EFTA Names its 2007 Board of Directors

The Board of Directors of the Electronic Funds Transfer Association selected its new executive officers for 2007. Ronald Congemi, SVP/Strategic Relationships at First Data, was elected as the new chairman. Elected to serve as vice chairman was Raymond Crosier, president and COO of Online Resources. Sandra Hartfield, president and CEO of Palm Desert National Bank and Lynne Barr, a partner in the law firm of Goodwin Procter, were re-elected treasurer and secretary of the Board, respectively.

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FDIC to Hold Identity Theft Symposia

The FDIC is holding its next symposia on the importance of consumer confidence in e-commerce on October 5th in Mesa, AZ, and on October 25th in Miami Beach, FL. The half-day meetings will bring together experts from government and the private sector to discuss ways to combat online identity theft and help maintain public confidence in e-commerce. Details about the October 25th symposium in Miami Beach have not been finalized, but will be posted to the FDIC’s Web site as they become available. Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation’s banking system.

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PayPal Makes Peace with AGs & Lawsuit

PayPal has signed an agreement with 28 U.S. Attorneys General to simplify its user agreement and communicate more details on its fraud protection program. PayPal also announced it has reached a preliminary settlement agreement with a proposed class action for $3.5 million. To cover the cost of the investigation, PayPal will pay $1.7 million to the Attorneys General. Under the terms of the settlement agreements, PayPal is not admitting any liability for any of the allegations in the two cases. PayPal had 113.7 million total accounts at the end of the second quarter, a 44% increase from one-year ago. Total payment volume rose 37% to a record $8.9 billion which includes payments initiated through the PayPal system but excludes its payment gateway business. (CF Library 7/24/06)

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TNS Names a New CEO to Replace McDonnell

VA-based TNS has named Henry Graham, currently its EVP/CFO, as its new CEO, replacing Jack McDonnell, who has left the Company at the request of the Board. Henry Graham, 56, has held various senior-level finance and management positions. Prior to rejoining TNS as its Executive Vice President, Chief Financial Officer and Treasurer, Mr. Graham served as Senior Vice President and Chief Financial Officer of PaylinX Corporation. While at PaylinX, Mr. Graham successfully raised $35 million in new cash and conversion of debt and facilitated the sale of the company to CyberSource Corporation. TNS is one of the leading providers of business-critical, cost-effective data communications services for transaction-oriented applications and operates through its wholly owned subsidiary Transaction Network Services, Inc.

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Wells Launches Two Dual-Line VISAs

IA-based Wells Fargo Financial Retail Services is launching a dual-line VISA credit card for Alliance Flooring and Floors Today. Alliance Flooring does business as Carpets Plus Color Tile, Carpetland USA, Color Tile, and Floorco, has more than 450 flooring retail locations nationwide. Floors Today’s has 57 locations throughout the southeastern U.S. Under the program one line is dedicated for purchases at participating locations and the other line for VISA card purchases everywhere else. In addition, participating retailers can offer special terms promotions on the retailer line of credit such as buy today, and pay later.

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Merchants Information Solutions Expands

AZ-based Desert Hills Bank has signed with Merchants Information Solutions to launch “Merchants Recovery Care,” a service designed to manage the process of recovering from identity theft, and return the victim’s identity to pre-event status. This service is supported by a professionally trained, Personal Recovery Advocate assigned to manage the case and take care of all the necessary research, phone calls, letters and follow up necessary to restore one’s identity. Desert Hills Bank affords busy professionals and businesses with all the products of a large bank, yet offers the personalized customer service and tailored products to meet their individual needs. Information Solutions, Inc. has been in business since 1912, and is a privately held Phoenix-based company with more than 2,600 business clients.

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Citi and Shell Oil Launch a New Promotion

Shell Oil and Citibank have launched a promotion for new “Shell Platinum MasterCard” holders offering triple rebates on all Shell gasoline purchases; the first $100 of daily Jiffy Lube purchases; and, all other purchases. Shell Oil Products US, a subsidiary of Shell Oil Company, is a leader in the refining, transportation and marketing of fuels, and has a network of approximately 6,000 branded gasoline stations in the Western United States. Citi, or Citi Cards, is a member of Citigroup (NYSE: C). Citigroup, the preeminent global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services. Jiffy Lube, with more than 2,200 service centers in North America, services approximately 27.5 million vehicles each year.

