Monday, August 24, 2009

Metavante Says Danversbank to Deploy Rewards Program

Milwaukee, Aug. 24, 2009–-Metavante (NYSE:MV), a leading provider of banking and payments technology, today announced that Danversbank has deployed Metavante Corporation’s expanded rewards and loyalty product to offer its clients a blended rewards program that combines issuer- and merchant-funded rewards. Serving the greater Boston area, Danversbank was founded in 1850 and is the principal subsidiary of Danvers Bancorp, Inc. (NASDAQ:DNBK).

By implementing Metavante’s Points2U Plus offering, Danversbank has expanded and enhanced upon the Metavante-powered rewards and loyalty program that’s been available to Danversbank customers since 2006. Through its deployment of Points2U Plus, Danversbank now awards cardholders with bonus points for debit card-based transactions made at participating retailers — this is in addition to the points a cardholder already earns by using their Dansverbank-issued debit card. The bank is also leveraging Points2U Plus to award double points for card use during seasonal promotions, as well as to reward cardholders with additional loyalty points for the use of other Danversbank services.

“Danversbank continuously looks for ways to provide exceptional service to our customers, and Metavante has been a trusted, collaborative partner who has helped us in that pursuit,” said John Carroll, senior vice president of Operations at Danversbank. “When we are looking to deploy integrated, best-of-breed payments solutions that support our goals and deepen customer relationships, we turn to Metavante. Points2U Plus provides the capacity to tailor Danversbank’s rewards offering to effectively create the customer loyalty that rewards programs are meant to deliver, and most importantly, allows our customers to realize additional value from their everyday purchasing behavior.”

Cardholders can login through the Points2U Web site to view and redeem their points from a Danversbank-branded redemption page, or contact the Points2U call center. The bank’s cardholders have several redemption options, including gift cards, merchandise, travel and downloadable items. Retail recruitment, analytics and customer experience is powered by Affinity Solutions, a leader in merchant-funded rewards programs. Affinity Solutions continually recruits relevant national, regional and local retailers with in-store and online offers across a variety of categories, specifically for participation in the Metavante program.

“Financial institutions increasingly look to payments revenue to maintain market leadership. As rising card activation rates and transaction volumes grow in importance, so too does the ability of a rewards program to attract, retain and improve the loyalty of cardholders,” said Frank D’Angelo, group president, Metavante Payment Solutions. “Points2U Plus makes this competitive tactic available to financial institutions of all sizes, including those without an existing Metavante relationship.”

Available through a wide range of account access channel deployment and customization options, Points2U Plus can support an overarching “relationship rewards” program across multiple product lines, and features a branded points redemption Web site that’s easily identified with the financial institution offering the rewards.

In addition to Points2U, the bank uses a number of products and services powered by Metavante technology, including: risk and compliance, exclusive participation in the NYCE Network for ATM and POS, and a variety of electronic funds transfer solutions including ATM driving, card processing and card personalization.

About Danversbank The bank was founded in 1850 and is a $1.8 billion financial institution operating out of its Main Office at One Conant Street in Danvers, along with 15 other locations in Andover, Beverly, Cambridge, Chelsea, Danvers, Malden, Middleton, Peabody, Reading, Revere, Salem (2), Saugus, Wilmington and Woburn. The bank also has a full service Commercial Banking office at One Post Office Square in Boston. In the fall, Danversbank will open two more full-service branches, the first on Mass Ave. in Boston, and the second on Main Street in Waltham. More information can be found on their web site at www.danversbank.com .

About Metavante Metavante Technologies, Inc. (NYSE:MV) is the parent company of Metavante Corporation. Metavante Corporation delivers banking and payments technologies to approximately 8,000 financial services firms and businesses worldwide. Metavante products and services drive account processing for deposit, loan and trust systems, image-based and conventional check processing, electronic funds transfer (EFT), consumer healthcare payments, electronic presentment and payment, outsourcing, and payment network solutions including the NYCE Network, a leading ATM/PIN debit network. Metavante (www.metavante.com ) is headquartered in Milwaukee.

Source: Company press release.

PreCash Partners with Green Dot

Houston, Aug. 24, 2009--PreCash, its processor Galileo and Green Dot are partnering to give PreCash's prepaid debit card-holders the ability to add cash to their cards at nearly 50,000 additional U.S. retail locations by using a Green Dot MoneyPak. In addition to Direct Deposit, PreCash cardholders can now load cash onto their cards at more locations nationwide, including Walgreens, CVS/pharmacy, Rite Aid, Kmart and Kroger.

To promote this new reloading option, Green Dot and PreCash will be offering PreCash's Vision Premier Prepaid Visa Card with Direct Deposit cardholders a "First Load Free" reward through the holiday season. For Vision Premier Prepaid Visa Card cardholders who load their cards with a Green Dot MoneyPak between August 5, 2009 and December 31, 2009, PreCash will rebate the load fee within four weeks of the transaction with a statement credit. Details about the promotion are available at www.visionprepaid.com .

"We've seen exponential growth with our Vision Premier Card over the last four years as consumers look for credit card alternatives that offer the same convenience, management and protection of plastic, without hidden fees," says John Chaney, Chairman and CEO for PreCash. "With the Green Dot MoneyPak, our cardholders have another safe, convenient and affordable way to add cash to any of their accounts."

Mark Troughton, President of Green Dot Financial Network states, "Green Dot is very pleased to partner with PreCash and provide their cardholders the ease and convenience of loading cash to their Card, at the point-of-sale, at the nation's largest retailers."

"We are excited about the continued growth and success of the PreCash prepaid programs. Providing more convenient options to reload cards through the Green Dot Reload Network will be a great added benefit for PreCash customers," said Todd Brockman, President of Galileo Processing, Inc.

About PreCash, Inc.

