In today’s CardFlash News Que: SYNCHRONY (FRB); PIVOTAL (Breeders); CSI (IOFM); and TECHNAVIO (india).
Montreal-based Pivotal Payments has inked a five-year agreement with Breeders’ Cup Limited, which administers the Breeders’ Cup World Championships, Thoroughbred racing’s premier international event.
Seven out of ten Americans blame retail chains for credit card breaches. A new survey finds 65% of holiday shoppers say they have used or plan to use cash to pay for their purchases compared to 61% who plan to use credit cards this holiday season.
Fiserv announced Central Bancshares, a $2 billion financial services organization, has implemented its “EnAct” solution to support transparent, relationship-centric approach to business development across all enterprises. The “EnAct” sales automation and management solution from Fiserv can be tailored to meet the specific needs of financial institutions of all types, leverages Microsoft’s powerful Dynamics CRM platform to address the specialized CRM needs of commercial banking, retail banking and wealth management. Using EnAct, Central Bancshares will now have an integrated, adaptable sales management solution that helps bring structure and focus to sales activities as well as increased transparency to sales results. In addition, the bank will have access to the data it needs to help drive significant and sustainable customer acquisition, retention and cross-sales across their enterprise.
Harland Financial Solutions announced Members Heritage Credit Union implemented its UltraData Enterprise Core solution, including UltraData Enterprise CRM, Cavion® Internet Banking, Cavion Voice Banking, Cavion Mobile Banking, Cavion Bill Pay and ActiveView® Content Management. The credit union selected this product set from Harland Financial Solutions to provide its members with high-touch service, while increasing efficiency. In addition to the ease-of-use of UltraData Enterprise Core, integrated member relationship management from UltraData Enterprise CRM will enable the credit union to improve the member experience by presenting a unified approach to service. ActiveView Content Management will aid the credit union in better managing the storage, retrieval and flow of documents and information across the entire organization, which will improve efficiency and enable the institution to better service members seeking information.
Navy Federal Credit Union and Cartera Commerce card-linked marketing solutions released a new card-linked offer program for Navy Federal members to boost rewards for shopping. Navy Federal launched its new Member Mall to more than one million members. Members can now earn extra cash back or rewards points — up to 15 times their normal rewards earning — with online shopping offers linked to their Navy Federal credit card accounts. The program is run on Cartera’s card-linked offer platform, which powers card-linked offers for four of the top five financial institutions, four of the top five airlines and more than 150 million U.S. consumers. The Cartera platform is a fully hosted, managed service allowing Navy Federal to pull merchant offers from Cartera’s exclusive Offer Cloud, link them to card member accounts, display them via multiple marketing channels, track and confirm purchases, and deliver rewards.
Cartera Commerce card-linked marketing solutions and Barclaycard US payments business of Barclays in the United States forged a strategic partnership to reward more than three million Barclaycard customers for their shopping purchases. Barclaycard is launching “Barclaycard RewardsBoost,” a new shopping platform for select co-branded card programs including Barnes & Noble, Carnival Cruise Lines, L.L.Bean, NFL and Travelocity — leveraging Cartera’s award-winning loyalty shopping platform and large multi-channel merchant network. The new program will allow these cardholders to earn discounts, rewards, miles and cash back for purchases at participating in-store, local and online retailers.
Fiserv stayed the course and put up its financial results for the fourth quarter, showing $1.08 billion compared with $1.06 billion in the fourth quarter of 2009. Meanwhile, adjusted revenue for the quarter was up 2% to $1.03 billion compared with $1.01 billion in 2009 and GAAP revenue was $4.13 billion compared with $4.08 billion in 2009. The quarterly performance reflected a 3% growth in the Payments segment and 2 percent growth in the Financial segment. Throughout all of 2010, adjusted internal revenue growth was 1% thanks to the Payments segment having grown 3% and the Financial segment by less than 1%. This was in great thanks to the company having expanded its payments footprint with 163 electronic bill payment clients and 55 debit clients. The company signed 537 electronic bill payment clients and 218 debit clients in the year. With this, the Company sees good things in 2011 with adjusted internal revenue growth of 2-4% and an adjusted earnings per share to be in a range of $4.42 to $4.54.
