Capital One Loses “Fixed” APR Argument

The United States Court of Appeals for the Ninth Circuit rejected the argument of Capital One Bank that the word “fixed” in front of the APR in its solicitations for credit cards is not misleading, although the Bank claims the right to change the APR at any time for any reason. In the Rubio v. Capital One Bank case, the decision was concluded “it is not ‘clear and conspicuous’ to describe an APR as ‘fixed’ when the creditor has reserved the right to change the APR for any reason,” as required by the Federal Truth in Lending Act. This is according to Kirtland & Packard, which has led consumer complaints in such cases as Morgan v. AT&T Wireless Services, in which the decision as to whether a corporation has deceived the public back in the hands of a jury, and Shroyer v. New Cingular Wireless Services, in which AT&T Wireless’ argument was rejected that the FCC has exclusive jurisdiction over claims by consumers that their wireless carrier breached their contract by failing to provide adequate service.

FDC CFO

First Data has tapped W. Patrick Shannon, previously with BellSouth, to serve as EVP/CFO. Shannon served as chief financial officer of BellSouth from 2005 to 2007 until the completion of BellSouth’s merger with AT&T. In addition, he served as a director of Cingular Wireless and a member of Cingular’s Audit Committee. Shannon succeeds Phil Wall who has been appointed the chief financial officer of Bank of America Merchant Services, the recently formed alliance between First Data and Bank of America. Wall will join the Bank of America Merchant Services senior management team and report directly to its Chief Executive Officer Tom Bell.

First Data Hires a New CFO to Replace Wall

First Data has tapped W. Patrick Shannon, previously with BellSouth, to
serve as EVP/CFO. Shannon served as chief financial officer of BellSouth
from 2005 to 2007 until the completion of
BellSouth’s merger with AT&T. In addition, he served as a director of
Cingular Wireless and a member of Cingular’s Audit Committee. Shannon
succeeds Phil Wall who has been appointed the chief financial officer of
Bank of America Merchant Services, the recently formed alliance between
First Data and Bank of America. Wall will join the Bank of America
Merchant Services senior management team and report directly to its
Chief Executive Officer Tom Bell.

Vesta Corporation Names a New CMO

OR-based e-payment solution provider Vesta Corporation has hired Chris
Parsons, previously with VeriSign, as Chief Marketing
Officer. As Senior Vice President of Strategic
Development for VeriSign, he led the company’s international
expansion activities in India, China and EMEA (Europe, Middle East, and
Africa) — providing the major source of growth for the company for three
years. He also served as Senior Vice President-Strategy, Alliance and
Business Development for BellSouth, guiding the Telco provider’s
business development efforts and establishing strategic alliances with
Cingular, IBM and Cisco. While Chief Marketing Officer at MCI
Systemhouse, Parsons led the development of the company’s business
divisions in Korea and Japan.

PayPass via ePort Tops 17K Vending Machines

Contactless payment for vending machines, driven by MasterCard and USA Technologies, has topped 17,500 machines in the U.S. More than 4,000 new locations in seventeen states were just added that offer the “MasterCard PayPass” payment option via USA Technologies’ “ePort” solution. Among those who have decided to add or further expand “ePort” cashless technology to their fleets of vending machines are Ace Vending, Canteen Vending Services, Continental Vending, Continental Services, Custom Foods, Evergreen Vending, Fantasy Entertainment, McLiff Vending, Mid-Atlantic Vending, Peachtree Vending, Proformance Vending, Sanese Vending and Coca-Cola Enterprises, who have equipped an additional 2,450 vending machines to accept credit and debit cards through the ePort services. At the end of 2007, there were more than 23 million “MasterCard PayPass” cards and devices in use at over 95,000 merchants worldwide.

USAT e-Port to Utilize ViVOtech Readers

USA Technologies has announced that it has purchased more than 2,000 ViVOtech NFC card readers its “e-Port” contactless technology in vending machines. ViVOtech s following up with another order of 8,000 to be delivered in 2008. These readers accept all major credit cards, both magnetic swipe and contactless NFC cards. USA Technologies provides networked credit card and other non-cash systems in the vending, commercial laundry, hospitality and digital imaging industries.