PreCash provides convenient, real-time payment solutions that convert cash into electronic payments for consumers who do not use traditional payment methods such as credit cards or bank accounts. PreCash offers the Vision Premier(SM) Prepaid Visa card and other prepaid Visa and MasterCard products, prepaid debit card program management services, real-time cash bill payments, prepaid wireless refills, payroll card products and more. The company places more than 30,000 prepaid debit cards in the market monthly and services more than 30,000 national retail, wireless dealers and independent retail locations nationwide. Founded in 1998, PreCash is headquartered in Houston, Texas, with additional offices in Portland, Oregon. For more information, visit www.precash.com, or www.visionprepaid.com .

Source: Company press release.

Australia Debit Growth Aussome!

Visa and Mastercard Debit cards Taking Charge in AU 24 August 2009 Strong Leap Over Same Period Last Year Consumers put a little more on their credit cards in June but the long term trend continues to be for shoppers to cut back on their use of credit. The latest credit card data from the Reserve Bank, published yesterday, shows that the average card balance rose from $3,094 in May to $3,127 in June but that June figure is down 0.2 per cent on a year ago. The big news is the growth in debit, particularly Visa and Mastercard debit cards. The value of purchases made on debit cards in June was 40 per cent higher than in the same period last year. Debit now makes up 35.8 per cent of card payments in Australia. According to MWE Consulting, debit accounts are increasing at more than twice the rate of credit and charge accounts. “Scheme debit has increased from a 21.3 per cent share of the value of debit purchases in March 2008, when data commenced, to 26.7 in June this year. Share rose 24 per cent over the past 12 months and the trend shows no signs of abating.”

Source : The Sheet

Hackers Exploit Evolving Web

Bits - Hackers Exploit an Evolving Web - NYTimes.com

By SAUL HANSELL

Published: August 24, 2009

The world’s savviest hackers are on to the “real-time Web” and using it to devilish effect. The real-time Web is the fire hose of information coming from services like Twitter. The latest generation of Trojans — nasty little programs that hacking gangs use to burrow onto your computer — sends a Twitter-like stream of updates about everything you do back to their controllers, many of whom, researchers say, are in Eastern Europe.

Trojans once just accumulated secret diaries of your Web surfing and periodically sent the results to the hacker.

By going real time, hackers can get around some of the roadblocks that companies have put in their way. Most significant, they are now undeterred by systems that create temporary passwords, such as RSA’s SecurID system, which involves a small gadget that displays a six-digit number that changes every minute based on a complex formula.

If your computer is infected, the Trojan zaps your temporary password back to the waiting hacker, who immediately uses it to log onto your account. Sometimes the hacker logs on from his own computer, probably using tricks to hide its location. Other times, the Trojan allows the hacker to control your computer, opening a browser session that you can’t see.

“What everybody thought was a very secure identification method, these guys found a low-tech means to get around it,” said Joe Stewart, the director of malware research for SecureWorks, a software company. “They don’t break the encryption; they just log in at the same time you do.”

hackers, web, browser, don't type, swipe

Bing's Wolfram Alpha Move

About 3 months ago in a post entitled: Wolfram Alpha...Better than Segway! there was speculation that Google and Wolfram Alpha might work together...but 3 months later, it's Microsoft's Bing who enters the fray.

Microsoft's Bing search engine and Wolfram Alpha have reached a
licensing deal that allows Bing to present some of the specialized
scientific and computational content that Wolfram Alpha generates,
according to a source familiar with the deal.

Representatives from Microsoft and Wolfram Research declined to comment on the deal.

Wolfram Alpha's unique blend of computational input and curated output has not taken the world by storm, but it is considered an interesting enough take on the business of internet search to attract high-profile attention within the industry.

Wolfram Alpha does not return the usual list of links to pages with search keywords, instead providing answers to questions such as stock prices and complex mathematical formulas — with mixed results.

Bing, on the other hand, is enjoying a solid start in the three months since it made its debut as it gains users, and it will at some point be the default search experience on Yahoo's highly trafficked pages following a long-awaited deal.

It is not clear whether Bing results will carry Wolfram's branding (that is, results 'Powered By Wolfram Alpha'), but there will be some sort of presence.

It is unlikely that Bing is going to turn over the bulk of its results to Alpha, however. In a blog post on Friday, Wolfram founder Stephen Wolfram admitted that linguistic problems are to blame for half of the occasions when Wolfram Alpha does not return a result. That percentage is changing as Wolfram refines the science behind Wolfram Alpha, but it will take some time.

This article was originally posted on CNET News.

MasterCard Settles with NZ Commerce Commission on Interchange Fees

Media Release Issued 24 August 2009/No. 20

Commerce Commission and MasterCard agree to settle credit card interchange fee proceedings

The Commerce Commission and MasterCard International Incorporated (MasterCard) have signed an agreement settling the Commission’s claims that MasterCard’s credit card scheme rules providing for the payment of multilateral interchange fees, together with related rules, breached the restrictive trade practices provisions of the Commerce Act.

The Commission and MasterCard have agreed to resolve the Commission’s claims on substantially the same basis as the Commission’s settlement with Visa, which was announced on 12 August 2009.

The agreement with MasterCard requires MasterCard to alter the way its scheme rules will apply in New Zealand. The changes include:

Credit card issuers will now be able to individually set the interchange rates that will apply to transactions using their credit cards, subject to maximum rates determined by MasterCard. These rates will be publicly available.

Merchants will no longer be prevented from applying surcharges to payments made by credit cards or by specific types of credit cards. Any surcharges will be disclosed to cardholders at the time of sale and bear a reasonable relationship to the merchant’s costs of accepting MasterCard products. Merchants will also be able to encourage customers to pay by other means.

MasterCard has confirmed that non-bank organisations or companies who might wish to provide acquiring services to merchants are permitted to join the MasterCard network as acquirers if they meet relevant financial and prudential criteria.

