MasterCard PayPass Enters the Fast Lane in Ohio

The Ohio Turnpike has launched a trial of contactless “Tap & Go” payments in selected exit lanes and service plazas. MasterCard has teamed with the Ohio Turnpike Commission, USA Technologies and Paywerks, to launch the “PayPass” test. It is the first toll road in the U.S. to accept payment cards for self-service, toll transactions. The Ohio Turnpike Commission is also the first to test general purpose contactless payment cards in a highway environment. This trial of “PayPass” on the Ohio Turnpike comes just after the announcements that USA Technologies and MasterCard were rolling out 6,000 new “PayPass” vending machine locations throughout the U.S in Philadelphia, New York City, Dallas, Chicago, Las Vegas, San Francisco, Los Angeles, Boston, Washington D.C., Denver, Seattle, Miami and Orlando.

Details

MetaBank and LoyaltyShare Clearinghouse Partner

SD-based Meta Payment Systems announced a partnership with CA-based Source, which is the founder of the LoyaltyShare Clearinghouse, to exclusively use the LoyaltyShare Clearinghouse for any and all of its loyalty programs and services to facilitate the expansion of the LoyaltyShare Industry and Meta’s market share. The Meta Payment Systems partnership adds a solution that will track loyalty transactions via the MasterCard(R) network and automatically report them to the LoyaltyShare(TM) Clearinghouse. Meta Payment Systems, a division of MetaBank, offers card issuing and program support to banks, processors, and third-party distributors seeking to develop, market, and manage stored-value cards. Source, Inc. is an owner of intellectual properties in the loyalty marketplace that has built the SCORE LoyaltyShare(TM) Network and LoyaltyShare(TM) Clearinghouse.

Details

Asset Acceptance Capital Adds New Counsel

MI-based Asset Acceptance Capital has hired Edwin Herbert as General Counsel. Herbert brings more than 30 years of legal experience to Asset Acceptance. Previously, he was an equity partner and a member of the financial institutions practice group at Shumaker, Loop & Kendrick, LLP, where he concentrated his practice on financial institution mergers and acquisitions, corporate governance, public company SEC reporting and public and private securities offerings. Asset Acceptance has provided credit originators, such as credit card issuers, consumer finance companies, retail merchants, utilities and others an efficient alternative in recovering defaulted consumer debt.

Details

Gemalto Powers Garanti Bank’s Smart Banking Cards

Gemalto is providing Garanti Bank with Europe’s first smart banking cards featuring EMV technology, loyalty schemes and the contactless payment capability. Gemalto has been a major supplier to Garanti Bank since 2000 and has already provided the bank with several million of its multi-application smart cards, which incorporate EMV-compliant credit functions and a loyalty program. Leveraging the success of this first deployment, Gemalto is now upgrading Garanti’s “BonusCard” with the “MasterCard PayPass” functionality to allow consumers to benefit from the speed and convenience of contactless at movie theaters, fast food restaurants and supermarkets. The loyalty program has attracted more than 1,000 brands with over 100,000 sales points as partner merchants to date. This loyalty network, together with over 5 million cardholders, makes “BonusCard” Europe’s largest multi-branded loyalty and credit card program.

Details

Fast Food on Plastic Tops $51 Billion in 2006

U.S. consumers will rack up more than $51 billion worth of fast food on their personal credit and debit cards this year, compared to $33.2 billion one-year ago. The increase is driven by merchant expansion and promotion of card usage, according to CardData ([www.carddata.com][1]). McDonald’s has increased payment credit acceptance from 3,000 locations in 2004 to 13,000 in 2005. McDonald’s has also geared up for contactless payments. The average QSR credit card ticket, based on the most recent VISA data, is $11.15. Americans spend about $160 billion per year in quick service restaurants.

QSR ON PLASTIC HISTORICAL
2000: $ 1.7 billion
2001: $ 3.7 billion
2002: $ 6.1 billion
2003: $12.9 billion
2004: $22.5 billion
2005: $33.2 billion
2006: $51.3 billion
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

Details

Cadbury Schweppes Offers PayPass Vending Machines

Cadbury Schweppes, USA Technologies, and MasterCard announced that Cadbury Schweppes vending machines will be among the 5,000 vending machines to be equipped with “PayPass”. To use the e-Port cashless payment technology, consumers simply tap their MasterCard PayPass-enabled credit card or device on the e-Port terminal. Within seconds, the terminal will flash a light and produce a tone signaling the transaction is complete. As with all MasterCard PayPass transactions under $25, no signature will be required. MasterCard Worldwide advances global commerce by providing a critical economic link between financial institutions, businesses, cardholders and merchants worldwide. Cadbury Schweppes Americas Beverages (CSAB) is one of the largest producers of soft drinks and premium beverages in the Americas. USA Technologies is a leader in the networking of wireless non-cash transactions, associated financial/network services and energy management.

