NEWS

Visa steps up PCI enforcement

Visa U.S.A. has stepped up enforcement of the Payment Card Industry (PCI) Data Security Standard (DSS). against major retailers. "Visa and the industry as a whole are moving aggressively to broaden compliance efforts," the card Association stated. Enforcement measures include the threat of fines against level-1 and level-2 merchants.

The Association is getting tough with its biggest revenue generators due to the risks posed by repeated lapses at retail and nonretail companies and government agencies with the personal identity data of customers, employees and private citizens.

"Today's security environment demands that locking down sensitive cardholder data be a top priority for all parties entrusted with such data," Visa stated. Level-1 merchants must validate compliance prior to Sept. 30, 2006, Visa stated before the deadline. Approximately 20 level-1 merchants are currently eligible for fines, which can range from $10,000 to $100,000 a month.

Acquiring banks are ultimately liable for fines levied against their merchants. "Acquiring banks' eligibility for fines is based on their merchants' failure to validate compliance with the PCI DSS or for not providing a timeline for doing so," Visa stated.

In July, Visa also began the process for ramping up enforcement efforts for level-2 merchants. "We also continue to explore merchant incentives in addition to fines, as a way to help merchants implement these important security measures." The Association did not elaborate on the types of incentives it contemplates using.

AmEx to pilot condo program

American Express Co. will pilot card acceptance for condominium down payments. New York-based development firm Moinian Group will be the first to roll out the program.

Mobile phone trial completed

The first North American near field communication trial for mobile phones - including contactless payments and content downloads - found that participants embraced the technology.

Participants indicated they would favor mobile device payment options at a variety of merchant locations and would also enjoy multiple applications on one mobile device. The trial was a collaboration among Chase Paymentech Solutions, Cingular Wireless, Nokia Corp., Visa U.S.A. and ViVOtech Inc., among others.

Study reveals electronic retailing trends

Consumers are more often making purchases at electronic retailing outlets, according to the "2006 Electronic Retailing Buyer Study" from the http://www.retailing.org" target="_blank">Electronic Retailing Association.

The report also revealed timidity toward such emerging technology as interactive television and cell phone video marketing. Data showed consumer trust in Internet and TV infomercials fell from last year; consumers are increasingly concerned about the security of using credit or debit cards online or over the phone.

Papers analyze rewards programs, payment dynamics

The Federal Reserve Bank of Kansas City released a study entitled "Payment Card Rewards Programs and Consumer Payment Choice." Results suggest consumers with credit card rewards use credit cards much more exclusively than people without credit card rewards. Also, consumers who receive both credit and debit card rewards tend to use debit cards more often than those who receive credit card rewards only.

In addition, the bank released, "Payment Industry Dynamics: A Two-Sided Market Approach." The paper highlights the roles consumer income distribution and merchant size play in adopting new payment devices. To view the papers visit www.kc.frb.org

ANNOUNCEMENTS

Best practices published

The Global ATM Security Alliance and ATM Industry Association collaborated on "Best Practices for Protecting the Customer's Personal Bank Account and Identity." The publication provides minimum security guidelines for fraud management within the retail banking environment. Additionally, ATMIA launched a self-service corporate governance assessment system for its members. The online service incorporates the association's industry training material into a self-assessment survey.

Health care services pilot to launch

HealthTransaction Network Corp. will implement a pilot program expected to reduce administrative costs associated with delivery of health care services. Bevertec CST Inc. will provide network transaction processing software, and Hypercom Corp. will provide card payment terminals, software, transport service and support.

Bill 1 Services provides merchant services

Bill 1 Services Inc. entered the merchant service market. Its offerings include credit card processing, gift cards, payroll cards, direct payment, back office conversion and free nonsufficient funds check recovery for merchant accounts.

Chuck Blenco, Bill 1 Services Sales Manager, most recently served as Merchant Service Sales Officer for retail, corporate and national sales at SunTrust Banks Inc.

