A VISA By-Law that penalized larger debit card issuers for moving to MasterCard, after the settlement of the Wal-Mart litigation in 2003, is ruled as unlawful and must be repealed. VISA names Hans Morris as President of VISA Inc., effective September 1st as John Coghlan, President and CEO of VISA USA resigns. Chase hires Gordon Smith, former president of AmEx’s Global Commercial Card group, to run its Card Services group. Fidelity National Information Services has agreed to acquire Scottsdale, AZ-based EFD/eFunds for $1.8 billion in cash. Houston-based Cardtronics inks a deal to acquire the U.S. ATM operations of 7-Eleven for about $135 million in cash. Wal-Mart rolls-out a reloadable prepaid VISA card with GE Money and Green Dot. Fair Isaac announces it will adjust its “FICO” scoring formula to remove authorized user accounts from consideration. MobiClear launches a multi-gateway solution that provides proactive security in all forms of electronic business environments including Internet shopping, business-to-business procurement transactions and retail shopping with credit and debit cards. Chase Card Services expands its consumer education service via a new Web site and is offering cardholders a $10 credit when they sign-up for free alerts, auto-pay and online statements. Bank of America launches the “Bank of America Accolades American Express” card for BofA’s clients served through Premier Banking & Investments, The Private Bank of Bank of America and its extension, Family Wealth Advisors. Discover signs a deal with First Data to issue Discover Network payroll cards provided by FDC’s “Money Network Financial.” eBay’s PayPal introduces a small electronic token that generates a unique security code approximately every 30 seconds. MasterCard introduces a patent-pending solution that enables issuers to switch cardholders into other card programs without disrupting their 16-digit account number. MasterCard and the Federation Internationale de Football Association announce they have settled their dispute over sponsorship of the 2010 & 2014 “FIFA World Cups.”
VISA has named Hans Morris as its new President of VISA Inc., effective September 1st. VISA also confirmed that John Coghlan, President and CEO of VISA USA has resigned. Coghlan led the U.S. region of VISA since July 2005. John Partridge, President of Inovant, will assume the expanded responsibilities of interim President of VISA USA. Morris is currently CFO of Citi Markets & Banking, a post he assumed in November 2002. VISA filed SEC IPO documents on Friday and will officially begin conducting business as Visa Inc. following a series of mergers involving Visa Canada, Visa USA and Visa International. Visa Europe will retain its member-owned association structure and will become a licensee of Visa Inc. (CF Library 6/25/07)
VISA confirmed this morning that Hans Morris has been appointed President of VISA Inc., effective September 1st. VISA also announced that John Coghlan, President and CEO of VISA USA has resigned. Coghlan led the U.S. region of VISA since July 2005. John Partridge, President of Inovant, will assume the expanded responsibilities of interim President of VISA USA. Morris is currently CFO of Citi Markets & Banking, a post he assumed in November 2002. VISA filed SEC IPO documents on Friday and will officially begin conducting business as Visa Inc. following a series of mergers involving Visa Canada, Visa USA and Visa International. Visa Europe will retain its member-owned association structure and will become a licensee of Visa Inc. (CF Library 6/25/07)
A new survey has found that by a ratio of five to one, consumers would prefer mobile purchases to pass through a credit or debit card network and appear on their card statement instead of appearing on their wireless bill. The new study from Fabrizio McLaughlin & Associates for VISA also found that 57% of those surveyed expressed interest in getting a phone with a payment application when shown what a payment-enabled phone might look like. Nearly 90% of those who were interested in mobile payment said they would pay extra for a phone with this feature. Nearly two-thirds of consumers in the survey aged 18-42 said they would consider switching mobile carriers from one that does not offer mobile payment capabilities to one that does, assuming they could keep their phone number. More than half of the same age group said they would consider switching financial institutions to gain access to mobile payment services.
VISA USA yesterday announced a number of strategic alliances and partnerships for mobile payment at the widely attended CTIA Wireless conference. VISA announced a strategic investment in dotMobi, a consortium of wireless industry leaders that is pioneering the use of the “.mobi” domain address and is enabling the integration of enhanced mobile commerce into the mobile Internet experience for consumers. VISA also announced a strategic alliance and investment in Ecrio, a provider of software for mobile phones on 3G networks that enables the redemption of barcode-enabled coupons and tickets from mobile devices at existing POS systems. Additionally, VeriSign announced it will support the Visa mobile platform. As part of the agreement, VISA will use VeriSign’s content delivery services to provide mobile offer management capabilities. VISA also announced it will continue to work with Qualcomm and Kyocera Wireless for mobile payments.
