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ChapterTitleNews
QR code technology, on the other hand, is already
ubiquitous in the marketplace, with two-dimensional
bar code scanners standard in most retail locations.
The solution thus does not require merchants to invest
in expensive POS upgrades, and consumers do not
need NFC-enabled smartphones to conduct contactless
transactions, the paper stated. But the technology is
limited in that it is "considered to be more appropriate
for use by merchant brands than by card payment
networks," the SCA said.
As for geolocation technology, it is currently employed
only by Square Inc. via its mobile wallet app. It is
marketed as a fast way to pay at the POS because
no physical card needs to be presented. However,
consumers have to first launch Square Wallet on
mobile devices to establish the GPS connection. "This
process is not faster than using a traditional card," the
SCA said.
Heartland to com-
ply with CFPB's
request
n December 2013, the Consumer Financial
Protection Bureau called on financial institutions
(FIs) to publicly disclose the debit and prepaid
I card program agreements they have with col-
leges and universities. The CFPB expressed concern
that such agreements are designed to manipulate col-
lege students into opting into such programs.
"Students and their families should know if their school,
whether well-intentioned or not, is being compensated
to encourage students to use a specific account or card
product," said CFPB Director Richard Cordray. "When
financial institutions secretly give kickbacks to schools,
they are engaging in risky practices."
By federal law, FIs must disclose credit card agreements
with higher education institutions, but not debit
and prepaid card agreements. The CFPB noted that
the number of credit card agreements in the higher
education sector has decreased in recent years as the
market has shifted to student checking, debit and
prepaid card products. The bureau warned that failure
to disclose program details on these increasingly
popular products raises potential consumer protection
risks.
Nothing to hide
Heartland Payment Systems Inc. operates two types of
card programs for students – the closed-loop OneCard
and the open-loop Discover Financial Services-branded
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QR code technology, on the other hand, is already
ubiquitous in the marketplace, with two-dimensional
bar code scanners standard in most retail locations.
The solution thus does not require merchants to invest
in expensive POS upgrades, and consumers do not
need NFC-enabled smartphones to conduct contactless
transactions, the paper stated. But the technology is
limited in that it is "considered to be more appropriate
for use by merchant brands than by card payment
networks," the SCA said.
As for geolocation technology, it is currently employed
only by Square Inc. via its mobile wallet app. It is
marketed as a fast way to pay at the POS because
no physical card needs to be presented. However,
consumers have to first launch Square Wallet on
mobile devices to establish the GPS connection. "This
process is not faster than using a traditional card," the
SCA said.
Heartland to com-
ply with CFPB's
request
n December 2013, the Consumer Financial
Protection Bureau called on financial institutions
(FIs) to publicly disclose the debit and prepaid
I card program agreements they have with col-
leges and universities. The CFPB expressed concern
that such agreements are designed to manipulate col-
lege students into opting into such programs.
"Students and their families should know if their school,
whether well-intentioned or not, is being compensated
to encourage students to use a specific account or card
product," said CFPB Director Richard Cordray. "When
financial institutions secretly give kickbacks to schools,
they are engaging in risky practices."
By federal law, FIs must disclose credit card agreements
with higher education institutions, but not debit
and prepaid card agreements. The CFPB noted that
the number of credit card agreements in the higher
education sector has decreased in recent years as the
market has shifted to student checking, debit and
prepaid card products. The bureau warned that failure
to disclose program details on these increasingly
popular products raises potential consumer protection
risks.
Nothing to hide
Heartland Payment Systems Inc. operates two types of
card programs for students – the closed-loop OneCard
and the open-loop Discover Financial Services-branded
13
13
