 56% said they don't know what impact the new rules will have on their business.  Interchange fees, alternative payments, and PCI/Fraud top the list of concerns of the payment professionals.
The prospects for mobile payments has changed significantly in the last six months with 11% of merchants reporting they have a solution and a full 43% will be implementing a solution in the next 12 months.  In a follow up question only 40% of respondents reported they are comfortable that mobile payment options offer a secure credit card environment.  This represents a sizable opportunity for mobile phone providers and payment systems to develop a secure solution to what promises to be a rapidly expanding market.
"In the last six months mobile payments and other alternative payment schemes are becoming important areas of opportunity for payment professionals.  Alternative payments have replaced chargebacks as one of the top three issues on the minds of payment professionals," says Chantal Gaspie, DRF Executive Chair.
A popular question at this year's DRF was "What does tokenization really accomplish for a merchant"?  The merchant survey revealed that 31% of retailers currently support a tokenization system, while 38% will not be implementing in the near future. There are still many unknowns regarding the ability of tokenization to reduce PCI scope for merchants.
As with last year's results, payment professionals still indicated that lack of developmental bandwidth, insufficient budget and staffing are standing in the way of contributing to improved profitability for their company.
Every year the Direct Response Forum attracts the top card not present payment professionals from around the world to the annual DRF.  The merchant members of the DRF represent billions of dollars of credit and debit transactions every year. The average executive responding to the survey had over 10 years of payment experience.  For more information on the survey results sign up for the DRF Quarterly at www.directresponseforum.org or contact us at information@directresponseforum.org.
About Direct Response Forum, Inc.
The Direct Response Forum (www.directresponseforum.org) brings together leading direct merchants, acquirers, card companies and service providers for two days of interactive panels, breakout sessions, and roundtable discussions focused on key topics affecting the customer/card not present (CNP) merchant community.  The Direct Response Forum is a not-for-profit educational organization that is managed by a Board of Directors that are executives at leading companies including Affinion Group, Ancestry.com, Comcast Cable, Digital River, Expedia, Inc., L. L. Bean, Inc., Rosetta Stone, ShopNBC, TransAmerica Life and Protection, and Western Union.
SOURCE Direct Response Forum, Inc.
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Report: No 'Plan B' for T-Mobile USA




Bloomberg reports that Deutsche Telekom has not prepared any alternative plans should AT&T fail to acquire T-Mobile USA, with the German company apparently “surprised” by an action announced by the US Department of Justice (DoJ) yesterday to block the US$39 billion deal.
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The Number of Contactless Cards Is Set To Reach 396 Million by the End Of 2011


September 01, 2011 01:23 PM Eastern Daylight Time 

Digital Money: The Convergence of Contactless Card and Mobile Payments - The Number of Contactless Cards Is Set To Reach 396 Million by the End of 2011

DUBLIN--(BUSINESS WIRE)--Research and Markets has announced the addition of the "Digital Money: The Convergence of Contactless Card and Mobile Payments" report to their offering.
An in-depth study of the emergence of digital money as it converges from card based proximity payments to mobile devices

All over the world governments, financial institutions, and merchants are taking measures to reduce the use of cash. Digital money is set to become the norm for low value transactions. At present, this goal is partly being achieved through the use of card-based proximity payment methods. However, to be truly successful digital money needs to evolve beyond a mere payment method into a source of benefit for individuals based around value-added services. This can only be attained through the use of mobile devices.
The number of contactless cards is set to reach 396 million by the end of 2011, equaling just 6% of all cards in circulation, and few of these cards offer value-added services other than links to loyalty schemes. By contrast, there are approximately 5.1 billion mobile users worldwide and this is set to reach 7.1 billion by the end of 2015. The scope to develop applications that enhance people's lives in ways that go beyond payments is significant. ARCchart estimates that the number of users accessing services and buying goods using NFC-enabled devices will total 588 million by 2015.
ARCchart believes that 2011 will be the year when reality hits and industry participants finally acknowledge the challenges that need to be overcome to fully commercialise NFC. Internet companies such as Apple, Google, and Yahoo are best placed to take advantage of this technology. Incumbent players in the telecoms market are at risk of being left out.
Companies Mentioned:
  • American Express
  • Apple
  • AT&T
  • Avea
  • Barclaycard
  • Bouygues Telecom
  • Caff Nero
  • Consult Hyperion
  • Directel
  • Garanti Bank
  • HP
  • Hypercom
  • KDDI
  • Korea Telecom
  • LG
  • London Underground
  • MasterCard
  • Motorola
  • Nokia
  • O2
  • Orange
  • PC World
  • RIM
  • Samsung
  • Sony Ericsson
  • Starbucks
  • Telefonica
  • T-Mobile
  • VIVOtech
  • Vodafone
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Rating the Products that Protect Identities in a Social, Mobile and Cyber Age