VISA USA’s top executive told 400 attendees of its “Security Summit” that payment security must become a strategic priority for businesses and that all entities touching payments must invest in security to maintain consumer trust. President and CEO John Philip Coghlan said data security must move out of the back office and into the boardroom. VISA says in the last year, PCI compliance among the largest merchants doubled from less than 15% to more than one-third. Last year VISA launched the $20 million “PCI Compliance Acceleration Program” which combines both incentives and penalties as a means of growing industry compliance levels. VISA also announced it is adopting a new policy related to interchange fees. VISA’s best interchange rates will only be available to merchants through their acquirers if they validate PCI compliance by September 30, 2007. The impact to tiered merchants varies from $250,000 to more than $20 million depending on the merchant’s qualifying VISA volume. The summit was co-sponsored by VISA USA and Harvard Business School Publishing.
SunTrust Banks will become the first issuer in the U.S. to incorporate “VISA Contactless” payment technology across its entire consumer credit card portfolio. The program is part of an exclusive five-year partnership agreement to issue VISA consumer credit cards, VISA check cards, small business and commercial products. SunTrust is the 40th largest U.S. issuer according to CardData (www.carddata.com). The issuer has 235,636 cardholders and about $340 million in credit card outstandings. More than 30,000 merchant locations in the U.S. accept contactless payments.
Vicente Fox, President of Mexico, John Philip Coghlan, President and CEO, VISA USA are among the speakers to keynote the upcoming “2007 Prepaid Card Expo” in Las Vegas. The 2007 Prepaid Card Expo is sponsored by a number of industry leading companies. Gold Sponsors include: Galileo Processing, Green Dot Corporation, Meta Payment Systems, and Visa. Silver and Track Sponsors include: American Express, Carlson Marketing, Discover Network, Experian, IDT Financial Services, and MasterCard. Prepaid Media provides a host of business-to-business media and information services to numerous emerging industries.
Bank of America and VISA USA have signed a six-year partnership agreement that runs through 2011. Bank of America is currently the largest issuer of VISA-branded payment cards. The agreement will be retroactive to January 1st, 2006. BofA has had a 30-year card issuance relationship with VISA. BofA has about 116 million cardholders and 90 million credit card accounts. Debit card purchase volume topped a record $42 billion in the second quarter, an increase of 22% from the second quarter of last year. For complete details on Bank of America’s 2Q/06 performance, visit CardData ([www.carddata.com]). (CF Library 7/19/06)
VISA USA and First Data confirmed that they have agreed to settle a four-year legal dispute over the processing of VISA payment card transactions. The two companies also agreed to work together to build a stronger business relationship. The two giants say that new leadership recognized a mutual interest in resolving legal differences. VISA agreed to provide financial support to pursue mutual business opportunities and cost cutting initiatives that are expected to drive new innovation, reliability, security and new merchant acceptance. First Data agreed to transition existing private arrangements between itself and VISA member financial institutions onto “VisaNet.” Specific terms of the settlement are confidential.
VISA USA has named Robert Hackney, president of Card Services For Credit Unions, Inc. to its board of directors. Hackney will also serve on the board’s Audit and Risk Committee. CSCU is the largest credit union card processing association in the U.S., serving 3,500 members. One month ago VISA added its first four independent members. The new members are part of an ongoing effort by VISA to transform its governance structure. The independent directors will also be members of a new “Independent Directors Committee” to oversee management’s recommendations on interchange reimbursement fees, member transaction processing and service fees as well as other core economic matters. (CF Library 5/1/06)
VISA USA’s board of directors added its first four independent members on Friday. The new directors are part of the corporate governance changes that VISA members overwhelmingly approved last week. Among other changes is the addition of a board seat to represent financial institutions with less than $1 billion in annual VISA volume. VISA will also add four more independent members to reach a board majority of independent directors. The independent directors will also be members of a new “Independent Directors Committee” to oversee management’s recommendations on interchange reimbursement fees, member transaction processing and service fees as well as other core economic matters. The new directors are Philip DeFeo, Linda Baker Keene, Jon Madonna and John Swainson.