Thursday, March 17, 2011

Visa Moves Beyond the Point-of-Sale – Delivers Personal Payments to U.S. Account Holders

Critical network enhancement, new transaction type, and strategic agreements with CashEdge and Fiserv enable U.S. Visa account holders to pay each other for the first time
http://www.visa.comSAN FRANCISCO--(BUSINESS WIRE)--Visa Inc. (NYSE:V), the global leader in payments, today announced that consumers in the U.S. will soon be able to receive and send funds to any eligible Visa credit, debit or prepaid account, anywhere in the world. The breakthrough service extends the utility of Visa’s network from enabling payments at the point of sale, to enabling consumers to pay one another.
“The global market is eager to adopt personal and mobile payments and by partnering with Visa we can help meet this demand.”
The new Visa personal payments service, which eliminates the inefficiencies of cash and checks for payments between individuals, was made possible through technical enhancements to VisaNet, Visa’s global payments processing network, and through the introduction of a new Visa transaction type that allows financial institutions to accept incoming funds.
Additionally, Visa today announced strategic product agreements with CashEdge Inc. and Fiserv, Inc. (NASDAQ: FISV), two of the leading providers of electronic person-to-person payment, account transfer and bill payment services to U.S. financial institutions. Through the agreements, CashEdge and Fiserv will have access to VisaNet, enabling them to integrate the Visa personal payment service into their respective person-to-person platforms - Popmoney® andZashPay®. This will allow a participating bank’s customers to send money directly to a Visa account.
“For fifty years, Visa has worked to simplify payments at the merchant point of sale; we are now evolving our network capability to make it easier for our account holders to pay one another,” said Jim McCarthy, global head of products at Visa Inc. “Through our agreements with Fiserv and CashEdge, we can accelerate the delivery of new and innovative Visa payments services, and better enable financial institutions to extend these services to customers.”
How it Works
Bank customers of participating financial institutions will have the option to select a Visa account as the destination for funds when making a personal payment. By simply entering the recipient’s 16-digit Visa account, email address or mobile phone number, consumers can send funds directly from their bank account to a recipient’s Visa account. This makes sending money to a niece for her birthday or to a son in college simpler, faster, and more convenient than before.
“Providing a variety of fast, flexible payment options and establishing a large network through which consumers and small businesses can send and receive money are essential if we want them to trade checks and stamps for electronic payments,” said Erich Litch, president of Digital Channels at Fiserv. “Partnering with Visa allows Fiserv to grow not only the number of consumers and small businesses we can reach with the ZashPay service, but the ways we can reach them.”
“We are extremely pleased to be working with Visa on this initiative and leveraging their global network, which not only will allow Popmoney users to send money to recipients around the globe, but also will provide Visa customers with improved access to the convenience and security of Popmoney,” said Neil Platt, Senior Vice President and General Manager, U.S. Banking, CashEdge Inc. “The global market is eager to adopt personal and mobile payments and by partnering with Visa we can help meet this demand.”
Visa personal payments are already offered by financial institutions outside the U.S. with more than 70 programs around the world enabling consumers to send funds to Visa accounts. Availability of the service in the U.S. marks the first time a major payment network has introduced a global requirement for account issuers to accept incoming funds and thus enable a new generation of personal payment services.
The first U.S. financial institutions are expected to make Visa personal payments available to their customers through CashEdge and Fiserv by the second half of 2011.
About Visa Inc.:
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 20,000 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, visitwww.corporate.visa.com.
About CashEdge:
CashEdge is a leading provider of Intelligent Money Movement® solutions for financial institutions, including mobile and email person-to-person (P2P) payments, account transfers, account opening and funding, small business applications and financial account aggregation. The Company’s clients include over 650 leading financial institutions, including eight of the ten largest banks in the country.
CashEdge’s industry-leading products include Popmoney® for email and mobile payments; Popmoney for Small Business, OpenNow®/FundNow® for new account opening and funding; TransferNow® for consumers, which includes Me-to-Me and Third Party Transfers; and Small Business Suite, which includes Invoicing, Me-to-Me Transfers, Employee Payments and Vendor Payments. All CashEdge products are supported by industry-leading risk management capabilities that leverage proprietary technology to help financial institutions mitigate risk and decrease fraud exposure. The Company is headquartered in New York with offices in Silicon Valley and India. For more information, visit www.cashedge.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, visitwww.fiserv.com.

