VISA International and the Federation Internationale de Football Association confirmed their deal wherein VISA will have global rights to 2010 and 2014 “FIFA World Cups” and the “FIFA Women’s World Cups.” Last week MasterCard announced that FIFA agreed to pay $90 million to MasterCard to settle a dispute over sponsorship of the major soccer events. MasterCard had sponsored the tournament since 1990. Both parties also agreed to terminate legal proceedings in the U.S. and Switzerland and the MasterCard/FIFA lawsuit was dismissed on June 21st by the U.S. District Court, Southern District of New York. VISA’s rights in FIFA’s Payment Services product category begin with this year’s FIFA “Under-20 World Cup” in Canada and will run through the 2014 “FIFA World Cup.” As a “FIFA Partner,” VISA says it will have a higher level of association with these and other properties than previous category sponsors have had in the past. VISA will have rights to a broad range of activities including exclusive marketing assets, competitions, special events and development programs. Meanwhile, FIFA re-hired Jerome Valcke as their new general secretary after firing him last year as marketing director over the VISA-MasterCard sponsorship negotiations. (CF Library 4/24/06; CF International Library 6/22/07)Details
Smart SMS has signed an agreement with contemporary recording star Yolanda Adams to be a spokesperson for Columbia Card Systems International to appear in a series of ads for the VISA mobile debit card. Ms. Adams will also brand her own debit card through a deal with CCSI. Columbia Card Visa has mobile banking functions that allow cardholders to send or receive money via cell phone, PC or landline anywhere in the world, in real time for under two dollars. Columbia Card also has a subordinate card program that allows families and businesses to create master accounts and disperse money as needed. Yolanda Adams is a five-time Grammy winning contemporary artist who has sold millions of records worldwide. Smart SMS Corporation is a mobile entertainment marketing and distribution company that specializes in market branding via text and MMS.Details
New research shows that less than half of all affected businesses will be able to meet that PCI DSS deadline set for June 30th. The Payment Card Industry Security Vendor Alliance says fines of up to $500,000 and loss of the ability to accept credit cards — apparently haven’t been enough to get affected businesses to take security seriously. All organizations that store, process or transmit credit card payments are required to demonstrate compliance with the Payment Card Industry Data Security Standard by this weekend. PCI SVA noted that card companies have recently indicated that they’ll be willing to accept risk mitigation plans in lieu of full compliance, since so many businesses will fail to meet the deadline.Details
U.S. VISA and MasterCard issuers are continuing to do a good job in retaining customers and migrating them to better suited card products within their portfolios. However, there has been a slight uptick this year as reward cards have crowded the market at all levels and lower balance transfer interest rates now come with higher fees. According to CardData, voluntary attrition rates edged up to 9.10% compared to 8.99% one year ago and 9.89% six years ago. Voluntary attrition is determined by dividing cardholder-initiated account closings by the gross number of accounts and then annualizing.