“The agreed changes to the MasterCard rules will boost competition in the provision of credit card services to retailers in New Zealand,” said Commerce Commission Chair Dr Mark Berry. “The Commission is pleased that MasterCard has agreed to settle the Commission’s claims on the same basis as Visa.”

“The settlement can be expected to reduce overall costs to consumers of payment systems by driving down interchange fees and facilitating merchant steering towards lower cost payment methods. It will also ensure that costs of credit card use fall to a greater extent on the card users themselves, who can make informed choices about payment methods, and less on other consumers,” said Dr Berry.

MasterCard has agreed to contribute $3 million towards the Commission’s costs to date in bringing these proceedings.

On the basis of the settlement agreement the Commission will be seeking leave to discontinue its proceedings against MasterCard in the High Court. The Commission’s claims against ANZ National Bank Limited, Bank of New Zealand, Westpac New Zealand Limited, ASB Bank Limited, Kiwibank and TSB Bank Limited in relation to interchange fees in the Visa scheme continues, as does its claim against those banks and The Warehouse Financial Services Limited in relation to the MasterCard rules. The Commission’s remaining claims will be heard at the High Court in Auckland in October this year.

The Commission will be making no further comment at this time, due to the remaining claims yet to be heard. A public version of the settlement agreement with MasterCard can be found attached to this media release and on the Commission’s website.

Background

Settlement with Visa. The media release Commerce Commission and Visa reach agreement to settle credit card interchange fee proceedings is available on the Commission’s website www.comcom.govt.nz under Media Centre/Media Releases

Interchange fees. Each time a New Zealand Visa or MasterCard cardholder makes a purchase, the card accepter (usually a retailer or service provider) pays a fee to their own bank as part of the payment authorization process. That fee is comprised mainly of the interchange fee, which is paid to the cardholder’s bank.

Visa and MasterCard purchases occur in a four-party card system, which operates as follows:

Cardholder purchases goods or services from a merchant;

Merchant sends the transaction details to its own bank (acquiring bank);

Acquiring bank sends the transaction details to the bank or financial institution that issued the card (card issuing bank);

Card issuing bank pays the acquiring bank the retail price of the goods or services less the interchange fee;

Acquiring bank pays the merchant the retail price less a merchant service fee;

Card issuing bank debits the retail price from the cardholder’s account.

The retailer or service provider that has incurred the interchange fee is not allowed to recover the fee from the cardholder, so must average out the cost of that fee across all of their sales. This increases the cost of every item or service sold by businesses which accept Visa or MasterCard. All customers of those businesses bear that averaged fee, regardless of whether the customer pays by credit card, cash, EFTPOS or another payment method.

Credit card usage in New Zealand.

In 2004 there were approximately 2.1 million Visa cards and 900,000 MasterCard cards in use in New Zealand.

In 2004 Visa had 61 per cent of the New Zealand credit card billings, and MasterCard had 29 per cent of the market.

Relevant sections of the Commerce Act. The proceedings are brought under sections 27 and 30 of the Commerce Act 1986. Section 27 prohibits contracts, arrangements or understandings that substantially lessen competition. Section 30 prohibits price fixing, which is when people or businesses that are in competition with each other agree to control, fix or maintain the prices for the goods or services that they supply. Price fixing is deemed to substantially lessen competition under section 27 of the Commerce Act.

Penalties. The Commerce Act provides for penalties for price-fixing of up to the higher of $10 million per breach, or either three times the commercial gain resulting from the breach or 10 per cent of a company’s turnover.

International action on interchange fees. Interchange fees have been scrutinized by many international regulatory agencies. In 2003, the Reserve Bank of Australia moved to regulate the level of interchange fees, reducing the fees over time from 0.95 per cent of transaction value to less than 0.50 per cent. Public and private competition enforcement actions have also been brought in respect of interchange fee arrangements in numerous jurisdictions, including the United States and the UK.

Media contact:

Allanah Kalafatelis, Communications Manager

Phone work (04) 924 3708, mobile 021 225 4417

Felicity Connell, Senior Communications Adviser

Phone work (04) 924 3709, mobile 021 225 4454

Commission media releases can be viewed at www.comcom.govt.nz

Three Merchants to Offer Moneta Bank Payments

Three Specialty Internet Merchants to Offer Moneta Bank Payments

Three
online specialty retailers, Trade as One, Pro-Techt and Global Living,
will offer Moneta as their newest online payment option. Moneta offers
consumers a secure, free online payment method which enables them to
safely pay from their bank account without leaving the merchant site or
disclosing sensitive information.

Atlanta, GA
(PRWEB) August 25, 2009 -- Three online specialty retailers, Trade as
One, Pro-Techt and Global Living, will offer Moneta as their newest
online payment option. Moneta offers consumers a secure, free online
payment method which enables them to safely pay from their bank account
without leaving the merchant site or disclosing sensitive information.

"Moneta provides the best combination of low costs and sales uplift
available that we've found in an online payment method," said Stuart
Rentz, COO of Trade as One. "As a Fair Trade retailer, we are always
looking for cost-effective ways to attract new customers to our site.
The access Moneta provides to acquire new customers through their bank
marketing programs is very appealing to us. We are looking forward to
offering Moneta to our customers and participating in their national
bank marketing campaigns."

Customers set up their free Moneta account conveniently through a single enrollment process at www.monetacorp.com
setting a username, password and designating a bank account for the
online payments. When shopping online, the consumer simply logs in, and
completes the transaction within seconds, without leaving the merchant
site or revealing sensitive information.

"Specialty merchants face many challenges in keeping costs low and
attracting new customers," said Guido Sacchi, CEO of Moneta
Corporation. "We are committed to providing the best balance of low
cost payments and incremental sales opportunities for Moneta's merchant
partners. Moreover, Moneta provides specialty as well as mass-market
merchants' access to a high quality, low-risk consumer base through our
bank marketing programs."

