A new report from Aite Group suggests small-business credit card payment behavior can assist financial institutions attempting to segment small-business customers for insight into the size-behavior correlation. Unlike segmenting small business based on revenue, which is not always a good predictor of financial product needs nor is it very accurate, segmenting businesses based on purchasing behavior with payment cards provides an accurate depiction of business’ size, annual sales, habits and preferences. Aite says identifying the type of card a customer uses for business purchases can enable a cash management product offering to be specifically targeted to a customer’s needs.Details
GA-based AirDefense has partnered with Motorola to debut its series of PCI compliance podcasts, sponsored by the Stratix Corporation. The series of podcasts will feature Dr. Amit Sinha, AirDefense’s CTO, and Mark Self, Motorola’s VP of retail solutions, who will both examine payment card industry data and security compliance across the retail Industry. Stratix Corporation is a mobile systems integrator for supply chain solutions, Motorola provides wireless and broadband communications around the world with a 2006 sales of US $42.8 billion while AirDefense provides wireless security across various industries, serving 700 agencies and corporations.Details
Fair Isaac has introduced a new anti-fraud solution that employs the same mathematical techniques used in missile interception to identify fraudulent activity, and can react according to user-defined business rules in just 200 milliseconds. The new “Falcon Transfer” was designed to meet the challenges of the UK’s “Faster Payments” initiative. Fair Isaac says criminals will try to exploit the real-time
speed of “Faster Payments” as banks will take “Standing Orders”
up to GBP 100,000, irrevocably processed “24/7/365.” “Falcon Transfer” was created by expanding on the proven capabilities of Fair Isaac’s “Falcon Fraud Manager,” which monitors more than 1.5 billion
active payment cards worldwide. Fair Isaac’s modeling technology supports rapid data analysis and non-linear modeling of transactions to spot anomalies in behavior which could point to fraud. Falcon Transfer also reviews both the sender’s and receiver’s account profile.
Visa has introduced a new card product to give corporate expense managers the most cost effective method for managing meetings and related expenses. The new “Visa Meetings” card includes the features of the existing “Visa Purchasing” and “Visa Corporate” payment cards. The new card builds upon a strategic alliance with Arcaneo to integrate “Visa Meetings” card transaction data into Arcaneo’s “Metron” strategic meetings management system. Web-based data and reporting tools available through Visa Information Management, an integral component of the Visa Meetings card, further improves company visibility into meetings spending. These tools provide access to transaction details and e-folio data from hotels, airlines, car rental agencies and other suppliers through easy-to-read reports, expense reporting tools, cardholder statements and file extract capabilities. According to research by the Aberdeen Group, surveyed companies spent on average nearly three percent of their annual revenues, or $17.3 million, on meetings-related expenses during 2007.Details
First Data’s e-commerce and payment service has signed a 5-year card
processing agreement with Kotak Mahindra Bank, ensuring a greater
presence in India. The agreement requires First Data to provide
processing services for Kotak’s unsecured lending portfolio, which
includes credit cards and loans, and client services support through the
First Data Mumbai offices. The First Data services will provide Kotak
Mahindra Bank speed to market by implementing the processing
infrastructure within four months. First Data has operations in 37
countries serving over 5.4 million merchant locations and 2,000 card
issuers while Kotak Mahindra has a net worth of over Rs. 5,609 crore and
17,000 employees serving 3.6 million customer accounts.
A new survey has concluded that American Express, Discover, MasterCard and Visa gift cards have crossed the threshold from an impersonal gift to one that is preferred by recipients and shared among close friends and family members in high numbers. The Network Branded Prepaid Card Association also found that more than 90% of respondents expressed enjoyment at the freedom to choose their perfect gift and 75% suggested they prefer to pick out their own gifts when given a choice; about 64% suggested that gift cards are better than traditional gifts and 50% thought that gift cards are better than receiving cash; only 7% of respondents felt that they received too many gift cards. The NBPCA says 29% of the population received at least one branded gift card during the 2007 holiday season and the average load on the card was $116. The association predicts a growth rate for 2008 of 137%.Details
Metavante Technologies prepaid and debit card processing has been
granted “Payment Application Best Practice” (PABP) certification from Visa Europe for both its card issuing and transaction acquiring,
conducted by the first of payments software vendors to have received the
certification. This development confirms Metavante Technologies meets
industry standards for cardholder data security on the necessary
platform for PCI DSS, the comprehensive payments industry security
standard ensuring customer account protection. The audit of the
Metavante Technologies “CORTEX” card processing software platform, which
provides banking/payments technologies to over 8,000 businesses
worldwide, was conducted by qualified security assessor of PCI
compliance, Ambersail Ltd.
UATP has announced its further expansion in Brazil with the addition of
GOL Transportes Aereos as a new merchant and the first Brazilian airline
to accept UATP payment through its website. With this development, GOL
is catering to the demands of corporate travelers with the availability
of this internet payment option and fulfilling its strategy of
profitable growth with low cost structures and high quality customer
service while UATP has achieved a higher Brazilian market share. UATP is
currently accepted by airlines and travel agencies worldwide while GOL
Transportes Aereos offers travelers over 640 daily flights to 57
destinations with its fleet of Boeing 737 aircraft.
Diebold has signed agreements to provide Union Bank with 120 of its
“Opteva 520” lobby cash dispenser ATMs for Nigerian banking customers.
Union Bank, one of the largest banks in Nigeria, has nearly 400 branches
nationwide and will increase its presence across the country with this
development. Diebold, meanwhile, provides integrated self- service
delivery and security system solutions with its more than 17,000
employees and representation in nearly 90 countries.
In Monday’s CardFlash the first story regarding U.S. debit cards was incorrect as VISA’s fourth quarter 2006 figure was posted as $205 billion when the correct figure was $230 billion. We regret the error. The correct headline is “U.S. Debit Card GDV Growing by 14%” instead of “U.S. Debit Card GDV Growing by 23%.” The corrected summary appears below:
VISA’s dominance in the U.S. debit card market continues as it maintains its market share at 73% in 4Q/07. Overall off-line and PIN gross dollar volume (GDV) for VISA and MasterCard debit cards is growing at an annual rate of 14%. In the fourth quarter VISA and MasterCard posted $358 billion in GDV compared to $315 billion in the year ago quarter, according to CardData ([www.carddata.com]). Sequentially, debit card GDV rose 5%. VISA reported $261 billion in fourth quarter GDV while MasterCard posted $97 billion. In the first quarter MasterCard reported that its debit card GDV rose 16% to $104 billion. VISA’s first quarter data will be released in the third quarter.
VISA/MASTERCARD DEBIT GDV
VISA MASTERCARD TOTAL
4Q/06 230 85 315
1Q/07 226 90 316
2Q/07 248 92 340
3Q/07 249 92 341
4Q/07 261 97 358
Source: CardData (www.carddata.com)
Equifax has acquired a 70% share increase in Credit Report C.A. Buro de
Informacion Crediticia in Ecuador, for a 95% total ownership of the
Ecuadorian bureau. Equifax, in addition, was a founding member of the
Credit Report C.A., which was established in 2004 and has recently
proved useful given Ecuadorian consumer lending was up by 15% in 2007.
This increased investment in the bureau is part of Equifax’s strategy to
expand its global presence beyond the 14 countries around the world in
which it currently operates. Equifax has provided consumer and business
credit intelligence for over 100 years and employs nearly 7,000
associates across the globe.