August 31, 2011 10:41 AM Eastern Daylight Time 
Javelin’s Fifth Annual Identity Protection Report Announces Winners in Identity Fraud Prevention, Detection, and Resolution, Explores Trends in Rapidly Changing Industry
SAN FRANCISCO--(BUSINESS WIRE)--Javelin Strategy & Research’s report, “Fifth Annual ID Protection Services Scorecard: Increased Focus on Antivirus, Social Media, Child and Medical Identity Theft, Yet Prevention Still Lags” - presents a comprehensive overview of the ID protection services industry, analyzing industry trends and rating vendor offerings from independent ID protection vendors, credit bureaus, and financial institutions (FIs). The Javelin report scores 24 major identity protection vendors using data from surveys conducted with more than 25,000 consumers, identifying the ID protection services winners.
“Given the lack of industry standards, vendors need to be very clear to consumers about the type of services they provide.”
Javelin discovered significant variations among ID protection service offerings. For example, while many vendors authenticate, charge consumers, and begin services at the time of enrollment, more than one in five evaluated vendors accept payment but do not start providing services until consumers take additional enrollment steps.
“Antivirus software, social media, and child and medical identity fraud create challenges for all vendors,” said Phil Blank, Managing Director, Security, Risk, and Fraud at Javelin. “Given the lack of industry standards, vendors need to be very clear to consumers about the type of services they provide.”
Victims who discovered fraud using credit monitoring or other ID protection services suffered a lower mean fraud amount and consumer cost than the population average. Consumers who reported being victims of new account fraud in 2010 had a mean fraud amount over twice the fraud amount of consumers who discover fraud through ID protection services.
“Promote value, not hype,” James Van Dyke, President and Founder of Javelin advises. “Don’t aggressively market to consumers and don’t lure them with promises of free credit reports that aren’t really free or Internet scanning, which varies according to the quality of the database used. Our report helps vendors attract and retain more customers, by highlighting specific strengths or weaknesses.”
Javelin experts evaluated twenty-four of the top products based on their consumer-facing prevention, detection, and resolution capabilities and declared the following winners:
  • Best Overall: Identity Guard Total Protection (Intersections)
  • Best in Prevention: LifeLock Credit Score Manager; LifeLock Command Center
  • Best in Detection: IDEssentials (TrustedID); Identity Secure (Affinion)
  • Best in Resolution: Identity Force (Bearak Reports); Royal (EZShield); AllClear ID Pro (Debix)
Selected Key Report Findings – Fifth Annual ID Protection Services Scorecard
  • Details of market opportunities and consumer price point preferences for ID protection services vendors
  • How industry trends affect ID protection product innovation
  • How vendors scored on prevention, detection, and resolution
Contact
For more information about this or other Javelin reports, please contact Crystal Mendoza at (925) 225-9100 ext. 35 or cmendoza@javelinstrategy.com or visitwww.javelinstrategy.com/research.
To arrange an interview with a research analyst and/or view available research (available to qualified members of the media), please contact Crystal Mendoza at (925) 225-9100 ext. 35 or cmendoza@javelinstrategy.com.
About Javelin Strategy & Research Javelin Strategy & Research is the leading provider of quantitative and qualitative research focused on the global financial services industry. Our extensive quantitative data and deep analyst experience enable us to forecast the direction of the financial services market and make recommendations that empower you and your business to succeed.

