E-payment processor ACM Payment Processing Solutions is partnering with card payment solution provider 3Delta Systems to expand and enhance payment services for approximately 19,000 business credit and financial professionals who belong to the MD-based National Association of Credit Management (NACM) and its network of Affiliated Associations.. Under the joint agreement, NACM will continue to exclusively market ACMâs solutions to its vast membership base. ACM will offer its suite of payment processing products along with those of 3Delta Systems so that NACM members get the best combination of low cost, security, flexibility and ease of use for processing payments â whether on paper or electronically. Now, NACM members who use 3DSIâs web-based processing gateway will automatically comply with Payment Card Industry Data Security Standards (PCI DSS), and those who include detailed, Level-3 line-item information with their credit and purchase card transactions will also qualify for the lowest possible interchange rates.Details
Electronic payment consultants Global Vision Group has tapped Marc Perl, previously with Visa, as Senior Consultant in the Business and Risk Strategy Practice. Perl is an electronic payments industry expert with over 30 years of experience in risk management, processing, encryption and software development. Prior to joining GVGroup, Marc spent 20 years at Visa Inc. where he developed and managed the Cardholder Information Security Program (CISP) for the Payment Card Industry Data Security Standard (PCI DSS). In addition to Marcâs work on PCI-DSS at Visa, he also managed Visaâs Integrated Debit platform and designed, managed and implemented Visaâs Integrated Debit PIN encryption technology known as Derived Unique Key Per Transaction (DUKPT). Prior to Visa, Perl spent four years at the Bank of America developing bankcard solutions and has consulted to organizations as varied as Jet Propulsion Laboratories to Total Systems Acquiring Solutions and others.Details
The uptick of credit card delinquencies for U.S. credit card asset-backed securities is setting the stage for record charge-offs for 2010. However, gross yield, the measure of interest, fees and interchange revenue collected on outstanding balances, continued to increase reaching 20.21%. Fitch’s latest “Credit Card Performance Indexes,” which tracks the performance among most of the U.S. credit card-backed bonds, shows late payments rising to their highest levels in six months. Measured by Fitch’s 60+ day delinquency index, late payments rose 13 basis points in November to 4.54% following a similar increase last month. Charge-offs crept up to 10.68% from 10.09% in the prior month but remained inside of the record high of 11.52% set in September 2009. From 4Q/08 through 2Q/09, Fitch’s delinquency index rose 42% as the economic environment and employment situation worsened. Charge-offs subsequently peaked in 3Q/09 with Fitch’s index reaching 11.52% in September 2009 before receding in recent months. Monthly payment rates, a measure of how quickly consumers are paying off their card balances, fell to 17.64% from 18.57% last month. These MPRs are low compared to 2006 and 2007 when the MPR index routinely topped 20%, but are still strong compared to the average MPR of 16.00% since the inception of the index in 1991.
ABS 60+ DAY DELINQUENCY
Jan 09: 4.04%
Feb 09: 4.33%
Mar 09: 4.44%
Apr 09: 4.37%
May 09: 4.45%
Jun 09: 4.31%
Jul 09: 4.26%
Aug 09: 4.06%
Sep 09: 4.22%
Oct 09: 4.41%
Nov 09: 4.54%
After cooling-off in November bankruptcy filings resumed an upward trend, rising 33% year-on-year in December. Overall consumer filing total for the 2009 calendar year topped 1.4 million, compared to the 1.1 million total consumer filings recorded during 2008. There were 113,274 consumer filings in December, according to the American Bankruptcy Institute, relying on data from the National Bankruptcy Research Center. Despite the drop in the previous month, the December filings represented a 1% increase over the 112,152 consumer filings in November. Chapter 13 filings constituted 28% of all consumer cases in November, unchanged from the October rate. Annual consumer filings have increased each year since the “Bankruptcy Abuse Prevention and Consumer Protection Act” was enacted in 2005. The ABI/NBKRC data showed that the overall consumer filing total for the 2009 calendar year (Jan. 1 â Dec. 31, 2009) reached 1,407,788 compared to the 1,064,927 total consumer filings recorded during 2008.
Dec 08: 84,926
Jan 09: 88,773
Feb 09: 98,344
Mar 09: 121,413
Apr 09: 125,618
May 09: 124,838
Jun 09: 116,345
Jul 09: 126,434
Aug 09: 119,874
Sep 09: 124,790
Oct 09: 135,913
Nov 09: 112,152
Dec 09: 113,274
Source: ABI/NBKRC; CardData.com
A new website, Credit Card Connection, is now live and will provide consumers alternative credit
card options in response to unfair and unethical practices recently
implemented by major bank card issuers. Consumers enter their ZIP code and a listing of credit unions with fair
and ethical credit card programs will appear. Each credit union’s credit card
program is rated on a five star rating system: interest rates not to exceed 18%, no
balance transfer fees, no penalty pricing, no annual fees and late fees which will never
exceed $25. Consumers can choose the credit union and card program which best suits
their own card usage needs. Credit Unions must sign up to be listed and do not pay
a fee for inclusion on the site. Card Analysis Solutions was created in 2003 to assist credit unions in
understanding the perceived complexities of card-program management.
