Signature Debit Here to Stay

The Wall Street Reform and Consumer Protection Act has lead to debit card sales volume outstripping credit cards with an ever-widening gap. The Durbin Amendment to Dodd-Frank gave the Fed 9 months to decide on “reasonable and proportionate” rates for debit card interchange. With this, Some observers are predicting that the Durbin amendment will mean the end of signature debit, arguing that signature owes its dominant market position to the higher revenues it generates for the issuer (at the retailers’ expense, claim merchant coalitions). Reduce the price gap between the two and PIN should become dominant by virtue of its lower incidence of fraud.

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CheckAlt Gears it Check21 Service Toward CUs

CheckAlt Payment Solutions Check 21 service patent-issued technology can act as credit unions’ sole Check 21 provider for those looking to stand clear of corporate services. Despite recent changes made to the validation of check images and data by the Federal Reserve, CheckAlt Payment Solutions’ expertly designed software never missed a beat. Serving as a direct line to the Federal Reserve, CheckAlt remains up-to-date so institutions can rest easy knowing they are saving time and money. Funds are posted in as little as 12 hours and offer the lowest processing fees.

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August Monthly Payment Rate Slips to 13.11%

Monthly Payment Rate performance for the month of August was up .25 percentage points after having plummeted to its lowest in over 2 years last month. The August MPR improvement, compared to the year ago figure of 16.96%, is consistent with seasonal patterns and driven by seasonal factors as well as fundamental changes in cardholder payment trends. The slip is thanks in part to limited collection time, coming off the higher number of collections days during the July collection period. Compared to the July figure of 12.86%, MPR was up 0.25% month over month and looked much better then the year ago figure of 16.96%. Historically, the MPR sees a slight uptick in the summer months, as has been the case since the start of the current recovery, a trend lost last year with the onset of the recession. For complete details on current and historical MPR data, visit CardData.com (www.carddata.com).

MONTHLY PAYMENT RATE
Jul 09: 17.12%
Aug 09: 16.96%
Sep 09: 16.59%
Oct 09: 17.77%
Nov 09: 17.66%
Dec 09: 17.23%
Jan 10: 17.15%
Feb 10: 15.95%
Mar 10: 18.79%
Apr 10: 14.61%
May 10: 13.96%
Jun 10: 14.22%
Jul 10: 12.86%
Aug 10: 13.11%
Source: CardData (www.carddata.com)

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Four Texas Banks Implement Fifth Third Processing

Four Texas-based financial institutions have inked agreements with Fifth Third Processing Solutions to implement single-sourced comprehensive processing services for ATM and debit card transaction processing, ATM driving, card production and gateway services. These banks include Granger National Bank, locally owned and operated with more than $25 million in assets; AimBank featuring delivery channels on debit cards, online bill payment, and Internet banking with more than $190 million in assets; Spur Security Bank, with more than $35 million is assets; and First State Bank of Bedias with more than $120 million is assets with two locations and two ATM’s. Fifth Third Processing provides innovative payment transaction processing and acceptance solutions for card and electronic payment. It processes over 33.3 billion ATM and point of sale transactions and over $315.5 billion in debit and credit card sales volume annually for more than180,000 merchant and financial institution locations.

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First Data Names New CEO

Jonathan J. Judge has been named CEO with First Data electronic commerce and payment processing. Bringing with him 34 years of technology industry experience, Judge previously served as president and CEO at Paychex payroll for six years, where revenues grew from $1.2 billion to approximately $2 billion and achieved a market capitalization of approximately $10 billion. Prior to this, he was the CEO for Crystal Decisions, a private $300 million software company providing business intelligence solutions. Judge began his career as a sales trainee and spent 26 years with IBM Corporation, serving in a series of positions with increasing responsibility. Judge serves on the board of directors of Dun & Bradstreet and PMC-Sierra, serves as a member of the Upstate New York Regional Advisory Board of the Federal Reserve Bank of New York and is a graduate of Harvard University with a bachelor’s degree in economics.