Consumers shopping with Trade as One, Pro-Techt and Global Living may
make purchases using the Moneta payment option in early September.
TradeasOne.com, an Internet retailer of Fair Trade gifts, enables
consumers to fight global poverty by purchasing products from artisans
in the developing world. Pro-Techt develops and markets products that
provide healthier, safer, and more enjoyable outdoor experiences.
Global Living is an online and brick and mortar urban home furnishings
store offering unique one-of-a-kind antiques and artisan pieces mixed
with new and modern furniture.

About Moneta Corporation

Moneta Corporation is a leading
payments company offering secure, convenient methods for consumers to
pay online merchants directly from their checking or money market
accounts. Moneta partners with online merchants and banks to accept and
process payments, while providing additional branding opportunities and
revenue streams. Moneta's rapidly growing partner network enables
online retailers and travel providers to attract valuable customers
with a preference for paying directly from their well-established bank
accounts. Moneta is a privately-held company headquartered in Atlanta,
Ga. For more information, visit www.monetacorp.com.

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Cadivi's $300 Million Debit

A $300 Million Debt

Cadivi delinquent before the national banking system

The chairman of the Currency Administration Commission (Cadivi), Manuel
Barroso, reported that the managing entity owes $300 million to the
financial system. This amount corresponds to the money which credit
card users spend abroad, which has been regulated by the government for
the past six and a half years. Some banks have prohibited the use of
credit cards abroad because of the government's delays in paying up.

The banking institutions are not inclined to use their assets to pay
Visa, MasterCard, Diners Club and American Express operators.

Trade
Minister Eduardo Saman announced that institutions which block the use
of credit cards without justified reason -- overdrafts or failure to
pay -- will be fined. Venezuelan credit card holders may not spend mor
than $2,500 per year on consumption, according to regulations laid down
by Cadivi. The government is studying increasing the amounts based on
duration and destination.

Want to understand more about Cadivi? Click here

Nevada Prepares for Online Gambling Legalization

INTERNET GAMBLING: Nevada prepared for the 'if'

State could assume leadership role if legislation passes

By HOWARD STUTZ

Nevada, where declining gaming and sales tax collections have ravaged the biennial budget, could benefit financially if a bill to legalize Internet gambling in the United States is approved by Congress.

The potential, however, rests on a big IF.

Editor's Note: IF and when itis passed, don't forget that Nevada passed a new law which mandatesbusinesses to comply with PCI when collecting or transmitting paymentdata.

Nevada Mandates that "ALL" Merchants Comply with PCI
A First: PCI ComplianceMandated for State's Merchants. Nevada, has passed a new law that, asof next year, requires businesses to comply with PCI when collecting ortransmitting payment card information.

A House of Representatives resolution was introduced in May that would establish a framework to permit licensed online gambling operators to accept wagers from inside the United States. Legal experts said Nevada has the statutory structure in place to investigate and license online gaming companies. Also, Nevada could become the premier American jurisdiction for hosting Internet casinos.

If the sites were to operate from Nevada, gaming regulators said the online businesses would have to pay upfront fees. Also, the online casinos would be taxed at the same rate as Strip casinos, now 6.75 percent on gaming revenues.

Again, a big IF because the keys to the whole deal rest with the 111th Congress some 2,500 miles to the east in Washington, D.C. Federal lawmakers have focused attention on health care reform, the nation's economic crisis and other matters, setting aside issues such as Internet gambling.

"(Debate on the bill) probably won't happen this year," said former Sen. Richard Bryan, an attorney with Lionel Sawyer & Collins, who spent 12 years representing Nevada in the U.S. Senate as a Democrat. "My sense, however, is that there is a gathering, gradual momentum where, eventually, Internet gaming will occur and be regulated," Bryan said. "I'm just not sure if it has reached critical mass yet."

Lack of action hasn't stopped interest in the subject.

Bryan and fellow Lionel Sawyer & Collins attorney Greg Gemignani said the firm has been approached by potential clients who want to set up Internet gambling businesses in Nevada should the activity be legalized. Nevada lawmakers enacted the process to license Internet gaming in 2001 but the state's effort went dormant a year later when there wasn't any action on the federal level.

If Internet gaming is legalized under the current bill in Congress, Nevada could be chosen by the Department of Treasury to determine whether an applicant is suitable for federal gaming licensing.

BENEFITS TO NEVADA

Observers believe Nevada, which legalized casinos in 1931, stands to benefit because the state has investigated and licensed gaming companies and regulated the industry longer than any other jurisdiction.

"The suitability requirements under the current bill look like a subset of what Nevada already requires," Gemignani said. "Given Nevada's current laws permitting interactive gaming licensing, Nevada is well-placed to be at the forefront of regulating online gaming and providing assistance to the federal government in determining the suitability of applicants."

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Verifone Introduces MX ATM Cash & Payments System for Latin America Market

Partners with PROSA on Customized Payment Kiosk for Mexico Retail Stores

MIAMI, Aug. 24 /PRNewswire-FirstCall/ -- VeriFone Holdings, Inc. (NYSE: PAY - News), today introduced the MX ATM, a new convenience retail payment kiosk with cash dispensing and deposit functionality, designed for the Latin America market. PROSA, Mexico's largest electronic switch and processor, partnered with VeriFone for a customized solution that it plans to roll out nationally throughout retail locations in Mexico.

The VeriFone MX ATM is a family of secure, simple-to-use payment and cash dispensing kiosks, intended for environments such as hotels, department stores, night clubs, and enterprises.

Merchants can install the MX ATM kiosks to dispense cash, balance inquiry and to provide a variety of value-added services including telco top-up, bill payment, redemption and reloading of prepaid cards.

"VeriFone's MX ATM provides PROSA with a new solution to increase customer loyalty, reduce operating costs and expand our reach to dispersed points of service," said Miguel Angel Balcazar, new business executive director for PROSA.

