Tuesday , July 17, 2018

Issuing/Originating

Gift Cards, Having Gone Virtual, Now Are Going Mobile

First gift cards went virtual, and now they’re going mobile. Portland, Ore.-based Giftango Corp. introduced on Wednesday a software developer’s toolkit that mobile developers can use to let users receive gift cards while staying within a mobile application. Giftango, which manages both plastic and virtual gift cards for merchants and …

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Instant Debit Card Issuance On the Rise, But Have Rewards Peaked?

With interchange and overdraft-fee revenues under withering political and regulatory attack, debit card issuers can point to one bright spot in their quest for growth—instance issuance of cards in bank and credit-union branches. Some 35% of financial institutions offered the service in 2009, up from 28% in 2008, according to …

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A New U.S. Treasury Rule Would Add Millions to Prepaid Ranks

A proposed rule from the U.S. Treasury Department could add millions of users to a prepaid card program sponsored by the federal government to distribute Social Security benefits. The new rule, which would eliminate virtually all paper checks for various federal benefits, would expand the range of benefits that can …

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Little-Noted, Prepaid Rules Would Cover Non-Banks As Well As Banks

With the growing popularity of prepaid cards and other stored-value devices over the past few years, law-enforcement agencies and regulators have voiced concerns that payment devices intended for consumer convenience could become tools for money launderers, terrorists, and other illicit players. To address those concerns, the U.S. Treasury Department’s Financial …

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Thanks to Tempo, Discover Enters Decoupled Debit

In relaunching a debit rewards card for the QuikTrip Corp. convenience-store chain this week with a new issuer and new payment card network, specialty debit processor Tempo Payments Inc. plugged Discover Financial Services into the decoupled-debit market. And after concentrating on non-profits for the past year, Tempo says more Discover-branded …

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Pending Legislation Would Extend CARD Act Deadline for Prepaid

Issuers of prepaid and gift cards could get an extension of the Aug. 22 deadline for complying with new rules from the Federal Reserve under legislation pending in the U.S. Senate. The so-called ECO-Gift Card bill, sponsored by U.S. Rep. Dan Maffei, D-NY, passed the U.S. House of Representatives on …

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Behind Wal-Mart’s Stake in Its Prepaid Card Partner, Green Dot

Utter the name “Wal-Mart” and heads turn in the payments industry. That happened yet again with the revelation this week that Wal-Mart Stores Inc., the world’s largest retailer that tried and failed to get into the banking business, had taken an equity interest in Green Dot Corp., a major player …

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Fraud And Overdraft Regs Threaten Debit Card Profitability

Debit cards are more popular than ever, but issuers see threats to the bottom line from rising fraud and more regulation. Loss rates rose 43% on signature debit cards and 24% for PIN-debit cards in 2009, according to the Pulse EFT network’s fifth-annual survey of the debit market. Meanwhile, issuers …

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Eye on Mobile: Wells Rolls out Alerts; Arkansas First in M-Payments

News about the latest developments in the hot mobile-payments sector is coming from some familiar sources, such as Wells Fargo & Co. and Visa Inc., and some unlikely ones, such as the state of Arkansas. Wells Fargo is rolling out Visa's text-message and e-mail alert service that lets credit card …

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BofA’s Move on Debit Card Overdrafts Could Herald Big Revenue Drain

Bank of America Corp.'s decision to stop offering overdraft protection on debit card transactions casts a spotlight on billions of dollars in fee revenue issuers earn from cardholders that could drain away if the bank's move becomes a trend. It could also be a harbinger of a move by consumers …

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