Accertify and Merchant e-Solutions Team

Fraud prevention provider Accertify has selected Merchant e-Solutions’ “MeS Payment Gateway to bundle with the Interceptas fraud solution. Merchant e-Solutions (MeS) currently processes more than $14 billion dollars in payments for more than 60,000 merchants and specializes in services for e-commerce and card not present merchants. Accertify also announced that RealScoop.com, which uses voice analysis technology to analyze public statements, will be the first customer for the integrated fraud and payments processing solution. Accertify provides online retailers with access to all the services they need to process Internet transactions and reduce their total cost of e-commerce fraud — available via a single connection.

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Revolving Credit Growth Grinds Down in Apr

Consumer revolving credit hit the wall in April as Americans tacked on a mere $300 million after adding nearly $6.0 billion in net new debt, mostly credit card debt, in the prior month. In February consumers added nearly $4 billion. Revolving consumer credit has now reached a record $956.9 billion and is growing by 0.4% per annum. Based on revised figures, revolving debt rose 7.4% in March and 5.3% in February. According to data released by the Federal Reserve, total revolving credit has expanded by $70 billion over the past twelve months. Bank credit card debt (excluding store and gas credit cards) at the end of the first quarter was about $815 billion or roughly 85% of total revolving credit, according to CardData ([www.carddata.com][1]). Store and gas credit cards had about $109 billion in outstandings at year-end 2007. At the end of April, Americans were $2565 billion in debt, excluding home mortgages.

REVOLVING CREDIT HISTORICAL ($billions)
Apr 08 Mar 08 Feb 08 Jan 08 Dec 07 Nov 07
GRWTH: 0.4% 7.4 5.3 7.1 2.8 12.8
$OWED: $956.9 956.6 950.7 947.0 941.4 939.6
Source: Federal Reserve; revised figures as of 6/6/08;
For complete historical data, visit CardData (www.carddata.com)

[1]: http://www.carddata.com

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Los Angeles Slips as a Major Commerce Center

An annual survey shows that London remains the global economy’s most influential city. However, Shanghai had the largest jump in overall rank — moving eight spots from 2007 to 2008 — bringing it into the top 25 of this year’s MasterCard’s “Centers of Commerce Index.” Tokyo, Singapore, Seoul, Sydney, Hong Kong, Osaka, Taipei and Shanghai ranked among the top 25 “Centers of Commerce.” The only two North American cities in the top 10 globally were New York and Chicago. The fall of Los Angeles to #17 in 2008, compared to #10 in 2007, is in part due to factors around its role in the global financial services network, as well as the rise of European cities in the area of knowledge creation. However, the city ranks #4 in the North American region behind New York, Chicago and Toronto. The MasterCard “Centers of Commerce Index” is compiled from research by a panel of eight independent economic, urban development and social-science experts.

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Employee Confidence Heads Upward in May

A new survey shows that employee confidence is rising for the first time in nine months. The “Spherion Employee Confidence Index” rose 0.7 points to 46.9 in May. More workers, however, expressed concern about their personal job security. Seventy-five percent say it is unlikely they will lose their job in the next 12 months, a decline of three percentage points from the prior month. Two other key indicators also declined slightly. Sixty-four percent said they are confident in the future of their current employer, while 51% expressed confidence in their ability to find a new job. The “Index” measures workers’ confidence in their personal employment situation and optimism in the macroeconomic environment.

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Uno Spices-Up Gift Cards for Dads

Boston-based Uno Chicago Grill is promoting gift cards for Dads and grads for every $25 gift card. The purchaser will also receive a $5 bonus voucher. The Uno Restaurant Holdings Corporation includes more than 200 company-owned and franchised full-service units located in 29 states, the District of Columbia, Puerto Rico, South Korea, the United Arab Emirates, Honduras, and Saudi Arabia. The company also operates a consumer foods division which supplies airlines, movie theaters, hotel restaurants and supermarkets with both frozen and refrigerated private-label foods and branded Uno products.

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APRIL CB INDEX

The Japan leading index decreased 0.2% and the coincident index
increased 0.3% for the month of April 2008 according to the Conference
Board. The leading index remained unchanged over the past two months
and, since October 2007, fell at about a -1.1% rate. Meanwhile, the
coincident index increased in April with large downward revisions to
current economic conditions from October, having since fell at about a
-0.7% rate thanks to declining manufacturing sales. Overall, the leading
index has declined for eight of the last twelve months and now stands
5.2% below its December 2006 level while real GDP growth picked up to a
3.3% annual rate in the 1Q08, up from the 1.9% average annual rate in 2H/07.

