Microsoft says ads on its Cashback search program have grown from 10 million to 13 million since the company began paying people to use the site. The software maker snagged 12.9 percent of product searches in the second quarter, while its overall share of U.S. search queries ran around 9 percent. However, both figures are still dwarfed by those of rivals Yahoo and Google.
Microsoft said Thursday that paying people to use its Internet search engine is attracting new consumers, although there is little evidence that those people are making a habit of it. Under Microsoft's Cashback program, launched in May, the company rewards shoppers with rebates from a few cents to US$20 or more on items they find using its search engine, Live Search.
When Microsoft began Cashback, the company said it would measure its success by the number of items advertised in the system, growth in its share of searches that lead to transactions online, and how happy merchants are with returns on their investment in Cashback ads.
Product Searches vs. Overall Searches
In an interview, Frederick Savoye, a senior director of product management for Live Search, said the number of items advertised on Cashback has grown to 13 million, from 10 million at launch. Companies like eBay (Nasdaq: EBAY) Latest News about eBay and Hewlett-Packard (NYSE: HPQ) Latest News about Hewlett-Packard say the ads they place on the Cashback site perform better than other paid search advertisements online.
A study conducted at Microsoft's request by research group comScore found that the software maker snagged 12.9 percent of product searches in the second quarter of the year. That's better than Microsoft's overall share of U.S. search queries, which was around 9 percent in that quarter, according to comScore, and that could mean Microsoft has found a viable way to draw new searchers.
However, overall search leader Google (Nasdaq: GOOG) Latest News about Google and No. 2 Yahoo (Nasdaq: YHOO) Latest News about Yahoo both still outpace Microsoft in commercial queries, nabbing 58.2 percent and 24.3 percent, respectively. How Much to Spend?
Savoye said that 4.5 million people have been using Cashback every month since it started, and that the program has been effective in boosting Microsoft's overall search share.
Data from comScore, however, show Microsoft's search share rose less than a point to 9.2 percent in June, the month after Cashback launched. In July, Live Search's share dropped to 8.9 percent. "We still have work to do, but we're very, very focused here," Savoye said.
Microsoft declined to say how much money it plans to spend on the rebate program.
NEW YORK (Reuters) – Sales of once-hot gift cards are expected to fall nearly 6 percent this holiday season as shoppers try to stretch their dollars by buying discounted merchandise, according to a survey released by the National Retail Federation on Tuesday.
Gift card sales are forecast to fall to $24.9 billion this holiday season, according to the trade group's annual gift card survey. Last year, gift card sales were expected to rise 6 percent to $26.3 billion, up from $24.8 billion in 2006 and $18.5 billion in 2005.
Not only did the survey find that fewer people plan to purchase gift cards, gift card shoppers are also expected to spend less on the cards -- $147.33 this year compared with $156.24 in 2007."Since gift cards never go on sale, some price-conscious shoppers will be passing up gift cards in favor of holiday bargains," said NRF President and CEO Tracy Mullin in a statement.
The expected decline in gift card sales comes as the NRF has forecast that holiday sales will grow at their slowest rate since 2002. Shoppers are confronting slumping home values, volatile energy prices, rising unemployment and a credit crunch, which has curtailed their ability to spend.
With retailers already rolling out tremendous discounts to entice consumers to spend their limited dollars, shoppers may find they can buy presents this holiday season for less than what they were planning to spend on a gift card. But the decline in sales of gift cards could hurt retailers' results into January, when they count on shoppers returning to their stores to spend well beyond the face value of the cards. "Retailers may need to make minor adjustments to holiday plans as fewer people may be hitting the stores in January to redeem gift cards," Mullin said.
The survey polled 8,758 consumers between November 5 and 11, and was conducted for NRF by BIGresearch. It has a margin of error of plus or minus 1.0 percent.
PayPal Only Accepted in 17%, Google Checkout, only 5%
London, UK, Nov. 18, 2008 -- According to the ShopSpree, a directory of online shops that accept Visa Electron, Solo, PayPal, Maestro cards, the most accepted credit cards online are Visa Card, MasterCard and Maestro card.
Shopspree conducted this survey on more than 400 UK-based online shops to find out which credit or debit cards or forms of payment the shops accept. The research found out that 100% of the shops accept Visa card, 99% accept MasterCard and 76% accept Maestro card in online payments. Other interesting finding is the low acceptance rates of American Express, Visa Electron and JCB cards online, although these cards are popularly used by millions of consumers.
Although most of the online shops claim that they accept major cards online, only 45% of them accept American Express, 42% accept Visa Electron and 18% accept JCB cards in online payments. The low level of acceptance of these cards can be explained by the fact that these cards are given to people with lower credit rate like foreigners or students.