(Excludes Discover and AmEx)
Source: CardData (www.carddata.com)
AAA has named Douglas Bower, formerly with Advanta and MBNA, as VP/Travel and Financial Services. Prior to coming to AAA, Bower worked at the Auto Club Group (an affiliated club of AAA) from 1999 to 2006, serving most recently as its President and Chief Operating Officer. Bower will be responsible for providing the vision, leadership and strategic direction needed to develop and implement products and services that will positively differentiate AAA’s offerings in Travel and Financial Services. His responsibilities include anticipating changes that will occur in the marketplace, overseeing the negotiations of national supplier agreements, managing supplier relations, serving AAA’s affiliated clubs and ensuring effective use of distribution channels. AAA provides more than 50 million members with travel, insurance, financial and automotive-related services.Details
Givex and Merchant Link have integrated Givex gift card programs with Merchant Link’s gift card gateway. Retailers and other merchants using Merchant Link’s gift card gateway will benefit from the enhanced customer support services offered by the two organizations, including around-the-clock technical support, online reporting, program administration, card marketing and card production. Givex is a provider of card management systems. Merchant Link provides comprehensive, secure solutions to the integrated point-of-sale industry and handles more than one billion transactions annually.Details
From a consortium of Brazilian banks, Experian has acquired a 65% stake in Serasa Credit Bureau for 1.2 billion USD. Serasa sales have grown at a rate of over 20% per annum for the past two years, has a database of 161 million Brazilian consumer records and 5 million Brazilian company records. The Brazilian credit bureau has a 60% market share and will consolidate Experian’s position in Credit Services, who will control three of the top five credit bureaus worldwide with this development.Details
JCB has named Tamio Takakura, Deputy President since 2002, as its new President and CEO. Takakura succeeds Hiroya Nobuhara who had served as JCB’s President and CEO for the past 4 years. JCB International also announced management changes as Takakura will succeed Nobuhara as Chairman and CEO of JCBI. Kenji Seto, formerly Senior Deputy President, has become President and COO. Kunio Yoshizawa, who held the position of President and COO of JCBI for the past 4 years, is retiring after 13 years. JCB’s merchant network includes 13.5 million merchants and spans 190 countries and territories. JCB cards are now issued in 20 countries and territories, with more than 55.75 million cardholders.Details
Denver-based Frontier Airlines has expanded its consumer credit card relationship with Barclays to now include a “MasterCard BusinessCard” for small businesses. The new card offers 12,500 bonus miles upon activation, plus one mile for every dollar spent on regular purchases and two miles for every dollar spent on Frontier Airlines purchases. The annual fee is $49. Credit lines of up to $50,000 are also offered. Frontier’s new “BusinessCard” features a “Wolf” design. Cardholders who make more than $60,000 in purchases within 12 credit card statement cycles will automatically be upgraded to “Ascent” status, an elite level in Frontier’s “EarlyReturns” program. Frontier Airlines offers routes linking its Denver hub to 58 destinations including 48 U.S. cities in 30 states spanning the nation from coast to coast, eight cities in Mexico and two cities in Canada. In 2003 Juniper Bank, now Barclays, launched the first co-branded “Frontier Airlines MasterCard.” Barclays acquired Juniper Financial and its $1.4 billion credit card portfolio from CIBC for $293 million in cash in August 2004. (CF Library 5/22/03; 8/19/04)Details
Auriemma Consulting Group (ACG) research has revealed that slightly
over 1/3 of consumers, rather than making uninformed decisions on
credit card offers, actively seek offers that fit their criteria. This means
that the remaining 65% of the British population acquire cards through
mail solicitations and pre-approved notifications. Cardbeat, publisher
of ACG findings, surveyed 505 British and 400 American credit card
users in January 2007 and found that 26% of the of consumers in the UK
acquired cards through “take-one” applications at bank branches and
only 15% followed up on a pre-approved offer they received by post.
In the US, however, 42% of consumers obtain new credit cards by
applying through pre-approved mail offers versus 17% filling out
“take-ones” in bank branches and 12% seeking out offers.
Revelex and Montrose Travel announced a partnership to launch a flexible rewards program with online booking capabilities for credit unions. Revelex and Montrose Travel designed six user-friendly platforms that credit unions, banks and other reward program providers with access to over 2,500 free travel awards when booking online travel. Although each platform differs slightly, they all allow for the online redemption of both restricted and unrestricted airline tickets, as well as car rentals, hotel stays, cruises, vacation packages and insurance. Revelex’s rules engine allows providers to establish unique rule sets such as advance purchase and minimum stay requirements. Revelex Corporation is a provider of travel technology solutions.Details
TSYS Europe and Norwich Union(NU) have launched a joint Rewards
prepaid card pilot, the second of the companies’ prepaid ventures. The
pilot, called the “NU Rewards” program, can be used within a network of
vendors, is supported by VISA, and uses Raphaels Bank as the BIN
sponsor. Norwich Union is a subsidiary of Aviva, the fifth largest insurance provider in the world.