SCA Expands Contactless Council to M-Payments

The NJ-based Smart Card Alliance announced a new focus on NFC and mobile payments. The newly named “Contactless and Mobile Payments Council” will continue to conduct and publish research on how merchants, consumers, financial issuers, mobile operators and technology providers view contactless and mobile payments. The “Contactless and Mobile Payments Council” is made up of over 120 individuals from 48 organizations. Steering committee members include Troy Bernard, Discover Financial Services; Deana Cook, Chase; Steve Frazzini, Metropolitan Transportation Authority New York City Transit; Dan Loomis, VeriFone; Jack Jania, Gemalto; Paul Legacki, Infineon Technologies; Mark Meringolo, American Express; Ken Moy, MasterCard; Roger Musfeldt, First Data; Ron Pinkus, Giesecke & Devrient; and Charles Walton, INSIDE Contactless.


Shift4 White Paper Links Terrorism & Cards

Enterprise payment solution developer Shift4 has released
“Terrorism and Credit Card Information Theft: Connecting the Dots”
detailing how credit card information theft and fraud represents
a lucrative funding system for terrorists. As a resource of our financial
system, credit cards serve as the means for the source and distribution of
funds. The paper discusses the best practices for the detection and
prevention of cardholder data theft and fraud by terrorists.
The white paper is authored by retired FBI agent Dennis M. Lormel,
current Managing Director of the
Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT)
issues at IPSA International. Shift4 is a developer of secure financial transaction processing
software and services, provides web-based, real-time enterprise payment
solutions for leaders in the hospitality, retail, foodservices, auto rental
and e-commerce markets.



Gematik, the German healthcare organization, has approved Hypercom’s “medCompact” healthcare terminal. It is the first terminal to earn “e-Health BCS” approval which will involve more than 80 million electronic health insurance cards nationwide. Hypercom’s “medCompact” offers a large, high contrast display and embossed keys, plus it provides an intuitive and highly secure authentication system for patients and healthcare service providers. In addition to accepting patient cards, it accommodates up to eight different medical practitioner cards, making it well suited to environments where several health care professionals operate in the same location. “medCompact” is also designed to process both the current German health insurance card and the new electronic healthcare card, “eGK2.” The terminal complies with the upcoming e-Health “SICCT3” standard and can easily be connected to medical practitioner, hospital and pharmaceutical IT systems.


NYSE Extends Diebold Listing Time Frame

Diebold has been given additional time to be listed and continue trading
on the New York Stock Exchange until October 31. As previously
disclosed on August 11, 2008, Diebold still expects to file its
delinquent financial statements in September 2008, upon
completion of its internal review of other accounting items.
During this extension period, trading of the company’s shares on the
NYSE will remain unaffected. If Diebold does not become current with its
Securities and Exchange Commission filings during this extension
period, the NYSE could either grant an additional extension period or
move to initiate suspension and delisting procedures.


Involuntary Card Attrition Tops 13% in Aug

Voluntary and involuntary credit card attrition have soared this year
to a new high. Voluntary attrition, the number of accounts canceled by a
cardholder, hit 8.01% in August, compared to 7.77% in the prior month
and 8.99% one-year ago. Involuntary attrition, the number of accounts
canceled by an issuer, posted a 13.02% ratio in August, compared to
12.55% in the prior month and 6.99% one-year ago. CardData says issuers
are more aggressive in reining in credit lines and closing accounts in
the wake of a weak economy.

2003: 8.26%
2004: 7.28%
2005: 7.11%
2006: 5.44%
2007: 6.99%
2008: 13.02%
Source: CardData (


TNB Pumps-Up Houston Police FCU Cards

Houston Police FCU was one of the top performers in the
TNB Card Service’s biannual acquisition promotion. The credit union generated a 1.45% response
rate, bringing its total number of cardholders to 5,400. The credit
union offered pre-qualified members the opportunity to apply for a
Platinum, Gold, or classic card with annual rates ranging from 7.99 to
12.5%. The acquisition promotion as a whole generated a 0.70% open rate,
more than double the national average for this type of solicitation.
Participating credit unions received customized marketing materials and
credit scoring strategy recommendations to generate the highest level of
response from TNB’s expert portfolio consultants.