The survey also included the online acceptance rates of other digital payment options such as PayPal and Google Checkout and found out that only 17% of the shops accepted PayPal online and only 5% accepted Google Checkout. This is rather interesting as PayPal and Google Checkout have got growing numbers of users, but the online shops have not followed this trend.
Shopspree conducted this survey in order to categorize the online shops according the type of payment option accepted. For further information about the survey, please see best credit cards in the UK.
While Black Friday and Cyber Monday are known for notoriously inexpensive prices on shopping items, did you know that these days are also notorious for identity theft?
On Black Friday and Cyber Monday, the Friday and Monday following Thanksgiving, consumers are dishing out the big bucks, so they may not notice a few extra charges on their bill. Therefore it is a perfect time of identity thieves to strike.
American consumers lost approximately $1.2 billion last year to due to identity theft and fraud, according to the Federal Trade Commission. Here's an advisory from Webroot talking about those online threats...
Webroot Threat Advisory: Online Threats to Increase This Holiday Season Cyber Crime Projected to Spike on Cyber Monday
BOULDER, Colo. (Business Wire EON/PRWEB ) November 18, 2008 --
Webroot®, a leading provider of security solutions for the consumer, enterprise and SMB markets, is warning online shoppers of an increase in cyber threats this holiday season. The online holiday shopping season, and the peak of these online threats, is expected to hit its highest point on “Cyber Monday,” the day after the Thanksgiving weekend in the U.S., and continue through the holiday shopping season.
Shopping online can be a lot easier and save time, especially during the holidays, but people need to make sure they have the right protection in place so they don't enter the New Year as a victim of identity theft.
"Last year we saw an 87 percent increase in malicious URLs between October and December. These sites are typically used to trick shoppers into giving their credit or debit card numbers, or to download malware," said Peter Watkins, CEO of Webroot.
Though overall holiday sales this year are expected to decline, a recent report by eMarketer estimates that online holiday season sales will reach $32 billion in 2008, up 10 percent over 2007. The report states that in order to save money on holiday gifts, consumers will turn to the Internet to get gift ideas, find bargains and that shoppers will shift a larger share of their purchases from stores to the Internet to save gas.
Sarah Schmidt, of the Canwest News Service, in an article published by the Calgary Herald reports that in a study by McMaster eBusiness Research Centre found that a majority of the 1.7 million cases of identity fraud in the past year involved unauthorized purchases made with credit cards.
Identity theft plagues Canadians as online shopping grows
Sarah Schmidt, Canwest News Service Published: Monday, November 17, 2008
Victims of identity fraud spent more than $150 million of their own money and spent 20 million hours to resolve the fraud in the past year as part of a ballooning problem that struck almost 1.7 million Canadians, a survey has found.
Most victims (57 per cent) do not know how they wound up on a fraudster's hit list and it turns out old-fashioned shopping is riskier than online commerce; 25 per cent of cases were associated with business transactions conducted in person compared to 15 per cent linked to online transactions. Debit card skimming operations made up another 13 per cent of the cases.
The study says historically, 25 per cent of cases of identity fraud were committed by someone known to the victim, but the survey found this represented only seven per cent of all cases. continue reading
More Canadians are shopping online, with sales in 2007 rising to $12.8 billion, according to a Statistics Canada report released yesterday.
Statistics Canada's last e-commerce study, conducted in 2005, found Canadians spent $7.9 billion online — meaning the value of online shopping rose 62 per cent in two years.
"More than 8.4 million Canadians aged 16 and over made an online purchase in 2007, up from nearly 6.9 million in 2005," the federal agency said in a release. "They accounted for 32 per cent of Canadians in this age group, compared with 28 per cent in 2005." Consumers in the 25 to 34 age bracket shopped online the most, with 51 per cent reporting placing an online order. Regionally, Alberta led the country with half its internet users aged 16 and up reporting shopping online in 2007.
The increase in part may be related to consumers' growing familiarity with online shopping, said Ed Strapagiel, a retail analyst with the Toronto-based Kubas Consultants who was not involved in the Statistics Canada study.
Many consumers browsing online
Statistics Canada also reported 43 per cent of Canadians used the internet to research potential purchases, including consumer electronics, housewares, furniture, clothing, jewelry and accessories. Of the shoppers who looked online, 64 per cent said they later went to a traditional bricks-and-mortar store to purchase the product.
