NOVA Sues Over Inadvertent Transactions

Nova Information Systems has sued a Virginia businessman who allegedly received 96 inadvertent transactions between March 2004 and March 2005. The suit is seeking nearly $23,000 via Suffolk County Circuit Court. According to the The Virginian-Pilot, the businessman, a developer who ran a furniture store for 25 years in downtown Suffolk, denies ever receiving the funds in any bank account. The businessman says Nova approached him last year with complaints from people who said they weren’t receiving the items they had paid for with credit cards. However, the businessman says he didn’t even sell the items in question. NOVA offers integrated payment processing services to more than 1 million merchants worldwide.

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U.S. Consumer Confidence Deteriorates

Consumer confidence has been receding from a four-year high over the past two months. The Conference Board “Consumer Confidence Index,” which peaked in March, dipped 60 basis points in May following a 10 basis point decline in April. The Index now stands at 137.9 according to The CB. The largest negative contributors for May were initial claims for unemployment insurance (inverted) and the index of consumer expectations. From November to May, the index fell by 20 basis points with declining housing permits made the largest negative contribution over this period. The CB says strength abroad may be one factor counteracting the loss of domestic momentum. The cumulative impact of higher gasoline prices, higher costs to run the air conditioner this spring, a slowing housing market, higher interest rates, a loss of confidence (both business and consumer), and even higher taxes in some localities, have all combined to slow the forward pace of economic activity.

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Shell Oil Gives Away 200,000 Gift Cards

Shell Oil has launched a $30 million marketing campaign that includes giving away 200,000 $10 “Shell Gift Cards.” The new campaign will include advertising, Point-of-Purchase (POP) materials and a “Million Gallon Giveaway” sweepstakes. Online and print advertising will also appear in general interest, lifestyle and automotive outlets such as Yahoo! and Car and Driver magazine. A comprehensive POP program, including pump toppers, column banners, in-store materials, and pole and yard signs will be on display at more than 13,000 Shell stations nationwide.

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PSCU Donates 10 Million Pennies for CUs

PSCU Financial Services has processed 10 million accounts for credit and debit cards and is donating 10 million pennies to organizations and projects designed to expand and improve the credit union industry Donations were made to: National Center for Member Trust, Biz Kid$ Financial Literacy Programming, and the underwriting of an intensive three-day course for senior credit union executives at Georgetown University’s McDonough School of Business in conjunction with Callahan & Associates. As a non-profit cooperative, PSCU Financial Services is owned by more than 500 member credit unions representing 10 million cardholder accounts and more than 345,000 online bill payment subscribers.

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Eastern Airways to Accept UATP Cards

Eastern Airways is now accepting all UATP corporate cards and is a part of the UATP global corporate travel payment network. Eastern
Airways will settle all UATP transactions through UATP Settlement Services, a low-cost, weekly settlement system that matches fees and air tickets electronically, allowing for easy reconciliation of accounts for UATP transactions for customers with non-clearinghouse transactions. Eastern Airways operates 40,000 flights a year to 18 airports in the UK and Europe. UATP accounts are accepted as a form of payment for corporate business travel by airlines and travel agencies worldwide.

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eFunds to Use AEIS Prepaid STV Card System

eFunds Prepaid Solutions has expanded its relationship with American Express Incentive Services to offer focused-use stored-value cards to customer base. Focused-use card product applications include corporate incentive programs and consumer promotions, as well as flexible spending accounts and health care savings accounts. AEIS has a patented filtering process for such stored-value cards. For example last year AEIS introduced the “Agent Reward Card” for real estate agents which offers recipients rewards from their choice of 90 name-brand retail and travel merchants. AEIS also introduced “The Rebate Edition Card,” which is designed to incent home buyers and sellers and the “Housewarming Card Platinum Edition” card, which offers luxury homebuyers access to all of Williams-Sonoma’s stores and catalogs. AEIS is a joint venture between American Express Travel Related Services Company and Maritz. (CF 12/17/04; 6/15/05; 10/21/05)

