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Category Archives: News Roundup

News Roundup August 2010

By Roxanne Hamberry - Wednesday, September 1, 2010

CREDIT/DEBIT/PREPAID CARDS

Veritec Signs MOU With Global-TV To Market Co-Branded Prepaid Cards to Asian Communities. Veritec, Inc. (PINKSHEETS:VRTC), a developer of mobile banking debit card solutions, has announced that its subsidiary, Veritec Financial Systems, Inc., has entered into a memorandum of agreement with Global-TV Inc. to market the “Global-TV – blinx On-Off” Debit card as one of the co-branded Veritec/Global products.

NBPCA Releases White Paper Examines Usage of General Purpose Reloadable Prepaid Cards. The Network Branded Prepaid Card Association (NBPCA), a non-profit trade organization that works to enhance the environment for the success of network branded prepaid cards, released a white paper that provides a fact-based analysis of the ways people use general purpose reloadable prepaid cards (GPR) in “real life” scenarios. The report outlines why consumers choose the product over alternative financial tools, average GPR transaction patterns and a comparison of the typical fees consumers incur with GPR cards versus other payment tools with similar features.

Acculynk Scores Again, This Time With Its MasterCard Pact. Online PIN-debit is just emerging as a viable payment option for electronic commerce, where consumers use credit and signature debit cards most often but are getting more choices all the time, including automated clearing house ones. In partnering with the leader in the Internet PIN-debit niche, MasterCard, which in 2009 had only 27% of bank debit card purchase volume versus 73% for Visa Inc.

As the Ink Dries on Dodd-Frank, Merchants Gird for Interchange Battle. As President Obama signs the Dodd-Frank Wall Street Reform Act of 2010 into law on Wednesday, at least one major merchant interest group has already fired the opening shot in what promises to be an all-out battle over the fees banks earn on debit card transactions.

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News Roundup July 2010

By Roxanne Hamberry - Monday, August 2, 2010

BANKING

Monitise to raise 32m; extends Visa deal. The deal increases Visa’s shareholding in the company from 12.6% to 14.4% and is supplemented by a one year extension of the pair’s global alliance to 2015.

Half of consumers think cash will be obsolete in 20 years – survey. With Brits increasingly turning to cards, cash could be obsolete by 2030, according to 52% of users of discount Web site MyVoucherCodes. “I think it is quite possible that notes and coins could be obsolete within the next twenty years, as debit cards were only introduced in the mid-70s and since then paying by plastic has drastically increased in popularity. I wouldn’t rule out the idea that in a couple of decade’s time, we won’t use cash anymore.”

CREDIT/DEBIT/GIFT/PREPAID CARDS

Risky Software Still in Place as a Visa Deadline Passes. Although many U.S. merchants and processors have met Visa Inc.s July 1 deadline for replacing unapproved point-of-sale software applications with ones that meet requirements of the Payment Application data-security standard, or PA-DSS, many non-compliant card-processing applications remain in the marketplace, Visa says.

XIUS-bcgi Upgrades INfinet Prepaid Solution New Features in Line with Industry Trends. XIUS-bcgi, provider of telecom solutions for mobile operators and MVNOs, has announced the market offering of the latest version of its INfinet prepaid solution.

The Bancorp Bank Backs New AccountNow Card Now Offering AccountNow Gold Visa Prepaid Card.
“The new AccountNow Gold Visa Prepaid Card is already proving to be very popular with consumers,” says Jim Jones, AccountNow CEO. “The Bancorp will help AccountNow provide even more people with a dynamic, valuable product as well as help our company continue our positive growth trajectory.”

Global Cash Card Partners with MasterCard To Offer GEM Prepaid Payroll Program. The program facilitates payments to employees as payroll funds are automatically loaded onto a reloadable Prepaid MasterCard card issued by First-Citizens Bank & Trust. The prepaid MasterCard cards can be used anywhere Debit MasterCard is accepted.

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News Roundup June 2010

By Roxanne Hamberry - Wednesday, June 30, 2010

BANKS/BANKING

US regulators turn attention to pre-paid money laundering threat. In a bid to tackle money laundering and terrorist financing, the US Financial Crimes Enforcement Network (FinCEN) has proposed new rules to tighten regulatory control of non-bank pre-paid devices. The changes would “impose obligations on the party within any given pre-paid access transaction chain with predominant oversight and control, as well as others who might be in a position to provide meaningful information to regulators and law enforcement, such as prepaid access sellers”.