Editor's Note: Look for those numbers to change drastically, maybe even reverse in next years Stats - I'm thinking instead of 43/64 it'll be 64/43. (See Paradigm Shift Post)
Overall, more than 8.4 million Canadians aged 16 and over purchased something online in 2007, up from nearly 6.9 million in 2005. The top 25 per cent of Canadian shoppers online spent an average of $5,000 in 2007, about 78 per cent of the total dollar value. The most common types of online orders were:
travel services
books and magazines
entertainment products such as concert tickets, clothing, jewelry and accessories
Most online shoppers, 82 per cent, paid directly online using a credit card or debit card. However, 77 per cent of those who did pay online still expressed concern about using their credit card over the Internet.
(Editor's Note: Want a secure transaction? Swipe your own card data in the privacy of your own home with HomeATM's wedgie)
Strapagiel said the uncertain economy may prompt consumers to research online, seeking information on both products and prices. He also said e-commerce might make advances this holiday season if retailers put products on sale exclusively online.
"Much of the merchandise that is going to be in stores this Christmas has already been bought; the truck's already arrived at the warehouse," he said. "But it was bought in a climate of [optimism] and in October that reversed very sharply. I think many retailers might be thinking in terms of let's get rid of what we have and not get stuck with the inventory. So there might be, for people who shop around there, might be some good deals to be had." Canada a testing ground for U.S. retailers
Similarly Jim Okamura, a U.S.-based analyst with J.C. Williams Group, forecasts online shopping to continue to grow in the coming months, despite the economic slowdown. "We're still expecting the online channel to be one of the few bright spots within retail," he said. "The greater effort by retailers, both Canadian and U.S., to target those Canadian consumers are in our estimation going to work well … I think clearly shoppers are going to be using the web in general for both research and transacting because they're obviously going to be very value-conscious." He also noted many U.S. retailers use the Canadian market as a strategic e-commerce testing ground before moving on to the European and Asian markets.
"It is in a sense disproportionate, the amount of focus being placed on Canadian e-commerce market entries, because it's more than just the volume of business that the Canadian has to offer, it has much more strategic importance in a broader international strategy," he said.
Apparel and books will likely do fine this holiday. Jewelry, not so much.
More than three-quarters of US online adults made a purchase over the Web in the previous six months, according to a November 2008 study by Nielsen Online.
Respondents conducted a wide range of purchases and financial transactions.
Nearly four out of 10 online buyers had made a travel purchase during the past six months, and more than one-third had managed their credit card or banking accounts online. Top product purchase categories included apparel and books.
“The challenge for retailers is no longer how to lure shoppers online, but how to differentiate their brand among all others,” said Nachi Lolla, research director at Nielsen Online, in a statement. “Heading into this competitive holiday shopping season, selection, price and customer service are the key areas retailers can shine.”
That behavior is notable in light of a survey of online buyers surveyed in April 2008 by Piper Jaffray. At the time, respondents said they expected to reduce their purchases across all retail product categories, especially for nonessential goods such as jewelry, watches and event tickets.
Graphic 2: Planned Change in the Amount of Retail Products Purchased by Category according to US Online Buyers, 2008 (% of respondents)
“As the pool of new online buyers begins to dry up, Web retailers will focus on strategies that help them retain customers, such as improving customer service, offering personalized product recommendations and incorporating user ratings and reviews,” said Jeffrey Grau, senior analyst at eMarketer.
“E-mail will continue to be an important way for Web retailers to stay in touch with customers.”
American Banker, SourceMedia`s flagship publication for banking and financial services professionals, and Financial Insights, an independent research services firm and an IDC Company, released the FinTech 100 2008 rankings on November 13. This represents the fifth year that we have formally recognized the leading 100 global technology and service providers to the financial services industry. The ranking is categorized and evaluated based on CY07 year-end revenues and the percentage of revenues attributed to financial services.
The special report contains detailed statistics on suppliers of hardware, software and services to the financial services industry, paired with expert analysis and commentary on the industry. There are several categories of companies again ranked in 2008:
FinTech 100 - includes vendors that derive more than one-third of their revenue from the financial services industry.
'Transaction banking' to emerge as a major banking trend in 2009 according to study done by TowerGroup
A recent study into the current and emerging banking trends in the United States indicates that global transaction services (the so-called "transaction banking") are to constitute an important focus of future strategies.
Moreover, the research indicates that 2009 is to be marked by a few clearly defined trends – renewed attention to core competencies, increased attention to small business and corporate and institutional clients, and integrated banking solutions and delivery channels including online banking and electronic bill payment. The report also predicts that banks are to continue their investments in the technology sector, which allows them to improve their relationship management by unifying corporate online banking portals, improving analytics and enhancing automated online client integration and enrollment.
Finally, the study predicts that revenues from retail and investment banking are to continue to fall, causing banks to focus on wholesale and transaction banking revenues for compensation.
The study was carried out by research and advisory services provider company TowerGroup.