ETA seeks speakers for spring conference

The Electronic Transactions Association seeks proposals for topics and speakers to be part of its 2007 Annual Meeting and Expo. Deadline for proposals is Oct. 28, 2006. For more information visit the Web site at www.conferencemanagersforms.com/ETA06/CFPVegasintro07.cfm

IRN rolls out Optimum T4100; terminal receives MasterCard approval

IRN Payment Systems selected and Class A certified Hypercom's Optimum T4100 multiapplication card payment terminal. IRN will market the device to its merchant base and provide support. Additionally, the Optimum T4100 reportedly is the first card payment terminal to gain approval under MasterCard Worldwide's payment terminal security program.

Lucent certified

Lucent Technologies Inc. announced an expanded portfolio of security offerings specifically targeting companies that accept or transmit credit card information. Lucent offers PCI DSS assessment, readiness and scanning services.

SWACHA establishes scholarship

SWACHA - The Electronic Payments Resource established the Keith Daniels Memorial Scholarship. Daniels, a Senior Vice President at International Bank of Commerce in Laredo, Texas, was a member of the SWACHA Board of Directors for more than 10 years.

The annual scholarship will provide tuition, transportation and accommodations to the Payments Institute, a school for payments professionals sponsored by the NACHA - The Electronic Payments Association.

PARTNERSHIPS

AdvanceMe signs with TSYS

AdvanceMe Inc. formed a preferred partnership agreement with TSYS Acquiring Solutions. The partnership expands TSYS' product portfolio by providing a funding solution to its acquiring clients and their merchants.

North Carolina selects AmbironTrustWave

The North Carolina Office of the State Controller selected AmbironTrustWave for PCI-compliance solutions for state entities processing or transmitting credit card data.

Commerce Planet partners with Payment Data Systems

Payment Data Systems Inc. signed a multiyear agreement with Commerce Planet Inc. The agreement calls for Payment Data to provide private-label bill-payment portal services to Commerce Planet.

Dollar General to accept credit and check cards

Consumers will be able to use Visa credit and check cards at more than 8,000 Dollar General stores in 34 states. Fifth Third Processing Solutions serves as the electronic card processor for all of Dollar General's electronic payments.

Equity Commerce partners with CrossCheck

Equity Commerce L.P. will market CrossCheck Inc.'s check guarantee and conversion services as part of its payment offerings.

First Data to process foreign currency for Chase; Renews MCCS agreement

First Data Corp. and Chase Paymentech Solutions signed a five-year global processing agreement. The OmniPay merchant processing platform, located in Dublin, Ireland, will process transactions for Chase Paymentech's merchant portfolio in most major currencies in all markets where Chase Paymentech's merchants are based.

In a separate deal, First Data signed a multiyear contract extension with Merchants' Choice Card Services. Under the extended agreement, First Data will continue to provide transaction processing and other portfolio management services for more than 45,000 MCCS merchant accounts.

Hypercom wins contract

Hypercom is now a preferred provider of card payment PIN entry devices for El Corte Ingles, one of the largest retailers in Europe.

NAB to deploy free devices

North American Bancard Inc. will deploy MasterCard PayPass acceptance devices to all NAB merchants, free of charge. Additionally, NAB purchased 3,000 ViVOpay 4000 contactless readers. NAB will include the equipment in its free terminal program.

TeleCheck available at Office Depot

Office Depot Inc. contracted with TeleCheck Services Inc. to provide electronic check acceptance in the company's more than 1,000 stores. The service uses the automated clearing house network to collect the funds.

Pinnacle partners with PaySpot

Pinnacle Corp.'s Palm POS will interface to PaySpot Inc.'s suite of prepaid solutions. Integration will be available in November 2006.

ACQUISITIONS

InComm to acquire DataWave

InComm will acquire all outstanding shares of DataWave Systems Inc. for approximately $36 million. The transaction is expected to close in the fourth quarter of 2006, at which time DataWave will become a wholly owned subsidiary of InComm. Josh Emanuel, DataWave Chairman and Chief Executive Officer, will remain as President of the subsidiary.

