A new survey shows that the number of online credit card applications submitted by “subprime” (FICO Greater than 660) applicants increased by 30% in the first quarter versus the same period last year. Meanwhile, the number of applications submitted by “prime” applicants declined by 16%. comScore says its survey also found that the number of searches for the term “cash advance” more than doubled, while the number of searches for the term “foreclosure” jumped 68%. Other terms that have increased in search volume include “credit card” (up 20%), “mortgage” (up 13%), and “bad credit” (up 9%).Details
Innovative Card Technologies has established a procurement agreement with Gemalto for Innovative’s “InCard DisplayCard”. The InCard DisplayCard integrates the security of a one-time passcode (OTP) token directly into a card the size of a standard credit or debit card. At the push of a button on the card, a one-time passcode is shown on its integrated display. During an online transaction, this number is entered into a user interface with other information such as the user’s login name and static PIN for multifactor authentication. Gemalto will make custom client-branded InCard DisplayCards a part of its current solution portfolio. The cards are being marketed to large enterprise and financial institutions as dual-factor authenticators for a wide range of data access and customer transactions at multiple points of access such as online, ATM, or by phone.Details
A new report released shows that the three best Web sites overall for small business cards are Discover, American Express, and Advanta. Change Sciences Group says its research found that the site that makes it easiest to understand its card offer does so in 29% less time than its closest competitor and the site that makes it easiest to apply requires 55% less effort than the average site. The research, conducted over the last month, looks at what small business people experienced on 14 top card web sites as they attempted to find a card that met their needs and begin doing business with the card company.Details
Fraud protection services 41st Parameter “FraudNet” has been selected by Continental Airlines to detect and thwart “Card-Not-Present” fraud in its online sales channels. “FraudNet” identifies legitimate versus suspect website transactions on a global basis, as well as to prevent fraudulent account access, enabling the airline to protect sensitive customer data. The “FraudNet” solution provides detection tools on a single workbench, thereby decreasing investigator training times and reducing the volume of manually reviewed transactions and allows airline investigators to identify interlinked activities and report genuinely fraudulent cases to law enforcement bodies.Details
MetaBank has selected data security solution provider Vormetric’s “Data Security” to encrypt and protect sensitive personal and financial information on customers and credit card holders to meet PCI-DSS compliance. “Data Security” encrypts SQL Servers storing sensitive data based on ease of implementation, transparency, performance and centralized policy and key management. PCI DSS mandates include data encryption, protection of stored cardholder data, detailed auditing and logging of all access attempts, and controls on those who are authorized to view or work with the data. Vormetric Data Security meets PCI DSS and protects valuable information wherever it is stored within the enterprise.Details
U.S. Bancorp reported that its second quarter merchant acquiring volume grew more than 6% over 2Q/07 to $66.9 billion, produced from 857,070 merchants. However, credit card charge-offs rose to 4.84% for the second quarter, compared to 3.56% for 1Q/07 and 3.93% for the prior quarter. Merchant processing services revenue was higher in the second quarter than 1Q/07 due to higher core transaction volume and business expansion. Credit and debit card revenue, corporate payment products revenue, ATM processing services and merchant processing services were higher in the second quarter by $36 million or 16%, $15 million or 9%, $11 million or 13% and $23 million or 8%, respectively. U.S. Bancorp also noted that the Company’s results for the first quarter were also affected by several significant items, including a $492 million gain related to the Visa Inc. IPO that occurred in March, $253 million of impairment charges on structured investment securities purchased in the fourth quarter, a $62 million reduction in pretax income related to the adoption of a new accounting standard, a $25 million contribution to the U.S. Bancorp Foundation and a $22 million accrual for certain litigation matters. For complete details on U.S. Bancorp’s 2Q/08 performance, visit CardData ([www.carddata.com]).
MERCHANT ACQUIRING VOLUME HISTORICAL
Source: CardData (www.carddata.com)
Montise plc has appointed Jan Verplancke, Chief Information Officer for
Standard Chartered Bank, to its board as a non-executive Director.
Citing his wealth of experience and understanding of the latest
developments and trends in international banking/payments, existing
Montise executives feel Jan is a perfect fit on the board. Verplancke
joined Standard Chartered in March 2004, responsible for all systems
development, technology support and banking operations, following his
role as CIO-EMEA for Dell where he achieved considerable cost reduction,
process improvement and expansion into new markets.
Upaid, the international mobile payments specialist operating since 1997
and headquartered in the UK, has made available its “RechargeBrazil.com”
online service. Providing Brazilians living in the U.S. an option to
top-up phones of relatives back home through PayPal,
“RechargeBrazil.com” is Upaid’s first of online services. Moreover, the
service is available for the top-up of phone service on numerous
Brazilian mobile operators such as Vivo, Claro, TIM, Telefonica,
Embratel. For Brazilian Portuguese speakers, Upaid has made available
the “RecargaBrasil.com” counterpart website while the PayPal option
allows users to send phone credit to family and friends in Brazil by
entering the mobile operator, location and telephone number of the
person to whom they wish to send the credit.
London-based International trade association Prepaid International Forum announced the launch of an accreditation initiative for member programs that will create an international standard for growth in prepaid commerce. The accreditation process will apply initially to members’ issuer programs and will be correlated with PIF’s “Issuer Code of Conduct.” Other industry participants will be included in the accreditation scheme in due course. Compliant organizations will receive an accreditation certificate and a licence to use a PIF accreditation symbol on any marketing materials. PIF retains the right to review and withdraw accreditation and will carry out an annual audit of accredited programs. Continued accreditation will be dependent on full compliance with PIF published standards, codes and guidelines. PIF has recently established chapters in Australia and New Zealand and Latin America and in January announced that it had set up a new Transport Working Group.Details
PA-based Select-A-Branch ATM Network will outsource customer surcharge-free ATM locations for the US Postal Service FCU. S-A-B ATMs are equipped with the company’s patent-pending software, which allows multiple financial institutions to deliver branded transactions through each S-A-B ATM. When the card holder of a participating institution swipes their card they are instantly presented with transaction screens branded with the logo, colors and marketing messages of that particular institution. The surcharge is then shifted to the institution, resulting in a surcharge-free transaction to the card holder.Details
TransUnion has launched its “Payment Behavior Score” solution to assess
risks throughout a consumer life cycle. In doing so, the new analytical
tool predicts payment behaviors and designs programs specifically for
segmented consumers’ affordability risk levels. This, in turn, will
afford Transunion clients the strengthening of relationships with
cardholders and enhance the portfolio management strategy. “Payment
Behavior Score” is being introduced in addition to other TransUnion
services, including “Credit Management Score” and Personal Loan Score,
while the organization itself was founded in 1968 and has employees in
25 countries on five continents.