New York, Nov. 17, 2008 -- On November 20, 2008, from 3:00 -- 4:00pm EST, Charles Petruccelli, President, American Express Global Travel Services, will host a special Live Chat Event through the newly created online community www.BusinessTravelConneXion.com (BTX).
For the first time, members of the community will have the opportunity to submit questions directly to Mr. Petruccelli with answers provided in real-time through a text-chat format. Topics could range from the state of the industry to the future of business travel and more.
This Live Chat Event is the first in a series of chats providing access to senior business leaders and industry experts across the business travel industry. American Express Business Travel launched BTX on October 31, 2008 and to date, the online community has more than 1,000 members.
Members are encouraged to submit questions in advance through a link available in the announcement box on www.BusinessTravelConneXion.com .
Please note that in order to participate, individuals must be members of the community. Unregistered individuals should visit the site at least 15 minutes prior to the start of the event to create a profile.
Live Chat (Media RSVP required):
Who: Charles Petruccelli, President, American Express Global Travel Services What: Live Chat on the Global Business Travel Industry When: Thursday - November 20, 2008 3:00 - 4:00 PM EST Where: www.BusinessTravelConneXion.com Media RSVP: Sarah Hawkins Sloane & Company (212) 446-1890 shawkins@sloanepr.com Source: Company press release.
Chase Paymentech Lauches the 2008 Pulse Index for the Holiday Season
The Pulse Index is an annual tracking of online shopping activity during the holiday season. From November through January, Chase Paymentech monitors the daily activity of 25 of the largest 150 Internet retailers. The data includes the total number of payment transactions and total dollar value processed. The data is taken from transactions crossing Chase Paymentech's global processing platform.
Pulse Index Shows Modest Gains in Transaction Growth
The early trend for this year's Pulse Index is showing that expectations for a slow year are only partially correct. Actual spending through e-commerce is up 6 percent over this period last year, compared to last year's gain of 30 percent over 2006. On the transaction side, the quantity of transactions increased 23 percent versus last year's 30 percent gain. Taken together, these trends are translating to a 13 percent lower average ticket. In other words, activity is not slowing down, but the amount being spent on every purchase is less.
“This will be a very interesting year to watch the Pulse Index,” said Mike Duffy, President of Chase Paymentech. “The conventional wisdom holds that holiday spending will be depressed for many reasons. The economy is weak, discretionary spending is down and the shopping season is a week shorter this year as Thanksgiving is late. However, recent analyst reports indicate that e-commerce may actually be trending ahead of last year. The Pulse Index will give some insight into whether the conventional wisdom is accurate or not.”
"Either people are already bargain-hunting or they are shopping in a more modest manner," said Aaron Press, Chase Paymentech's Director of Market Analysis. "Both possibilities point towards more conservative consumer behavior," he added. "It's too soon to say which of these is the more significant factor."
The Pulse Index will continue to monitor the trends and see if they extend through the holiday season. Chase Paymentech provides payment processing services to more than half of Internet Retailer’s list of the 500 largest e-commerce companies. The Pulse Index tracks 25 of the top 150 e-commerce merchants, representing a large and diverse field of e-retailers for this holiday shopping season.
Data and charts are updated daily, with weekly commentary to explain any trends, offer historical insight and provide context. Guest commentary will be provided by Sucharita Mulpuru from Forrrester and Aaron Press, Direct of Market Analysis for Chase Paymentech. Visit the Pulse Index every business day at 2:00 P.M. EST to see the daily numbers, or subscribe to their weekly commentary via RSS. To do either, vist: http://pulse.chasepaymentech.com
PCI SSC launches quality assurance programs for QSAs and ASVs
Wakefield, Mass., Nov. 17, 2008 -- The PCI Security Standards Council (PCI SSC), a global, open industry standards body providing management of the Payment Card Industry Data Security Standard (PCI DSS), PIN Entry Device (PED) Security Requirements and the Payment Application Data Security Standard (PA-DSS), announces that it has launched a quality assurance program for Qualified Security Assessors (QSAs) and Approved Scanning Vendors (ASVs).
The new program was designed to provide QSAs and ASVs with a set of requirements that helps ensure they provide consistent, quality validation and assessment services to merchants and service providers.
The PCI SSC developed the quality assurance program as a direct result of feedback from the Council’s participating organizations and assessment community and is intended to promote consistent interpretation of the PCI standards and ensure quality is maintained among all vendors. Participation in the program will be required for the Council’s registered QSAs and ASVs, in order for them to retain the ability to conduct PCI assessments.
“Feedback from the Council’s participating organizations and others made it clear that the assessment process for the PCI standards would benefit greatly from more rigorous guidelines,” said Bob Russo, general manager, PCI Security Standards Council. “As a result, we created a clear-cut program that will help ensure all those involved in this process are consistent, credible, competent and ethical.”