Contacts

Javelin Strategy & Research
Crystal Mendoza, 925-225-9100 ext. 35
cmendoza@javelinstrategy.com

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Text2Pay Enables In-App Payments for Android with Tap2Pay


September 01, 2011 08:00 AM Eastern Daylight Time 
Mobile Payment Company Text2Pay Today Announced Tap2Pay, a Global In-App Payments Solution That Allows Developers to Integrate a Payment Option Directly into Their Android Application.
NEW YORK--(BUSINESS WIRE)--Mobile payment provider Text2Pay today announced Tap2Pay™ their in-app payment solution for Google Android™. Text2Pay enables developers to integrate the Tap2Pay payment widget into their application with a simple API and Java library. Tap2Pay offers all the benefits of Text2Pay including a white labeled solution with coverage in over 70 countries and competitive revenue share rates.
Tap2Pay enables developers to charge their users for premium application features or virtual credits. This in-app payment solution offers developers a momentous revenue opportunity with the ability to monetize any mobile application in over 70 countries with a consumer reach of 95-100%.
Tap2Pay does not require credit card details, user login or third-party registration, it is as simple as accepting the payment and having the purchase added to the user’s phone bill. When the user chooses what to buy, the developer makes one simple call to start the transaction and the user confirms this with a single tap on their mobile phone.
In-app payments are instantly made available to consumers once Tap2Pay is integrated into the mobile developer’s application. With 95-100% coverage in over 70 countries, the ability to process transactions in 60 currencies and localization support for 49 languages, there is no need for any additional development work. Tap2Pay offers single tap purchasing through carrier billing, built-in support for one-off and subscription items along with virtual currency and virtual goods transactions.
To see how Tap2Pay Android in-app payments work, watch the demonstration here.
About Text2Pay
Text2Pay is a leader in online payments using the mobile phone. Text2Pay makes it easier for consumers to pay for virtual goods and services by using their mobile phone. With strong security and high conversion rates being the most important factors, Text2Pay's goal is to make the customer's payments experience more enjoyable and easy.
With offices in Australia and the United States, Text2Pay’s global reach is robust and can accommodate for your mobile payment needs.
Visit Text2Pay.com for more information on in-app mobile payments.
Text2Pay and Tap2Pay are registered trademarks of Text2Pay, Inc. All other brand names, product names, or trademarks belong to their respective holders. Text2Pay reserves the right to alter product offerings and specifications at any time without notice.

Contacts

Text2Pay Inc.
Adam Weinstein, 646-673-4972
info@text2pay.com

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PDS to Develop and Deploy an Innovative, Ultra Secure, Mobile Payments Application


