Uptick in Online Card-Not-Present Fraud

First Data International has released the findings from the
study it commissioned that explores opinions of senior fraud experts,
from 52 different financial institutions in different countries, on ATM,
POS, online banking and card not present (CNP) fraud. The study
was conducted by the independent research firm Olive Insight and
showed that of the respondents, 96% believe fraud is perpetrated
on a global stage, learned and passed from one part of the world to
another. Furthermore, 55% of respondents believe that regulation
helps to combat fraud. Others however are concerned that
regulation may prove too restrictive. Also, of the respondents, 38%
have reported an increase in phishing attacks and over a third are
seeing more online CNP fraud. Technology is critical in combating
fraud and priority for over 50% of respondents. The study concludes
that experts believe fraud to be a global phenomenon and regulation
using technology is necessary. FDI has approximately 7,900 employees
and operates across Europe, Middle East and Africa, Latin America,
Canada, Australia and Asia-Pacific.

Details

U.S. Economy to Regain Stability in 2008

The U.S. economy is expected to grow by only 2.4% this year but climb to 2.9% in 2008 as the housing market regains strength. The latest economic forecast from RBC shows the housing market is starting to show signs of stability, as existing home sales have improved and mortgage applications have increased for the first few months of 2007. Risks to consumer spending and the economy was limited as more than 80% of U.S. households are immune to interest rates changes. One third of all homeowners have no mortgage debt and 50% have mortgages with a fixed rate. RBC also expects businesses will continue to spend but at a more moderate pace in 2007. RBC also predicts that stronger growth next year will see the Fed shift into rate hike mode with a 50 basis-point increase expected in the second half of the year.

Details

Precidia Announces Router Certification

Precidia and Smart Transaction Systems have announced the
class B certification of their payment router, the “POSLynx220”. Using
the STS Gateway, processing gift, stored value and loyalty
cards is made quicker. The router is multi-port and uses existing
terminals,
saving money for merchants with multiple points of sale. Precidia has
customers in over 80 countries and offers a unique product line of wired
and wireless access devices. Founded in 1998, STS provides transaction
processing that allow organizations to bring gift, loyalty, and private
label credit card programs in-house, allowing merchants maximum profit.

Details

NCR Canada to Deploy S1’s Postilion

NCR Corporation will install Postilion payment processing software at its NCR Toronto, Ontario data center. NCR selected Postilion to replace its legacy payment transaction engine to meet evolving Europay, MasterCard, and VISA (EMV) industry chip-card payment technology compliance standards and address payment fraud requirements for financial institutions and retailers. Postilion, a subsidiary of S1 Corporation, is a provider of open-systems electronic payment processing solutions.

Details

ClairMail Partnership With TELUS

ClairMail has announced agreements with TELUS telecommunications
for the company’s introduction to the Canadian market. The partnership
is focused on solutions that enable financial institutions to offer mobile
banking and payments services. With “2-Way Mobile Customer
Interaction powered by ClairMail”, the integration with the financial
institution’s back-end systems enables customers to access accounts
and provides the institution with direct access to their customers.
ClairMail will also offer customers alerts to questionable account
activity, on-demand access to account information and no-hold customer service.
The solution does not require the user to download software to their mobile
phone and is compatible with any mobile phone carrier. TELUS is a
useful conduit for the program considering its’ $8.7 billion of annual
revenue, 10.7 million customer connections, including 5.1 million wireless
subscribers, 4.5 million wireline network access lines and 1.1 million Internet
subscribers.

Details

FTC Extracts Another Gift Card Settlement

Another retail gift card issuer has agreed to settle Federal Trade Commission charges that it engaged in deceptive practices in advertising and selling its cards. Darden Restaurants became the FTC’s second law enforcement action involving gift cards. Last month, Kmart agreed to settle FTC charges that it engaged in deceptive practices in advertising and selling its gift cards. Darden, which owns restaurant chains Olive Garden, Red Lobster, Smokey Bones, and Bahama Breeze, has agreed to restore fees that were deducted from consumers’ gift cards and disclose fees or expiration dates in future gift card sales. For cards sold before February 2004, after 15 months of non-use, a $1.50 dormancy fee was deducted from the card’s balance for each month of inactivity; for cards sold after February 2004, the monthly fee was deducted after 24 months of non-use. As of October 2006, Darden stopped charging a dormancy fee on all Darden gift cards. (CF Library 3/13/07)