The new quality assurance program is based on eight guiding principles. Through the program, the Council and assessor community commit to:
Uphold the best interest of the assessor client Adhere to validation requirements among the assessor company Adhere to validation requirements among the assessor employee Maintain consistent assessor procedures and reporting Interpret the PCI standards appropriately as applicable to the client’s systems & environment Remain current with industry trends and PCI SSC updates in the assessor community Report all opinions as factual, documented and defendable, and Maintain a positive relationship between the assessor and PCI SSC.
An expanded range of communications channels will allow the PCI SSC to interact with assessors, merchants and service providers on an ongoing basis through certification reviews, credit checks, training, educational webinars, newsletters, a dedicated e-mail service, question and answer documents, informational supplements and feedback forms. A team of dedicated staff will validate assessor application and renewals, ensure that training is relevant and accessible to organizations and maintain the integrity of the testing process. This team also will be responsible for assessor performance monitoring and overseeing any necessary disciplinary action, which could include probation or revocation.
The program will continue to be rolled out in a four-stage process throughout 2009. For More Information:
More information on the PCI Security Standards Council and becoming a participating organization please visit www.pcisecuritystandards.org , or contact the PCI Security Standards Council at participation@pcisecuritystandards.org.
About the PCI Security Standards Council: The mission of the PCI Security Standards Council is to enhance payment account security by driving education and awareness of the PCI Data Security Standard and other standards that increase payment data security. The PCI Security Standards Council was formed by the major payment card brands American Express, Discover Financial Services, JCB International, MasterCard Worldwide and Visa Inc. to provide a transparent forum in which all stakeholders can provide input into the ongoing development, enhancement and dissemination of the PCI Data Security Standard (DSS), PIN Entry Device (PED) Security Requirements and the Payment Application Data Security Standard (PA-DSS). Merchants, banks, processors and other vendors are encouraged to join as participating organizations.
New iPerceptions Data Shows eCommerce Sites Fall Short For Consumers 3 out of 10 website visitors report that they are unable to accomplish the task they are at the site to do -- whether it is buy a product, access customer support, research pricing or read a blog
NEW YORK, Nov 17, 2008 (BUSINESS WIRE) -- iPerceptions Inc., a leading provider of web-focused Voice of Customer analytics, today released new data that indicates that eCommerce and retail companies are risking millions in sales by underserving site visitors in the run up to a challenging holiday season. iPerceptions' 4Q website survey data collected from over 50,000 site visitors shows that consumers are often unable to accomplish what they came to the site to do -- and 1 out of every 2 visitors with a clear intent to buy is walking away without purchasing.
According to the data, the aggregate task completion rate for eCommerce sites in October 2008 was 68%, meaning that 3 out of 10 consumers were not able to complete their primary task during the course of their site visit. Task completion rates were lowest for consumers who stated that the primary purpose of their visit was to purchase products or access customer support, hovering at 52% and 51% respectively.
The iPerceptions study also provides new insight into the multitude of reasons that people visit eCommerce sites. While 16% of all visitors stated that the purpose of their visit was to buy, the majority were there to browse; compare and research products (47%); access customer service or customer support (10%); and check out prices and promotions (11%). Additional reasons to come to a site included finding a store location (4%), as well as a long tail of other reasons (10%) such as reading a blog, asking an expert a question or watching a video. Task completion rates were highest for people looking for a store location (80%), researching a product (76%) and seeking pricing and promotions (78%).
The good news for retailers is that site visitors who are able to complete their primary purpose of visit are twice as likely to make a repeat visit, while 67% of visitors who complete their primary purpose report enhanced brand opinion (vs. only 18% for those who do not). Additionally, 60% report a higher future likelihood to purchase either online or offline (vs. only 14% for those who do not).
"In the face of tightening budgets, retailers can't afford to be swayed by conventional wisdom or the HIPPO -- the Highest Paid Person's Opinion," said Jonathan Levitt, vice president of marketing at iPerceptions. "eCommerce practitioners have spent the last 15 years focusing on the shopping cart and the conversion funnel, but they are still losing half of the people who come to their site intending to make a purchase. Now is the time to tune into the voices of real customers to get a reality check on what people want from their website experience."
About iPerceptions
iPerceptions is one of North America's leading web-focused Voice of Customer analytics providers. Its webValidator Continuous Listening solution and Proprietary iPerceptions Satisfaction Index (iPSI) turn thousands of data points into easy-to-understand strategic and tactical decision support for website marketers. iPerceptions' clients include such well known brands as InterContinental Hotels, General Motors, Dell Computers, Hyundai, LG Electronics, Choice Hotels International, BMW and Monster Worldwide. iPerceptions has offices in New York, Toronto, Montreal and London. SOURCE: iPerceptions
Equifax teams up with Parity to roll out I-Card for online transactions
Equifax has partnered with identity management services provider Parity to introduce the Equifax online identity card (I-Card).
