U.S. Bank Lands Coll for Card Businesses

U.S. Bank has named Patrick Coll, former chairman and CEO of Fleet Bank Credit Card Services, to the position of EVP of retail payments, overseeing the company’s consumer credit, debit, stored value and prepaid card businesses. Coll brings nearly 35 years of banking, marketing and card industry experience to the position. He most recently founded Percolate, which is a marketing services company, and prior to that was chairman and chief executive officer of Fleet Bank Credit Card Services, where he had been since 1998. U.S. Bancorp (NYSE:USB), with more than $213 billion in assets, is the 6th largest financial holding company in the United States.

Details

INSIDE FUNDING

After raising more than $10 million last year from a group of investors that included VISA International, INSIDE Contactless has closed a new round of funding of $25 million. The new funding will accelerate the development of its payment and near field communication businesses as well as expand its presence in Asia and the U.S. The round of funding was led by Granite Global Ventures. The other new investor for this round was EuroUs Venture. Current investors who contributed to half of the total amount of this round led by Sofinnova Partners, now the largest shareholder, include Vertex Venture Capital, Vertex Management, GIMV, and Siparex Ventures.In 2005, INSIDE raised $10.6 million from Sofinnova, Vertex Venture Capital, GIMV, Siparex Ventures, and VISA International.

Details

PayPass Wristband Pilot Set for this Week

This weekend MasterCard Worldwide will launch its first pilot of a “PayPass” wristband. The new contactless payment wristband will be given to the first 5,000 fans entering Giants Stadium on September 10th. The wristbands will be pre-loaded with $25 to spend at concession stands. The wristbands will feature the Giants’ team colors. MasterCard says it wants to test new contactless form factors specific to venues and special events. MasterCard also announced that the Arizona Cardinals Football Club is rolling out the “PayPass” contactless payment system at the new Cardinals Stadium. There are currently approximately 10 million PayPass cards and devices in the market and nearly 32,000 merchant locations around the world accept PayPass.

Details

MasterCard to Lift the Veil on Interchange

For the first time in the industry’s history a major payment card network is planning to make its pricing schedules freely available to the public. MasterCard Worldwide says it will publish its U.S. interchange rate schedule on its Web site on or before November 1st. The unprecedented decision has been driven by merchant demands for more transparency in the payment card industry. More than 40 interchange lawsuits have been filed by merchants since 2004. The first major lawsuit by merchants to take on U.S. interchange fees was filed in October 2004, shortly after the U.S. Supreme Court refused to hear VISA and MasterCard appeals in the “Wal-Mart” debit card lawsuit. MasterCard was also the first in the industry to publish its merchant rules and procedures on its Web site. Last June MasterCard opened its rules free of charge or restrictions to any merchant who wants to access them. Member Service Providers previously only had access to abridged rules through their sponsoring acquirers, at a cost to the acquirer. (CF Library 6/03/05; 10/05/05; 11/05/05)

Details

Peppercoin Hires Former VeriFone Exec

MA-based Peppercoin has hired Mark Treco, formerly with VeriFone, as VP of sales and market development. Treco worked in sales leadership positions for more than 13 years at VeriFone, a secure electronic payments company. At VeriFone, where he was most recently general manager of the retail division, Treco sold integrated payment technology to the top 300 retail chains in the United States, repeatedly surpassing sales goals and successfully negotiating contracts for payment solutions. Peppercoin is a small payments technology company transforming routine card transactions into new revenue opportunities.

Details

Asta Funding Lands a Biz Development Exec

NJ-based Asta Funding has landed Rob Knight, a credit and collection veteran, as VP of Business Development. Mr. Knight has 12 years of financial services experience including acquisitions of distressed assets, account collection, loan origination, and loan servicing. Mr. Knight will further complement Asta’s existing team which includes Ms. Nan Beilinson, an industry veteran, who joined Asta Funding in early 2005. Asta Funding, Inc., is a leading consumer receivables asset management company that specializes in the purchase, liquidation and management of performing and non-performing consumer receivables.

