keep up-to-date, link to the Payments Cards and Mobile RSS news feed
Payments Cards and Mobile Latest Issue
Welcome to the JULY|AUGUST issue
Durbin could push
EMV in US
Not for the first time US authorities have come after interchange with all guns blazing, only to find they’re holding a pop gun. And it looks like it’s happening again with Senator Durbin’s amendment to the Restoring American Financial Stability Act 2010.
Rewording of the original intervention means that the US Senate has now mandated that the Federal Reserve will set the limit on what banks can collect from retailers for debit card transactions, but this only applies to the fees set by banks, not those imposed by credit card schemes. Further, the Federal Reserve is to set those fees according to what it sees as being “reasonable and proportional” to the cost to banks.
A woolly phrase indeed, and, importantly, one that includes the cost to the banks of protecting against card fraud. While the toing and froing is still going on between the Senate and House of Representatives, it is clear that cards issued on behalf of the government for welfare payments and prepaid cards will be exempt from the new legislation, as those who receive and use them usually don’t have bank accounts.
Some commentators – particularly small banks and credit unions – have seen this as a betrayal of consumers, who Senator Durbin was originally trying to protect with his amendment. In particular they have complained that the poorest will have to bear the biggest fees.
On the upside, though, it might give the banks the kick in the britches they need to think seriously about deploying chip and PIN, secure in the knowledge they’ll be allowed to pass the cost of doing so on. Or put more cynically, unless banks have whizzy technology in place to protect consumers’ info, they’ll only be able to charge minimal interchange fees. It remains to be seen how the Federal Reserve defines its fraud prevention technology standards, and in this they’d be hard put to ignore what the big retailers want.
As the story on page 14 demonstrates, they are in favour of chip and PIN (for instance to support contactless) because in the case of Best Buy, for instance, Visa charged twice as much for PIN transactions as signed for transactions. It appeared supremely unmoved by Best Buy’s protests, including the retailer stopping accepting payWave transactions. That might now come back and bite them in the britches. A virtuous circle.
Annie Turner
Editor, Payments Cards and Mobile
July|August 2010 Contents
NEWS IN BRIEF: The payments world in 60 days
Click here for News in Brief
CARD NOTES
Cards challenge for Greek banks
Greece’s public sector is not the only area facing high levels of debt – credit cards and other consumer loans have risen from €69 billion in 2005 to €120 in 2009.
Processors merge to create Spanish market leader
Spain’s two biggest domestic processors are merging to form the biggest, RedSys. It’s a good move. What took them so long? • UK firms struggle with online retail sales in Europe.
Council set up to reboot SEPA
The European Payments Council has finally taken much of the action prescribed in these pages by contributor Peter Jones back in November 2008. It’s a positive, if flawed, first step to getting the whole thing on track. • Prepaid is Europe’s fastest growing card product.
A day in the life of Joe Garcia
The European Payments Council has released a white paper on aligning m-payments with SEPA, illustrated by how Mr Garcia spends on a typical day. • Is the end in sight for swipe fees in the US as the fall-out from the Best Buy row continues?
European spend rises
Consumer spending rose 9% in Q1 2010 compared with the same quarter last year.
PURCHASE CARD NOTES >
FEATURES
COVER STORY -
Can prepaid bridge the credit-debit card gap?
The economic climate has resulted in people preferring to use debit, rather than credit cards, thereby missing out on the benefits of credit cards, such as protection for merchant and consumer, loyalty schemes and so on. Salans’ Robert Courtneidge argues prepaid can bridge the gap, offering consumers the control they crave and benefits – not to mention the benefits for business and state.
Automated clearing house comes out of the shadows
Various moves are afoot, including changes in market conditions, that could see ACH acting as the linchpin for innovative new services, domestic and international, to compete against the card schemes and the old cross-border transaction players.
Mobile microfinance - Small sums add up to big business
Vaughan O’Grady explores how mobile microfinance institutions are springing up, and extending the reach and range of services that banks can offer, without a bank account in sight.
PURCHASE LATEST ISSUE >
MOBILE PAYMENTS
GSMA strives to reassure in Rio
Our man in Rio, Richard Handford, reports on the most important happenings at the GSMA’s annual Mobile Money Summit. Cooperation, not competition, was the theme.
18 to 34 year old drive European m-commerce
A revealing survey by the Mobile Marketing Association about activity in the French, German and UK markets. • PayPal chosen by Singaporean authorities to power m-commerce push. • U.S. Bank partners CashEdge to offer PopMoney. • City Cards introduces Citi Shopper.
MoneyGram extends partnerships
The international money transfer company has formed partnerships with banks in Abu Dhabi and Nigeria. • MobeyForum unites players across the ecosystem to produce guidelines for remote m-payments. • Monitise and Visa form Indian joint venture. • Citibank launches m-banking in Russia.
read more mobile payments news
CONTACTLESS
Hail m-payments, is NFC dead?
A new report from Gartner indicates that m-payments are soaring, but progress in NFC is slow. ? Nokia says it will start embedding NFC in its phones next year. ? KDDI launches an NFC pilot in Japan.
Interac to add contactless to Canadian debit cards
Bid to compete with MasterCard and Visa’s national networks. ? New York and New Jersey in contactless transit trial.
read more Contactless and Contactless NFC
E-COMMERCE
Tackling ignorance and drop-out rates
Almost two-thirds of UK companies do not know whether or not they comply with PCI security measures, while fewer than one in ten online purchasers make it through the check-out. What can be done to improve sales? • Ukash continues its expansion in New Zealand, Mexico and Colombia. • Visa develops and launches online service in Australia. • Wells Fargo to issue e-receipts.
read more POS terminals
POS TERMINALS
Indian bank sets up POS JV
The country’s biggest bank, the State Bank of India, has chosen a consortium of Elavon and Visa to run its POS terminal estate. • Collis’ tools are validated by MasterCard for M-TIP. • ASK expands contactless, handheld reader portfolio. • Gemalto buys M2M firm. • Certifying the Optimum. • Torex and Toshiba Tec offer hospitality POS.
read more POS terminals
PRODUCTS
Bell ID launches PIN host for EMV
Company says ANDIS platform improves PIN management. • SAS platform cuts risk. • MasterCard Advisors introduced to support UK retailers.
CONTRACTS
VocaLink helps EBS with SEPA Direct Debit
The financial services company is helping Ireland’s EBS Building Society comply with SEPA requirements. • Barclays chooses SAS to raise its capital calculation game. • Xchanging and SIA-SSB form enterprise partnership. • TSYS extends payment solutions to credit unions. • Irish Life & Permanent selects Cryptomatic. • Tieto to update Aktia’s web services.
read more products and contracts
CONFERENCES
Carnival atmosphere in Rio
view more conferences
Payment Card Yearbooks have published their latest editions - European Payment Cards Yearbook 2009-10, containing 33 individual country profiles and Russia and CIS Payment Cards Yearbook 2010-11, containing 10 individual country profiles.