The initiative enables visitors on e-commerce websites which accept the I-card to conduct online transactions without revealing financial information online or having to use multiple passwords, confirming only proof of age online. Users who are interested in getting the Equifax I-Card can apply for it on the company's website and they will also gain access to Parity's Azigo I-card management software which allows for one-click sign-in and identity verification. When creating the I-Card, Equifax made use of its authentication service eIDverifier, multiple data sources for identity verification as well as open source technology that is approved by The Information Card Foundation, a group of consumer and technology companies. The group focuses on building products designed to help customers get control of their personal information.
The Equifax I-Card is more of a demo aimed at online businesses, but such technology could enable the creation of cards that contain personal data such as customers' profile, purchase preferences, online payment, or verified identity information
In an article titled "Less Power to Purchase", Nancy Trejos writes for the Washington Post about credit card issuers lowering credit limits and raising their rates and fees to all their customers, not just high risk ones.
In another article in NYT, Citi, backed off their promise not to raise interest rates...
Consumers' Credit Card Limits Slashed as Companies Try to Reduce Risk
Cecil Bello has stumbled into a new corner of the credit squeeze. The 32-year-old management consultant has had the limits reduced on three of her credit cards.
In September, U.S. Bank notified the Fairfax County resident that she no longer had a $14,500 limit on a card that had a balance of about $5,000. Her new limit left her just $500 from being maxed out, she said. Then came an Oct. 26 letter from American Express that said she now had a limit of $14,000, down from $22,000. That letter said her "total debt is too high relative to your payment history with us and other creditors." Early this month, she received an e-mail from American Express notifying her that another card with a $5,000 limit had been reduced to $3,000 and that her new cash advance limit was down to $200.
Bello said she had made more than the minimum payments on time each month. "I am taking responsibility for paying off my debt," she said. "But when credit card companies trap people this way, it's almost impossible to dig yourself out of the hole." Credit card companies are increasingly putting the clamps on their customers. Lenders are taking a wide range of steps to mitigate their risk as unemployment rates tick up and the number of delinquent borrowers grows. Besides cutting credit limits, card companies are raising rates and fees, and suspending offers such as zero percent balance transfers. They are also making rewards programs less rewarding and shutting down inactive accounts, industry analysts and watchdogs said.
Editor's Note: This is rather amusing. BMW releases information about their work on a RFID Chip enabled car key in the UK which doesn't use chip and PIN. The good news is that the key can be "canceled" if someone loses them. The bad news is that cars sales are in the tank, and even if BMW could retrofit all their customers with this "key" I don't think they own enough of the market to entice the gas station owners to install the "small electronic reader than can decipher the details and debit the cash accordingly" Therefore, I don't expect this to be something that even approaches take off, let alone get's off the ground. This pig certainly won't fly...but as I said, it is rather amusing :)
Drivers have got used to cars doing ever more for them – and now BMW is working on a vehicle that will even buy its own petrol.
After filling up, motorists will simply wave their ignition key in front of the pump to settle their bill, eliminating the need to queue up tediously in the forecourt shop.
The same technology will also work for parking meters, meaning drivers will no longer face the anguish of rooting around for the right coins and usually coming up a few pence short.
BMW is working on a car key that will enable motorists to settle a petrol bill by waving it in front of the pump. The system works because the key contains a tiny chip holding details of the driver’s bank account.
Fuel pumps and ticket machines need to be fitted with a small electronic reader that can decipher the details and debit the cash accordingly.
The system, which may also be fitted at toll booths and even train and Underground stations for drivers leaving their cars behind, does not use a PIN code – raising fears that the keys would be targeted by thieves.
But BMW said the keys could be quickly cancelled if lost or stolen and the company hopes the system will be so successful that its drivers will use the key as their personal credit card.
Dutch firm NXP Semiconductors, which has developed the key along with BMW, revealed a prototype – with two small antennas on the top – at a trade show in Paris this month. A spokesman said the scheme could also be used by park-and-ride drivers who wanted to jump on a bus. He said: ‘This key works in a very similar way to the Oyster card used on public transport in London. ‘If the petrol station is fitted with a reader, you could pay the bill just using the key and without the need to go inside. ‘There is no chip and PIN involved so it is quicker than a credit card. The key looks like the one now used in a BMW 7 Series.’