Contacts

Press Only:
Visa Inc.
Matthew Flegal, 415-932-2564
globalmedia@visa.com
or
Zer0 to 5ive for CashEdge Inc.
Jennifer Moritz, 917-748-4006
jmoritz@0to5.com
or
Fiserv, Inc.
Ann Cave, 678-375-4039
ann.cave@fiserv.com
Permalink: http://www.businesswire.com/news/home/20110316005567/en/Visa-Moves-Point-of-Sale-%E2%80%93-Delivers-Personal-Payments

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Fiserv Teams with Visa to Extend ZashPay Network, Speed Person-to-Person Payments

    http://www.fiserv.com
  • Agreement will expand the number of consumers who can access the ZashPay network, with the potential to include more than 1 billion Visa account holders
  • ZashPay users will be able to send money to and receive money from eligible Visa account holders
  • Fiserv will have the ability to expand ZashPay to reach international account holders
BROOKFIELD, Wis.--(BUSINESS WIRE)--Fiserv, Inc. (NASDAQ:FISV), the leading global provider of financial services technology solutions, today announced an agreement with Visa Inc. (NYSE:V) that will enable users of the ZashPay® person-to-person payments service from Fiserv to send money to and receive money from eligible Visa account holders through their primary financial institution. This agreement will expand the ZashPay network, with the potential to reach more than 1 billion Visa account holders, and can increase the speed of many payments. Fiserv and its financial institution customers also will have the ability to extend person-to-person payments to eligible international account holders.
“For fifty years, Visa has worked to simplify payments; we are now evolving our network capability to make it easier for our cardholders to pay one another.”
“More than 700 financial institutions have signed up to offer ZashPay, and the service is already live at 500 banks and credit unions,” said Erich Litch, division president, Digital Channels, Fiserv. “Working with Visa allows us to deliver payments to even more consumers, more quickly and deepens the relationship that member financial institutions have with their customers. We’re committed to making the ZashPay network the largest and fastest personal payment network, providing the convenience and speed that financial institutions, consumers and small businesses demand in order to drive adoption and usage.”
ZashPay currently enables payments to be sent directly to any U.S. bank account in as little as one business day, and real-time payments will be available later in 2011. The agreement with Visa will expand the number of consumers who can access the ZashPay network, with the potential to include more than 1 billion Visa accounts. Initially the service will focus on payment delivery to eligible credit and debit account holders, with plans to expand to prepaid and international account holders in the future. The service will be available to both consumers and small businesses using ZashPay.
“The exact same Visa card you pull out of your wallet to make purchases at the point-of-sale can now be used to receive a payment from a friend or family member,” said Matt Dill, Head of Personal Payments and Digital Money Transfer, Visa Inc. “For fifty years, Visa has worked to simplify payments; we are now evolving our network capability to make it easier for our cardholders to pay one another.”
ZashPay is part of the robust, integrated suite of solutions offered by Fiserv to enable digital money movement through the online and mobile channels, including bill payments, personal payments and small business payments. To learn more about ZashPay visit www.zashpay.fiserv.com.
Additional Resources
About Visa Inc.
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 20,000 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, visitwww.corporate.visa.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, visitwww.fiserv.com.
FISV-G

Contacts

Additional Fiserv Contact:
Wade Coleman
Director, Global Communications
Fiserv, Inc.
678-375-1210
wade.coleman@fiserv.com
Media Relations:
Ann S. Cave
Senior Public Relations Manager
Digital Channels
Fiserv, Inc.
678-375-4039
ann.cave@fiserv.com