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VISA’s No Sig

VISA has added five major merchants to its “No Signature Required Program” for certain transactions less than $25. 7-Eleven, Clearview Cinemas, Dairy Queen, Domino’s Pizza, and Sonic Drive-In have joined the program. VISA reports that its volume on purchases less than $25 in targeted small ticket segments has reached $27.3 billion for the first six months of this year putting it on track to top $60 billion by year-end. Last year, more than $49 billion in small ticket purchases less than $25 were made on VISA payment cards. VISA estimates that by the end of 2006 as much as 27% of all VISA transactions may qualify for the “No Signature Required Program.” VISA currently has 17 merchant categories that qualify for the program first launched in April. VISA estimates the merchant segments that qualify for its “No Signature Required” program represents approximately $750 billion in consumer spending.

Small Ticket Card Transactions Historical
2000: $ 5.7 billion
2001: $ 9.7 billion
2002: $14.0 billion
2003: $23.7 billion
2004: $39.2 billion
2005: $49.1 billion
2006: $60.0+ billion
Source: CardData (www.carddata.com)

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MC B2B CAMPAIGN

MasterCard is launching a new business-to-business advertising campaign next
month in the U.S., U.K., Europe, Asia and Australia. The “Heart of Commerce”
campaign will be comprised of five ads with the central theme of: “A piece of
plastic that lives in your wallet.” The campaign will target customers,
acquirers, issuers and merchants, and builds on MasterCard’s new corporate
positioning. The ads will run primarily in business-to-business publications
worldwide but also in publications with a slightly broader-based readership,
such as The Financial Times and The Wall Street Journal. MasterCard says it
will continue to roll out this campaign in additional markets early next year.
Creative for the new B2B campaign was handled by McCann Erickson/New York.

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First Data Introduces the FD-100 Terminal

FL-based SLIM CD has re-certified with Global Payments for its Slim CD software and gateway services. The Slim CD gateway and software supports keyed and swiped credit card transactions, pin-based debit transactions, check transactions and gift/loyalty transactions. The Slim CD includes a desktop application, virtual terminal, and a shopping cart. Global Payments Inc. is a leading provider of electronic transaction processing services for consumers, merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi-national corporations located throughout the United States, Canada, Latin America, Europe and the Asia Pacific region. SLIM CD, Inc is a wholly owned subsidiary of Online Commerce Corporation (OCC), a privately held credit card software developer and gateway service provider.

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BB&T Signs with FIS’ Card Services

BB&T Bankcard has signed a multi-year consumer and commercial credit card processing agreement with FIS’ Card Services division. Under the terms of the five-year agreement, FIS will process all transactions for consumer and commercial credit cards issued by BB&T Bankcard Corporation. Fidelity National Information Services, Inc. is a leading provider of core processing for financial institutions; card issuer and transaction processing services; mortgage loan processing and mortgage-related information products; and outsourcing services to financial institutions, retailers, mortgage lenders and real estate professionals. BB&T Corporation is the nation’s ninth-largest financial holding company, with assets of more than $116 billion.

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FDC Spins-Off Western Union Tomorrow

Western Union is expected to undergo its tax-free spin-off tomorrow from First Data. Shares are trading on a when-issued basis ahead of the spin-off and will begin regular trading on October 2nd. The stock opened at $20 a share last week but slipped to about $18 per share. Yesterday, Western Union announced that Lord Dennis Stevenson, Chairman of HBOS, and Linda Fayne Levinson, an independent advisor to professionally funded, privately held ventures, will be elected to its Board of Directors. Last week, the Company said its expects 2006 revenue to be 11% to 12% above the prior year possibly hitting $4.5 billion. Excluding expenses related to its spin-off, operating income should fall between $1.32 billion and $1.34 billion. For 2007, Western Union expects revenue growth in the range of 10% to 12%, excluding acquisitions. (CF Library 11/19/06)

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