H.R. 5244 to Limit Consumer Credit Options

ABA President Edward Yingling has issued a statement conveying the Association’s disappointment with H.R. 5244 “Credit Cardholders’ Bill of Rights.” In detailing the concerns, Yingling states, “In its current form this bill seeks to lock into law restrictions on fundamental risk management activities, the way interest is calculated, and other responsible business practices. The result will be higher costs for consumers, reduced access to credit for those with an imperfect or limited credit history, and less access to low credit options”.

Details

Retail E-Commerce Growth Rates Soften

A monthly survey has found that retail e-commerce is slowing down.
comScore data reflect year-over-year growth rates up 15% in April, up
12% in May and up 11% in June for total U.S. online retail sales of
nearly $31 billion. Among the most popular retail items are video games,
consoles & accessories with a sales volume for the quarter 73% higher
than that of the year ago period. Additional figures show sales of
furniture, appliances & equipment were up 65%, home & garden supplies
were up 23% and event tickets were up 22%. The sale of jewelery,
computer and flowers, however, declined 10%, 10% and 11%, respectively.
comScore specializes in measuring the digital world.

Details

PAYPAL TOP UP VISA

Online payment provider PayPal is launching its “PayPal Top Up”
reloadable Visa card. Although useful
in brick-and-mortar retail stores, the card is ideal for consumers
without credit or debit cards who want to conduct retail transactions
online. Available nationwide after August 1st, 2008, the “PayPal Top Up
Visa” costs an initial fee of GBP4.95, can be topped up online in 3
clicks through the PayPal website and can also be reloaded offline at
Post Offices and PayPoint retail outlets. PayPal allows merchants to
sell their goods online for a safer, easier way to pay and get paid
online for over 141 million users in 190 markets.

Details

Adventity and FMT to Fight CNP Fraud

Business process outsourcer Adventity and Web application security provider FMT Worldwide have partnered to
develop an end-to-end managed service solution to combat“card-not-present” fraud.
The solution will combine Adventity’s leading analytics and process
management capabilities with “FMT Octopus” front-end
infrastructure layer plug-in that provides Web application security and
enhancement. Adventity will build business intelligence into FMT
Octopus based on
analysis of historical data of customer profiles, transaction behavior,
and associated fraud and genuine transaction patterns. Adventity’s
“Risk & Fraud Management Analytics” practice has
worked with leading banks, card processors and financial institutions
globally to provide quantitative risk solutions such as application,
behavioral and collection scorecards for credit risk management, loss
forecasting, risk-based pricing and fraud management. According to
APACS, the UK payments association, UK card-not-present
fraud losses increased by 37 percent in 2007 and accounted for more than
half of the £535 million card fraud losses last year.

Details

PayPal Launches a Top Up Visa in the U.K.

Online payment provider PayPal is launching its “PayPal Top Up”
reloadable Visa card in the U.K. Although useful
in brick-and-mortar retail stores, the card is ideal for consumers
without credit or debit cards who want to conduct retail transactions
online. Available nationwide after August 1st, 2008, the “PayPal Top Up
Visa” costs an initial fee of GBP4.95, can be topped up online in 3
clicks through the PayPal website and can also be reloaded offline at
Post Offices and PayPoint retail outlets. PayPal allows merchants to
sell their goods online for a safer, easier way to pay and get paid
online for over 141 million users in 190 markets.

Details

EPX Names a Director of Bank Alliances

DE-based Electronic Payment Exchange has appointed John Coleman as
Director of Bank Alliances. Coleman will provide EPX’s innovative
payment processing services to banks and Independent Sales Organizations
(ISOs) in the U.S. and internationally.
EPX will offer “BuyerWall” payment processing platform to
banks and ISOs. BuyerWall is the patent-pending cardholder data
protection system exclusively offered by EPX that enables merchants to
eliminate data breach liability, while also allowing the merchant to
retain complete control of the customer experience. For banks and ISOs,
BuyerWall will provide cardholder data security protection to their
customers and clients, while dramatically reducing their time and
expense associated with achieving Payment Card Industry (PCI) Data
Security Standards.