USA Technologies 3Q/07 Revenues Soar 67%

PA-based USA Technologies reported record revenue for the third calendar quarter of $3.4 million, an increase of 67% over 3Q/06. However, gross profit dropped 16% to $0.5 million. The Company says gross profit was impacted by its initiative to sell the “e-Port G-6” to MasterCard at reduced margins to help accelerate adoption of cashless vending in the market. During the latest quarter, USAT’s “e-Port” revenue was approximately $2.3 million, a gain of 156% versus the year ago quarter. During the quarter ended September 30th, the Company processed 1.8 million transactions totaling $7.3 million as compared to approximately 650,000 transactions totaling over $4.3 million during 3Q/06. As of today, the Company’s installed base has reached 24,000 cashless terminals consisting of approximately 17,500 “e-Port,” 1,300 “Business Express,” and 5,200 “e-Suds” terminals. For complete details on USA Technologies latest performance visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

Simon Boston Celtics Giftcard Launched

The Simon Property Group has partnered with the Boston Celtics to offer the “Boston Celtics GiftCard”, issued by MetaBank. The “Simon Boston Celtics Giftcard” will be available in denominations ranging from $20 to $500 with a $3.00 handling fee for each card purchased, a portion of which will be split evenly between the Boston Celtics Shamrock Foundation and the Simon Youth Foundation. The Giftcard is a VISA Gift card and can be used anywhere VISA debit cards are accepted, including Simon Malls nationwide. The card is also protected by VISA’s Zero Liability policy in the event the card is lost or stolen.

Simon Property to Offer an AmEx Gift Card

Simon Property Group has joined forces with American Express to introduce the “Simon American Express Giftcard, an open-system gift card, just in time for the 2007 holiday shopping season. Simon currently markets the nation’s largest bank-issued gift card program. The new AmEx cards will be offered beginning in November at four Florida malls. The card, which will bear the Simon and American Express logos, will be available in any denomination from $20 to $500. IN-based Simon Property Group owns or has an interest in 378 properties nationwide.

MasterCard PayPass Continues Leadership Role

MasterCard’s “PayPass” continues to exert leadership and momentum in the global contactless payment arena. Over the past twelve months the number of “PayPass” cards and devices has soared by 60%, rising to 16 million at mid-year. This month in the U.S., Harvard University Employees CU became the first credit union to offer “PayPass”; PETCO Animal Supplies announced it will accept “PayPass” in all of its 900 stores; MO-based Central Bancompany became the first community bank holding company to issue “PayPass” cards; and Einstein Noah Restaurant Group, Einstein Brother’s Bagels and Noah’s Bagels, announced that they will begin accepting contactless payments at their over 400 locations. Last month, MasterCard and VeriFone announced that New York City taxis will begin accepting “PayPass,” with more than 5,000 NYC taxis anticipated to accept PayPass by December and MasterCard and USA Technologies announced the installation of a record number of cashless payment terminals, up to 7,500 into Coca-Cola vending machines in several markets nationwide. Internationally, “PayPass” trials and roll-outs are currently underway in 18 countries, including Australia, Canada, France, Indonesia, Italy, Japan, Korea, Lebanon, Malaysia, Mexico, the Philippines, Spain, Switzerland, Taiwan, Thailand, Turkey, the United Arab Emirates, and the U.K.

Coke Machine PayPass Deployments Expand

The deployment of MasterCard “PayPass” into vending machines is expanding under a new deal with Coca-Cola Enterprises. Up to 7,500 “G-6 e-Port” terminals from USA Technologies will represent the broadest single deployment of the cashless vending terminals to date. The deal more than doubles the number of “e-Port” terminals installed in Coca-Cola system vending machines in the USA. MasterCard says it is beginning to see a steady increase in average purchases across the board in the 6,000 “e-Port MasterCard PayPass” accepting machines that it deployed over the past nine months. Coca-Cola Enterprises will install the new terminals in selected vending machines in the Atlanta, Boston, Chicago, Denver, Las Vegas, Miami, New York and Seattle markets.

mPoria Integrates PayPal with its GoMobile!

Seattle-based mPoria has integrated PayPal’s automated mobile payment service into mPoria’s GoMobile! m-commerce platform. PayPal will be the third-party provider and mobile commerce payment mechanism within GoMobile!, acting as a mobile web wallet that enables consumers to pay for merchandise purchased over their mobile phone using a credit card, banking account or stored balance on their PayPal account. PayPal’s mobile payment technology will be integrated within the mPoria GoMobile! platform and receive prominent positioning when users purchase retail goods from merchants with mobile shopping sites powered by mPoria. mPoria is a provider of mobile commerce solutions.