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42% Drop in ID Fraud Protection Adoption, Fraud up 12.5%

The $2.4 billion Direct‐to‐Consumer U.S. Identity Protection Market saw a sharp 42% decline in Identity Fraud Protection Services adoption, despite a 12.5% increase in the number of U.S. adults who became victims of identity fraud in 2009. The market saw a 42% decline in Identity Fraud Protection Services adoption thanks to the recession and lowered number of data breaches. This, according to Javelin’s fourth annual report, “2010 Annual Identity Protection Services Scorecard: Market Challenges, Consolidations and the Move Toward ‘Whole Identity’,” also showed only 25% of consumers are currently using some form of identity protection services- whom typically benefit from lower fraud-; 40% of Gen Y consumers are not enrolled in identity fraud protection services; in 2009, 11.1 million U.S. adults became victims of identity fraud for one‐year fraud amounts totaling $54 billion; and total fraud increases account for a total growth of $6 billion in losses, having increased 38% since 2007 and 17% since 2008.

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Wincor Nixdorf U.S. Network Grows 98.7% Y/Y

Wincor Nixdorf IT solutions and services to retailers and retail banks has expanded its U.S. customer service and technical support network with a 98.7% increase in the number of Wincor Nixdorf employed service technicians since 2009 and now serves 49 of the top 50 major US metropolitan areas. Wincor Nixdorf initiated expansion to support its 60% growth in net sales in North and South America for the first half of the 2009/2010 fiscal year, which is thanks to increased sales of the company’s CCDM intelligent deposit technology to several top ten U.S. banks. Wincor Nixdorf is the second largest supplier of ATMs in the world, has a comprehensive portfolio of hardware, software, maintenance, services and consulting solutions, including self-service ATMs, teller cash recyclers, multi-vendor software, ATM monitoring software, and ATM security solutions for improved customer service, flexibility, security, cost-savings and efficiency.

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Dynamics to Reveal New Payment Device

Dynamics is set to reveal a new payment device on Oct. 5 at FinovateFall 2010, a conference showcasing innovations in financial and banking technology. Dynamics’ “Card 2.0” platform and its two initial Payments 2.0® applications – MultiAccount™ and Hidden™ – were unveiled on Sept. 16 at DEMO, an emerging technology conference in Silicon Valley. Out of the 70 demonstrators at the conference, Dynamics won both the coveted DEMOgod title and the $1 million People’s Choice Award. Dynamics produces and manufactures intelligent powered cards such as advanced payment cards.

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SANTANDER

Spain-based Santander has outlined plans to create around 400 call center jobs in the UK to support its growing customer base in Liverpool, Glasgow and Leicester. Santander embarked on the UK market in 2004 after buying Abbey but has recently exponentially as a direct result of the economic crisis with its takeover of Alliance & Leicester and Bradford & Bingley. With this, its customer base consists of over 25 million. This in response to poor customer service reviews by UK customers and a rash of complaints from customers who have encountered difficulties accessing accounts online.

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Vodafone Kicksoff Annual Wireless Innovation Project

The Vodafone Americas Foundation and mHealth Alliance are introducing the annual Vodafone Americas Foundation Wireless Innovation Project and mHealth Alliance Award competition to identify and support promising wireless-related technologies to address critical social issues around the globe. Proposals will be accepted from September 27, 2010 through December 15 with the final winners announced at the annual Global Philanthropy Forum in Redwood City, CA in April 2011. The Vodafone Americas Foundation Wireless Innovation Project(TM) will award $300,000, $200,000 and $100,000, to the first, second and third-place winners. Vodafone has long recognized that wireless technology has the potential to make the significant impacts in the world — particularly in developing countries.

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WESTERN UNION

Western Union global payment services has been granted license approvals from the Brazilian Central Bank to operate a commercial bank and foreign exchange brokerage firm. This allows Western Union to offer the Western Union “Money Transfer” services directly to consumers in Brazil and to introduce new financial services, including domestic money transfers, consumer bill payments and prepaid cards. Western Union has provided its international money-transfer service in Brazil since 1998, through its Agent network that currently includes nearly 6,000 bank and foreign exchange brokerage firm locations.

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Cardlytics & Jwaala Partner to Offer CUs Member Rewards

Cardlytics transaction marketing has partnered with Jwaala online banking and personal financial management solutions to offer transaction marketing rewards to Jwaala’s credit unions. Jwaala’s “Better Online Banking” solution is leveraged by more than 35 credit unions and will be the first concentrated portfolio of credit unions that Cardlytics adds to its substantial base of financial institutions providing rewards to its debit, credit and prepaid card holders. Cardlytics’ transaction marketing platform enables credit unions to provide rich, targeted member rewards that are completely funded by local, regional and national retailers. Through its partnership with Jwaala, credit unions can offer relevant rewards based on individual behavior directly from their bank accounts, helping members save money on products normally purchased.

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