An increasing number of U.S. issuers are bottom fishing for new cardholders with a secured credit card. The target market is not limited to the financially challenged but also includes prepaid card users.
TSYS signed a long-term agreement with Merrick Bank, a subsidiary of CardWorks, for undisclosed financial terms. This will provide flexible solutions for Merrick’s independent sales organization (ISO) partners, including point-of-sale (POS) solutions, authorization, settlement, reporting, managed services and risk mitigation solutions. TSYS supports financial institutions, businesses and governments in more than 80 countries, offering merchant payment-acceptance solutions as well as services in credit, debit, prepaid, mobile, chip and healthcare.
Fuze Network now lets consumers make cash payments on virtually any card and processed more than 3.5 million transactions in 2012. The Fuze “reCHARGE” Network has provided consumers with a simple way to send funds to credit cards as payments, to debit cards as deposits and to prepaid cards as loads. This Network routes transactions to more than 14,000 financial institution card issuers and is directly promoted to cardholders by many of those, including Citi Bank, First Premier Bank and Merrick Bank. The reCHARGE Network expands the number of retail locations in which a consumer can make a payment or load a card; increasing card usage. There are currently 150,000 integrated retail endpoints with access to the Fuze reCHARGE Network, including Pay-O-Matic, ACE Cash Express, Fidelity Express and additional partners planned to launch in 2013.
NACHA added State Bank and Trust Company as a Direct Financial Institution Member. NACHA oversees the Automated Clearing House (ACH) Network, utilized by all types of financial institutions as a safe, secure, and reliable network for direct account-to-account consumer, business, and government payments, and annually facilitates billions of Direct Deposit via ACH and Direct Payment via ACH transactions. State Bank may now vote directly on Rules ballots, nominate candidates to serve on NACHA’s Board of Directors, and participate in NACHA Councils, along with other 47 direct members, consisting of 30 financial institutions and 17 regional payment associations.
ControlScan, ThoughtKey are examining recent data breach investigation findings, which indicate an excessively high number of breach events targeting smaller, technically unsophisticated merchants. It is now more important than ever for both ISOs and acquirers to assess and proactively educate and manage the risks within their Level 4 merchant portfolios. With this, they will educate ISOs and acquirers on how to remain abreast of the latest risk management options in the ever-evolving PCI landscape and best practices for keeping Level 4 merchant portfolios compliant. Namely, the partnership will address PCI DSS-related data breach trends small merchants are facing; business value of PCI compliance; laws requiring PCI compliance; scope reduction through employment of tokenization, point-to-point encryption (P2PE) and Chip and Pin; and managing risk.
Greg Pesci has been appointed President and Chief Operating Officer with ProPay merchant services, payment security, credit card processing, and mobile payment services. Having served as ProPay’s Chief Operating Officer over the past two years, Pesci continued to grow revenues in a down economy and has substantially increased its earnings and initiated key steps in global payment strategy and secure social mobile payments strategy (Social M-Payments)”a new technology that was the First Place Winner of the 2011 ETA Technology Showcase Challenge. He brings to the role more than 12 years’ total experience in the financial institution and payments arena after having served as Associate General Counsel and Senior VP, Product Development for Merrick Bank Corporation and Counsel in the Patent Division for Procter & Gamble.
Integrated Card Exchange (ICE) of CardWorks and Peoples Trust financial
services have launched their comprehensive processing solution for the
Canadian market, powered by Planet Payment multi-currency and data
processor. The processing solution provides Canadian merchants a
comprehensive suite of business-building tools to improve merchant
efficiency and profitability with full domestic processing support for
Visa and MasterCard including chip and pin, American Express, JCB, and
Interac debit card transactions. Merchants also have access to Planet
Payment’s “Pay in Your Currency” and Multi-Currency Pricing services.
E-Commerce and Mail Order / Telephone Order merchants have access to
iPAY, Planet Payment’s robust suite of payment acceptance and business
Overall credit card customer satisfaction declined to a three-year low driven primarily by cardholders discontent with rates and fees. Nearly 20% of customers report experiencing an increase in their interest rate since 2008, almost double compared to one-year ago. The J.D. Power and Associates “2009 Credit Card Satisfaction Study” also found that late payment fees, which have the greatest negative impact on
satisfaction, were incurred by 14% of customers, compared with 11% in
2008. Overall satisfaction with fees and rates declined to 603 versus 640 in 2008 and 658 in 2007. The Power study measures customer satisfaction with credit cards by examining six key factors: interaction; fees and rates; billing and payment process; rewards;
benefits and services; and problem resolution. American Express ranked highest among credit card issuers for a third consecutive year with an index score of 762 thanks to strong performance in rewards, benefits and services, and billing and payment process factors. The Discover Card (751) and National City (740) follow AmEx in the rankings. Power noted that overall satisfaction among credit card customers remains the lowest across the financial services industries in which it conducts research, including insurance, banking and investment services.
A lawsuit has been filed on behalf of UT-based Merrick Bank against MO-based information technology provider Savvis. Merrick says it lost $16 million as the result of an data breach of CardSystem Solutions. When Merrick first entered into an agreement in 2004 with CardSystems to provide ISO and processor services, it was not certified as data compliant according to the requirements established by MasterCard and Visa. Savvis was retained by CardSystems to obtain information that the systems were “CISP” complaint. The complaint alleges that based on a prior report of compliance that was submitted by Cable and Wireless but not accepted by Visa, Savvis submitted a “ROC” stating that it recommended that Visa approve CardSystems as “CISP” compliant. Less than a year later, it was discovered that CardSystem had experienced a data breach attributed to weak firewalls that were not “CISP” compliant, resulting in the theft of 40 million cardholders numbers.
Cardwork’s affiliate Integrated Card Exchange (ICE)and Peoples Trust,
will launch a comprehensive processing solution powered by payment
processor Planet Payment. The turnkey solution will provide Canadian
merchants with a
comprehensive suite of business-building tools designed to improve
merchant efficiency and profitability. The solution includes full
domestic processing support for Visa and MasterCard including chip
and pin, American Express, JCB, and Interac debit card
transactions. Additionally, merchants will have access to Planet
Payment’s Pay in Your Currency(TM) and Multi-Currency Pricing services,
driving additional sales opportunities and improving profitability by
enabling customers to view pricing and pay in their home currencies.
ICE will offer the solution directly to Canadian
merchants and Independent Sales Organizations as well as through
US-based ISOs that are interested in processing solutions for merchants
located in Canada.
For information visit CardData.com.
Payment Data System posted a 25% increase in processing for December
2008 from November and 5% more than December 2007. Transactions
processed increased 11% from the previous month and 13%
from December 2007. It should be noted that Decemberâs dollar volume was
the highest for any month in 2008 and is the third highest in our
history. In dollars processed, volume increased 21% from the third
quarter. For transactions processed, volume grew 20% over the previous
quarter and 7% over Q4 2007.