Cartera Commerce multi-channel shopping solutions and merchant-funded rewards, in light of the announcement from the Federal Reserve to create a 12-cent cap on the fees merchants must pay banks for processing debit card transactions, is touting its product as an alternative revenue stream and rewards funding model to offset said interchange fees. With this, Cartera Commerce is offering performance-based pricing with no fixed fees and no requirement for banks to fund offers; a world-class merchant network, including more than 1,000 national, regional and local merchants; support for statement credits, cash back, points, miles, coupons and POS discounts; web portals, email, mobile and browser apps marketing; and its Statement Offers solution for targeted, highly relevant discount and cash back offers within a consumer’s online banking statement. This comes after agreements were met in the spring with key conferees on the Wall Street reform bill regarding the Durbin amendment to regulate interchange fees, which passed the Senate 64-33. Modifications to the Durbin interchange amendment regulated interchange fees associated with debit or prepaid cards issued by large banks on behalf of government-administered payment programs; defines âinterchange transaction feeâ to include debit card fees that are established by a payment card network; and provides that the Fed cannot regulate network fees. It also provides card networks can no longer prevent merchants from offering customers a discount to use one card network vs. another and card networks cannot prevent merchants from offering a discount for one form of payment vs. another (cash vs. check vs. credit vs. debit). The law has been met with such scrutiny as that from ABA president/ CEO, having disclosed; “The American Bankers Association is very disappointed that the Senate voted in favor of the amendment that requires the Federal Reserve to promulgate rules limiting the fees merchants pay for accepting debit cards for payment…..The amendment completely upends the existing payment system, and retailers who benefit greatly from the system will pay almost nothing for the costs of maintaining and improving it. Retailers benefit greatly from debit and credit cards in increased consumer spending, lower personnel costs, and protection against fraud. Just picture a gas station where numerous customer transactions are taking place, are paid for with cards at the pump, and only one employee is needed to maintain the register inside the building. The so-called exemption for community banks and credit unions will be completely ineffectual, as both groups stated before the vote” (Cardflash Library, 2010/06/22, 2010/05/17).
Visa announced commuters in New York and Los Angeles can use their payment cards for bus, subway and train fares. As part of Visaâs long-term strategy of extending the speed, security and convenience of Visa acceptance to new locations, in New York, riders can pay using Visa “payWave”-enabled cards and mobile phones, while commuters in Los Angeles can use their Visa prepaid card to ride the LA metro system. In driving acceptance at the mass transit fare gate, Visa is providing riders with a better way to pay by eliminating the time-consuming step of searching for cash to buy a ticket while minimizing cash handling costs for transit operators. The pilot program in New York uses the “payWave” technology based on a small electronic chip embedded in a mobile phone or payment card that communicates securely with contactless readers at the fare gate and on the bus while the program in Los Angeles is exclusive to Visa and started September 15, 2010 and is a system wide commercial implementation available to all riders of the LA Metro system with the TAP “ReadyCARD.”
The Metropolitan Transportation Authority (MTA), Port Authority of New York and New Jersey (PATH), NJ TRANSIT (NJT) and MasterCard Worldwide launched a six month MasterCard “PayPass” pilot program, beginning June 1st. With this, “PayPass” will be accepted for fare payments on select train and bus routes throughout New York City and New Jersey, allowing riders to purchase fares and transfer between transit systems by tapping a single contactless card or device. The first payment system to link the transit agencies, replacing the need for riders to carry specific fare cards for three separate transit systems, commuters transferring from a PATH train to the New York City subway will need only one “PayPass” payment device for each ride. Specially-equipped payment readers featuring the MasterCard PayPass brand mark and universal contactless symbol have been installed on select turnstiles and fare boxes along these routes to alert commuters that contactless payments are accepted. Both âPre-Fundâ or âPay-As-You-Goâ fare options are available on the MTA and NJT services.
FL-based hotel company Vantage Hospitality Group has selected Chase Paymentech to process card transactions for Vantageâs Americas Best Value Inn and Lexington Collection locations. Americas Best Value Inn, the tenth largest limited-service hotel chain representing nearly 900 inns, hotels and suites throughout North America, and the Lexington Collection, an upper-mid to upscale brand introduced in 2007, offer guests hometown comfort, quality and service at an exceptional value. As part of that value, Vantage Hospitality has agreed to have Chase Paymentech promote its payment services to its Americas Best Value Inn and Lexington Collection member properties. In 2008, Chase Paymentech processed more than 21.4 billion transactions with a value exceeding $713.9 billion.