VISA USA to Raise Security Spending

VISA yesterday announced it will increase its spending on anti-fraud measures by at least $200 million over the next four years. The announcement was made at the first “Cardholder Security in the New Electronic Payments Age” summit held in Washington, DC. VISA also released fraud statistics that show VISA’s fraud rate has decreased by 7% annually since 1990 while volume has increased 16% per year. VISA flags roughly 250,000 possibly fraudulent transactions daily. VISA also says it has been involved in more than 80 separate fraud investigations during 2005. VISA noted it has experienced a 54.3% drop in chargebacks over the last 5 years due to programs such “Re-Engineering Disputes.” Additionally, merchants saved $12.6 million last year as a result of the fraud protections provided by “Verified by Visa.”

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FDC & Chase Combine CMS and Paymentech

First Data and Chase have merged the jointly owned Chase Merchant Services and Paymentech merchant businesses, renaming it Chase Paymentech Solutions. The combined operation, which processed $535 billion last year, will be 51% owned by Chase and 49% by FDC. Michael Duffy, Paymentech’s current president and CEO, is leading the combined executive team. As part of the deal, Chase Paymentech Solutions has entered into a five year processing relationship with First Data Merchant Services. Chase also agreed to continue to be a member of First Data’s “STAR Network” for a part of its debit business. Founded in 1985 as MPACT Merchant Services, Paymentech was combined in 1999 with Banc One Payment Services after First Data Merchant Services acquired shares of Paymentech. The combined business was jointly owned by First Data and Bank One. Last year, Bank One merged with Chase, thus Chase became the majority owner of Paymentech. In 2004, Chase Merchant Services processed $335 billion in card transactions, while Paymentech processed about $200 billion. Both business have nearly doubled in volume since 1999.

ACQUIRING VOLUME
Paymentech CMS
2000: $109 billion $179 billion
2001: $114 billion $196 billion
2002: $123 billion $225 billion
2003: $162 billion $272 billion
2004: $200 billion $335 billion
Source: CardData (www.carddata.com)

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RealPOS Secures a Phoenix Deployment

Phoenix-based Celebrity Theatre has deployed NCR’s “RealPOS 20” terminals, “NCR RealPOS” thermal printers and NCR pole displays via Dalton Management Information Systems. NCR RealPartner Dalton Management Information Systems, Inc. (DMIS) managed the implementation of the solution including NCR NeighborhoodPOS software, NCR RealPOS 20 terminals, NCR RealPOS thermal printers and NCR pole displays. DMIS is also providing consulting and customer services. The 14 units were installed in July to handle concession and merchandise purchases.

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VISA EUROPE Q2

VISA Europe posted a 15.5% gain in gross dollar volume at the point of sale for the twelve month period ending June 30th with 659.7 billion euros. The U.K. is the largest VISA market in Europe posting a 16.6% gain in POS GDV of 253.2 billion euros. France was up 8.3% to 136.1 billion euros, Spain grew 16.2% to 51.0 billion euros, and Italy increase 8.3% to 29.0 billion euros. Among other major European markets Turkey posted the largest jump in POS GDV rising 47.4% to 18.4 billion euros. Poland also reported a solid increase of 22.2% to 4.4 billion euros. The number of cards in Europe rose 20.7% in the second quarter to 289.8 million which includes 173.3 million debit cards, 110.0 million credit cards, and 6.5 million commercial cards.

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New App Detects Card Numbers on a PC

WA-based TrueActive is testing an application that provides real-time credit card number detection on a PC. Using a validation algorithm and operating completely in the open with user knowledge, “TrueActive CardAlert” scans keyboard activity and the Windows clipboard to detect numeric combinations that can be validated as a credit card number. When a match is found, TACA saves only the last four digits to an encrypted file and alerts the user. The credit card number is only evaluated and never stored in full by the application. Only the last four digits are retained for detection and reporting. The application is available free and will cease working on December 31st.

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Capital One to Shut-Down Boise Site

Capital One will close its operations site in Boise, Idaho in mid-2006 eliminating most of its 290 positions by February. Impacted Capital One associates will receive extensive career transition services All full-time associates will be eligible for severance packages and will receive comprehensive outplacement and retraining assistance. Impacted associates may apply for positions at other Capital One locations. Capital One’s subsidiaries collectively had 48.9 million accounts and $83.0 billion in managed loans outstanding as of June 30, 2005.

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ICMA Announces Scholarship Winners

The International Card Manufacturers Association announced the recipients of their sixth annual scholarship: John Skoglund of Minneapolis and Sarah Ruth Ann Young of Churchville, Pennsylvania. Skoglund is a senior mechanical engineering major at the University of Minnesota. Young is a senior chemical engineering major at Drexel University. In its sixth year, the ICMA Technology Scholarship recognizes the children of ICMA members exclusively and is designed to help students perpetuate a career in the technology sector. ICMA is a non-profit association of plastic card manufacturers, personalizers and related industry participants.

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Optimal Payments Acquires a Moneris Portfolio

Montreal-based Optimal Payments has acquired a portfolio of
U.S. merchant processing contracts and associated sales channel
contracts from Moneris Solutions for US$18 million. The acquired
portfolio, comprising approximately 6,500 U.S.-based merchants
processing in excess of $1.5 billion of credit card, debit
card and electronic benefits payments, annually represents a portion
of Moneris’ U.S.-based processing business. The acquired sales channel
comprises approximately 50 ISOs. Moneris Solutions is a joint investment
between the Royal Bank of Canada and the Bank of Montreal. Optimal Group
has operations throughout North America and the United Kingdom.

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MI Realtors Land a VISA Platinum

U.S. Bank and the Michigan Association of REALTORS have launched the “MAR VISA Platinum” card. The MAR will receive contributions each time a new card is activated and again each and every time that card is used. The Michigan Association of REALTORS is a professional trade organization for real estate professionals. It serves its members by advancing the interest of REALTORS and promotes and protects private property rights of Michigan citizens. U.S. Bancorp (NYSE:USB), with $204 billion in assets, is the 6th largest financial holding company in the United States.

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New Sys Turns Card Data into Tokens

Shift4 has launched a system to help merchants and payment application vendors avoid storing payment card information. After swiping a card and getting approval, “Shift4 Tokenization” turns the data sent back to the merchant into a token. A “Token” is a globally unique, randomized representation of credit card data that is 16 characters long. The “Token” spans the lifetime of the transaction and is stored on the POS system. When an incremental authorization is required on the card the “Token” is sent to Shift4. The “Token” represents a specific credit card transaction and card data that is stored in Shift4’s data center. When the “Token” is sent through, Shift4 translates that “Token” into the card data and sends it to the processor. The processor sends back the authorization code; Shift4 turns it back into a “Token” and sends that along with the approval code to the merchants. Shift4 says the system shifts the entire liability to protect the card data back to the gateway.

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GCA Signs Four Casinos for QuikCash Terminals

Casino Lugano, Grand Casino Kursaal Bern, Grand Casino Admiral
Mendvisio, and Casino Davos have signed agreements with Global Cash
Access to deploy GCA’s “QuikCash” cash advance kiosks. The touch screen
terminals provide casino patrons with POS debit and credit card cash
advance transaction options. GCA serves approximately
960 gaming properties and other clients in the U.S., the U.K., Canada
and the Caribbean.

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