August 31, 2011 11:47 AM Eastern Daylight Time 
SAN ANTONIO--(BUSINESS WIRE)--Payment Data Systems, Inc. (OTCBB: PYDS), an integrated electronic payments solutions provider, today announced that it will develop and deploy a wireless mobile payments application branded as “iRemotePay” http://www.iremotepay.com. The application will be initially deployed for the iPhone®, iPad®, and iTouch®. Plans are to implement for Android phones at a future date.
The application will include a card reader device for the iPhone which enables a merchant to process credit card and ACH payments (e-Checks) over the wireless networks from remote locations and view these payment transactions while away from the office.
This application strategy is completely compatible with PDS’ market strategy which targets large enterprises with large customer bases and which have a need for remote payment processing applications on a full-time basis or just for special events. It is also targeted to smaller companies, such as HVAC or plumbing services, that have a need for wireless payment applications.
iRemotePay is unique from other mobile payment solutions in three key ways:
  • it is targeted to merchants that have one or multiple devices in their service market but have a need for a common settlement account;
  • it will allow the entry and processing of ACH payments (e-Checks); and
  • it is processor independent which means iRemotePay can act as a gateway to the merchant’s existing merchant processor who may not be Payment Data.
Additionally iRemotePay will be integrated with our back-office applications which enable the sale to be authorized and approved and then provide real-time access to view the completed transaction by the merchant’s accounting department or at the remote location by the person that entered the information.
iRemotePay also is being deployed with fully encrypted end-to-end transactions. Therefore it is being designed to be fully compliant with all current and future PCI security requirements.
iRemotePay is specifically designed for remote wireless applications. The following serves as a list of examples:
  • Special remote events;
  • Concerts;
  • Taxis and Limousines;
  • Plumbers and Electricians;
  • Installers and Repairmen;
  • Door to Door Sales;
  • Utility Companies’ On-Site Collections;
  • Flea Market Vendors;
  • Any Remote Sales Merchant.
iRemotePay features include:
  • Secure Payment Processing with end to end encryption of transaction data;
  • Allows our customer to leverage their existing wireless plan;
  • Internet-based reporting;
  • Back office support for corporate office or remote personnel so each can immediately view transactions as soon as a sale is made;
  • Integrated telephone and Web-based transaction reporting through all of our back-office applications such as fraud control and CSR View product;
  • Fast merchant setup time - as fast as 24 hours;
  • Supports all card types;
  • Supports entry and payment for ACH processing (e-checks).
Louis Hoch, President and COO of Payment Data Systems, Inc., said “iRemotePay is a great addition to our mobile-based merchant processing platform. Removing the need for fixed-location card entry terminals and taking advantage of an existing tool that is carried by tens of millions of people and simultaneously provides speed, security, and convenience for both the customer and the merchant representative clearly addresses the needs of the marketplace today and in the future.”
The iRemotePay iPhone application is expected to be available in the 4th Quarter 2011.
About Payment Data Systems, Inc.
Payment Data Systems is an integrated payment solutions provider to merchants and billers. The organization provides an extensive set of products to deliver world-class payment acceptance. Payment Data has solutions for merchants, billers, banks, service bureaus and card issuers. The strength of the company is its ability to offer specifically tailored solutions for card issuance, payment acceptance and bill payments.
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Heartland Financial USA, Inc. Reduces Reserve Requirements Using ReserveLink from Fiserv


September 01, 2011 09:28 AM Eastern Daylight Time 
  • Highest consistent sweep efficiency available on the market today
  • Elimination of Federal Reserve required balance
  • Fully automated “lights out” functionality
BROOKFIELD, Wis.--(BUSINESS WIRE)--Fiserv, Inc. (NASDAQ: FISV), the leading global provider of financial services technology solutions, announced today that Heartland Financial USA, Inc. (NASDAQ: HTLF) has signed on to use its ReserveLink® deposit reclassification solution. ReserveLink will help Heartland to generate additional investment income by greatly reducing or eliminating the need to maintain balances in accounts at the Federal Reserve.
“ReserveLink from Fiserv has the highest sweep efficiency available on the market today, enabling our clients to reduce their reserve requirements by 90 percent or more”
Using ReserveLink from Fiserv, Heartland, a $4 billion multibank holding company, sweeps transaction account balances into non-transaction accounts, converting low-interest bearing Federal Reserve account balances into earning assets.
“We needed to replace our former product with a solution that was scalable, supported, efficient and provided enterprise licensing,” saidBrian Fox, executive vice president of Operations at Heartland. ”Assistance from Fiserv, including comprehensive maintenance and support plus the ability to eliminate manual processes played a big part in our decision to go with ReserveLink.”
“ReserveLink from Fiserv has the highest sweep efficiency available on the market today, enabling our clients to reduce their reserve requirements by 90 percent or more,” said Brian Jorgenson, vice president of Operations, Global Payment Solutions Cash & Logistics, Fiserv. “Plus, ReserveLink works as a fully "lights out" solution, with all analysis, funds sweeping and reporting handled in an automated, unattended fashion.”
In addition to ReserveLink, Heartland Financial uses the Signature™ bank platform, debit processing, ACCEL/Exchange® PIN debit network, Prologue™ Accounts Payable, Prologue General Ledger and a variety of solutions from Output Solutions at Fiserv.
Additional Resources
About Heartland Financial USA, Inc.
Heartland Financial USA, Inc. is a $4.0 billion diversified financial services company providing banking, mortgage, wealth management, investment, insurance and consumer finance services to individuals and businesses. Heartland has 61 banking locations in 42 communities in Iowa, Illinois, Wisconsin, New Mexico, Arizona, Montana, Colorado and Minnesota. Additional information about Heartland Financial USA, Inc. is available at www.htlf.com.
About Fiserv
Fiserv, Inc. (NASDAQ: FISV) is the leading global provider of information management and electronic commerce systems for the financial services industry, driving innovation that transforms experiences for financial institutions and their customers. Fiserv is ranked No. 1 on the FinTech 100 survey of top technology partners to the financial services industry. For more information, visit www.fiserv.com.