Elan signs 48 Fis

Between January and July 2006, U.S. Bancorp subsidiary Elan Financial Services signed agreements with 48 financial institutions (FIs) to acquire their existing portfolios and provide credit card outsourcing services. This number represents a 55% increase over the same period last year.

APPOINTMENTS

Perihelion Global names new directors

Perihelion Global appointed Frank Claycomb, CPA; Michael R. Varley; and Michael J. Smith as corporate Directors. Claycomb is a retired Internal Revenue Service Senior Manager. Varley previously co-founded Global eTelecom and served as Chief Operating Officer and Vice Chairman of its board of directors. Smith is the Chairman and President of Transaction One.

MasterCard elects Haythornthwaite and Freiberg

Richard Haythornthwaite, a member of MasterCard Inc.'s board of directors, was elected as the nonexecutive Chairman of the board. Haythornthwaite is a Managing Director of Star Capital Partners.

In addition, Steven J. Freiberg, Chairman and CEO of Citigroup N.A.'s Global Consumer Group, was elected a Director of the company's board. He has been with Citigroup since 1980.

Comdata names Senior VP

Comdata Corp. named Rod Katzfey Senior Vice President and General Manager of Comdata Processing Systems. Katzfey was Senior Vice President and General Manager for ABN AMRO Merchant Services. Before that, Katzfey was involved in leading sales organizations for First Data Merchant Services, U.S. Bancorp and NOVA Information Systems.

Western Union appoints VP

Gary Kohn, CPA, was appointed Vice President, Investor Relations for Western Union Co. Kohn will lead Western Union's investor relations activities as it completes a spinoff from parent company First Data. Formerly, Kohn was First Data's Vice President, Investor Relations.

Marshall to join Global Payments' board

Ruth Ann Marshall will join Global Payments Inc.'s board of directors. Marshall most recently served as President, Americas for MasterCard Worldwide. Previously, she held executive leadership positions at Concord EFS Inc., Electronic Payment Services Inc. and Buypass Corp.

Fleet One adds to sales staff

Fleet One LLC hired three new employees for its sales force: Doug McDonald joined the company as Associate Account Executive. McDonald has more than 15 years of sales experience.

Chris McCullough also accepted an Associate Account Executive position. Most recently, he was Fleet Manager for Paschall Services Inc. Brett Jordon signed on as an Account Executive to Fleet's Local-West Region sales team. Jordan interned as a law clerk for Fayette County Circuit Courts in Lexington, Ky.

WAY Systems names new staff

Bruce Shirey is the new COO for WAY Systems Inc. Previously, he was the company's Vice President of Global Services. Before joining WAY Systems, he held a variety of senior positions at First Data and Cardservice International.

WAY Systems hired John Mannix for the new position of Senior Director and Chief Information Officer. Most recently, Mannix was Senior Director of Information Services with Princess House Inc. Bret Baumann joined the firm as Director of Distribution Channels. Previously, he was with Lipman USA and was responsible for the ISO/distribution sales channel in North America.

BOTTOM LINES

• Outstanding consumer revolving credit, which includes credit card debt, rose at an annual rate of 3.4% in July, to $840.8 billion, the Federal Reserve reported. Revised figures for June show that revolving credit actually rose 13.2% on an annual basis, rather than the previously reported rate of 9.8%.

• The United States dropped from its usual No. 1 spot to No. 6 in the "Global Competitiveness Report 2006 - 2007," a macroeconomic ranking issued by the World Economic Forum. The ranking is based on a combination of hard data and an executive opinion survey of business leaders in 125 countries. Switzerland was ranked No. 1 for the first time. The ranking began in 1979.

• The Personal Consumption Expenditures price index, a key measure of inflation, increased 0.2% in August after increasing 0.3% in July, the Department of Commerce reported. Proprietors' income increased 0.5% in August after decreasing 0.4% in July.