MX ATM decreases cash management and security costs for retailers by providing a tool for cash recycling. The MX ATM can also be configured to include other peripherals such as barcode readers, biometric readers and coin acceptors for deployment in different environments, such as parking and mass transit.

"VeriFone continues to develop new secure electronic payment solutions tailored to the needs of local markets," said Fernando Lopez, senior vice president and general manager for VeriFone Latin America and the Caribbean. "MX ATM can be custom-configured to meet the specific needs of an organization and provides the highest security to ensure integrity of remote operations."

Among the MX ATM's most important features is its advanced monitoring capability, highly secure environment, including 3DES, EMV, and PCI-PED, electronic locks, optional ink dye systems, several optional vaults, virus-free Linux environment, designed to operate in the most demanding environments.

Additional Resources:

www.verifone.com/mx-atm

About VeriFone Holdings, Inc. (www.verifone.com)

VeriFone Holdings, Inc. ("VeriFone") (NYSE: PAY - News) is the global leader in secure electronic payment solutions. VeriFone provides expertise, solutions and services that add value to the point of sale with merchant-operated, consumer-facing and self-service payment systems for the financial, retail, hospitality, petroleum, government and healthcare vertical markets. VeriFone solutions are designed to meet the needs of merchants, processors and acquirers in developed and emerging economies worldwide.

Verifone MX ATM, PROSA, Verifone Holdings, PAY

Monitise Buys Vocalink

Finextra:

Monitise buys out Vocalink to take control of Monilink network

Monitise has bought out joint venture partner VocaLink to take full control of UK mobile banking and payments network Monilink. Monitise will pay an initial £1.5 million in cash over three years for debt-free, 100% ownership of the network.

VocaLink will continue to provide Monilink with access to its banking and payments infrastructure, in return for services fees. The firm could also earn up to £1.5 million in further consideration, subject to Monilink beating financial performance targets, between now and June 2013.

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Saturday, August 22, 2009

International ACH Payout Option Offered by Webmasterchecks

Webmasterchecks Releases New International ACH Payout Option

Check
payout processor Webmasterchecks announces they are now able to provide
International ACH Services for companies interested in making direct
payments to Canada, Mexico, and European countries such as Austria,
Germany, The Netherlands, Switzerland and the United Kingdom.

Surprise, AZ (PIN Payments Blog) August 22, 2009 -- Arizona-based check payout processor Webmasterchecks has announced they are now able to provide International ACH Services (PDF) for companies interested in making direct payments to Europe, Canada, and Mexico. These new payment options allow international affiliates of Webmasterchecks clients to receive their funds directly to their bank accounts in a shorter time span than previous methods, as well as ACH being generally recognized as among the most commonly used payment transfer methods in those regions.

"We have made transactional arrangements with U.S. Bank" said Rich Lloyd, of Webmasterchecks" to expand our international ach payment methods that we offer to include an ACH solution for Canada and Mexico, as well as Austria, Germany, the Netherlands, Switzerland and the United Kingdom, which is a very big step forward for our company and our clients because citizens in many areas of those regions are very familiar and comfortable with ACH, much more so than other payment types such as foreign checks, for instance."

That
makes the accounting side of the equation much easier with the
transactions instantly reported and the electronic data-trail far
easier to work with than a traditional paper-trail from thousands of
physical checks.

U.S. Bank is the 6th largest commercial bank in the United States, backed by its parent company U.S. Bancorp (NYSE: USB), a publicly traded financial institution with $266 billion in assets. The bank operates 2,850 banking offices and 5,173 ATMs along with its concentration in paperless payment processing.

Automated Clearing House (ACH) transactions are quickly becoming popular in Europe, as the individual European governments are quickly expanding infrastructure to accommodate Single Euro Payments Area (SEPA), an initiative for the European financial infrastructure which involves the creation of a zone for the euro in which all electronic payments are considered domestic, and where a difference between national and intra-European cross border payments does not exist.

"Business owners are seeing International ACH as a increasingly useful payment tool because the transactions are booked directly with the bank and can be settled in a variety of currency choices" said Rich Lloyd. "That makes the accounting side of the equation much easier with the transactions instantly reported and the electronic data-trail far easier to work with than a traditional paper-trail from thousands of physical checks."

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Hacker Costs Keep Growing

Millions in expenses for Mass. companies follow data breaches

By Todd Wallack, Globe Staff | August 22, 2009

The massive credit card data thefts linked to Miami hacker Albert Gonzalez have cost New England companies several hundred million dollars.

Gonzalez and several unnamed accomplices were accused this week by the Department of Justice of conspiring to steal 130 million credit cards - the largest data breach reported - after penetrating the computer networks of major retailers and a credit card processing company, Heartland Payment Systems.

Gonzalez was previously charged with orchestrating the heist of more than 40 million credit cards from nine retailers, including discounter BJ’s Wholesale Club of Natick and Framingham-based TJX Cos., which operates TJMaxx and Marshalls stores.

Those companies in turn say they have been forced to spend millions of dollars to contend with the damage.

TJX said it has spent $132 million on expenses related to the breaches, including the cost to investigate and contain the intrusion and to handle lawsuits and other legal claims. It has set aside another $39.5 million to handle further claims. Spokeswoman Sherry Lang said TJX has also spent millions of dollars beefing up its computer security.

The retailer has faced a raft of litigation initiated by banks, individuals, and government agencies accusing TJX of lax security that allowed hackers to penetrate its network and obtain millions of card numbers. In June, for instance, TJX struck a $10 million deal to settle a lawsuit brought by 41 states alleging the company did not do enough to protect customers. And it spent $65 million to settle suits by banks that issued Visa and Mastercard credit cards.

Meanwhile, BJ’s set aside $13 million between 2004 and 2007 to handle claims for fraudulent credit and debit card charges and the cost of replacing cards, offering credit monitoring, and related expenses. But it also cautioned that it faced a number of outstanding legal claims. BJ’s officials did not respond to requests for comment.