At A Glance

Fiserv, Inc.
Source: via Business Wire
Updated 08/18/2009 by company
Headquarters:Brookfield, Wisconsin
Website:http://www.fiserv.com
CEO:Jeff Yabuki
Employees:20,000
Ticker:FISV (NASDAQ)
Revenues:$4.74 billion (2008)
Net Income:$569 million (2008)
Permalink: http://www.businesswire.com/news/home/20110316005603/en/Fiserv-Teams-Visa-Extend-ZashPay-Network-Speed


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Zong Expands Payments Platform

March 17, 2011 10:02 AM Eastern Daylight Time 

Zong Brings Mobile Payments to Any Connected Device

http://www.zong.comMENLO PARK, Calif.--(BUSINESS WIRE)--Today Zong announced an expansion of its platform, enabling mobile payments to more application platforms and remote devices. Previously available for HTML and on Android, developers can now integrate Zong’s simple mobile payments service in nearly any environment, including Flash, Unity, Interactive TV, gaming consoles, and the mobile web.
“Mobile payments are gaining traction on all platforms and devices because the convenience is unrivaled”
To integrate Zong mobile payments into most any front-end technology, the developer only needs to collect the mobile number from the user. Zong verifies the phone number with a text message to the handset and completes the billing transaction on the consumer’s mobile phone bill or prepaid mobile account.
Zong also announced that its 1-touch in-app payment system on Android — the only one of its kind — is now also available on Android 3.0 Honeycomb tablets. The 1-touch payment service creates a seamless experience for users who can now make a purchase within an application with just one tap; no registration or login is required. The Zong platform automatically verifies the user, bills their mobile phone account and returns them to their application or game without delay. This payment option is perfectly suited for tablets that lack a physical keyboard, which makes it difficult and time-consuming to fill in the usual necessary purchase forms with identifiers and payment information.
As the tablet market explodes — according to Forrester, more than 50 million people will own a tablet by 2012 and 80 million users by 2015 — Zong will help facilitate rapid growth of tablet-based ecommerce with its 1-touch payment system, the simplest available for tablets today.
“Mobile payments are gaining traction on all platforms and devices because the convenience is unrivaled,” said David Marcus, CEO of Zong. “Zong’s new platform enables merchants and developers to integrate mobile payment in virtually any environment, be it on a PC, a mobile phone, a tablet or a television.”
About Zong
Zong is the leading mobile payments platform for sellers of digital goods and services. Its frictionless payment experience converts shoppers into buyers at rates up to 10 times greater than traditional payment methods. Zong leverages direct connections with mobile network operators around the world to provide a secure payment solution with unrivaled connectivity and service quality. Zong is the mobile payment provider for Facebook Credits and is also accepted at over a thousand digital merchant sites. Reaching 3.2 billion mobile users, Zong provides localized payment capabilities in over 40 countries in 21 languages. Zong is based in Menlo Park with offices in Paris, Geneva, and Dusseldorf, and is backed by Matrix Partners, Advent Venture Partners and Newbury Ventures. For more information, please visit www.zong.com.

Contacts

Brew Media Relations
Dorothy Jean, 212-677-4835 x. 15
zongpr@brewpr.com
Permalink: http://www.businesswire.com/news/home/20110317005452/en/Zong-Expands-Payments-Platform

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Smart Card Alliance Conference Focuses on U.S. Roadmaps to EMV and Secure ID

