Report to the Congress on Government-Administered, General-Use Prepaid Cards

Section 1075 of the Dodd-Frank Act, which amends the Electronic Fund Transfer Act (EFTA), directs the Board to report annually on the prevalence of use of general-use prepaid cards in federal, state, and local government-administered payment programs and the interchange transaction fees and cardholder fees charged with respect to the use of such general-use prepaid cards. [1] The act requires the Board to begin submitting these annual reports 12 months after the date of enactment. General-use prepaid card programs are used as a method for disbursing funds to individuals and allowing government agencies to make payment in the administration of government benefit, assistance, and other miscellaneous programs. In most instances, general-use prepaid cards replace the issuance of checks or vouchers when funds are not or cannot be disbursed directly to beneficiary accounts at financial institutions. Depository institutions provided cardholder fee information for 70 programs, for which the average 2010 cardholder fee was $9.69 per card, or 0.3 percent of the total amount disbursed to cards. The average automated teller machine (ATM) cash withdrawal fee was 47 cents, or 0.3 percent of the amount withdrawn. The average ATM cash withdrawal fee charged to cardholders, however, was about 20 percent less than the amount paid by card issuers to the ATM operators for these transactions.

Details

Target Expands m-Coupon Program

With enrollment on the rise, Target is broadening its mobile instant coupon pilot at select locations by scheduling additional deals, reports Mobile Commerce Daily. Registrations for Target’s Text to Get instant mobile coupon program have doubled since this past February, the company reports. Shoppers can enroll through mobile Web, online or by texting the keyword COUPONS to the short code 827438 (Target). The latest pilot will conclude July 29. Target last spring became the first retailer to enable a bar code scanning right from a mobile device at any U.S. location, the site reports.

Details

Monster Offers mPayment Strategy Validated

Monster Offers mobile solutions company and Daily Deal aggregator announced its mobile payment strategy is perfectly positioned to meet the current needs of the Daily Deal industry. As Daily Deal providers converged at last week’s Deals 3D Conference in San Francisco, creating better mobile experiences and integrating mobile payment solutions prevailed as hot topics as the next phase of business development for the group buying industry. Monster Offers’ ZalaPay mobile payment solution proved to resonate with Daily Deal providers as current payment methods lack tight integration with providers’ sites and distracts users from completing the purchase process, especially from mobile devices. The ZalaPay solution provides a truly integrated “in-app” purchase experience for the user, resulting in significant conversion of sales for the deal publisher. Monster Offers’ mobile financial services include “EZ-Click” Mobile Cashier, Pre-Paid Debit Cards, P2P Mobile Money, Redemption, and Daily Deal Wallet.

Details

appMobi Enhances Security, Removes Credit Card Databases

appMobi unveiled its secure “cloudKey” authentication technology, and announced cloudKey’s immediate integration into appMobi’s 1Touch “single touch” payment system. 1Touch with cloudKey is ready for use by Web and mobile app developers who seek to offer their users a highly secure and streamlined e-commerce experience. The cloudKey technology takes a fresh approach to secure online commerce in which the user’s credit card information is stored only on the user’s device, never in an online database. The private data are stored using 256 bit Advanced Encryption Standard (AES) – the same encryption level approved by the NSA, widely regarded as “unbreakable.” The “1Touch” technology offers simple integration with any payment gateway such as PayPal, Authorize.net, and even direct carrier billing. 1Touch has been tested extensively and is compatible with all popular browsers, including Google Chrome, Firefox, Opera, Microsoft Internet Explorer versions 6.0 and later, and Safari. Like most cloud services, 1Touch is billed at a nominal fee per transaction, rather than a percentage of the transaction amount.

Details

Diebold to Deploy Situational Awareness Platform at World Trade

Diebold is managing the installation, integration and maintenance of a complex security software system for the new World Trade Center (WTC) site in New York City. The comprehensive Situational Awareness Platform Software (SAPS) system will collect, correlate and display information from a wide variety of the WTC site’s critical security systems, as well as provide identity management capabilities. These integration efforts will connect an array of systems to the WTC security command center via a single interface, giving operators unified control and views of the entire WTC site. The systems that Diebold will integrate are interspersed among 11 primary buildings and facilities, including five skyscrapers, the third-largest transportation hub in New York City, the National Sept. 11 Memorial and Museum, a retail venue, a performing arts center, a vehicle security center and critical infrastructure facilities.

