A new study has found that adding more payment types can increase online conversion by 20%. The CyberSource research shows that merchants offering one payment type, such as general purpose credit cards, for example, convert 60% of their shoppers. But, those offering four types, e.g., credit cards, gift certificates, eChecks, PayPal, etc., convert 72% of their shoppers, for a 20% increase. According to the survey, 38% say they plan to investigate or offer a new payment method in the next 12 months. Methods they plan to implement first are: electronic checks (31%), PayPal or other non-card payments (26%), private label cards (19%), gift certificates (14%), instant credit (13%), and recurring billing (7%).Details
Japan’s JCB and Casio have launched a pilot to test a wristwatch that provides building access, the ability to make purchases, a variety of administrative functions. The new “Offica Watch” will be tested at the JCB tower in central Tokyo for two months by 25 employees. The JCB employees will use the “Offica Watch” instead of the current “Offica Card.” The wristwatch contains employee ID, access control and cashless payment functions. The introduction of a wristwatch-based solution incorporating a suite of contactless chip functions is a first for Japan, and follows the trial of JCB’s innovative “Mobile Offica.” “Mobile Offica” is a mobile phone based corporate solution through mobile phones in cooperation with NTT DoCoMo at the beginning of this year. Both “Mobile Offica” and the new “Offica Watch” utilize Sony’s “FeliCa” contactless interface chip. JCB says it expects to make “Offica Watch” commercially available early next year.Details
First Data’s LinkPoint has selected Ingrian “DataSecure Platforms” as an additional layer of security for the privacy and protection of their customers’ credit card data. Companies that conduct credit card transactions, or in any way store or manage credit card information, must thwart increasingly sophisticated theft attempts. Ingrian provides an intelligent, cost-effective way to protect data throughout the enterprise. First Data Corp. helps power the global economy. Ingrian Networks brings complete data privacy to the enterprise.Details
Capital One reported that its charge-off ratio dropped sharply in May for the seventh consecutive month of decline, however delinquency slipped upwards by 4 basis points, but remained well below year-ago levels. The issuer also added nearly $600 million in managed outstandings last month. With $72.6 billion in managed loans, and approximately $45.5 billion in U.S. credit card loans, the issuer reported that charge-offs dropped to 4.40% for May, compared to 4.70% in April, and 5.00% in January. In May 2003, Cap One’s managed charge-off ratio stood at 6.40%. Delinquency edged up to 3.73% during May, compared to 3.69% for April, and 4.39% for January. Delinquency peaked last year in June when it hit 4.95%. In May 2003, Cap One’s managed delinquency ratio stood at 4.82%. At the end of first quarter, Cap One had 46.7 million accounts, including domestic and international credit cards and auto loans. For complete details on Capital One’s 1Q/04 performance visit CardData ([www.carddata.com]).
Capital One 2003-2004
Month Charge-offs Delinquency
May 03 6.40% 4.82%
Jun 03 6.20% 4.95%
Jul 03 5.75% 4.92%
Aug 03 5.34% 4.74%
Sep 03 5.24% 4.65%
Oct 03 5.30% 4.52%
Nov 03 5.57% 4.46%
Dec 03 5.10% 4.46%
Jan 04 5.00% 4.39%
Feb 04 4.75% 4.14%
Mar 04 4.74% 3.80%
Apr 04 4.70% 3.69%
May 04 4.40% 3.73%
Source: CardData (www.carddata.com)
Dallas-based TNB Card Services is taking its “MasterCard Family Account” nationwide following a successful roll-out in El Paso, TX. The MasterCard program features one shared credit line assigned to the primary cardholder, typically a parent or other supervising adult. The primary cardholder then determines who else receives a sub-account and sets the spending limit for each individual cardholder. All accounts are linked, yet individually numbered. TNB says the product will enable its credit union clients to tap into the youth market. El Paso-based Government Employees Credit Union was the first to issue cards under the “Family Account” pilot program in April 2003. TNB serves more than 400 credit unions, managing more than 1.5 million cards nationwide.Details
Cyota has named Joel Lisker, former SVP of Security and Risk Management at MasterCard, to its advisory board. Mr. Lisker brings over 20 years of experience in security, risk management and anti-fraud expertise to Cyota’s advisory board. He was most recently the Senior Vice President for Security and Risk Management for MasterCard International where he served as the company’s worldwide senior security representative for matters relating to the fraudulent use of its numerous card products. Cyota is the leading provider of security and anti-fraud solutions for financial institutions. Cyota services multiple clients in North America, Europe and Asia-Pacific with anti-fraud and security systems currently available to over 350 million accountholders.Details
CIBC has teamed with CanadaHelps to offer payments by Interac Email Money Transfers for the country’s 78,000 registered charities.
