While credit card charge-offs among the top U.S. issuers have fallen to seven year lows in 2013, there are some scattered clouds on the horizon as early stage delinquency (30+ days) headed north in the second half of 2013 by six basis points. However, late stage delinquency (90+ days) was down three basis points from 2Q/2013 but up three basis points sequentially in Q4/2013. Historically, delinquency rates are slightly depressed in the fourth quarter due to the higher level of outstandings, driven by holiday spending.Details
Heartland Payment filed a federal lawsuit against Mercury Payment Systems for false advertising, unfair competition, intentional interference with contractual relations, and intentional interference with prospective economic advantage. The suit alleges that Mercury is illegally competing against Heartland with deceptive trade practices and that Mercury is effectively misleading merchant customers by deceptively hiding its excess profits in the interchange fees charged by credit card networks and their issuing banks, in violation of the Lanham Act.
The suit seeks to stop Mercury’s routine deceptive pricing practices to secure new retail customers and maintain their existing merchants. The suit also seeks to recover full value for each merchant and prospect Mercury has wrongfully taken from Heartland by deceptively falsifying pass-through interchange costs and other illegal methods. Heartland explains that the fees charged by credit and debit card issuers – the issuing banks plus card brands such as Visa and MasterCard – are collectively known as network, or interchange, fees. Interchange fees are set by the card brands, and are typically adjusted twice a year. The complaint also alleges that Mercury imposes significant costs and barriers for changing providers, falsely informs merchants that they are the only processor that supports their point-of-sale card swiping equipment, and falsely represents their company in commercial advertising and promotions as guaranteeing the best rate, among other charges.
Visa plans to provide companies a simplified way to pay by Visa through their Visa Commercial issuer using the SAP Financial Services Network. The new payment solution is expected to help corporations more easily automate and process their invoice payments without the need for significant investment in custom software, and is planned to be available summer 2014. The new solution is expected to help corporations who want to move toward electronic business-to-business payments. This new offering will be designed to allow corporate clients of participating Visa Commercial issuers to route payment instructions to Visa via the SAP Financial Services Network. For more information on Visa Commercial Solutions, visit visa.com/commercial.Details
Payzur, Acculynk’s real time P2P platform, is now offering businesses the ability to transfer payments directly to an individual’s or small business’ debit card instantly. Payzur’s direct-to-debit payment platform aids businesses, such as online marketplaces, that regularly make payments to individuals or small businesses by offering a frictionless “payout” process that doesn’t require account verification, enrollment with a third party or parking the funds in a third-party account. The funds are transferred and available in near real time. Both debit and prepaid cards can be used with the service which speeds payments to individuals or small businesses, eliminating the typical two to three day delay.Details
Guaranty Bank selected FIS banking and payments technology to deploy an integrated suite of solutions, including core banking, and the full digital suite of FIS online, mobile and tablet solutions. Innovation was one of the key reasons Guaranty Bank chose FIS for this multi-year agreement, which replaces a decades-long relationship with another provider. FIS will deploy a new core platform for the bank and streamline many of Guaranty Bank’s processes by integrating the bank’s third-party systems, resulting in improved operational efficiency and cost effectiveness. Greater servicing efficiency will give the bank the ability to focus on creating a sales culture that aligns with current and future market trends.Details
To describe Visa Europe in three words is contactless, mobile payments, and digital wallets. Visa Europe struck so many such deals in 2013. For example, banks representing 80% of all consumers are already committed to digital wallets and by 2020 Visa Europe predicts one-third of all European consumers will be using V.me by Visa. European consumers have made 211 million contactless purchases in 2013, as the monthly contactless spend has also increased six fold to €285 million. Visa Europe processes more than 32 billion transactions per year with purchase sales exceeding €1.3 trillion on 483 million cards. In October 2007, Visa Europe became independent of the new global Visa Inc., with an exclusive license in Europe.Details
BNY Mellon appointed John Gannon head of business development for Banking Transaction Services (BTS). He will focus on growing BTS in North America and expanding its scope to support clients on a global basis. BTS is a comprehensive suite of payment outsourcing services that enable brokerage firms and other providers of wealth and asset management services to offer banking solutions, including debit cards, bill-pay, rewards programs, and other value added solutions. Gannon joined BNY Mellon in 1998, serving since then in a series of increasingly responsible management positions in operations, product management and sales & relationship management.Details
Visa announced 1Q/14 net income of $1.4 billion, an increase of 9% from the year ago figure while net operating revenue was $3.2 billion, up 11% over the prior year, driven by strong growth in service revenues, data processing revenues and international transaction revenues. The strengthening of the U.S. dollar impacted net operating revenues by…Details
Unloading the Best Buy credit card portfolio in September provided an artificial boost to Capital One’s average yield and net revenue margin in the third quarter for its U.S cards of 121 basis points and 123 basis points, respectively. However, in the fourth quarter the average yield was up 24 basis points compared to one-year ago, but down 121 basis points sequentially. The net revenue margin was up 59 basis points over the year ago quarter, but down 119 basis points from the prior quarter. For the fourth quarter average yield was 14.44% and the net revenue margin was 17.34% for the U.S. portfolio.Details
Fundtech global transaction banking solutions hired Peter Reynolds Managing Director for Fundtech EMEA Sales. As the head of EMEA sales, Reynolds is responsible for driving regional strategy and managing local teams. He reports to Chris Zingo, Global Head of Sales. Reynolds brings to Fundtech more than 12 years of sales and management experience in financial services. Most recently, he led the EMEA sales initiatives for treasury and risk management solutions provider, Reval. Prior to joining Reval, he was a Sales Director at Thomson Financial.Details
Visa announced the Visa Commercial issuer through the SAP Financial Services Network designed to help corporations more easily automate and process their invoice payments without the need for significant investment in custom software, and is planned to be available summer 2014. This will help corporations who want to move toward electronic business-to-business payments. This new offering will be designed to allow corporate clients of participating Visa Commercial issuers to route payment instructions to Visa via the SAP Financial Services Network.Details
In terms of growth, MasterCard’s Europe, Latin America and Canada regions all under performed the fast growing Asia-Pacific-Middle East-Africa region in 2013. Last year the European region produced annual growth of 16.6% with third quarter gross dollar volume of $322 billion. In the Latin American region gross dollar volume also rose 16.6% year-over-year, with $83…Details