PRINCETON JUNCTION, NJ--(Marketwire - March 14, 2011) - The Smart Card Alliance announced today that the theme of its 2011 Annual Conference will be "The Roadmap to EMV Payments and Secure ID," where attendees can look forward to presentations and discussions on the advancement and growing adoption of smart card technology in EMV, contactless and mobile payments, and secure identification. The conference will be held May 3rd through May 5th, with pre-conference workshops on May 2nd, at the Hyatt Regency McCormick Place in Chicago.
"We see 2011 as the year where the payments industry seriously examines EMV payments and preparations for mobile payments pick up speed. At the same time, federal, state and local governments will launch new citizen ID programs for the Internet and expand the use of current secure ID programs," said Randy Vanderhoof, executive director of the Smart Card Alliance. "Our annual conference is the ideal time for all of the stakeholders in these markets to come together to learn about the role that smart card technology plays in all of these applications, and look seriously at the next steps to make all of these projects a success."
The Smart Card Alliance 2011 Annual Conference will allow professionals in the payments and security markets to gather together to share use cases and best practices, meet vendors in the large exhibit hall, witness live demonstrations, network with industry peers, and more. 

Day one of the conference, May 3rd, brings conference attendees together for keynote speakers and plenary sessions with experts in EMV payments, government regulators, national cybersecurity strategy, and the Canadian payments market. From them, attendees will learn about the forces that are driving EMV adoption and mobile payments globally, and shaping the national strategy for trusted identities in the workplace and on the Internet.
The remainder of the conference program will be divided into two tracks -- Payments, and ID andSecurity -- that will cover the requirements and technology approaches for secure payment and identity applications. Topics include:
  • Secure EMV payments and impact on fraud
  • U.S. roadmap options and readiness for EMV
  • Mobile and NFC-enabled access and payments implementations
  • Federal, state and local identity management initiatives
  • Programs to secure identity in cyberspace
  • Healthcare identity management
Each track will feature individual presentations, panels, and roundtable discussions about how issuers and end users utilize the security and data management capabilities of smart card technology to enable secure transactions -- over the Internet, in retail stores, in transit centers, on mobile devices, and in government and commercial enterprises.
Pre-conference, on May 2nd, attendees can choose to attend one of the three pre-conference workshops: "OTA Email Authentication Academy," sponsored by the Online Trust Alliance; "Mobile and Contactless Payments," sponsored by Collis; or "EMV Implementation Roadmap for the U.S.," sponsored by the Smart Card Alliance Payments Council.
Also pre-conference, individuals who have joined the LEAP education and professional development and training program can register for the Certified Smart Card Industry Professional (CSCIP) full-day classroom smart card training and exam preparation course. The CSCIP exam will be held at the conclusion of the conference on May 5th. 
Further information about the conference, with links to event information and registration web site containing the complete agenda, list of exhibitors and registered attendees to date, and full registration details are available on the 2011 Smart Card Alliance Annual Conferencewebsite. Early registration discounts expire on April 4th. Smart Card Alliance members receive special registration benefits and discounts. 
About the Smart Card AllianceThe Smart Card Alliance is a not-for-profit, multi-industry association working to stimulate the understanding, adoption, use and widespread application of smart card technology. 
Through specific projects such as education programs, market research, advocacy, industry relations and open forums, the Alliance keeps its members connected to industry leaders and innovative thought. The Alliance is the single industry voice for smart cards, leading industry discussion on the impact and value of smart cards in the U.S. and Latin America. For more information please visit http://www.smartcardalliance.org.
Contact:
Deb Montner
Montner & Associates
203-226-9290
dmontner@montner.com
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Mobile Payment Users to Surpass 375 Million by 2015, Says In-Stat