Details

CTRIP & PAYPAL

Travel service provider Ctrip.com International has entered into a
strategic agreement with PayPal, the largest online payment platform in
the world. Under this agreement, foreign nationals now will be able to
book air tickets on the website of Ctrip by paying with PayPal. This
will facilitate Ctrip to attract overseas customers. Statistics from
the Beijing Tourism Administration show that the growth
rate of overseas tourists coming to the city has been over two digits in
the six years since 2001 when Beijing was granted the right to host the
2008 Summer Olympics, and the city is expected to receive 4.6 million
foreign tourists in 2008.

Details

Concur Board Adds an AmEx Executive

Employee spend management specialist Concur has appointed Ed Gilligan,
vice chairman of American Express,
to its board of directors. Gilligan’s appointment is in conjunction
with American
Express’s equity investment in Concur. Gilligan is a member of
American Express’s Operating Committee, which is responsible for developing
the strategic direction for American Express and determining policies
affecting the company overall. Ed joined American Express in 1980 while
studying for his BS in Economics and Management at New York University. He
began his full time service with the company in 1982. He was named a vice
president of Business Travel in March 1988. He went on to become a senior
vice president of Commercial Card and Business Travel for the Eastern
Region of the United States in June 1992. He assumed the role of business
unit president for Commercial Card and Business Travel for the United
States in June 1995. In June 2002. Ed was named one of two group presidents
at the company, overseeing the international consumer card business and the
global portfolio of payment and travel services offered to corporate
clients worldwide.

Details

FICO 08 Restores Authorized User Accounts

With over 50 million U.S. consumers authorized users on another’s credit card, Fair Isaac has released methodology for restoring authorized user credit accounts to the calculation of “FICO 08” credit scores while reducing potential impact to the score from tampering. Using its own patent-pending technology, “FICO” has introduced the methodology to help protect scores from credit repair and help lenders meet legal requirement of the Equal Credit Opportunity Act. Fair Isaac’s Decision Management solutions combine trusted advice, world-class analytics and innovative applications to give organizations in 80 countries the power to automate, improve and connect decisions across their business, namely with its FICO score introduced in 1989.

Details

Credit Managers Index Rebounds Slightly

The seasonally adjusted “Credit Manager’s Index” rebounded slightly in July at 50.9. For the combined index, six of the 10 components fell and six remain below 50. The CMI survey asks credit managers to rate favorable and unfavorable factors in their monthly business cycle. Favorable factors include sales, new credit applications, dollar collections and amount of credit extended. Unfavorable factors include rejections of credit applications, accounts placed for collections, dollar amounts of receivables beyond terms and filings for bankruptcies.

Details

Metavante and NPN Into CustomPay

Metavante and auto loan acceleration provider National Payment Network
are now offering National Payment Network’s “CustomPay”.
“CustomPay” is designed to help borrowers customize the timing of
auto loan payments, accelerate loan payoffs and help build equity
faster, deploys a dynamic financial engine composed of multiple
Metavante payment components. Through its use of Metavante prepaid,
ACH and online bill payment solutions,
“CustomPay” differentiates itself from other loan acceleration programs
and delivers added value for dealers, distribution partners and
consumers. The model for many loan acceleration programs includes trust
accounts, which are typically owned by the administrator and co-mingle
consumer funds. Metavante ACH, online
bill payment solutions and prepaid debit accounts are unique to
each individual customer which enables consumer funds to be held
individually as opposed to co-mingled.

Details

Universal Debit/Credit Names a New President

VA-based ISO Universal Debit & Credit
Corporation announced that co-founder Lonnie D. Gaddy, III is retiring
and CEO Carlos Gavidia will assume the title of President. Gavidia and
Gaddy co-founded the organization in 1994. Together they
led the company to 15 years of continued growth, revenue generation and
development into one of the nation’s leading payment processing
specialists.

Details