Details

MasterCard to Cut Fuel Interchange Fees

In response to complaints from gasoline retailers MasterCard Worldwide announced yesterday it will soon establish a cap on interchange fees on fuel purchases at petroleum retailers. The cap will apply to consumer credit and debit cards and will provide benefits to gasoline retailers on credit card transactions of about $50 or more. For example, on a $60 gasoline transaction the reduction in interchange could be as much as 21%, according to MasterCard. One year ago the National Association of Convenience Stores issued a report that found credit and debit card usage at the pump increased from 54% to 70% since 2004. The report said its puts additional pain on retailers, who are already paying higher credit card fees as gasoline prices increase. (CF Library 8/25/05)

Details

Fifth Third Processing Signs Three Deals

OH-based Fifth Third Processing Solutions has signed Federated Department Stores, hhgregg and USA Drug for merchant processing services. Federated Department Stores, Inc. has corporate offices in Cincinnati and New York and operates more than 850 department stores in 45 states, the District of Columbia, Guam and Puerto Rico under the names of Macy’s and Bloomingdale’s. hhgregg is one of the nation’s leading retailers of home appliances and consumer electronics with 72 locations throughout Alabama, Georgia, Indiana, Kentucky, North Carolina, Ohio, South Carolina and Tennessee. USA Drug, a Stephen L. LaFrance Pharmacy, Inc. company, operates over 170 stores throughout Oklahoma, Tennessee, Mississippi, Missouri and Arkansas under the names of USA Drug, Super D Drugs, May’s Drug Stores, Drug Warehouse, Med-X Drugs and Ike’s Discount stores. Fifth Third Bancorp (Nasdaq: FITB) is a diversified financial services company headquartered in Cincinnati, Ohio.

Details

BannerDirect Names a New Regional Director

NY-based BannerDirect has hired Bill Lawrence, who held a variety of roles in acquisitions and risk management at NationsBank and Bank of America, as regional director. Mr. Lawrence will generate client relationships in new business categories, as well as manage existing clients from BannerDirect’s roster. Mr. Lawrence received an MBA in Marketing from the University of Texas at Austin. He lives in Huntersville, North Carolina, with his wife and two children. BannerDirect is a full-service direct marketing agency recognized for the development and execution of direct response marketing programs for clients in the financial, entertainment, telecommunications, associations, retail, medical and publishing industries.

Details

FDC and UMB to Power Lighthouse1 Cards

First Data Healthcare Services has inked a deal with Minneapolis-based Lighthouse1 to provide debit card and transaction processing services for subscribers using Lighthouse1’s healthcare programs. “Lighthouse1 OnDemand” provides automated management of employer benefits plans such as FSA, HRA and HSA accounts. UMB Healthcare Services has agreed to work with First Data to support debit card access, investment programs and transaction processing.

Details

Pay By Touch’s Paycheck Secure Expands

Solidus Networks’ Pay By Touch reports that Lowe’s Pay and Save has introduced its “Paycheck Secure” biometric check-cashing to 78 stores in the panhandle of Texas and into New Mexico. The solution uses finger-scanning technology to enable customers to quickly and securely cash government or payroll checks. Last month, Pay By Touch beefed-up its “Paycheck Secure” product to new version 8.0 which offers significant time savings, more secure transactions and faster access to funds. Pay By Touch says more than $8 billion in checks have been cashed using “Paycheck Secure.” Salt Lake City-based Zions First National Bank recently introduced Pay By Touch biometric check-cashing in 12 locations throughout Utah and Idaho. Pay By Touch acquired BioPay earlier this year for $82 million in stock and cash. BioPay is the developer of the biometric check cashing system. To date, more than 2.9 million consumers have used the system to cash checks. (CF Library 1/17/06; 7/5/06; 7/11/06)

Details

i2c Signs with the First Bank of Delaware

CA-based i2c has signed a processing agreement with First Bank of Delaware for its stored value card management and processing solution, “MCP.” MCP is a secure, cost-effective, flexible and scalable processing platform that provides multi-institution, multi-currency, and multi-lingual capabilities. First Bank of Delaware is a full-service, state-chartered commercial bank, whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC). i2c is a leading, global technology provider of electronic payment processing solutions.

Details