Prepaid Cards

Nashville, Tenn.-based independent sales organization iPayment Inc. expects on Friday to close on its $130 million cash acquisition of a merchant portfolio from First Data Corp. The portfolio consists of 25,000 small merchant accounts generating $9 billion to $10 billion in annual card volume. First Data Merchant Services will continue …

The expected surge in gift cards received this holiday season may cause a problem for online merchants that try to match billing addresses given by consumers at checkout with those on file with issuers before authorizing transactions, says ClearCommerce Corp. Online retailers will usually set their address-verification systems (AVS) to …

Evolution Benefits Inc. and 1-800 Contacts Inc. have reached an agreement under which the retailer of replacement contact lenses will accept Evolution Benefits' Benny debit card. The card, cobranded with MasterCard and Visa, will tap flexible-spending and health-reimbursement accounts set up by corporate employees, which the employees have funded with …

The popularity of gift cards continues to grow, with some 64% of U.S. adults, or a projected 139 million people, now buying or receiving the products annually, up from 59% last year and just 36% three years ago. That's according to the latest annual survey on gift card usage from …

Magex Ltd., a London-based e-commerce and person-to-person transaction processor, has acquired Open Payment Technologies Inc., a provider of stored-value card systems to restaurants, supermarkets, and other merchants. A price was not disclosed. Phoenix-based OPT will become a division of Magex, and Dave Ingwersen, OPT's president, is assuming the title of …

The rapid growth of the market for stored-value cards issued to employees in lieu of paychecks has prompted a wide array of consumer and labor groups to petition the Federal Reserve Board to extend to payroll cards the consumer protections of the Electronic Funds Transfer Act. In a letter sent …

UniRush Financial Services, a unit of UniRush LLC, New York, today announced an agreement with Milwaukee-based processor Metavante Corp. that allows holders of its prepaid Rush Visa card to use cash accounts linked to the card to make electronic bill payments. The service went live Friday, UniRush says, and is …

Sales of prepaid gift cards soared 47% last year as the 8-year-old product picked up momentum that will lead to a doubling of usage by 2007, the research firm TowerGroup Inc. reports in research released today. The largest beneficiary of the trend will be banks, the firm says. While bank-issued …

With its acquisition of CellCards of Illinois LLC, Bellevue, Wash.-based Coinstar Inc. is making a play that takes advantage of two key trends in the electronic transactions market: rising sales of prepaid value products and the increasing importance of the so-called unbanked consumer market. With a network of some 11,000 …

With gift cards accounting for more than $17 billion in retail sales, or about 8% of merchants' total take, during the recent holiday shopping spree, according to the National Retail Federation, the plastic has become a star in the electronic transaction firmament. But while gift cards are stealing the headlines, …