Archives / 2009 / February
  • State Laws on Receipt Truncation

    In addition to federal law and various state laws which require merchants to truncate the cardholder copy of receipts, three (3) states now require merchants to truncate both the cardholder and merchant copies of receipts.  Now six states (see updated entry

    States Requiring Full (Cardholder and Merchant) Receipt Truncation:

    Colorado - as of 01/01/2006

    Tennessee - as of 01/01/2007

    California - as of 01/01/2009

    Under the current legislation in Colorado, Tennessee and California, a merchant is required to truncate both the cardholder and merchant copy of the receipt by masking the card number and the expiration date as follows:

    Card number truncation is defined as masking all but … more

  • MasterCard Beats Estimates on Price Increases

    MasterCard Inc., the world’s second- largest credit-card network, rose the most in three months of New York trading after beating analysts’ profit estimates by raising the price of processing international purchases.   Along with cost-cutting, it appears from its most recently announced increase for April 2009 that raising prices is the strategy MasterCard will continue.

    The continuing adoption of credit and debit cards worldwide has cushioned the effects of a U.S. slowdown.   Visa and MasterCard, which collect fees to shuttle payments between financial institutions, are insulated from rising credit-card defaults because the networks process transactions and don’t make loans to cardholders.  Banks that issued Visa and MasterCard to cardholders … more

  • Visa Reports Q1 Earnings

    The first thing of note is that the report is based on a one quarter lag which means Visa is really reporting on the end of 2008, not Q1 2009.  While this better than expected quarterly report represents approximately 40% of their total revenue, fiscal 2009 is off to a slow start and projected to slow further in the coming quarters.

    However the resilience of Visa can be seen in the contribution of debit products in the US as consumers continue to more frequently use debit as a method of payment.  In fact, 95% of the volume in the Visa system comes from people that use debit cards which don’t have a credit limit or a credit card from people that either pay their bill in full every month or occasionally revolve and never revolve at more than 50% of their line.  Visa is … more

  • MasterCard increases its fees by 270%!

    In an upcoming April 2009 initiative, the MasterCard Acquirer Access fee that is currently in place and being billed at a pass through cost of $0.005 per authorization is being eliminated and replaced with Network Access and Brand Usage (NABU) fee which will be billed at a pass through cost of $0.0185 per item.   This MasterCard change will greatly impact all merchants, especially those with small transaction sales.  Merchants should be prepared for this major change starting with April 2009 transaction activity.  Merchants should guard against providers that may try to apply these MC item fees to their Visa or Discover sales. 

    Read more about April 2009 Interchange adjustments...


by Ty Hardison

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