PREPAID/DEBIT CARDS

MasterCard Launches Online Bill Pay Service Prepaid Enables Issuers, Program Managers to Offer Pay-Anyone Capabilities. MasterCard Worldwide has announced a new bill pay service for MasterCard prepaid card issuers and program managers, and their cardholders. This new service leverages the capabilities of payment platform and services provider Aliaswire, combined with bill payment solutions of MasterCard RPPS, to offer MasterCard prepaid partners a feature-rich bill payment service that integrates with their prepaid card program, and enables MasterCard prepaid cardholders to pay bills online or via telephone.

AccountNow Offers New Visa Prepaid Card New AccountNow Gold Card Provides Extras. The AccountNow Gold Visa Prepaid Card lets cardholders borrow money with the iAdvance line of credit from MetaBank and build credit history. AccountNow Gold cardholders who enroll in Direct Deposit receive higher limits on all deposits and withdrawals. Gold Card customers also receive VIP customer service, and free online bill pay. There’s no monthly fee when $3,000 or more in deposits is placed on a card during a month.

Understanding Restricted Authorization Networks Cards Between Closed and Open Loop. Prepaid cards have long been divided into two types: open-loop cards accepted wherever their network brand (e.g. Visa, MasterCard, American Express, Discover) is honored and closed-loop cards accepted only by the issuing merchant. Not anymore. Restricted Authorization Networks (RAN) are quickly changing the traditional prepaid landscape and bridging the gap between open and closed loop cards.

Gift Cards Hit Facebook Platform Transaction Wireless Launches New Solution. Transaction Wireless, a provider of virtual and mobile gift cards, has launched a new gift card solution for social gifting. TW’s gift card “store” built on Facebook Platform allows friends – especially ones who routinely count on Facebook’s birthday reminders – to create customizable messages with instant delivery or a time-select option to arrive during a party, event or other special occasion. The card is delivered directly to the mobile phone and an email address for printing options.

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News Roundup May 2010

By Roxanne Hamberry - Tuesday, June 1, 2010

PREPAID/DEBIT/CREDIT CARDS

National Gift Card Teams with American Express Will Offer American Express Prepaid Reward Cards. Under the agreement, National Gift Card says it is able to offer corporate customers below face value pricing on volume orders.

FiCentive Offers Print-on-Demand Card Production Launches Customizable MasterCard Corporate Incentive Cards. FiCentive (OTCBB:PYDS), a provider of turnkey prepaid card solutions, now offers a Print-on-Demand solution for its corporate clients toallow for more flexible options to produce fully customized MasterCard cards. FiCentive says custom cards can be delivered within days with no inventory costs or minimum commitments.

CHARGE Anywhere Completes Certification to Moneris To Enable Mobile Payments in Canada and US. CHARGE Anywhere, a payment gateway provider and mobile payment software developer, has completed certification to the Moneris Solutions platform for payment processing in the US and Canada.

American Express Launches PASS – Prepaid Reloadable Card for Teens. American Express yesterday launched PASS – “a prepaid reloadable Card parents give to teens and young adults, providing peace of mind to parents as a safer alternative to cash, credit and debit cards. PASS, which will be sold and marketed exclusively to adults, is currently available as a preview to American Express Cardmembers and will be available to the general public this summer.

Debit card rewards offerings grow more diverse. For consumers, the proliferation of rewards programs tied to debit cards can be confusing, experts say, because banks have taken a number of different approaches in designing reward programs. Some are straightforward cash-back offers, others are tied to checking accounts or similar products, while some have complex relationships with retailers that offer discounts.

NAFCU Selects Discover as Preferred Partner for National Payment Network Solutions. Discover’s robust national payment network solutions will provide NAFCU members with turnkey credit, debit and prepaid card programs built to attract and retain members through expanded, enhanced and competitive solutions.

MasterCard Aims for Faster Authorizations, More Message Data.… they’re also adding technological muscle to attract more transaction volume to their networks. In the latest example, MasterCard on Monday announced a host of upgrades to its worldwide processing network that include global enhancements as well as improvements in specific regions.