He explained: ‘All you need to do is hold it about 4in from the reader and it will automatically take the money from your account. ‘We hope it could also be used by people who want to leave their cars and jump on a train, and they could just hold their keys up to a reader in the train station. ‘This is all about making life easier for BMW drivers, and allowing them to get in their cars without worrying where their wallet is or if they have enough cash.’
Professor Raymond Freymann, managing director of BMW Group Research and Technology, said: ‘We are doing research in enhancing the capabilities of the car key into one smart device for access, payment and service that will simplify the lives of BMW car drivers in the future.’
The key has been given the green light by the German Federal Office of Information Security, meaning it is satisfied it meets the country’s highest standards for keeping bank details safe.
SEATTLE (Reuters) - Microsoft Corp said on Wednesday its next release of Windows Live online services will integrate e-mail, instant messaging, photos and Web applications from other companies into a single platform.
Microsoft aims to position Windows Live with its widely-used e-mail and messaging services as the hub for a growing number of Internet applications and incorporate new features similar to those found on popular social networks.
The strategy puts Microsoft into competition with social networking sites Facebook and News Corp's MySpace, which started to open their fast-growing websites to outside software developers last year.
The new Windows Live service plans to feature a main profile page that updates users to their friends' activities within Windows Live and on more than 50 outside Web services including Yahoo Inc's Flickr photo site and career-oriented social networking site LinkedIn.
"It's a race to see who will work better and faster with everyone else," said Charlene Li, founder of consulting company Altimeter Group. "It's the recognition that you can't be an island of yourself."
Microsoft said Web users are overrun with accounts at multiple Internet sites, each requiring a password and each with a different set of friends. Its goal is to simplify the Web lives of its users who go to Microsoft's Windows Live e-mail or instant messaging accounts.
The company's Windows Live strategy is also central to its plans to wrestle away online advertising revenue from Google Inc, which has used its dominant search engine to expand into e-mail, online word processing and other businesses that compete directly with Microsoft.
Microsoft plans to roll out the new Windows Live services, which will include a revamped e-mail, calendar and a new photo application, in the United States over the coming weeks and then make it available in 54 countries early next year. (continue reading)
NEW YORK (AP) -- Average interest rates on most types of credit cards rose slightly this week, according to a report from CreditCards.com.
Annual percentage rates on seven out of nine categories of cards -- business, instant approval, airline, balance transfer, low interest, cash back and reward cards -- all rose slightly from the previous week.
Only two categories of cards didn't increase, according to the weekly report issued Thursday. The APR on cards for people with bad credit held steady at 10.82 percent while rates on student cards dropped slightly to 13.9 percent, down from 14.02 percent.
The across the board increases were largely the result of sharp hikes in rates for select American Express cards, said Ben Woolsey, spokesman for CreditCards.com, which tracks about 200 credit cards.
The hikes by American Express overshadowed some lowered APRs by major card issuers such as Citi and Chase, Woolsey said. American Express Co. is expecting write-offs in its credit card portfolio to continue to mount in the fourth quarter and into next year as consumers struggle with a worsening economy. Earlier this week, the company said it received government approval to become a bank holding company -- a sign the lender is facing difficulty funding its operations amid the credit crisis.
Loss from continuing operations was $164 million, but included $270 million of incremental interest expense, net of tax, and $124 million of incremental depreciation and amortization, net of tax, compared to the third quarter of 2007. Both the incremental interest expense and depreciation and amortization are primarily attributable to the transaction with affiliates of Kohlberg Kravis Roberts & Co. (the "Transaction"). A table describing adjusted EBITDA and reconciling income (loss) from continuing operations to adjusted EBITDA is included in the accompanying schedules.
"Despite a difficult economic climate, we were able to grow revenue and adjusted EBITDA," said Michael Capellas, Chairman and Chief Executive Officer. "Our investments in product innovation are gaining momentum and you will see us announce some significant wins especially in the mobile commerce space."