SCOTTSDALE, AZ--(Marketwire - March 15, 2011) -  Mobile payments are an emerging opportunity to make payment from or with a mobile handset. While a success in certain countries and with fringe audiences already, mobile payments have not yet achieved success on a global scale. However, it is anticipated that this will begin to change in 2011 as the number of mobile payment users starts a significant run up from 116 million to over 375 million in 2015, says In-Stat (www.in-stat.com).
"There appears to be consumer demand for mobile payments," says Amy Cravens, Market Analyst. "Consumers do recognize pain points with current payment systems and indicate support for a cleaner, easier alternative. If mobile operators are able to push beyond the infrastructural challenges and introduce these services to the mass market, the transactional value of the mobile payments market is positioned to grow nearly tenfold over the next several years."
Recent research findings identify the market's preparedness including:
  • Significant smartphone penetration.
  • Consumer comfort level with purchasing goods with their phone through existing channels.
  • A desire among mobile operators to develop opportunities to generate revenue from mobile based commerce.
  • Infrastructural developments supporting contactless payments, including NFC-enabled mobile phones and Point of Sale (POS) terminals.
New In-Stat research Mobile Payments: Is the Market Ready? (#IN1105000SI) examines the mobile payment market structure, outlining the various elements in this multifaceted market. Discussion will include mobile payment types as well as the relationships comprised in this complex ecosystem.
The report also includes:
  • Market player profiles including: Bling Nation, Boku, Clairmail, Isis, mFoundry, and Obopay
  • Forecasts for the mobile payments market through 2015
  • Forecasts of anticipated usage and transaction volume
  • Detailed examination of the NFC market
  • All forecasts extend through 2015 and are segmented by geographic regions
For a free sample of the report and more information contact Elaine Potter, epotter@in-stat.com; (480) 483-4441.
This research is part of In-Stat's Mobile Technologies service, which provides analysis of the market for technologies, IP and semiconductors that enable next generation mobile devices, including processors, graphics, modems, GPS, displays, memory, storage, operating systems, software, and human interfaces.
About In-Stat
In-Stat's market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions. Technology vendors, equipment manufacturers, service providers and media companies worldwide rely on In-Stat to support critical business, product and technology 

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Table of Contents
  • Executive Summary
  • Introduction
  • Market Structure
    • Partnerships
    • Mobile Payment Provider Revenues
    • Merchant of Record
  • Opportunities and Challenges
    • Opportunities
    • Challenges
    • Growth Areas
  • Technology/Payment Types
    • Mobile Commerce
      • Bango
      • Boku
      • PayPal
      • Zong
    • Point-of-Sale
      • Bling Nation
      • mFoundry
    • Peer-to-Peer
      • ClairMail
      • Obopay
      • Syniverse
    • Mobile Payments Solutions Comparison
  • Regional Variances
    • Leading Markets
      • Japan
      • Kenya
      • South Korea
    • Banking the Unbanked
    • Relationship with Financial Institutions
    • Regulatory Compliance
  • NFC Standardization
  • NFC Trials & Market Development
    • Isis
    • Orange
    • Telefónica
    • China Unicom
  • NFC Handsets
    • Handsets/Operating Systems
      • Nokia
      • Samsung
      • LG
      • RIM
      • Google
      • Apple
    • Handset Alternatives
  • Market Demand
    • Consumer Interest in NFC
  • Market Challenges
    • Behaviors and Infrastructure
    • Consumer Perception: Security, Privacy, and Trust Concerns
    • Transaction Fees
    • From Virtual to Physical
    • Mobile Operator Partnerships
  • Forecast
    • NFC
    • Regional Analysis
    • North America
    • Europe
    • Asia/Pacific
    • Central America/Latin America
    • Middle East/Africa
  • Methodology
    • Forecast Methodology
  • Glossary
  • Related In-Stat Reports
List of Tables
  • Table 1.  Mobile Payments Solution Comparison
  • Table 2.  Global Mobile Payment Transaction Values, 2010–2015 (US$ in Millions)
  • Table 3.  Global Mobile Payment Users, 2010–2015 (in Millions)
  • Table 4.  Global NFC Transaction Values, 2010–2015 (US$ in Millions)
  • Table 5.  Deployed Base of NFC Handsets, 2010–2015 (Units in Millions)
List of Figures
  • Figure 1.  Worldwide Mobile Payments Revenues, 2010–2015 (US$ in Millions)
  • Figure 2.  Mobile Payment Market Structure
  • Figure 3.  When Purchasing Goods/Services In a Store or Through a Website, What Frustrations Do You Have Surrounding Payment?
  • Figure 4.  In What Ways Would You Be Interested In Using Your Mobile Phone for Payments?
  • Figure 5.  Preferred Billing Method
  • Figure 6.  Perceived Value in Mobile Phone Use as a Credit/Loyalty Card
  • Figure 7.  Importance of NFC in Future Handset Purchases
  • Figure 8.  Consumer Familiarity with Mobile Payments
  • Figure 9.  Retail Availability Requirements for NFC Use
  • Figure 10.  Reasons for Disinterest in Mobile Payments
  • Figure 11.  Concerns with NFC
  • Figure 12.  Mobile Payment Users and Transaction Volume, 2010–2015 (in Millions)
  • Figure 13.  Global Mobile Payment Users by Technology, 2010–2015 (in Millions)
  • Figure 14.  NFC Handsets as a Percent of Total Handsets by Region, 2010–2015
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Tuesday, March 15, 2011