MasterCard Spots Signs of a Turnaround in Cardholder Spending. Despite what MasterCard Inc. executives labeled a strong quarter of earnings, U.S. credit card purchase volumes continued to fall in the three months ending March 31. In addition, MasterCards debit card count dropped by 1.6% even though debit transaction volumes grew.

Walmart MoneyCard Offers Cash Back Cash Back on Prepaid Debit Card for Gas Purchases. Walmart (NYSE:WMT) is now offering a cash-back incentive for consumers using a prepaid debit card. When customers use the Walmart MoneyCard to buy gasoline for their vehicles, they’ll receive 1 percent cash back on their gas purchases nationwide through Dec. 31, 2010.

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News Roundup December 29, 2009 – January 28, 2010

By Roxanne Hamberry - Thursday, February 4, 2010

Heartland Payment Systems

Payment card terminal maker VeriFone Holdings Inc. on Monday issued a press release trumpeting its victory in a courtroom skirmish with merchant acquirer Heartland Payment Systems Inc.

Albert Gonzalez, who in September admitted to hacking computers at TJX Co., BJ’s Wholesale Club, and Barnes & Noble, Tuesday pleaded guilty to stealing data from Heartland Payment Systems, Hannaford Brothers, 7-Eleven, and Target Co.

Details of the case reveal that prosecutors blamed Gonzalez and his partners of stealing over 130 Million credit and debit cards details by breaking into the systems of numerous retailers which include 7-Eleven Inc., the supermarket chain Hannaford Brothers Co., and Heartland Payment Systems, a New Jersey firm which processes card payments for several businesses.

Nearly a year after Heartland disclosed what turned out to be the biggest breach involving payment card data, the company remains a potent example of how compliance with industry standards is no guarantee of security

Heartland Payment Systems and Visa have announced “a settlement agreement under which issuers of Visa-branded credit and debit cards will have an opportunity to obtain a recoveryfrom Heartland with respect to losses they may have incurred from the 2008 criminal breach of Heartland’s payment system environment. Heartland will pay up to $60 million to fund the settlement program, which is subject to certain conditions, including a specified level of participation by U.S. Visa issuers. Visa will present details of the settlement to eligible issuers in the coming days.”

Three law firms representing credit unions and other card issuers with litigation pending againstHeartland Payment Systems, are urging card issuers to reconsider signing on to the offer.

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News Roundup — December 1, 2009 to December 22, 2009

By Stan Santos - Tuesday, December 22, 2009

Consumer Financial Protection Agency

On December 11, 2009, the U.S. House of Representatives approved sweeping new legislation to modernize America’s financial rules in response to the current recession. HR 4173, the Wall Street Reform and Consumer Protection Act, passed by a vote of 223 to 202 and includes a comprehensive set of reforms that addresses many of the problems that the nation faces today. Among the various actions facilitated by the bill, if signed into law, the Act would create the Consumer Financial Protection Agency and establish an orderly process for shutting down large, failing financial institutions that are deemed “too big to fail”.

Broox Peterson presents a short opinion piece on HR 4173. Whether the Senate version will survive intact is anyone’s guess. An article highlighting Sen. Christopher Dodd‘s (D-CT) sponsorship of the bill appeared on National Public Radio on November 10, 2009.

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News Roundup — November 5, 2009 to November 13, 2009

By Stan Santos - Friday, November 13, 2009

Payments

PayPal officialy launched its new platform entitled “PayPal X” for third party developers on November 5, 2009, making it easier to integrate the payment system with other Web sites and applications.

Continuing fallout from the data security breach suffered by Heartland Payment Systems in January 2009 has indirectly resulted in confirmation by VeriFone that it will terminate technical support relationships with HPS and will instead offer free services to mutual merchant customers.

Expedited CARD Act of 2009

On November 4, 2009, the House of Representatives overwhelmingly approved legislation sponsored by Carolyn Maloney and Barney Frank that would push up the effective date of the Credit CARD Act to immediately upon signing of the bill. The bill passed by a vote of 331-92. The Senate version of the bill, S.1833 (and a companion piece, S.1927) is currently in committee.

Data Security

Consumers who have received data breach notifications within 2008-2009 are at a much greater risk of fraud than typical consumers, according to a new study published by Javelin Research.