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Supreme Court Knocks Down Perfect 10 Lawsuit

The Supreme Court this week announced it will stand on its decision regarding the credit card Web case filed by Perfect 10, a men’s magazine, against Visa, First Data and MasterCard for alleged third-party liability for enabling consumers to buy infringing images online. The Ninth Circuit U.S. Court of Appeals in San Francisco ruled 2 to 1 against Perfect 10 last July and the case was appealed to the Supreme Court in December, citing the magazine’s failure to prove its argument that the credit card companies made copyright infringement profitable and therefore more widespread than it would have been as a result of the payment system.

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OLYMPIC SMART CARDS

The Bank of China and the China Everbright Bank are now offering special “Visa Olympic”-edition credit cards, while China Mobile is marketing a gift box containing six prepaid telephone cards for the “2008 Beijing Olympic Games.” The smart cards are supplied by Germany’s Giesecke & Devrient. The Bank of China has issued more than 800,000 G&D smart Visa credit cards so far. The China Everbright Bank has issued over 200,000 “VISA Olympic” credit cards. China Mobile, the world’s largest mobile network operator, has brought out a gift box containing six prepaid telephone cards in a circular arrangement to mark the “2008 Olympic Games.” China Mobile has issued four sets of commemorative cards for the “Games.” G&D provides smart card based solutions for telecommunications, electronic payment, healthcare, ID, transportation, and IT security).

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Credit Card Interchange Fee Bill Introduced

Senate Majority Whip Richard Durbin, (D-IL) introduced legislation that would require credit card systems possessing “substantial market power” to negotiate with merchants to reach a voluntary agreement on credit card terms and conditions. The “Credit Card Fair Fee Act of 2008” is a companion measure to “H.R. 5546,” also named the “Credit Card Fair Fee Act of 2008,” introduced by House Judiciary Committee Chairman John Conyers, (D-MI) in March. If an agreement could be reached, both sides would be required to submit their final offers to binding arbitration by a three-judge panel appointed by the DOJ and FTC. These judges would investigate the fees, terms, and overall market conditions for electronic payment systems. The judges would then order a mandatory settlement conference, and if the settlement conference failed to result in an agreement between the retailers and providers, the judges would conduct a hearing where each side would present their final offer of fees and terms.

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Consumer Debt Conference Slated for Jun 19

Fordham Law School will host “New York City Consumer Debt Conference: A Blueprint for Reform.” The goal of the Conference is to identify concrete and achievable reforms and strategies that can be help low-income New Yorkers stabilize and improve their financial health, build wealth, enjoy the benefits of a fair financial services market, and be better protected against deceptive and abusive practices. NYC’s Civil Court alone has experienced exponential growth in consumer debt cases, which have become a pressing concern for low- and moderate-income families in the city and across the country. This court now processes more consumer debt cases per year than any other type of filing, and more than 500,000 since 2006.

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Personal Card Data Goes on the Cheap Abroad

New research has surfaced revealing that basic credit card information sold for fraud purposes is now commonly sold through the chat rooms in China, Vietnam and Indonesia for around $1 per card. Three to four years ago such information sold for an average of $5 to $7 per card in chat rooms in Eastern Europe. Affinion’s CardCops division says increased American tourism in the Indochina region and the high credit limits on U.S.-issued cards, have driven the increase. Upgrades to more privileged information, such as birth records, mother’s maiden names, social security numbers and mortgage information, will cost the ID thief closer to $10 per card. CardCops says tourists most often fall victim to restaurant workers, hotel employees and taxicabs while on their vacation, only 1% of these thefts are ever investigated, and a minuscule 0.5% of the thieves are ever prosecuted as a result of jurisdictional issues, resources, and the facility of perpetrators to easily erase computer/network data. CardCops notes that thieves are now collecting personal data on Websites such as Ancestry.com and Zillow.com. Additionally, the global identity theft marketplace has advanced so that buyers of personal information can pick and choose identities from victims in specific countries, and with specific ranges of net worth.

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ClearCommerce Selects Certicom’s Security Builder

ClearCommerce has selected VA-based Certicom’s “Security Builder Secure Sockets” layer solution for card-not present payment processing. Security Builder SSL offers a single application program interface (API) for 30 platforms and is optimized for a variety of environments including mobile devices and applications. It is also part of the Certicom Security Architecture, a comprehensive, cross-platform solution designed to allow developers to quickly and cost-effectively embed security into applications and across multiple families and generations of devices. Security Builder SSL is optimized to provide secure communications between popular browsers on handhelds and mission-critical applications such as e-mail, e-commerce, instant messaging and virtual private network (VPN) connectivity. Certicom manages and protects the value of content, applications and devices with government-approved security.

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