Introduction of Bill, "Debit Interchange Fee Study Act" Pleases MasterCard

March 15, 2011 12:59 PM Eastern Daylight Time 

MasterCard Statement on Debit Interchange Fee Study Act

PURCHASE, N.Y.--(BUSINESS WIRE)--MasterCard is pleased that members of the United States Senate have come together to introduce the Debit Interchange Fee Study Act, a bill calling for a study and delay in the implementation of the Durbin Amendment. Since the passage of the Durbin Amendment and following the Federal Reserve’s proposed rules, concerns regarding the impact have been raised by organizations representing small financial institutions and credit unions, consumer groups, a variety of federal regulatory bodies and consumers themselves.
“We are encouraged by the bipartisan support calling for a study and delay of the Durbin Amendment and if passed, the bill will enable Congress to take the necessary time to examine the Amendment and study its potential effects on consumers”
“We are encouraged by the bipartisan support calling for a study and delay of the Durbin Amendment and if passed, the bill will enable Congress to take the necessary time to examine the Amendment and study its potential effects on consumers,” said Noah J. Hanft, MasterCard general counsel. “We are confident that a study will show that directing the government to fix prices rather than letting the free market system work will result in higher prices for consumers.”
About MasterCard Worldwide
As a leading global payments company, MasterCard Worldwide prides itself on being at the heart of commerce, helping to make life easier and more efficient for everyone, everywhere. MasterCard serves as a franchisor, processor and advisor to the payments industry, and makes commerce happen by providing a critical economic link among financial institutions, governments, businesses, merchants, and cardholders worldwide. In 2010, $2.7 trillion in gross dollar volume was generated on its products by consumers around the world. Powered by the MasterCard Worldwide Network – the fastest payment processing network in the world – MasterCard processes over 23 billion transactions each year and has the capacity to handle 160 million transactions per hour, with an average network response time of 130 milliseconds and with 99.99 percent reliability. MasterCard advances global commerce through its family of brands, including MasterCard®, Maestro®, and Cirrus®; its suite of core products such as credit, debit, and prepaid; and its innovative platforms and functionalities, such as MasterCard PayPass™ and MasterCard inControl®. MasterCard serves consumers, governments, and businesses in more than 210 countries and territories. For more information, please visit us at www.mastercard.com. Follow us on Twitter: @mastercardnews.