Details

ACH Alert granted fraud prevention patent

ACH Alert has been granted a patent for its fraud mitigation system, including its “A.L.E.R.T.,” which goes well beyond a simple process of alerting an organization that an ACH transaction has been attempted. ACH Alert’s patented automated processes provide real-time protection for commercial and individual clients, simplifying the identification of trusted trading partners for the client independent of bank involvement and making the dispute resolution process a “lights out” proposition for the financial institution. The more restrictive ACH “debit block” results in a systematic return of any ACH debit that is presented and provides complete protection against unauthorized ACH debits, but also prevent a business from leveraging the cost-reducing benefits of ACH.

Details

Spark Response To Enjoy third PCI compliant year

Spark Response has embarked on its third year as a company compliant with PCI DSS, among the first contact centers in the Country to do so. Enhancing payment card data security, which include a framework of specifications, tools, measurements and support resources to help organisations ensure the safe handling of cardholder information at every step, Spark also provides contact center and fulfilment support to organisations including Toys R Us, Cancer Research UK, Straight Plc, Even Greener, Best Direct, Red Direct, FitFlop and Soap & Glory.

Details

MoneyGram Adds 1,103 South American Agent Locations

MoneyGram International added Bancolombia in Colombia; Banco de Credito in Peru, and Banco Vision in Paraguay for a total of 1,103 new agent locations, equating to 11,305 locations on the Continent. MoneyGram’s service will be offered in each Bancolombia location in Colombia, which accounts for more than 25% of the remittance business in Colombia and expects to gain market share by providing MoneyGram service. Banco de Credito Peru signed a multi-year agreement to provide MoneyGram’s service in its more than 335 locations. Meanwhile, Banco Vision has approximately 70 branches throughout the country and is one of the most recognized financial institutions among Paraguayans.

Details

Moneystar Appoints Citi Prepaid Services

Citigroup, through its Global Transaction Services unit, signed an agreement with Moneystar, which has subsequently started disbursing micro loans to eligible loan applicants using Citi’s Visa Prepaid Card. Global Transaction Services, a division of Citi’s Institutional Clients Group, offers integrated cash management, trade, and securities and fund services to multinational corporations, financial institutions and public sector organizations around the world. With a network that spans more than 100 countries, Citigroup’s Global Transaction Services supports over 65,000 clients. As of the second quarter of 2011, it held on average $365 billion in liability balances and $13.5 trillion in assets under custody.

Details

ReportsnReports Adds ATM Machine Market 2010-2014

TechNavio’s analysts forecast the Brazil ATM market to grow at a CAGR of 16 percent over the period of 2010-2014 thanks in great part to rapidly growing spending capacity. The ATM market has also been witnessing an increase in the preference for refurbished ATMs over newer ATMs, a market dominated by Diebold Inc., NCR Corp., Itautec, and Wincor-Nixdorf. The report focuses on the Brazilian market and covers only the market for ATM machines, excluding the market for solutions, services, and support for ATMs in Brazil.

Details

GuestLogix Renews PA-DSS Certification

GuestLogix has renewed its Payment Application – Data Security Standards (PA-DSS) compliance certification as part of the company’s investment to provide robust and secure payment processing to its customers. This lets GuestLogix offer payment solutions backed by current certifications that specifically apply to vendors and payment application developers. GuestLogix’ payment processes are validated to ensure consumers’ personal information stays protected from outside sources. Using an approved process to prevent security threats, PCI DSS-approved environments better protect credit card data, including card codes and values (CVC2, CVV2, CAV2, CID), PINs, and stripe data.

Details

HSBC customers can now donate through ATMs

HSBC and first direct customers can now donate vital funds to the Disasters Emergency Appeal DEC East Africa Crisis Appeal via their 3789 ATM machines nationwide. This brings the number of charities benefitting from this service through the bank’s ATM’s to seven. Last year over GBP341,623 was donated through the HSBC’s machines including GBP121,950 to the DEC Haiti appeal. This year GBP68,539 was donated to the British Red Cross Japan Tsunami Appeal alone. Gift Aid is an easy way for charities to increase the value of gifts of money from UK taxpayers by claiming back the basic rate tax paid by the donor. It costs the donor nothing, but as long as they are a tax payer, they could effectively increase the total amount they are donating to their charity of choice.

Details