Contents tagged with Credit Card News

  • Rare Praise for Credit Card Acceptance

    November 18, 2009
    I read the New York Times article New York’s Cabbies Like Credit Cards? Go Figure with interest as it told the story of  how New York’s cabbies originally resisted accepting card payments and how card acceptance has emerged as an unlikely savior for New York’s taxi industry. 

    In the beginning, when forced to adopt card acceptance, drivers went on strike citing the burden it placed on drivers.  A short two years later overall ridership, revenue and tips for drivers have all increased. 

    Name another industry right now where you will read the following statements from merchants, trade associations and government commissioners about credit cards being good for business.

    “It’s better,” said Naveed Shah, 35, a driver for five years, … more

  • Fed to consider National Data Breach Law

    November 02, 2009
    According to a Bank Info Security article, House hearings may start later this year or in early 2010 to address the increasing problem of data breaches. According to the Identity Theft Resource Center report, 407 breaches and nearly 220.6 million records have been exposed so far in 2009.

    The current environment seems to be more government regulation on things than less. The purpose of hearings is to discuss the way data is retrieved, transmitted, intercepted and stored and to see how government can regulate aspects of IT -- including companies involved in finance, health, welfare and safety.

    However, before the federal government tries to regulate how the private sector handles and stores data, Congress should consider updating the 7-year-old Federal Information Security Management Act … more

  • Visa moving to chip and PIN in Australia

    November 02, 2009
    Visa Australia announced it was moving to chip and PIN technology for all of its credit cards, with signature transactions to be banned by April 2013.

    Visa's move to kill signature-based mag-stripe transactions by 2013 will require financial institutions and retailers to upgrade over 14 million visa cards, half a million point of sale terminals, and thousands of ATMs.

    While fraud in Australia remains low by world standards, this aggressive rollout of new technologies will strengthen security reducing counterfeit, skimming and online card fraud. 

    Is the U.S. next? more

  • PIN Debit Punishment Pushed Back

    October 17, 2009
    Visa and MasterCard set a mandate effective July 1, 2010 to ensure that all installed PIN pads are using the most up to date triple data encryption standard (3DES) for processing PIN debit transactions.  In an effort to enforce this mandate, fines were slated to be imposed on those deemed out of compliance.  While technically, the July 2010 deadline is still in place, the threat of punishment has been pushed back.  The new policy isn’t threatening fines until Aug. 1, 2012, however Vantage will continue working with our clients to ensure compliance by July 2010.

    The most interesting part of the article as reported on StorefrontBacktalk was that several of the nation's largest chains were threatening to abruptly cut off PIN debit at the deadline, possibly switching to … more

  • US Financial Transactions Exceed 100 Billion in 2009

    October 17, 2009
    As reported by BUSINESS WIRE -- For the first time in US history, the number of consumer and business transactions including checks and electronic transactions for debit cards, credit cards and automatic payments will exceed 100 billion by the end of 2009, according to Moebs Services. 

    Type of 100B Transactions in 2009:

    Debit card transactions, 33 percent

    Paper checks, 24 percent

    Credit card transactions, 23 percent

    Automatic Payments (ACH), 20 percent

    Mike Moebs, CEO provides noteworthy analysis:

    Based on current transactions, our projections show that debit cards and automatic payments are taking over at an increasingly rapid rate from the traditional checking account for most Americans

    Over the past 30 years, paper check usage has dropped from 85 percent of all … more

  • More Intelligent Merchant Rates

    October 12, 2009
    As a merchant, do you feel the fees you pay for accepting card payments are too high?  I’ve not talked to anyone in business who thinks they aren’t paying enough for merchant services.  If you’ve been following the Interchange debate, you realize the Interchange fee paid back to the issuing bank is the target of reform.  And while Interchange reform is a healthy debate, for most businesses, it’s beside the point.  They don’t get Interchange pricing.

    Most small and mid sized businesses don’t pay Interchange pricing, they pay discount rates and service fees set by their service provider, processor or bank.  The most common pricing structures are based on formulas, bundles, tiers and definitions invented by their payment … more

  • Not all Prepaid Debit Cards are alike

    October 06, 2009
    Recently I’ve seen a few stories like this one in the New York Times: Prepaid, but Not Prepared for Debit Card Fees. In the article, author Andrew Martin explores the numerous fees many card companies are charging their customers. The moral of this story from my perspective is that it pays to shop around. Not all prepaid debit cards are alike.

    Avoid buying a prepaid debit card. We advise consumers wanting a prepaid debit card to get a payroll debit card instead. Consumers can get a payroll debit card from their employer or sign up directly with a payroll card provider (for example online at http://vantagecard.com/paycard) and then simply provide the card’s routing number and account number to their employer for direct deposit.

    Payroll cards have lower costs than prepaid … more

  • Restaurant Trends: Make your restaurant online order capable

    September 30, 2009
    According to the September 2009 Technomic American Express Market Brief, consumers of all ages have already embraced online ordering. Their research shows online ordering from a computer has become quite popular.

    % of Consumers who have Ordered Online:

    54% of 18-20 year olds46% of 21-2450% of 25-3444% of 35-4423% of 45-5430% of 55-6429% of 65-747% of 75+

    Incentives were found to be effective in luring customers to online ordering. Nearly 58% who have ordered food online note they have done so in response to an offer they saw on a website, while 37% have been influenced by an offer received in an email.

    For those who have ordered online from a computer, seven of 10 (70%) report that their most recent order placed was a repeat order.

    Bottom Line: If you have a web site … more

  • Interchange ruled to be Interest

    September 22, 2009
    According to Bloomberg, after a decade-long battle, a U.S. Tax Court ruled in favor of Capital One Financial Corp. saying that the bank’s income from Interchange fees that merchants pay on customer purchases should be regarded as interest subject to tax-deferral rules. The Internal Revenue Service argued the fees are taxable upon receipt.

    Interchange “compensates lenders for the time value of their money,” Tax Court Judge Harry A. Haines wrote in the decision. “Interchange rates take into account other factors such as credit and fraud risk, processing costs and Visa’s and MasterCard’s efforts to maximize their business.”

    This decision affects an estimated $48 billion in fees U.S. credit-card issuers collect each year.  The court ruled … more

  • The Merchant Interchange Debate Continues

    September 20, 2009
    This week the National Retail Federation and the Merchants Payments Coalition released a 14-page report, entitled, “’Swipe Fee’ Reform--International Lessons” lobbying in favor of regulating Interchange. Focusing on what other countries are doing around the world and arguing that Interchange fees are ultimately borne by consumers, the MPC’s report can be found at: www.unfaircreditcardfees.com.

    On the same day, as reported in Reuters, The Electronic Payments Coalition issued the following statement: Today, the Electronic Payments Coalition released key evidence from several sources, demonstrating conclusively that consumers would be hurt by interchange regulation in the form of higher fees, fewer benefits, and zero savings at the cash register. Despite the … more