Contacts

Media:
MasterCard Worldwide
James Issokson, 914-249-6286
james_issokson@mastercard.com
Permalink: http://www.businesswire.com/news/home/20110315006813/en/MasterCard-Statement-Debit-Interchange-Fee-Study-Act

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Debit Interchange Fee Study Act Seeks to Suspend Durbin Implementation for Two Years

Seal of the United States Senate.Image via Wikipedia

Bipartisan coalition of Senators: Stop and Study proposed Debit Card rule  

Proposed Fed rule will have unintended consequences for consumers, community banks, credit unions

Tuesday, March 15, 2011  

(U.S. SENATE)  – Senators Jon Tester (D-MT), Bob Corker (R-TN), Jon Kyl (R-AZ), Ben Nelson (D-NE), Tom Carper (D-DE), Pat Roberts (R-KS), Chris Coons (D-DE), Mike Lee (R-UT), and Pat Toomey (R-PA) today introduced legislation to protect consumers, small businesses and rural and small community banks and credit unions from a proposed rule regarding transaction fees on debit cards.

The bipartisan coalition of Senators today introduced the Debit Interchange Fee Study Act in response to concerns of the impact of a proposed rule from the Federal Reserve on consumers and small businesses.

The Federal Reserve is proposing a rule that will cap the interchange fee per debit card transaction at 12 cents, regardless of the size of the transaction. Consumer advocacy organizations have raised concerns that this proposed rule will significantly impact consumers because small banks may limit the size of a debit card transaction or end free checking services.

The Debit Interchange Fee Study Act suspends implementation of the proposed rule and calls for a two year study of debit interchange fees.

“The stakes are simply too high to move forward with this rule without a closer look at the impact on consumers, credit unions, community banks, and the small businesses and jobs they sustain” said Tester, a member of the Senate Banking Committee.  “That is why we need to make sure we stop and study these proposed rules before implementing anything.”

“The federal government shouldn’t be telling private companies what they can charge for goods and services; that’s price fixing, and that’s exactly what the Durbin amendment does,” said Corker, a member of the Senate Banking Committee.  “The hastily passed Durbin amendment will have numerous unintended consequences for debit card users, including reduced access and increased fees.  I’m sympathetic to retailers’ concerns and am open to a better solution, but the Durbin amendment isn’t the answer.”
           
“I’m concerned that the proposed rule dictating debit card interchange fees will have a harmful effect on consumers, small banks and credit unions,” Carper said.  “This legislation will allow Congress and federal regulators to take a thoughtful pause and avoid unintended consequences.”

“The government should not be in the business of setting price controls on any product and implementing this rule would set a precedent for that,” said Roberts. “We need more time to sufficiently review this regulation, because failing to get it right ultimately means it will fall on the backs of consumers, merchants and financial institutions, including our small community banks. And at a time when Americans are watching every penny, we cannot afford to let that happen.”

"The concerns raised by Fed Chairman Bernanke and FDIC Chairman Sheila Bair about the potential harm to credit unions and community banks require further study of the unintended consequences of this rule," Coons said.  "Any government regulation of interchange fees should yield some tangible consumer benefit, but the Fed's current cap offers no such guarantee.  Further study will help yield a more thoughtful, long-term solution."

“Price controls are almost always problematic,” said Lee, who is Ranking Member on the Judiciary’s Subcommittee on Antitrust, Competition Policy and Consumer Rights. “If the rule remains in place, retailers, banks and consumers will lose out in the long run through higher costs and limited choices.  I believe we can form a better solution that does not unnecessarily burden small businesses and local financial institutions or pass fees on to the customer.  The delay in implementing the rule will allow us to find options that benefit everyone.”

A copy of the S. 575 can be found online HERE.


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Cards Asia 2011 to Showcase a Wide Spectrum of Payments Innovation and Applications


Singapore, Mar 15, 2011 - (ACN Newswire) - Smart payments and smart technologies will take centre stage at Cards Asia 2011 on 13-15 April 2011 at Suntec Singapore International Convention & Exhibition Centre. Amidst a buoyant Asian economy, the region's no. 1 cards show expects to attract 8,000 attendees across traditional and new sectors, including banking and financial, telco, retail, government, healthcare, transport and near field communication. Co-located with Cards Asia are seven synergistic events, namely, Prepaid Cards World Asia, RFID World Asia, Near Field Communication (NFC) World Asia, Mobile Money World Asia, Retail World Asia, and the inaugural Digital ID World Asia and Transport Ticketing World Asia.