Previously, the only payment method on CanadaHelps’Web site was by credit card. This excluded donors without credit cards, such as students, or donors unwilling to use their credit cards over the Internet. And donations by credit card are subject to the merchant fee applied by the credit card issuers for processing the payment, meaning less than 100% of the donation goes to the charity. Email Money Transfers have no fee deductions for the charity receiving the money.
Interac Email Money Transfers was introduced by major Canadian banks in
JCB and Casio have launched a wristwatch pilot that provides building
access, the ability to make purchases, and a variety of administrative
functions. The new “Offica Watch” will be tested at the JCB tower in central Tokyo for two months by employees. Twenty-five JCB employees will use the “Offica Watch” instead of the current “Offica” card. The wristwatch contains employee ID, access control and cashless payment functions. The introduction of a wristwatch-based solution incorporating a suite of contactless chip functions is a first for Japan, and follows the trial of JCB’s innovative “Mobile Offica.” “Mobile Offica” is a mobile phone based corporate solution through mobile phones in cooperation with NTT DoCoMo at the beginning of this year. Both “Mobile Offica” and the new “Offica Watch” utilize Sony’s “FeliCa” contactless interface chip. JCB says it expects to make “Offica Watch” commercially available early next year.
VASCO Data Security International has launched the “Digipass 850 Integration Toolkit” to enhance the ease and speed of integration of the products within any smart card based PKI environment, regardless of the type of smart card used. The main security weakness in a PKI system lays in the fact that the access to the security certificate (a user’s security “passport”) is secured with a static PIN code. This opens opportunities for fraudsters who, using Trojan horse and key logging codes to capture the end user’s PIN code, get access to bank accounts and other sensitive information. With “Digipass 850,” this threat is history. The static PIN is introduced into the “Digipass 850”
secure card reader separately and cannot be traced or captured by a hacker.
TNS Smart Network has partnered with DPL Group to provide wireless transactions and ATM security monitoring. As the largest privately owned processor in Canada, TNS has delivered secure processing for over 7000 ATMs with the newly added benefit of wireless
transactions and security monitoring provided by the DPL Group. The new
“Hercules 1000” system provides 24/7 ATM monitoring including alarm activation upon a door opening, machine tilting or power disconnection.
Later this year, TNS Smart Network plans to offer this partnership
to the USA through its subsidiary company, SPN Processing Network.
VeriFone is supplying 2500 of its “Omni 3750” terminals to a
leading new trade card payment business. At present, 600 units have been installed in builders’ merchants throughout the UK. The launch of the TradePro account card sees the first nationwide service based on “Chip and PIN” technology to go live, and the installation of the “Omni 3750” terminals will continue throughout the year. Fully endorsed by the Builders Merchants Federation and the Federation of Master Builders, TradePro launched to the industry in December 2003 offering a new type of business account aimed at professional tradesmen. For the merchant, the TradePro card removes bad debt risk, guarantees timely payments and takes away the headache of credit vetting, managing and collecting debt.
For tradesmen, the TradePro card provides an additional line of credit of up to Â£7,500 and APR’s as low as 11.3 per cent. Unlike traditional trade accounts, the cardholder will have the option to revolve up to 75% of the outstanding balance on a monthly basis. The use of chip and PIN technology maximises security and minimises chances of misuse of the card.
Nexus, the leading Chilean processor and billing network for credit card accounts, has successfully deployed the Ultimus “BPM Suite” to automate and streamline the administrative processes of its extensive credit card transaction and billing network. With approximately 60% of the market share, Nexus serves more than one million Chilean credit card holders. The Ultimus “BPM Suite” enables companies to optimize workflow through integration with existing back-office systems. In addition, companies set specific workflow guidelines that ensure all transactions are processed in a timely manner. This type of automation reduces total processing time and enables existing staff to be more productive. With database connectivity, data is entered only once and re-used throughout the chain of credit card processing and billing processes, saving time and ensuring accuracy.Details