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Friday, August 21, 2009

$38 BILLION Dolllars Later...Someone Noticed!

Yesterday the New York Times wrote an editorial piece entitiled: The Debit Trap. A more accurate title would have been "The Signature Debit Trap" but, nonetheless, they made their point. I started a company with an associate (later sold to Pay By Touch) called "P.A.I.D." an acronym for "Payment Authorized Instantly Debited" which transformed a paper check into a one-time debit transaction.

The business was based on the fact that, back then, debit transactions were approved only if funds were available in the account. As paper check use dwindled and check card use rose, banks saw a drop in revenue derived from bounced checks. So, guess what? They lifted the restriction on "signature debit" cards being approved only if funds were available...in order to derive bounced "check card" fees.

It took a $38 Billion dollar year before anyone noticed, but apparently the NY Times has: Here's what they have to say: But first, the question begs to be asked. If banks "did not" generate $38 Billion by charging $35 for a cup of coffee, how much would the bailout have cost tax payers? Hmmmm.... (oh, and by the way, if you enter your PIN every time you make a purchase, you would avoid these fees, because PIN debit transactions are "declined" if funds are not available.) Do you see why the banks and card companies push the less secure signature debit card by attaching rewards. The real reward is the $38 billion to the banks and the extra 100+ basis points derived from Interchange.) But don't listen to me. I'm just being cynical.

Editorial from the New York Times: Published: August 19, 2009

Not many people would knowingly pay more than
$35 for a cup of coffee. But far too many people are getting saddled —
with no warning — with outsized bills for minor purchases, under a
euphemistically labeled “overdraft protection program” that most major
banks have adopted over the last 10 years.

Before that, most banks would simply have rejected debit transactions, without a fee, when the card holder’s account was empty. Now, they approve the purchase and tack on a hefty penalty for each transaction.

Moebs Services, a research company that has conducted studies for the government as well as some banks, reported recently that banks will earn more than $38 billion this year from overdraft and bounced-check fees. Moebs also estimates that 90 percent of that amount will be paid by the poorest 10 percent of the customer base.

Federal regulators who stood idly by while this system evolved are considering new overdraft rules that could provide more transparency. If they do not move quickly and aggressively to protect consumers, Congress should step in.

Banks have historically covered bad checks for valued clients, who were invited to opt in to overdraft protection or to link their checking accounts to savings accounts or to lines of credit. But as more people began to use debit cards, the banks started to view overdraft fees as a major profit center and started to automatically enroll debit card holders into an overdraft program. Some banks instituted a tiered penalty system, charging customers steadily higher fees as the overdrafts mount.

A study by the Center for Responsible Lending, a nonpartisan research and policy group, describes what it calls the “overdraft domino effect.” One college student whose bank records were analyzed by the center made seven small purchases including coffee and school supplies that totaled $16.55 and was hit with overdraft fees that totaled $245.

Some bankers claim the system benefits debit card users, allowing them to keep spending when they are out of money. But interest rate calculations tell a different story. Credit card companies, for example, were rightly criticized when some drove up interest rates to 30 percent or more. According to a 2008 study by the F.D.I.C., overdraft fees for debit cards can carry an annualized interest rate that exceeds 3,500 percent.

The banks, which have grown addicted to overdraft fees, will almost certainly resist new regulation in this area. But there are several things that federal regulators must do to protect the public.

First, banks must be barred from automatically enrolling customers in overdraft programs. This must be a service that customers opt in to — and only after they are provided full information about the fees and the penalties they will incur. These disclosure statements must meet the same rules laid out in truth-in-lending laws, since overdraft charges are essentially short-term loans.

Banks must also be required to warn customers in real time when a debit card charge will overdraw their accounts — and what fees they will incur if they still decide to proceed with the purchase.

This will require new technology. But there is almost no chance that the banks will invest in it unless they are legally required to do so. Until that happens, buyers beware. That cup of coffee may be even more expensive than you realize.

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Experts: More Heartland Style Breaches Expected: This is Probably Just the Start!

Experts: More Heartland-Style Breaches Expected

Despite Arrests, Analysts say 'This is Probably Just the Start'

Linda McGlasson, Managing Editor

The announcement by federal prosecutors that three hackers have been indicted for the Heartland Payments System breach comes a week before the payments processor faces a judge in federal court over two class actions suits.

In response to the indictments, information security experts say this activity might represent a battle won, but the war against hackers is nowhere near over. "

The fact that three folks (assuming that that's all there were) can do all this says that it's pretty darn cost-effective to steal card data," says David Taylor, founder of the PCI Knowledge Base. "Talk about 'low overhead.'" "It's always great to see the bad guys being hauled in, especially with a case this big, but it would be a mistake to assume that there aren't other criminals out there with similar goals and skill sets," says Tom Wills, Senior Analyst, Security & Fraud at Javelin Strategy and Research. Because law enforcement and the various victim companies' fraud departments did such a good job of investigating the case, it looks like prosecutors stand a good chance of getting a conviction, he notes. "Although we now know the form of attack that (Albert) Gonzalez and his accomplices used, it would be valuable for the information security community to get a detailed, blow-by-blow description of both the attacks and countermeasures adopted against them."

First Signature Capture PIN Pad to Achieve PCI 2.x Approval

Fremont, Calif., Aug. 20, 2009--UIC’s PP795 received formal PCI approval on August 19, 2009.

The PP795 is the first signature capture device to achieve approval under the newly strengthened PCI 2.1 requirements. PCI now requires MSR security to protect card data in the terminal.

"PCI approval of the PP795 demonstrates UIC’S expertise and leadership in designing and manufacturing advanced payment devices," says Tom Siegler, VP and GM for UIC USA. "We are very proud to bring the first signature capture enabled PIN pad terminal to market with MSR security."