According to independent smart card industry organisation, Asia Pacific Smart Card Association (APSCA), smart card technology continues to become increasingly pervasive. Some of the regional developments in the last two years include governments' increased smart card rollout for e-government services such as chip-based passports and visas, bank payments being migrated to adopt the EMV standard enabling debit and credit card transactions, digital identification, and mobile payments, or m-payments, which analysts forecast to be US3.6 billion-worth in 2015.


Organised by Terrapinn, the three-day event is bustling with five powered-up conferences to be participated by 700 delegates, over 40 free educational on-floor seminars and an exhibition area spanning 8,000 sqm showcase of the latest in smart technologies. Participants will hear from over 100 esteemed and most sought-after speakers from industries such as banks, telcos, retail and transport.


Richard Ireland, Chief Executive Officer, Terrapinn Asia Pacific: "Cards Asia pioneered the cards and payments innovation show 16 years ago. It has since evolved to cover the broadest spectrum of smart payments and smart technologies today. With the rebound in the Asian economy and our prolific three-day agenda, we expect top-notch attendance from all over the region and outside, and an even more dynamic showcase of innovations and applications which is truly becoming of a 'smart cards revolution'."


Smart Technology Trends as Viewed by Industry Players


Silas Brown, Managing Director, Collis: "In the digital and virtual world, there is steady development from e-Commerce to m-Commerce or mobile commerce. In the real/physical world, the face of proximity payments is shifting from contactless cards to near field communications. Many people see mobile phones as an 'extension of the internet into consumers' pockets. Mobile phones are rapidly becoming a platform for offering all sorts of value-added applications such as banking, ticketing, loyalty and advertising."


Andrew Phay, Vice President and Head of Retail, Wincor Nixdorf, Asia Pacific: "Despite worldwide attempts to move towards cashless societies, nine out of 10 transactions continue to be made in cash globally and the cost of handling notes and coins has reached US$300 billion, according to analysis by consultants McKinsey and Wincor Nixdorf. Cash in circulation continues to rise in mature and developing economies despite the use of electronic payments, according to a variety of central bank data. Retailers suffer the most from the entire cash chain and have to grapple with other cash-related issues such as security, transparency and the continued use of old-fashioned manual processes."


Elias Ghanem, General Manager for Southeast Asia and India, PayPal: "Online retail in Asia Pacific continues to grow at a phenomenal rate, with regional sales of US$150 billion in 2010 expected to grow to US$250 billion in 2012, as Asian consumers are spending more time researching and identifying products online and through their web enabled mobile devices. Fuelled by the popularity and ultimate convenience of smartphones and tablets, mobile shopping are luring consumers to buy anytime and anywhere. M-commerce across the region will grow even faster than online retail sales, from US$43 billion in 2010 to US$139 billion in 2012. With over 100 million smartphones expected to be sold in Asia Pacific this year, m-commerce is a trend that retailers must act quickly on or else risk losing sales in their traditional channels. It will become increasingly important for retailers to offer a range of fast, secure payment solutions across multiple touch points, especially mobile devices."




About Terrapinn


Terrapinn is a Business to Business media company. Our products are trade exhibitions, conferences, training courses and print publications. For more information, please visit: www.terrapinn.com.


Media Contact:


EASTWEST PR for Terrapinn
Melinda Ilagan / Laurent Decosse
Tel: 65.6222.0306
Email: terrapinn@eastwestpr.com


Terrapinn Marketing:


Christine Lee,
Marketing Manager
Tel: 65.6322.2301
Email: christine.lee@terrapinn.com




Mar 15, 2011
Topic: Trade Show or Conference
Sectors: Credit Cards
http://www.acnnewswire.com
From the Asia Corporate News Network 
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