Details

Fifth Third Bank Joins NACHA

Cincinnati-based Fifth Third Bank has joined NACHA as a direct financial institution member, making it the 43rd in direct membership. Fifth Third is the nation’s 18th largest originating financial institution and the 14th largest receiving financial institution of ACH payments. The other financial institution members are ABN-AMRO, American Express Centurion Bank, Bank of America, BB&T, Capital One, Citigroup, Citizens Financial Group, Commerce Bank, Discover Bank, Fort Knox National Bank, Harris, N.A. (BMO Capital Markets), JPMorgan Chase, KeyBank, Mellon, National City, PNC Bank, Synovus Financial Corp., TCF National Bank, US Bank, Wachovia, Washington Mutual, Wells Fargo, and Zions Bancorporation. Fifth Third Bancorp is a diversified financial services company with $100.7 billion in assets.

Details

Marshall & Ilsley and Metavante to Split-Up

The spin-off, IPO and acquisition industry trend continues as Milwaukee-based Marshall & Ilsley yesterday confirmed plans to split Marshall & Ilsley and Metavante into independent public companies. The Company also announced that private equity investor Warburg Pincus has agreed to invest $625 million to acquire an equity stake of 25% in Metavante. The investment values Metavante, a provider of banking and payments technologies to over 8,600 financial services firms and businesses worldwide, at $4.25 billion. Upon completion of the proposed transaction, Marshall & Ilsley shareholders will receive one share of Marshall & Ilsley stock and will also receive one share of Metavante stock for every three shares of Marshall & Ilsley stock held. Metavante revenues have grown from $500 million to $1.5 billion in the past seven years. With $1.5 billion in revenue in 2006, Metavante Corporation now has approximately three times greater annual revenues than it did seven years ago. Metavante, which also owns the NYCE network, reported 2006 net income of $160.1 million, a 34% increase from 2005 and its profit margin of 10.6% increased from 9.3% in 2005. Metavante’s 2006 net income contribution represented 20% of M&I’s net income. Frank Martire will continue to serve as president and CEO and Mike Hayford will remain SVP/COO of Metavante. The transaction is expected to close in the fourth quarter.

Details

NetSpend Adds Text Messaging to its Cards

Debit card provider Austin-based NetSpend has added an enhancement to its “Anytime Alerts” account information service with two-way mobile phone text messaging. NetSpend is now the first prepaid debit card company to make account balances, transaction history and help desk contact information available using the text-messaging Short Message Service (SMS) technology platform. NetSpend delivers more than 3 million text messages per month to cardholder phones via the SMS network and has processed hundreds of thousands of mobile-originated text messages sent by customers.

Details

Lockheed Martin to Utilize Paymetric XiBuy

Paymetric XiBuy has been selected by Lockheed Martin to provide its enterprise procure-to-pay solution for purchasing card transactions. “XiBuy” is a certified SAP add-on product which embeds purchasing card transaction management and accounting directly in SAP, leveraging SAP user management, controls, security and business processes. Paymetric, Inc. provides software applications that manage and protect payment card transactions in complex payment environments.

Details

SMART Inks Agreement With SuperFerry

Wireless provider Smart Communications has signed agreements with
SuperFerry Passenger Ships to develop passenger fare collection using
mobile phones. This service will use “Smart Money” electronic financial
services platform with the “Smart Money electronic cash card”. SMART
currently has agreements with Manila North Tollways Corp. for the
mobile reloading via “Smart Money of EC” of Tag accounts for motorists
that use the North Luzon Expressway. The “Smart Money Cash Card”
is a first in secure, re-loadable electronic cash cards that can be
linked to a mobile phone. With this card, the user can pay bills, transfer funds to another SMART Money card and write account checks. This card has also won awards for innovation.

Details

Atlanta Airport Gets Cashless Vending

CO-based SkyeTek and TX-based Isochron have enabled RFID-based cashless payment at vending machines located throughout the Hartsfield-Jackson Atlanta International Airport. In October, Isochron selected SkyeTek’s “M2” contactless payment module as the embedded RFID reader to enable secure, cashless payment at vending machines. Consumers can now use RFID-enabled credit and debit cards issued by financial institutions such as Bank of America, Citizens Bank, Charter One, Chase and Key Bank to make their purchases. Isochron is a provider of machine-to-machine (M2M) solutions for the vending industry. SkyeTek develops reader technology that enables the adoption of RFID as an embedded feature in existing products.

Details