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U.S. Bank’s PowerTrack Makes an Acquisition

U.S. Bank’s “PowerTrack” portfolio is acquiring Schneider Payment Services on July 1st making it the world’s largest provider of freight payments. The acquisition adds in excess of $7 billion in freight payments to the PowerTrack portfolio. In addition, Schneider Logistics will utilize U.S. Bank Freight Payment Services and PowerTrack as the payment provider for its customers in North America. A $3.5 billion company, Schneider National is a provider of truckload, logistics and intermodal services. PowerTrack processes more than 25 million electronic freight documents annually with more than 25,000 registered users from 3,300 locations worldwide.

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MS 2Q/06

Morgan Stanley reported that credit card outstandings for its British MasterCards during the quarter ended May 31st rose by more than $200 million since the prior quarter to $4.4 billion. During the quarter MS added approximately 300,000 net new accounts for its “Classic,” “Gold,” “Platinum,” “buy & fly!” and “Goldfish” card programs. The quarter included the performance of $1.5 billion of managed loans associated with the acquisition of the Lloyds TSB “Goldfish” credit card business in the U.K., which closed on February 17th. There are approximately 1.1 million “Goldfish” credit card accounts. MS, which issues the “Discover” card in the U.S. paid a 22% premium for the “Goldfish” portfolio. The Company has been aggressively promoting the “Goldfish” brand. MS introduced its first credit card in the U.K. in 1999. Overall, MS posted another record quarter for its credit card business as pre-tax profits hit $541 million for 2Q/06, more than double the level one-year ago. Global managed outstandings of $48.5 billion increased 4% over year-ago levels. For complete details on Morgan Stanley’s latest performance, visit CardData (www.carddata.com).

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Cash Technologies Invests in UK’s BIPS

Los Angeles-based Cash Technologies has take a 10% stake in London-based payment processor Business Intelligent Processing Systems for $2 million. BIPS is a distributor of Cash Tech’s prepaid debit card, marketed under the brand name Greenback Card. Prepaid debit cards are new to the European market, where cross border money transfers, e-wallet functionality and other advanced features of Cash Tech’s prepaid cards can be of significant value to cardholders and merchants. Business Intelligent Processing Systems, Limited develops and manages commercial payment systems and risk management solutions. Cash Technologies, Inc. develops and markets data processing solutions in the healthcare and financial services industries.

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FFIEC Authentication Alternative Offered

A Redwood City, CA firm has introduced an authentication solution that does not require an enrollment process and an “out of wallet question/answer challenge” approach. Business Signatures says its nomaly “Detection with Real-Time Customer Notifications” solution has been deemed consistent with FFIEC guidance. The solution is based on the Company’s “Real-Time e-Fraud Detector” and “e-FraudMart” products. The solution identifies anomalies in online account access or behavior patterns in real time, based on server streams or server logs; notifies the customer in real time using an outbound call or messaging, giving the customer the opportunity to approve or deny the suspicious pattern through an automated system; provides offline reversal or suspension of suspicious transactions and can also support risk based authentication; and works with any Web application.

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Senate Interchange Hearing is Postponed

“POSTPONED–Credit Card Interchange Rates: Antitrust Concerns? ”
Senate Judiciary Committee
Full Committee

——————————————————————————–

DATE: June 28, 2006
TIME: 09:30 AM
ROOM: SD-226
OFFICIAL HEARING NOTICE / WITNESS LIST:

June 19, 2006

NOTICE OF FULL COMMITTEE HEARING POSTPONEMENT

The a hearing on “Credit Card Interchange Rates: Antitrust Concerns?”
scheduled by the Senate Committee on the Judiciary for Wednesday, June
28, 2006 at 9:30 a.m. in the Dirksen Senate Office Building Room 226 has
been postponed.

By order of the Chairman

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