CardWeb.com’s CardExecs database of payments industry movers and shakers today features Robert Hammer, CEO and Founder of R.K. Hammer.
Much has been made of card industry fees for many years. Congress and regulators, journalists and card members, all have joined in. It seems there is no end in sight to fee income as the proverbial punching bag.
Heartland Campus Solutions ECSI, a division of Heartland Payment Systems and a leading provider of solutions for over 2,000 colleges and universities, commented today on the February 2014 U.S. Government Accountability Office (“GAO”) report: “COLLEGE DEBIT CARDS: Actions Needed to Address ATM Access, Student Choice, and Transparency.” College debit and prepaid cards allow students to receive tuition refunds from federal student aid and other payments on a card. According to the GAO Report, while college cards can be convenient for students and offer cost savings and efficiencies for schools, concerns exist when it comes to fees, ATM access and neutrality. Among other findings, the GAO reports that some college debit and prepaid card providers charge fees for debit card usage, make it difficult for students to transfer funds to their own bank account, and that some schools receive payments from card providers based on the number of card accounts opened, leading to a call for increased transparency.
In their series of weekly year-end industry trend reports R.K. Hammer discusses in their latest report how fee income continues to climb higher in terms of top line revenue contribution. For decades, interest income on prime/super prime cards had always contributed the largest portion of the card industry’s revenue streams; just the opposite for subprime…
R./K. Hammer company Founder and CEO Bob Hammer is known for writing hundreds of card opinions and research reports, and at last count public records show R.K. Hammer branded materials have been cited 650 times in virtually every major financial card-based publication in the U.S the past two decades. He has done card business projects…
In their series of weekly year-end industry trend reports R.K. Hammer discusses here how fee income continues to climb higher in terms of top line revenue contribution. For decades, interest income on prime/super prime cards had always contributed the largest portion of the card industry’s revenue streams; just the opposite of subprime cards, where fees…
GAO RFID Asset Tracking launched its advanced high frequency RFID reader writer, an ideal solution for integration into POS systems where multiple tag reads for long sequences of items are required such as jewellery applications, laundry management and document tracking. This compact RFID interrogator, model 233004, operates at 13.56 MHz and is certified for CE and FCC. It is compliant with ISO 15693 standard for vicinity transponders and is capable of reading multiple tags simultaneously from a maximum distance of up to 30 cm. The smart reader/writer communicates with a computer via an RS232 interface for data exchange and offers 3 LEDs for efficient status indication.
The pain in banking has been real enough, to be sure. There have even
been some prognosticators who have recently opined about the final nails
being hammered into the coffin for the credit card industry. Massive new
regulation decimating the card business models; increasing costs to
comply with those new rules; profits being slashed by two-thirds over
the past two years. The list goes on. Painful as it has been to observe,
we do not think the end game is upon the card business. In a period of
enormous change, there are a few things weâve seen that have gone less
reported but worth considering, for those who wish to remain in the
business for the long haul. In terms of damage control, in the R.K.
Hammer financial model the pre-tax returns for the credit card business
fell from 4.24% ROA in 2008 to 1.50% ROA in 2009. Fewer new accounts being
issued, cardholders using their cards less often, repayment rates rising;
all contributing to a weaker P/L. These and other operational and
marketing strategies are proving successful to client bank enterprises.
No doubt other tactics will emerge as the card business adapts and makes
necessary changes to compete in this heavily competitive, higher-risk,
greatly regulated industry.
GAO Embedded has deployed its 13.56MHz RFID reader module for contactless financial transactions. Encrypted with authentication across a range of vertical markets, the reader module is suitable for various applications from anti-counterfeiting to patient safety that share common requirements for tag support, protocol, performance and security. The multi-protocol RFID reader module, model 713008, is compatible with a wide variety of RFID tags. It offers software adjustable host interfaces including UART (TTL), SPI and USB and provides a simple and intuitive API for encryption algorithms and key storage.
Card industry analyst/investment banker R.K. Hammer marks 20 years service to financial institutions and credit card businesses in 50 countries on 6 continents. In addition to most of the Top 20 Issuers in the U.S., enterprise bank card clients from Asia/Pacific, Middle East/Europe/Africa, Canada, and Latin America have utilized the expertise of R.K. Hammer in projects creating pre-tax client profits in excess of $680,000,000. Primary areas of card industry leadership and professional competency include: due diligence valuation and sale of card portfolios, benchmark models for card portfolio profitability, expert witness work for issuers in litigation, operational consulting for those desiring to lower operating expense, raise income yields, and methods to offset new regulation P/L risks and costs. Marketing, operational and financial projects have been developed for national brand and private label cards, prime and subprime, domestic and international credit card enterprises over two decades. The R.K. Hammer developed three-day seminar, âManaging for Improved Profitability,â has been attended by over 1,000 global credit card executives and institutional investors worldwide; training the future leaders of the card business and others for twenty years has been particularly gratifying for R.K. Hammer.
Regarding regulation giving the federal government the ability to set the rates retailers pay for accepting debit products at the consumerâs expense, 83% are specifically oppose the amendment. Additionally, 60% believe retailers â not cardholders â should bear the fair cost of accepting credit and debit cards. The study, released by Visa, shows widespread skepticism toward this and other provisions put forth in a controversial amendment to the financial regulatory reform bill currently being negotiated in Congress. The amendment written by Senator Durbin proposes Americans who benefit from the security and convenience of electronic payments could find themselves forced to spend a minimum amount when they choose to pay for goods and services with a credit card, of which 68% of consumers are opposed and 55% are strongly opposed.
Digital currency has the potential to dramatically transform government payments in the next five years, saving U.S. taxpayers hundreds of millions of dollars in the process. Hosted by THE HILL congressional newspaper and sponsored by Visa, the positive impact of digital currency on all aspects of government payments and purchasing was highlighted at a briefing in Washington, D.C., highlighting state, local and federal government agency plans by to launch or expand electronic payment programs to improve efficiency, accountability and transparency. Referenced savings plans include U.S. Department of Treasury plans to switch to electronic payments, eliminating about 136 million paper checks, saving almost $50 million in postage costs and saving U.S. taxpayers about $300 million over the first five years and more beyond; The U.S. Social Security Administration and U.S. Department of Veterans Affairs recently announced the completion of the switch to digital currency for benefits payments; 39 U.S. states currently deliver benefits on Visa prepaid cards to recipients of 71 programs for child support, unemployment insurance and Temporary Assistance for Needy Families (TANF) disbursements; and the U.S. General Services Administration’s SmartPay program provides purchase, travel, fleet and integrated payment card programs to more than 350 federal agencies and departments, saving these agencies $1.7 billion — up to $70 per purchase.