Editor's Note: I suppose that PCI approval of HomeATM's SafeTPIN demonstrated our expertise and leadership in designing and manufacturing "advanced" payment devices as well and we remain the first and "only" eCommerce enabled PIN Pad terminal in the marketplace!

PP790SE Features:(click here for PDF)

Excellent price/performance

Fully programmable

Outstanding color display

Resistive touch/signature pad for high quality capture

OPOS and JavaPOS compliant

Secure remote Key Management

PCI 2.1 approved and EMV certified

Supports up to six languages

Excellent ergonomics

Countertop, handheld or stand-mounted use
Micro SD card and contactless payment options

The PP795 will be shipping in Q3 2009 equipped with UIC's high performance MSR and optional card readers.

UIC continues our commitment to developing cost-effective, high performance products for the retail and banking markets.

Visit us at www.uicusa.com to see our full line for data collection and transaction processing products.

About UIC:

Since its inception in 1985, UIC (Uniform Industrial Corporation) has been a leader in Electronic Commerce/Data Collection systems and components for Banking, Retail, Access Control, Lead Capture, and Auto-ID solutions. UIC designs, develops, and manufactures easy to use products that combine affordability and reliability with high quality and performance. Headquartered in Taipei Taiwan with full service operations in Fremont, CA and Dundee UK, UIC has a worldwide network of Clients, Resellers and Distributors.

Source: Company press release.

"Payments Opportunites: Finding the White Space"

Payments Opportunities: Finding the White Space

Report Published by Celent

Electronic
payments remain an area of high growth, with a 10% to 20% CAGR around
the world. There is huge untapped potential in markets such as
Indonesia, Russia, China, India, and Saudi Arabia. Yet market entry can
be difficult, with economies of scale and network effects creating huge
barriers to entry. By establishing a clear target based on geography,
customer and payment flow, new entrants can create viable niches.

In a new report, Payment Opportunities: Finding the White Space, Oliver Wyman examines various opportunites for new payment plays across the globe.

Prepaid cards used for business to individual payments, such as
payroll cards for U-Haul and employee inscentive programs for Coca-Cola.

Airline ticket payments in China with China PnR.

Alternative electronic payment systems (AEPS) in Russia such as
OSMP and Cyberplat. These providers accept cash for payments such as
mobile top-ups and charging a convenience fee to the payer.

In each case, the payments concentrated on a specific type of
customer, with a specific payment need and created a value proposition
that resonated across the payment value chain.

"The payments sector is turning heads," says Paul Mee, coauthor of
the report. "It is growing dramatically and undergoing radical change
across multiple markets and dimensions. Payments represent a relatively
low capital intensity, lower risk annuity business—accessible to anyone
with customer insight, confidence, and the right capabilities."

"To focus on a winning solution, the best way forward now is to spot
frictions in a particular payment flow, geography, or customer group
and to develop tailored payment propositions to remove those
frictions," adds Zilvinas Bareisis, coauthor of the report.

This 32-page report contains 13 exhibits. A table of contents for this report is available online.

Members of Celent's Retail and Business Banking and Corporate Banking research services can download the report electronically by clicking the icon to the left. Non-members should contact info@celent.com for more information.

About Celent

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally experienced analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

New York - Dana Lautin

dlautin@celent.com

Tel.: +1 646 364 8254

Paris - Alexandra Vouge

avouge@celent.com

Tel.: +33.1.73.04.46.26

Tokyo - Yumi Nagaoka

ynagaoka@celent.com

Tel.: +81.3.3596.0020

Internet slowly wakes up to PayPal's quiet fee hike

PayPal made some policy changes in June, but it's likely that you haven't heard much about them until very recently. That's because the company quietly slid in extra fees that will affect nearly all users but failed to be transparent about the changes. Now, the Internet is slowly discovering what happened, and no one is happy about it.

PayPal has generated its fair share of controversies over the years, but it has begun to stir up another one by adding new transaction fees that affect all customers—without telling anyone about them. The company slipped the fees in with a more general update to its "send money" service in June, but because the changes were so well hidden, the Internet has been slow to wake up to what amounts to a good increase in PayPal's income.

Under the previous system, fees were charged based on the type of account the receiver was using as well as where the money was coming from. If the receiver was a premium or business account owner, he or she was charged 30¢ plus 2.9 percent of the transaction—the same applied to all accounts if the money was coming from a credit or debit card instead of a PayPal balance or directly from a bank account. People using personal accounts could make all these payments to anyone else for free.

In June, PayPal made a number of changes to its User Agreement and posted an update to the PayPal Blog. At that time, director of product marketing Heinz Waelchli wrote that PayPal had now begun allowing those with business and premium accounts to make personal transfers to friends and family for free. This, in itself, is a welcome update—I use my PayPal account to receive payments for items I sell on Etsy, but now I can send money to my brother from the same account without either of us having to give PayPal a cut.

What PayPal failed to do was inform users of the fact that any transfer having to do with goods or services will be charged the 3¢ + 2.9 percent fee no matter who or where it's coming from. This includes payments sent from personal accounts as well as payments made after someone has sent you a request for payment (even if that request has nothing to do with goods or services).

Continue Reading at ARS Technica

eMarketer Revises US Retail eCommerce Growth Forecast

Retail E-Commerce Continues Slow Slide AUGUST 21, 2009

Consumer spending recovery lags

eMarketer has revised its forecast of US retail e-commerce sales growth after a lackluster first half of 2009. Retail e-commerce sales, excluding travel, are expected to contract by 3.1% this year.

Growth will resume in 2010, at 5.5%, as consumer spending recovers from the recession. By 2011, eMarketer expects pent-up demand to accelerate growth, peaking in 2012. Retail e-commerce sales will continue to increase, but the rate of growth will fall off in 2013, continuing the pre-recession trend of strong but slowing growth.