Contacts

Media Relations:
Julie Nixon
Senior Public Relations Manager
Fiserv, Inc.
678-375-3744
julie.nixon@fiserv.com
or
Additional Contact:
Wade Coleman
Director, Global Communications
Fiserv, Inc.
678-375-1210
wade.coleman@fiserv.com

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Interview Opportunities Available with President Bob Baldwin, Heartland Payment Systems, on Swipe Fee Reform


September 01, 2011 08:05 AM Eastern Daylight Time 
President of nation’s fifth largest payments processor provides expert commentary on Durbin Amendment interchange reform
PRINCETON, N.J.--(BUSINESS WIRE)--Heartland Payment Systems®:
“Just be assured that there will be opportunities for us to keep some of [the debit fee reduction]. I mean the thought that a very large merchant and a very small merchant are treated exactly the same is not how it works in a free enterprise system.”
 
WHAT:
When The Durbin Amendment, part of the Dodd-Frank Wall Street Reform Act, goes into effect on October 1, 2011, debit card interchange rates will be capped at 21 cents per transaction plus 0.05 percent of the volume of transaction — a significant reduction from the average of 44 cents that merchants currently pay per debit card purchase.
 
Although this legislation was designed to provide business owners relief from “swipe” fees, some processors have publicly announced that they will keep the funds to bolster their own profits. In fact, the chief executive officer of a major processor recently told Wall Street, “Just be assured that there will be opportunities for us to keep some of [the debit fee reduction]. I mean the thought that a very large merchant and a very small merchant are treated exactly the same is not how it works in a free enterprise system.”
 
Merchants and business owners across the U.S. need to be educated about the potential pitfalls that can prevent them from realizing the cost savings they are rightfully due.
 
WHO:
Bob Baldwin, president at Heartland Payment Systems and a card processing expert, can speak to the effects of the Durbin Amendment on the industry at large as well as merchants large and small. He can also provide critical information that business owners need to know and suggested action steps to ensure they receive 100 percent of the intended savings this October when the reform goes into effect.
 
About Heartland Payment Systems
Heartland Payment Systems, Inc. (NYSE: HPY), the fifth largest payments processor in the United States, delivers credit/debit/prepaid card processing, gift marketing and loyalty programs, payroll, check management and related business solutions to more than 250,000 business locations nationwide. A FORTUNE 1000 company, Heartland is the founding supporter of The Merchant Bill of Rights, a public advocacy initiative that educates merchants about fair credit and debit card processing practices. The company is also a leader in the development of end-to-end encryption technology designed to protect cardholder data, rendering it useless to cybercriminals. For more information, please visitHeartlandPaymentSystems.com, MerchantBillOfRights.org, CostOfABurger.com and E3secure.com.

Contacts

For Heartland Payment Systems
Leanne Scott Brown, 610-455-2742
LBrown@VaultCommunications.com

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