Gemalto has been working with its German customers on investigating and fixing issues surrounding cardholders’ inability to conduct payment transactions at ATMs and POS terminals following the onset of 2010. In doing so, Gemalto and the German banks are actively developing a corrective process that avoids the replacement of the affected cards in Germany. At this stage, according to Zentraler Kreditausschuss – the German Central Credit Committee –acceptance of the concerned cards by the ATMs and POS terminals is widely re-established in the country. Gemalto digital security had 2008 annual revenues of EUR1.68BB and 10,000 employees operating out of 75 offices, research and service centers in 40 countries.Details
Pivotal Payments has acquired POS Card Systems and National Credit Card
Processing from Vision Bankcard. Increasing Pivotal Payments’ merchant
portfolio to 40,000 merchants to add over 30 independent sales agents
and 120 agent bank branches to its expanding sales channels, the
acquisition is the Company’s sixth for a subsequent growth of 280
employees and 600 sales agents. The company now services over 40,000
merchants in both the U.S. and Canada and processes over $7 billion in
annual transaction volume. Pivotal Payments is a privately held
merchant services provider with offices across North America.
The Financial Services Information Sharing and Analysis Center will hold a nationwide cyber
attack simulation exercise to test the ability of financial institutions and businesses to respond and
recover from major cyber attack incidents. The Cyber Attack against Payment Processes (CAPP) Exercise scheduled for
February 9 – 11, 2010, will present a new attack scenario to
participants on each of the three days. Participants will activate
their own internal response procedures based on the scenario received,
and will complete an anonymous survey provided with the scenario to
evaluate their emergency response. At the conclusion of the exercise,
FS-ISAC will share the aggregated data with participants and identify
key lessons learned, areas for improvement, and recommended best
Business financial service marketplace Transparent Financial Services has launched “TransFS Credit Card Processor Directory” website to research, rate and review credit card processors.
The TransFS.com Credit Card Processor Directory dramatically simplifies this process by aggregating information about processors’ own websites, BBB ratings, message boards and discussions with fellow business owners into a single place, and making it simple to sort, filter, and compare processors side-by-side. The directory is available free of charge at www.TransFS.com. Also available at TransFS.com is the company’s free credit card comparison shopping service, through which business owners can reduce their merchant fees by an average of 40%.
Gemalto digital security has increased its capital investment in Netsize
with an option to potentially acquire the company outright at a later
date. Founded in 1999, Netsize offers mobile payment solutions based on
operator billing for 100 mobile operators in 28 countries, reaching over
1 billion billable subscribers worldwide to provide mobile messaging
through SMS and MMS delivery to over 200 countries. Prior to this
capital increase, Gemalto already held 24% of Netsize, which is
headquartered near Paris, France, employs approximately 180 people and
will continue to operate as a stand-alone company within the Gemalto
Group. Gemalto digital security had 2008 annual revenues of EUR1.68
billion, and 10,000 employees operating out of 75 offices, research and
service centers in 40 countries.
Mobile alternative payment provider mPayy has introduced the âmPayy Mobile Paymentsâ app for iPhone and iPod Touches.
All mPayy Personal and Business accounts may use the iPhone application
to make and receive person-to-person payments, track activity, and
withdraw funds from their mPayy accounts to linked bank accounts.
Business account holders are also able to issue refunds for any sale
through the application, even if it occurred on their website.
Once members open Business accounts, they will be able to generate their
own API key to unlock mPayy’s payment services, and add secure debit
payments to their online or mobile websites and applications. API keys
may be used to authorize one-time or recurring billing subscription
payments for digital content and other services. Merchants can receive
mPayy members’ shipping information via additional service calls to
fulfill orders conducted through its online and mobile payments service.
First American Payment Systems merchant credit card processing acquirers
has inked a deal to buy Vancouver-based IATS (International Automated Transaction
Service) payment processing company, a division of Ticketmaster Canada. The firm is a provider of integrated end-to-end donation processing
solutions for nonprofit organizations. This makes First American one of
the industry leaders in the nonprofit payment processing sector,
well-positioned to penetrate the nonprofit industry with electronic
processing solutions. The acquisition will also accelerate development
of new products and donation processing services, as IATS
currently provides payment processing solutions to more than 9,000
nonprofit organizations in the United States, Canada, United Kingdom,
Europe, Australia, Hong Kong and New Zealand designed to help nonprofit
organizations save time and money on fundraising solutions.