Previously, eMarketer projected flat growth for retail e-commerce, expecting declines in the first half of the year followed by second-half recovery. But August figures from the US Department of Commerce (DOC) show sales decreased more than expected in Q2, falling 4.5% year over year to $30.77 billion.

”While many economists see signs of an economic recovery, consumer spending online and offline is still in the doldrums, as evidenced by poor back-to-school sales,” said Jeffrey Grau, eMarketer senior analyst.

According to comScore, US retail e-commerce sales declined by 1% year over year in Q2 2009, after a stagnant Q1.

“DOC retail e-commerce sales estimates have historically validated comScore’s sales figures,” noted Mr. Grau. “However, for Q2 2009, comScore reports a less severe—yet nevertheless dismaying—sales contraction.”

“The marginally negative growth in Q2, on the heels of flat growth in Q1, signals that online retail spending has yet to turn the corner after a disappointing end to last year,” said comScore chairman Gian Fulgoni in a statement.

“Unfortunately, it appears that the reality of nearly 10-percent unemployment and rising gas prices, coupled with an increased savings rate, continues to hold down consumers’ discretionary spending,” added Mr. Fulgoni. “It may still take some time to dig our way out of this recession.”

Keep up on the latest digital trends. Learn more about an eMarketer Total Access subscription, today.

Mercator Examines Changes in Acquiring Market

Merator Advisory Group's (http://mercatoradvisorygroup.com/ ) annual report on the merchant acquiring industry in the United States is now in its third year. While developments in this market unfold at a surprising pace, the old cliche about "the more things change" has never rung so true. Accelerating change seems to be the new constant.

In our first two years doing the acquiring market overview, we identified and delineated trends in the space that have accelerated and, in some cases, have come to their full fruition. Notable among the topics we've analyzed and discussed in reports, as well as in advisory sessions with our clients, has been growing competition for merchant customers between banks and non-banks (ISOs), and the seeming push on the part of banks to "reintermediate" themselves in the merchant card acceptance value chain in a more significant way. Value-added services and technology continue to play a larger role as the commoditization of payment processing services truly begins to hit home for acquirers. The evolving scope of PCI is also fresh in the minds of our clients and other participants in the space as the industry saw the announcement of two major breaches of payment card information at payment processors over the last year.

Last year's report predicted a perfect storm converging on the acquiring space that would significantly alter the industry landscape. Many of the same issues are still brewing - a still-foundering economy and lingering recession, new laws regulating the payments space, and another round of pending legislation targeting interchange and the cost associated with merchant card acceptance being chief among them. The third key issue that we identified last year, however - dissolution of the largest acquiring operation in the world - has evolved into a new instance of market consolidation with the announcement of a different joint venture between two of the top 3 acquirers in the US market. The space has been ripe for consolidation over the past few years, and the economy and the other market forces we've alluded to have pressed the issue.

As merchant acquiring faces its existential crisis, the question of what it truly means to be a merchant acquirer naturally arises. In this year's report, we update our discussion of the various basic business models used by acquirers and other participants on the merchant side of the payments value chain to go to market in the US, and increasingly in other parts of the world. We also examine updated industry data concerning the market performance of the top players in the space and we make projections about how these players might stack up in the years ahead. Finally, we further explore the impact and potential impact of some of the secular trends within Payments and their effect on the acquiring business in particular, now and in the future.

"The economic downturn was the single biggest determining factor in the various performance records of the nation's largest acquirers in 2008. Merchant attrition and declining volume growth due to reduced consumer spending both had a large impact on merchant acquirers' business," comments David Fish, Senior Analyst in Mercator Advisory Group's Credit Advisory Service and author of the report. "As we consider the merchant acquiring space currently, and where it might be headed, we need to take into account many of the trends and the market events that stand to have a broad impact, either as catalysts or symptoms of these trends. Whether the issues at hand are a root cause of market dynamics or the result of them, change is happening in the space either way. Fortunately, the acquiring side of the payment chain has a long history of fighting tooth and nail for its slice of the action."

Report Highlights Include:

Change is the new constant in the US merchant acquiring space, with the pace accelerating as pressure from market forces intensifies.

However, the forces impacting the domestic acquiring market remain largely the same. Acquirers have been adapting to the new normal in a variety of ways.

We provide an expanded taxonomy of the 7 basic business models acquirers use to further clarify what it means to be an acquirer.

Market data covering the top 10 US acquirers is delineated and analyzed, and our projections for acquired bankcard volume suggest a very different landscape within five years.

The market is poised to continue a trend of consolidation, driven by the economy, new complexities arising from data security issues, and increasing competition between banks and non-banks.

This report contains 29 pages and 11 exhibits

Companies Mentioned in This Report:

Advent International; Alliance Data; American Express; Banc of America Merchant Services; Chase Paymentech; Citi Merchant Services; Discover; Elavon; Fifth Third Processing; First Data; First National Merchant Solutions; Global Payments (GPN); Heartland Payment Systems (HPY); Intuit Payment Solutions; Kohlberg, Kravis & Roberts (KKR); MasterCard; Moneris; National Processing Corp. (NPC); Network Solutions; RBS WorldPay; SunTrust Merchant Services; TSYS; Visa; Wells Fargo Merchant Services.

Members of Mercator Advisory Group have access to these reports as well as the upcoming research for the year ahead, presentations, analyst access, and other membership benefits. Please visit us online at http://www.mercatoradvisorygroup.com.

For more information and media inquiries, please call Mercator Advisory Group's main line: 781-419-1700.

Mercator Advisory Group is the leading independent research and advisory services firm exclusively focused on the payments and banking industries. We deliver pragmatic and timely research and advice designed to help our clients uncover the most lucrative opportunities to maximize revenue growth and contain costs. Our clients range from the world's largest payment issuers, acquirers, processors, merchants and associations to leading technology providers and investors.

Source: Company press release.