TVNZ, a news site in New Zealand, takes a look at the impending phase-out of credit card transactions that utilize signatures, soon to be replaced by chip and PIN-based technology.

A sweeping new bill that would implement a national standard for data protection and breach notification, S. 1490, the Personal Data Privacy and Security Act of 2009, was approved by a vote of 15-5 in the Senate Judiciary Committee. Sponsored by Pat Leahy (D-VT.), the bill would require companies and government agencies to follow a specific ruleset for protecting sensitive and personally identifable data. The bill would also introduce a federal breach-notification standard under which companies would be required to notify not just individuals affected by the breach, but also, in some cases, credit reporting agencies and the U.S. Secret Service. It would also establish a new Office of Federal Identity Protection (within the FTC) and increase penalties for identity theft and related fraud.

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News Roundup — October 26, 2009 to October 30, 2009

By Stan Santos - Friday, October 30, 2009

Gift Cards

The Consumer Federation of America issued a press release on October 27, 2009 in relation to a survey that demonstrates the depth of consumer misunderstanding when it comes to gift cards. According to the survey results, approximately 33% of a representative sample of slightly over 1,000 adult Americans know how much gift cards cost and only 54% are aware that “six to 12 months after purchase, some of these gift cards charge a monthly fee”. Here is related article in the Washington Post published on October 25, 2009 in relation to the rise of prepaid cards as opposed to traditional bank accounts and credit cards.

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News Roundup — October 19, 2009 to October 23, 2009

By Stan Santos - Friday, October 23, 2009

Consumer Financial Protection Agency

On October 20, 2009, the House Financial Services Committee voted to give the federal government the power to block states from regulating large national banks in some circumstances. The compromise offered by Rep. Melvin Watt (D-NC) and Dennis Moore (D-KS) and approved by voice vote, grants the office of the comptroller of the currency the power to override state action only if it found that the state law in question “significantly” interferes with federal regulatory policies.

On October 22, 2009, the House Financial Services Committee passed by a vote of 39-29 a bill that would create the Consumer Financial Protection Agency. A summary of the bill can be read here. Early returns on the outcome of the preliminary legislative battle have been revealed in preparation for the debate in the months ahead.

Anti-Money Laundering

Some investors defrauded by Bernard Madoff added KPMG, JP Morgan Chase and The Bank of New York Mellon Corporation as co-defendants to a civil lawsuit filed in New York State Supreme Court on October 20, 2009. Additional details (via a Reuters article filed with the New York Times) can be viewed here.

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News Roundup — October 12, 2009 to October 16, 2009

By Stan Santos - Friday, October 16, 2009

Prepaid Cards

The latest issue of Selling Prepaid E-Magazine is now online. One of the top feature articles in this month’s issue is a story on the National Branded Prepaid Card Association‘s response to FinCEN‘s request for public commentary on input from the prepaid card industry concerning the definition of the term “stored-value”.

According to an economic study released on October 15, 2009, consumers who opt-in regarding network branded prepaid card usage could pay as much as 70% less in fees compared to more traditional checking and debit card accounts, making prepaid cards a far more cost-effective and valuable financial tool for many.

Consumer Financial Protection Agency

Broox Peterson points out a few flaws in the current draft of the CFPA bill, HR 3126, that may have been fixed in the markup that took place during a House Financial Services Committee hearing on October 14, 2009.

Data Security

WIRED finally sheds light on a series of hacker attacks that occurred in 2005 and in 2006 on Wal-Mart.

The White House’s official blog offers this look at what Americans can do to protect their online presence.

Over on ZDNet Australia, Simon Sharwood reports how National Australia Bank is currently contemplating adding another layer of security in order to offer its customers added peace of mind.

In a move that has the potential to make it MUCH more difficult for retailers to defend themselves against civil data breach lawsuits, the judge overseeing the Hannaford data breach case has reversed himself, resulting in the involvement of the Maine Supreme Court.

Rep. Yvette Clarke (D-NY) has urged President Obama to quickly appoint a cybersecurity czar, citing concerns a wide array of online threats against the public and private sectors.

A massive click fraud ring has recently been discovered operating in China that involved 200,000 different IP addresses and racked up more than $3 million worth of fraudulent clicks across 2,000 advertisers in a two-week period. Although the ring has now dissipated (or more likely, been folded into another scam), the danger of such schemes remains.

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