Archives / 2011 / August
  • Department of Justice Final Judgment on Rule Changes

    In October 2010, both MasterCard and Visa entered into a proposed consent decree and final judgment with the Department of Justice that required both payment card networks to modify their policies and procedures regarding the merchant’s ability to recommend any preferred card brand or card type in United States. The consent decree and final judgment requires that both card schemes direct their acquirers to provide US and US Territory merchants with notice of the final judgment and a description of the their rules changes and the POS practices that merchants are expressly permitted to engage in pursuant to the terms of the judgment. The description of the rules changes can be found at the following links:


    Visa http:// … more

  • Debit Interchange Regulation Fallout

    ABC News reports that Wells Fargo to Test $3 Debit Card Fee. Major banks have already begun to change qualifications on free checking accounts and end debit rewards programs.

    An it appears that the anticipated result of these actions will be to steer consumers away from debit and toward reward credit and charge card products that carry more expensive merchant Interchange rates.

    "An Associated Press-GfK poll last month found that about two-thirds of consumers use debit cards more frequently than credit cards. When asked how they would react if they were charged a $3 monthly fee for their debit card, 61 percent said they'd find another way to pay. If the fee was $5 a month, two-thirds said they'd do the same. If the fee was $7, the figure rose to 81 percent."

    Our concern for small … more

  • Lower Invoice Processing Costs Through Automated Workflows

    PayStream Advisors survey shows Increasing Adoption of Automated Workflows in Invoice Processing

    Automating the invoice approval process is the next logical next step for companies that are already reaping the benefits of front-end electronic invoice systems. Organizations that have experienced successes through employing digital imaging are seeing visible improvements and are actively moving towards further AP automation.

    Research conducted by PayStream Advisors confirms these trends and notes that automation to date has been operations driven, with quicker approval of invoices being the main cited benefit. Companies in the survey also experienced lower processing costs and increased productivity.

    Automated workflow solutions in the accounts payable (AP) arena are maturing as the … more

  • A Wake Up Call for Small Business Security Concerns

    PCI Compliance Small business owners are a new favorite target for hackers hoping to take advantage of weak security in small business environments. This excerpt from a recent article in the Wall Street Journal article Hackers Shift Attacks to Small Firms sums up the new reality:

    “In the time it takes to break into a major company like Citigroup Inc., a hacker could steal data from dozens of small businesses and not get detected, says Bryce Case Jr., a former hacker who broke into several government and corporate websites a decade ago and now runs an online message board for hackers called Digital Gangster. Now that small companies use computers, "the juice has become worth the squeeze," he says. "Even a pizza place has addresses, names and credit-card information."

    Whether you store card holder … more

  • Visa and MasterCard plan changes due to new debit Interchange regulations

    In June, the Fed announced final debit Interchange rules. Now we are starting to learn more about how Visa and MasterCard will approach the transaction routing provisions that ban exclusive affiliations between card networks and issuers of debit cards.

    Under these new rules, debit card issuers must add at least one unaffiliated network to each debit card. For example, Visa has exclusive arrangements with issuers to use both its signature debit and PIN debit networks. Now debit card issuers will need to add an alternative network to Visa.

    In response, Visa says they will implement a new Network Participation fee that will be based on a merchant's size and number of locations while at the same time lowering the variable rate charged per transaction. This Visa strategy is intended to … more

by Ty Hardison

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