U.S. Purchase Dollar Volume (PDV) for Visa and MasterCard (credit + debit) in the fourth quarter (4Q/15) grew at an annual rate (YOY) of 8.6%. Visa U.S. payment card (credit + debit) PDV for 4Q/15 was up 9.5%. MasterCard U.S. payment card (credit + debit) PDV for 4Q/15 was up 8.8%. U.S. PDV for Visa…
Visa outpaces MasterCard in Gross Dollar Volume in the second quarter. Overall, Gross Dollar Volume growth was up significantly for both networks.
Over the past 60 days, ShopVisible, selected by the SIIA CODiE Awards as Best Ecommerce Solution 2012, conducted research spanning 23,000 web and mobile transactions. In thousands of mobile transactions, 67% of customers used PayPal or an alternative payment method while only 33% chose to pay by credit card. In web-only transactions over the same…
Banking regulations may dampen credit supply and slow economic growth that is typically fueled by consumer and small business spending across Europe in 2011 while risk managers forecast a rise in credit demand that outpaces the growth in supply in most regions, with the “credit gap” widest for small and medium enterprises (SMEs). Risk managers foresaw a tightening in credit supply due to regulations, including Basel III requirements for higher capital reserves. One-third of respondents said Basel III would cause consumer lending to decrease, and more than half (52 percent) of respondents said consumer protection regulations would lead to a decrease in consumer lending. This, according to FICO and Efma (European Financial Marketing Association) announced the results of the first European Credit Risk Survey, also shows 62% said new banking regulations will reduce profits from consumer and SME credit portfolios. Additionally, only 47 percent believed the amount of credit extended will increase, and 17 percent believed it will decrease. More than 60 percent of respondents expected small business delinquency to worsen. Overdraft delinquency was expected to worsen by 43 percent of respondents. However, while 50 percent of respondents expected credit card delinquency to worsen, more than 35 percent of respondents project a reduction in card delinquencies.
Small business ownersâ confidence increased for the second straight month in May to 87.4 from 85.1 in April on the Discover “Small Business Index.” In May, 35% of small businesses believe the economy is getting better, up from 31% in April; 51% say the economy is getting worse, down a point from the previous month; and 12%t see the economy as the same, down from 14 percent in April. The percentage of small business owners rating the current economy as good or excellent was 12% in May, compared to 13% in April while 32% rate the economy as fair and 56% still think itâs poor. These improvements are due in great part to more small business owners believing the economy is improving; cash flow issues held steady at 45%; 48% reported no cash flow issues; 28% say economic conditions for their businesses are getting better; and 25% of small business are increasing business spending in May.
2010 SMB INDEX
Value Payment Systems and RBS WorldPay announced that the companiesâ “payUSAtax” tax payment service will now accept MasterCard cards for U.S. IRS Federal tax payments. For the 2009 tax year, MasterCard cardholders can now experience greater speed, convenience and security when paying their federal taxes online at www.payUSAtax.com for a reduced convenience fee rate of only 1.95%. Taxpayers who use their MasterCard when filing their Federal taxes with payUSAtax can earn rewards, schedule automated payments, set future payment e-mail reminders and deduct the convenience fee on their tax return. The “payUSAtax” service, individual taxpayers can make secure tax payments for 1040; estimated taxes; installment payments; tax extension; trust fund recovery penalty; amended tax returns, and many more.
Loyalty solution provider Alliance Data Systems and BMO Bank of Montreal
have enhanced the AIR MILES credit card program.
BMO AIR MILES MasterCard cardholders will now earn 1 reward mile for
every $20(CDN) spent, vs. previously every $40 spent, and will now earn
1.5 reward miles for every $20 spent when they shop at AIR MILES
Sponsors including Shell, National Car and Alamo. BMO Bank of Montreal
is eliminating the $35 annual fee previously payable by some BMO AIR
MILES MasterCard cardholdersAdditionally, BMO Gold AIR MILES MasterCard
cardholders will receive a 25% discount on flight redemptions,
(currently, Gold cardholders receive a 20% discount for flight
redemptions); and BMO Gold AIR MILES MasterCard cardholders will
continue to earn 2 times the reward miles earned at AIR MILES Sponsors
including Shell, National Car
and Alamo; The AIR MILES Reward Program is Canada’s premier coalition
program, with approximately two-thirds of Canadian households actively
reward miles. AIR MILES collectors earn reward miles at more than 100
brand-name sponsors representing thousands of retail and service
locations across Canada.