Visa Introduces SavingsEdge for Small Biz

Visa has unveiled a new program to offer automatic discounts at
top-tier business merchants for small business owners. The new “Visa
SavingsEdge” is now available to Visa Business cardholders with cards
issued by Chase, Bank of America, PNC Bank, Wachovia and Wells Fargo.
Merchants currently enrolled in the “Visa SavingsEdge” program range
from travel to rental cars to shipping companies and include UPS, Alamo
Rent-A-Car, National Car Rental, and SYX Services, an affiliate and
management services provider to TigerDirect and CompUSA. Visa says it
plans to continue to add merchant and financial institution partners
through 2009. Visa also recently expanded its direct marketing offers to
allow banks and merchants to target special promotions to a business’s
needs on a cardholder-by-cardholder basis. “Visa Business” cardholders
now can access more than 150 discounts and other offers, including
country-specific, regional and global offers. Discounts are currently
available on products and services in 17 merchant categories and
presented in 13 local languages.


MasterCard PayPass Takes-Off in Canada

Staples announced plans to accept MasterCard “PayPass”-enabled
readers and chip card terminals in its 300 Staples Business Depot and Bureau en Gros stores across Canada beginning early next year. At mid-year, there were nearly 37 million “PayPass” cards and devices in use at more than 122,000 merchants worldwide. There are a number of “PayPass” trials and roll-outs currently underway in 25 countries, including Australia, Canada, China, the Czech Republic, France, Germany, Indonesia, Italy, Japan, Korea, Lebanon, Malaysia, Mexico, Mongolia, the Philippines, Poland, Russia, Spain, Switzerland, Taiwan, Thailand, Turkey, the United Arab Emirates, the U.K. and U.S.



Digital security provider Gemalto announced its entire range of “MagIC³”
POS terminals received certification by an independent certified
testing laboratory in accordance with MasterCard International “Payment
Terminal Security” program. This security evaluation applies to the
TCP/IP protocol suite. The product family incorporates the “MagIC
Open&Sec” technology running on Linux and offers very high-speed
transactions, as well as unrivalled flexibility of connection and
communication, without compromising security. The Open&Sec Linux-based
operating system leverages IP technology and accelerates the development
of new value-added solutions. The objective of the MasterCard
International Payment Terminal Security
program for IP-enabled POS devices is to ensure the necessary level of
protection for transaction and cardholder data at merchants that use
equipment that support the TCP/IP protocol suite. The security
evaluation verifies that POS devices meet the relevant MasterCard
requirements in terms of confidentiality, integrity and communicating
parties’ authentication, with a 3-year validity period.


Way Systems Dumps Fred Gumbel as President

Way Systems Inc., a Boston maker of mobile point of sale terminals,
promoted Eric Lecesne to president and chief operating officer.

Mr. Lecesne, whose promotion was announced Tuesday, had been the vice
president of manufacturing and supply chain since last year.

He succeeded Fred Gumbel, who will remain the chief executive.

Mr. Lecesne said Way Systems will continue to work with independent
sales organizations to reach merchants, especially those that have not
accepted cards in the past.


Moneris Buys Humboldt Merchant Services

Moneris Solutions has inked an agreement to acquire the assets of ISO
Humboldt Merchant Services. Humboldt has over 18,000 merchants in its
portfolio and processes nearly $2.5 billion in bankcard volume annually.
The acquisition will include Humboldt’s operations,
infrastructure and team members. The acquisition will substantially
increase Moneris Solutions’ U.S. business. It also strengthens Moneris
US’ presence on the West Coast and provides additional distribution,
products and sales expertise. Moneris Solutions serves more than 350,000
North American merchant locations.


Monthly Payment Rates Improve in August

Monthly payment rates, the amount that cardholders pay on their credit card debt, took a turn north in August. The MPR rose 59 basis points between July and August. Among managed credit card outstandings, the MPR increased to 18.02% in August, compared to 17.43% in the prior month and 18.99% one-year ago. According to CardData (, the yield also rose in August to 13.95% from 13.83% in July, and was down 85 bps, compared to year-ago levels.

Aug 07: 14.80% 18.99%
Sep 07: 14.71% 18.86%
Oct 07: 14.82% 19.21%
Nov 07: 14.80% 18.89%
Dec 07: 14.63% 18.41%
Jan 08: 13.53% 18.11%
Feb 08: 13.33% 19.10%
Mar 08: 13.68% 18.33%
Apr 08: 13.89% 18.03%
May 08: 13.85% 17.54%
Jun 08: 13.77% 17.86%
Jul 08: 13.83% 17.43%
Aug 08: 13.95% 18.02%
Source: CardData (