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MasterCard pays out $61 million to settle Tesco interchange suit

MasterCard has paid out $61 million to UK supermarket retailer Tesco in what is expected to be the first of several settlements by card schemes over interchange fee lawsuits lodged by UK retailers. MasterCard chief financial officer Martina Hund-Mejean announced the settlement during the company’s earnings call, saying: “We have been settling with Tesco, which is the largest merchant claimant… Continue reading >>

Update on changes to the new Payment Services Directive (PSD2)

The arrival of the new Payment Services Directive (PSD2) in the internal market repealing the current Payment Services Directive 2007/64/EC (PSD1) has been a closely monitored development since the publication of the European Commission’s (the Commission) Green Paper on Card, Internet and Mobile Payments (COM (2011) 941) in January 2012. On 2 June 2015 the final compromise text of PSD2… Continue reading >>

Innovation in payments initiatives

A global study of over 300 banking and financial services executives shows that, for the first time, innovation is ranked as important as regulation. The research also reveals that mobile first has now become mainstream, while innovative disruptive technologies such as block-chain will potentially become a very attractive alternative to traditional payment methods, transforming payment processing and acting as significant… Continue reading >>

New data security standards published

Following various high-profile encryption protocol vulnerabilities, the PCI Security Standards Council has published an out-of-schedule update to the PCI Data Security Standards (PCI DSS) and Payment Application Data Security Standard (PA-DSS). Versions 3.1 of the PCI DSS and PA-DSS were effective on publication —15 April 2015 and 1 June 2015 respectively. This marks a change for the Council, which usually… Continue reading >>

Antitrust: Commission sends Statement of Objections to MasterCard on cross-border rules and inter-regional interchange fees

The European Commission has sent a Statement of Objections to MasterCard. The Statement of Objections outlines the Commission’s preliminary view that MasterCard’s rules prevent banks from offering lower interchange fees to retailers based in another Member State of the European Economic Area (EEA), where interchange fees may be higher. As a result, retailers cannot benefit from lower fees elsewhere and… Continue reading >>

Autralian regulator voices concerns over cloud risks

The Australian Prudential Regulation Authority (APRA) has released an information paper on prudential considerations and key principles in relation to outsourcing involving shared computing services, including the cloud. The information paper uses the term ‘shared computing services’ (whether labelled cloud or otherwise) to differentiate arrangements which involve the sharing of IT assets (including hardware, software and/or data storage) with other parties,… Continue reading >>

European payments regulation driving change

European payments regulation, such as the original Payment Services Directive (PSD) of 2007 and Single Euro Payment Area (SEPA), have already caused significant change within the banking and payment industry. Business models, propositions and customer relationships have all been affected – and more regulation is expected. PCM considers three areas: the security of internet payments, card interchange regulation and the PSD2…. Continue reading >>

Payments Council re-brands to Payments UK

Having lost some of its teeth, the Payments Council will relaunch as Payments UK, a new trade association launched Monday 29 June. The new association will provide “a single, authoritative voice for the UK payments industry” at home, across Europe and the globe. Payments UK succeeds the Payments Council, which delivered world-leading innovations such as Paym, the Current Account Switch… Continue reading >>

Payments Systems Regulator urges deeper innovation

Hannah Nixon, the newly appointed managing director of the UK’s Payments Systems Regulator has bemoaned a lack of innovation in the back-end infrastructure of payments, and warned that she will step in if industry does not up its game. Speaking at a conference in London, Nixon cited Paym, Apple Pay and Barclaycard’s new bPay as examples of innovations that are making… Continue reading >>

French Ministers scrap minimum card payments limit

The French finance minister has announced plans to abolish the fixed rate commission that banks charge one another to process card payments – currently in place regardless of the customer’s transaction amount. Going forward, just the variable commission, which is based on a percentage of the purchase value, will stay. As it stands, the presence of the commission fee convinces… Continue reading >>