Details

Bank of the Sierra Signs with First Data

Bank of the Sierra has signed a new revenue sharing alliance agreement with First Data Merchant Services Corporation for the spring 2007.. The agreement also expands Bank of the Sierra’s merchant support network by adding dedicated First Data sales executives throughout Bank of the Sierra’s markets. Bank of the Sierra operates as the largest community independent bank headquartered in Southern San Joaquin Valley’s Heartland. First Data Corp. (NYSE: FDC) is a leading provider of electronic commerce and payment solutions for businesses worldwide.

Details

VISA Omnibus Survey Finds Mums Need a Gift Card

A new study has found that 11% of Americans expect to spend as much as six or more hours in search of just one gift. According to the omnibus survey, commissioned by VISA USA, significant others and moms are the most troublesome on holiday shoppers♠lists, and the majority of Americans expect to spend up to three hours researching, shopping and buying a single gift. According to the survey, nearly half of the men said a spouse or mom would be the most challenging to buy for, compared with only about a quarter of their female counterparts; women had a harder time shopping for children than men did (22% of women selected a son, daughter or teen, compared with only 8% of men); and more women versus men said their in-laws were tough to buy for (14% of women; 9% of men).

Details

Sony & Nintendo War Drives 2006 Holiday Sales

Driven by strong sales of Sony’s “Playstation 3” and Nintendo’s “Wii” interactive gaming console, Americans are on track to use general purpose credit/debit cards and store credit cards to charge more than $135 billion in retail sales this holiday season. December 23rd will likely be the busiest shopping day of the season followed closely by December 22nd. While overall spending via all payment means is rising between 5.0% and 7.5%, the figure for payments cards will increase about 12.3% above last year. Signature debit card use is expected to soar by more than 25% while store credit cards will generate fewer sales this year, about 5% less. Credit card volume is running about 11% above last year. Consumers will likely rack up more than $85 billion in holiday sales on VISA, MasterCard, American Express and Discover credit cards.

Holiday Card Volume
(five weeks ending 12/25)
2004 2005 2006 Gain
Credit: $ 73.6 b $ 77.1 b $ 85.9 b +11.0%
Debit: $ 24.2 b $ 28.2 b $ 35.3 b +25.2%
Store: $ 16.0 b $ 14.7 b $ 13.9 b -5.4%
TOTAL $113.8 b $120.0 b $135.1 b +12.3%
Source: CardData (www.carddata.com)

Details

First Data Expects 34 Cents per Share for Q4

First Data expects fourth quarter earnings to be $0.33-$0.35 per share. For the full year 2006, the company expects to earn $1.08-$1.10 per share excluding items of $0.02, or $1.06-$1.08 per share from continuing operations on a GAAP basis. For the full year 2007, First Data announced that it intends to generate strong earnings per share from continuing operations of $1.20-$1.26, while making significant investments in the business that support its long-term strategy. First Data Corp. (NYSE:FDC) is a leading provider of electronic commerce and payment solutions for businesses worldwide.

Details

Wright Express Inks Imperial Oil Fleet Card Deal

ME-based Wright Express has signed a 10-year renewal agreement to provide private label fleet card services for Imperial Oil of Canada. The Imperial Oil fleet card programs, which includes Tiger Pro, Tiger Pro Plus, and Esso Business Card, provide small and large commercial and government fleet customers with customizable fleet reports, and convenient Imperial Oil Fleet Online account management, through the added convenience of Imperial Oil’s national network of approximately 2,000 Esso fueling locations throughout Canada. Imperial Oil is one of Canada’s largest corporations and a leading member of the country’s petroleum industry. Wright Express is a leading provider of payment processing and information management services to the U.S. commercial and government vehicle fleet industry.

Details

FDC Renews Processing Deal with Lloyds TSB

First Data has inked a renewal of a major processing agreement with Lloyds TSB in the United Kingdom. One of the UK’s foremost retail banks, Lloyds TSB has been a client of First Data International since 1991. Today, First Data processes the bank’s UK credit card portfolio, as well as providing a range of customer facing and back office services. The new seven year agreement, effective 2008, between Lloyds TSB and First Data includes conversion of the Lloyds TSB card portfolio to First Data’s market-leading “VisionPLUS” processing platform.

Details