MasterCard Offers a Rules Manual for MSPs

In an effort to provide increased levels of transparency, MasterCard is now offering its rules to all interested parties at no charge. Member Service Providers previously only had access to abridged rules through their sponsoring acquirers, at a cost to the acquirer. The distribution of the rules to MSPs follows MasterCard’s decision last year to enhance its merchant Web site, and make the rules pertaining to merchant acceptance available to the merchant community. The new “Member Service Provider Rules Manual” covers the MSP’s use of the “MasterCard,” “Maestro” and “Cirrus” marks, security requirements, acceptance procedures, and affinity/co-brand program rules. MSPs provide critical services supporting member issuing and acquiring programs, including transaction processing, authorization routing, cardholder and merchant solicitation and statement preparation, and chargeback processing.

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Juniper’s Switch to Falcon Pays-Off

Juniper Bank’s switch to Fair Isaac’s “Falcon Fraud Manager” has begun to pay-off. During a 13-week analysis period, Juniper used “Falcon Fraud Manager” and experienced reduced false positive ratios by an additional 39.4%; cut the number of cases sent to investigators by an additional 39.9%, reduced FTE rates by 1.5, and increased its detection of fraudulent transactions by 30.8%. Fair Isaac’s “Falcon Fraud Manager” protects more than 450 million active payment card accounts across six continents from fraud. Twenty of the top 25 financial institutions worldwide use Fair Isaac’s fraud detection solutions. Juniper Bank has $1.5 billion in assets and more than 750,000 accounts.

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VISA’s Off-Line Debit Share Slips in Q1

VISA’s share of the U.S. signature debit market has slipped from 79% one-year ago to 77% in the first quarter of this year. The shift is the result of MasterCard’s push into off-line debit as its gross dollar volume is now growing by 29% compared to 16% for VISA. According to CardData ([www.carddata.com][1]), the two card networks produced total U.S. gross dollar volume on signature debit cards of $186.9 billion, compared to $157.4 billion for 1Q/04, an 18.7% gain. VISA posted 1Q/05 off-line debit card GDV of $144.0 billion, while MasterCard reported $42.9 billion. During 2004, VISA racked up $542 billion in signature debit card GDV, giving the network a solid 79% share of the U.S. market.

FIRST QUARTER HISTORICAL
Signature Debit Volume
2002: $112.3 billion
2003: $129.6 billion
2004: $157.4 billion
2005: $186.9 billion
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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MasterCard Tops 132MM EMV Cards Worldwide

MasterCard reports that there are now over 132 million MasterCard-branded cards that are EMV compliant, representing a 169% increase since the beginning of 2004. There are also 2.4 million EMV POS
terminals which accept MasterCard branded chip cards, a 205% growth
since the beginning of last year. MasterCard is holding a “Global Vendor Information Forum” next week in Brussels. Up to 170 vendors are
scheduled to attend. MasterCard will showcase its “OneSMART” family of added-value products and solutions, which is designed to help banks leverage the EMV infrastructure and bring vendors up to date with new advances. The “MasterCard Vendor Program” is a global program designed to enhance the business relationship between MasterCard and vendors who are supplying solutions to MasterCard customers around the world.

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MBNA to Offer Cardholders Infone Services

Portland, Oregon-based Infone has signed an agreement with MBNA to make its services available to MBNA cardholders offering access to directory assistance, contacts, appointment calendars, hotel reservations, restaurant reservations, driving directions, movie times, event locations, stock quotes and horoscopes. Long-term plans call for Infone to provide support for over-the-phone shopping and other services for MBNA cardholders. Infone is a high-quality, telephonic personal assistant service that offers, on a 24/7 basis, access over any phone to live operators. MBNA is the largest independent credit card lender in the world and a recognized leader in affinity marketing.

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MASTERCARD MRS

MasterCard Advisors launched the first fully integrated end-to-end rewards solution in Europe. The new “MasterCard Rewards Services” is designed to enable payment card issuers to integrate their global rewards offerings into one system, thereby streamlining operations and reducing administrative costs and complexity. Built on a platform that supports multiple languages and translation, currency conversion and country-specific reporting requirements, “MRS” is ideal for card issuers seeking to increase their international business. The system is customizable and will support the expanded reward offerings of the issuer by country or region, according to the specific business priorities. GE Consumer Finance’s Corporate Payment Services unit will be the first issuer to offer a MasterCard-branded rewards program in Europe, utilizing end-to-end MRS services which include call center support, merchandise, gift voucher and travel fulfillment. Corporate Payment Services’ first rewards program based on MRS was the “Gains Travel Card Rewards” program, where enrolled business cardholders receive points when they use their corporate card for eligible purchases. This program launched in the United Kingdom and Ireland in October 2004.

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USTT Poised to Ride the Contactless Wave

Pennsylvania-based USA Technologies has launched a “Tap N Go” application for vending. The card association considers vending a major opportunity for micro transactions and believes the contactless technology will finally convert the vending industry to cashless. USA Technologies is a leader in the networking of distributed assets and wireless non-cash transactions.

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Precidia Technologies and CHECKS Partner

Ottawa-based Precidia Technologies has launched a new IP based instant check verification solution with Texas-based CHECKS. The solution leverages Precidia’s compact, low cost “iPocket232” to connect “Trans330” payment terminals and MagTek check readers to an existing broadband network, sending check data to the CHECKS host, which delivers a verification response code in under a second. While handling the verification process, the “iPocket232” also simultaneously powers the payment terminal, eliminating the need for additional power adapters to run both devices, preserving valuable store real estate at the check out counter. The solution is already deployed in Toot’n Totum convenience stores and Food Basket grocery in Texas, USA. Precidia Technologies has customers in more than 75 countries.

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