Online Shoppers Unaware of Card Liability

About 68% of online shoppers who pay with a credit card do not know their liability coverage. This is according to a new national survey of 2,706 consumers conducted by JupiterResearch and commissioned by eBillme, the payment alternative that brings online banking to the eCommerce checkout. And, based on the distribution of other responses from the survey on this topic, it is clear that there is a high level of confusion as to the definition of maximum liability coverage, even among those who think they know what their level of maximum liability coverage might be. About 81% of credit and debit card users value fraud protection as the most important factor when selecting a payment option; over 4 times more important than rewards. Nearly 60% of credit card users and 56% of debit card users prefer product and service guarantees; over 3 times more than rewards on their purchase. Additionally, 45% of credit card users and 50% of debit card users value price protection and being offered the lowest available price; 2.5 times over rewards or points earned from making purchases for credit card users and over 3 times for debit card users.

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MagTek IntelliCAT System Targets Credit Unions

CA-based E-payment technology provider MagTek now offers interoperability within MagTek’s IntelliCAT and Harland Financial Solutions’ Ultradata processing software used by credit unions. MagTek’s “IntelliCAT” System allows credit unions to offer enhanced services for their various card products such as instant issuance and secure PIN selection for debit, credit, ATM and gift cards. With “IntelliCAT”, members can now change their PIN on an existing card, or select their PIN when opening a new account or ordering a new MasterCard or VISA Debit card. Members instantly receive their permanent card at the same time they open their account, in contrast to the traditional wait of 7-10 days to receive their card in the mail. MagTek is a provider of electronic transaction technology, from magnetic stripe card readers and writers to high-accuracy MICR check readers and scanners, secure PIN issuance and cardholder verification systems.

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RushCard and BabyPhat VISA Trigger Promotions

Cincinnati-based UniRush Financial Services has launched its “A Winner A Week Sweepstakes” promotion for cardholders of its “Prepaid VISA RushCard” and “BabyPhat Prepaid VISA RushCard.” Cardholders earn one entry for each direct deposit of $50 or more received on their card during the sweepstakes period, March 22 through June 13th. Consumers can deposit their payroll, benefits and tax refunds directly onto the card to enter this sweepstakes. There will be one winner each week, who will receive $250 loaded onto his or her card. The “Prepaid VISA RushCard” offers free direct deposit for all cardholders. UniRush was created to offer the over 48 million Americans without access to a traditional banking relationship an array of basic financial services via the “Prepaid VISA RushCard.”

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Heartland Credit Union Endorses Lifelock

Lifelock has partnered with Heartland Credit Union to provide members with identity theft protection for a discounted price. The security solution sets automatically renewing fraud alerts with the major credit bureaus, removes member names from pre-approved credit card offers, removes names from junk mail lists, cancels/replaces all personal wallet items in the event it is ever lost or stolen and is insured with a $1 million service guarantee. LifeLock was awarded as the winner of the 2007 American Business Award for the Best Radio Advertising Campaign and is widely recognized while Heartland Credit Union provides financial solutions for its customers.

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FundsTech Inks a Deal for a Virtual Gift Card

FundsTech has signed agreements with one of its clients for the distribution of its “Virtual Gift Card” program. The program is designed to provide thanks to the client’s customers while providing incentive to conduct future business. FundsTech Corp provides prepaid debit cards to over 1 billion underbanked, a market estimated at over $100 Billion annually. Moreover, the FundsTech “Cash Card” allows for the domestic and international transfer of money, a market estimated at over $100 billion annually.

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Experian to Offer Knowledge IQ for IVR

Experian will be providing “Knowledge IQ” Interactive Voice Response with Adeptra’s virtual calling platform for both inbound and outbound calling. With this development, institutions can implement a customized approach to identity authentication to provide both fraud detection mechanisms and automated delivery. Furthermore, with this development, manual operations and resources identity verification will be reduced, subsequently providing operational cost savings and reduced customer wait-time. Using tools for understanding of individuals, markets and economies, Experian provides analytical and marketing services to organizations and consumers while Adeptra Auto-resolution provides services in the U.S. and U.K.

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Braintree Says Outsource PCI DSS Compliance

According to a new white paper from electronic payment provider Braintree, the best option for PCI DSS Compliance is to outsource the storage of credit card data. By implementing Braintree’s solutions, merchants will qualify to use the new Self Assessment Questionnaire version 1.1 A, which significantly simplifies the compliance process. Not only can merchants eliminate credit data from their environment by storing it remotely, but with Braintree it never enters their environment in the first place with no loss of any existing payment processing capabilities. Braintree offers solutions for simplified PCI Compliance through remote storage of credit card information and transparent redirect technologies that eliminate the handling of sensitive payment data.

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Northwest Airlines and PayPal Launch a Promo

For purchases made between the dates of April 1st and June 14th, Northwest Airlines has teamed with PayPal to provide airline customers $50 cash-back for every airline ticket purchased for $250 or more when the purchase is conducted through the Airline’s website. This partnership is an extension of existing relations between the 2 organizations and promotes the use of NWA.com, the Northwest Airlines website. PayPal has over 141 million accounts, providing online payment solutions through payment cards and bank accounts, while Northwest Airlines serves travelers in over 1000 cities in nearly 160 countries.

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Affinion Group Launches BreachShield

CT-based Affinity marketer Affinion Group has launched “BreachShield” data breach security protection and ID theft services to help financial institutions, retailers and businesses effectively prepare for, manage, and respond to data breaches. “BreachShield” security experts can develop an incident response plan for a business prior to a breach in order to increase the efficiency of the response and minimize confusion and damages. Should a breach occur, “BreachShield” offers businesses personalized service from a dedicated rapid response team available 24 hours a day. The team develops and implements a comprehensive, fully- compliant incident response, including documenting all required information and protecting the impacted individuals from ID theft and other misuse of their personal data. BreachShield is the latest entry of ID theft protection solutions, which include such leading-edge fraud protection services as “PrivacyGuard,” “ID Secure,” “CardCops,” “PC SafetyPlus” and “Hotline.”

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Gift Card Purchasing Takes on a New Flair

Seastone reports that 96% of adults have purchased or received a gift card and 39% have purchased gift card packaging. In what represents a clear revenue opportunity and potential threat for retailers, 50% of respondents indicated they are purchasing gift card packaging at a different time and place than the gift card. The most popular format for gift card packaging is a tin box (29%), for which Seastone holds an issued patent. Tin boxes are followed by paper pouches (19%), greeting cards (15%), and stuffed animal (10%) designs. Gift card packaging is most likely to be purchased for a birthday (78%), followed by the December holidays (72%). The trend towards birthday purchases makes a strong case for year-round gift card packaging programs. The study also found that consumers expect gift card packaging to range in price from $1.43 for a paper carrier, $2.48 for a tin box, and up to $3.66 for a stuffed animal. However, a large majority of consumers would spend $5 more on a gift card if it came with free packaging. Therefore, offers such as free packaging with any gift card purchase of $20 or more are attractive for consumers.

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