Segment Results Merchant Services For the quarter, Merchant Services generated revenues of $1 billion, a growth rate of 6% or down 3% excluding reimbursable debit network fees. Revenue was positively impacted by 9% transaction growth. This impact was offset by the slowing U.S. economy which reduced transaction growth for smaller merchants and shifted transactions to some nationwide discounters and wholesalers. Operating profit was $106 million, down 60% or down 9% to $248 million excluding purchase accounting adjustments comprised principally of increased amortization expense related to the Transaction. Operating profit margin was 36.0% excluding reimbursable debit network fees and purchase accounting adjustments, compared to 38.6% in the third quarter of 2007. Operating profit was impacted by approximately $19 million of certain costs related to cost reduction initiatives, which accounted for seven percentage points of the 9% decline noted above and also impacted the 36.0% operating profit margin by three percentage points during the quarter. Reported operating profit margin for the quarter was 10.4 %. Financial Services For the quarter, Financial Services generated revenue of $700 million, down 5% or down 8% excluding reimbursables and purchase accounting adjustments. Adjusted revenue reflects modest growth in the card issuing business. This growth was offset by lost business and check volume declines in the TeleCheck business. In addition, the third quarter of 2007 included approximately $16 million more in revenues resulting from contract termination fees compared to this quarter. Operating profit was $111 million, down 23% or down 3% to $144 million excluding purchase accounting adjustments comprised principally of increased amortization expense related to the Transaction. Operating profit margin for the quarter was 28.1% excluding reimbursables and purchase accounting adjustments, compared to 26.5% in the third quarter of 2007. Operating profit was impacted by approximately $18 million of costs related to cost reduction initiatives, which negatively impacted the 3% decline noted above by thirteen percentage points and negatively impacted the 28.1% operating profit margin by four percentage points during the quarter. Reported operating margin was 15.9% for the quarter. International For the quarter, International generated revenue of $487 million, up 19%. Revenue benefited from 21% transaction growth which was in part driven by acquisitions in prior quarters. Operating profit was $49 million, up 59% or up 79% to $54 million excluding purchase accounting adjustments related to the Transaction. Operating margin was 11.2% excluding purchase accounting adjustments related to the Transaction compared to 7.4% in the third quarter of 2007. Adjusted operating profit included the partial reversal of a loss reserve for the failed airline in one of International's merchant acquiring alliances and lower employee related expenses. These items were offset by approximately $16 million in incremental investments in data center consolidation, platform initiatives and other expenses related to cost reduction initiatives. Reported operating margin was 10.0%.
A slide presentation will be made available under the "Investor Relations" section of the Web site at A slide presentation to accompany the call will be included in the webcast and will be made available under the "Investor Relations" section of the Web site at http://ir.firstdatacorp.com/events.cfm.
Citi Firing 60,000, Chairman May Still Lose Job Posted Nov 14, 2008 11:19am EST by Henry Blodget in Newsmakers, Recession, Banking From ClusterStock, Nov. 14, 2008:
Citi CEO Vikram Pandit has ordered business unit heads to cut employee compensation costs by 25%, the WSJ says. This could lead to 60,000 firings by next year. The cuts will include the investment banking division. The firm has already fired 23,000 people over the past year, reducing its global workforce to 352,000.
The company vehemently denied the WSJ's report yesterday that Chairman Win Bisschof may soon be sent packing. The WSJ says it stands by its story.
Vik Pandit bought 750,000 of thee 1.2 million shares Citi brass scooped up yesterday. This sounds bold at first, but it's still chicken feed (under $10 million), and its value was likely calculated to be higher than that in getting everyone to talk about how Citi management is buying.
Lastly, Citi is jacking up the interest rates on its credit cards, punishing already overwhelmed consumers: Citigroup is notifying some credit-card customers that their interest rates are being raised by an average of three percentage points.
Citigroup is one of the nation's largest issuers of credit cards, with 54 million active accounts. The unit had a loss of $902 million in the third quarter, compared with $1.4 billion in profit a year earlier, as a growing number of customers fell behind or defaulted on their payments.
A person familiar with the strategy estimated that the rate increases would apply to less than 20% of Citigroup's card portfolio.
"The industry has recently experienced an unprecedented market cycle with severe funding dislocation and significant consumer credit deterioration driven by the mortgage crisis and rising unemployment. In light of these unprecedented developments and others, Citi will be repricing a group of customers in our Citi-branded consumer credit-card business in the U.S. to appropriately manage these risks," said John Carey, chief administrative officer of the credit-card unit.
Citigroup's move follows a similar change by American Express Co., which is raising rates to some customers by two to three percentage points. Raising rates on customers is a delicate dance for credit-card companies. While the firms want to pull in more revenue from customers who carry a balance from month to month, they don't want to tip those customers into default because that hurts the card issuer's bottom line.
Microsoft said Thursday that paying people to use its Internet search engine is attracting new consumers, although there is little evidence that those people are making a habit of it. Under Microsoft's Cashback program, launched in May, the company rewards shoppers with rebates from a few cents to US$20 or more on items they find using its search engine, Live Search.
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PayPal Only Accepted in 17%, Google Checkout, only 5%
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'Transaction banking' to emerge as a major banking trend in 2009 according to study done by TowerGroup 
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Chase Paymentech Lauches the 2008 Pulse Index for the Holiday Season
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Debit Talks, Credit Walks...II
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NEW YORK (AP) -- Average interest rates on most types of credit cards rose slightly this week, according to a report from 
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