AIR MILES reward miles can be redeemed for more than 1200 different
as travel, movie passes, entertainment attractions, electronic
merchandise, and more.
Effective August 3rd, BMO Bank of Montreal is enhancing its AIR
MILES credit card program for the “Canadian BMO MasterCard” cardholders
and AIR MILES Collectors to increase miles issued on the Alliance Data
Systems Corporation loyalty and marketing platform. With these
enhancements, BMO AIR MILES MasterCard cardholders will now earn 1
reward mile for every $20(CDN) spent vs. previously every $40 spent;
cardholders will earn 1.5 reward miles for every $20 spent when they
shop at AIR MILES Sponsors(where they will continue to earn 2 times the
reward miles); BMO Bank of Montreal is eliminating the $35 annual fee
assessed to some of its MasterCard cardholders and BMO Gold AIR MILES
MasterCard cardholders will receive a 25% discount on flight
redemptions. BMO Financial Group has total assets of CDN$375 billion and
employs 37,000 while TX-based Alliance Data offers its loyalty and
marketing solutions derived from transaction-rich data and employs
approximately 7,000 at 50 locations worldwide.
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A new report finds that the compound annual growth rate for business credit card volume, since 2001, is 20.6%, while the corporate card CAGR is 12.0% and the purchasing card CAGR is 13.7% during the same period. The study also suggests that from a top line perspective, corporations are offered incentives by issuers through rebate programs based on a combination of factors including a company’s travel volume, spend per card, payment terms, average transaction size, and credit losses. However, Boston-based Mercator Advisory Group notes that the commercial card market has some very fundamental differences from a risk perspective. Issuers have a particular gap or blind spot in creating a comprehensive view of exposure to a corporation, encompassing both commercial loan and card relationships. Also, solutions providers are just beginning to develop segment specific scoring models and analytics to properly manage the corporate card segment in the context of the broader corporate lending relationships.
Based on third quarter reports, MasterCard is now the fastest growing payment card in the U.S. with a 17.3% jump in gross dollar volume, compared to VISA’s 11.6% gain, American Express’ 14.3% increase and Discover’s 13.1% rise over 3Q/05. Over the past four quarters the four major payment card networks have racked-up nearly $3.0 trillion in U.S. gross dollar volume on credit and debit cards. CardData ([www.carddata.com]) reports that VISA’s U.S. share is now 54.7%, compared to MasterCard’s 29.2% share. Based on the four quarters through September 30th, VISA has a 57.7% share compared to MasterCard’s 26.4%. During the third quarter VISA posted U.S. gross dollar volume on all products of $446.2 billion compared to MasterCard’s $238.0 billion. Over the past four quarters, VISA GDV has climbed to $1717.6 billion compared to MasterCard’s $785.9 billion, American Express’ $390.1 billion and Discover’s $111.6 billion. MasterCard’s recent surge is linked to its strong performance in debit cards which grew more than 50% in the third quarter.
3Q/06 U.S. GROSS DOLLAR VOLUME
VISA: $446.2 billion
MasterCard: $238.0 billion
American Express: $101.7 billion
Discover: $ 30.2 billion
TOTAL: $816.1 billion
Source: CardData (www.carddata.com)
Alberta-based ATB Financial is the sixth Canadian issuing institution to join the “Cross-Border Debit” program, offered through an alliance between NYCE Corporation and Acxsys Corporation. About 420,000 Canadian cardholders can now use PIN debit to shop at more than one million U.S. retailers. The program logged nearly 170,000 transactions in March, an all-time high, resulting in more than $11 million in sales at NYCE retailers-and an increase of 68% over last year’s March transaction volume. Canadians are a significant market for U.S. retailers, making up the country’s largest group of international visitors with nearly 14 million visits in 2005. Canadian shoppers initiated more than 1.5 million PIN-debit transactions in the U.S. for a total dollar value of over $96 million.