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• Visa backs Square with Investment

  • Credit Card News
  • Payment Industry

  April 27, 2011

  Last year Visa completed its acquisition of CyberSource (Authorize.net) for approximately $2 billion in cash to expand its online payment, fraud and security capabilities. Since then Visa launched online shopping tool, Rightcliq; acquired PlaySpan Inc. (a payments platform to handle transactions for digital goods in online games, digital media and social networks); and signed strategic agreements to deliver P2P payments with CashEdge and Fiserv enabling U.S. Visa account holders to pay each other for the first time.

  Now Visa is making a strategic investment in Square, a mobile payments start. Square's card readers plug into the iPhone jack for swiping cards and have been criticized for lacking encryption security. Perhaps with Visa's involvement they will address this issue given on the … more

• MasterCard announces Processing Integrity Fee

  • Merchant Rates
  • Payment Industry

  April 24, 2011

  In October 2009, Visa announced a Misuse of Authorization System Fee of $0.045 per occurrence. Now MasterCard with the introduction of a Processing Integrity Fee will begin to monitor compliance to the authorization guidelines with billing scheduled to begin on August 15, 2011. And like Visa, MasterCard has set its Processing Integrity Fee at $0.045 per occurrence.

  While the purpose (encourage proper compliance with transaction authorization standards) of the two programs is similar, there are some differences in how they will monitor compliance. While both Visa and MasterCard will assess fees when authorized (approved) transactions cannot be matched to a clearing settlement record or an authorization reversal, Visa allows 10 days (20 days for T&E merchants) while MasterCard provides … more

by Ty Hardison

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