Digital Transactions Authoritative, insightful and timely information for payments professionals
NACHA, the Herndon, Va.-based organization that sets rules for the automated clearing house network, has released rules to allow banks and check-accepting businesses to distinguish checks written by companies from those written by consumers. The former are not supposed to be submitted to the network for settlement under NACHA rules, …
November, 2005
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3 November
Survey: Retailers Still Falling Short in Consumer Data Security
Merchants have a long road ahead of them in securing the consumer transaction data they house in their databases, if a survey released this week is any indication. Fewer than half of retailers surveyed have a formal plan in place to handle database intrusions, and of those that do, only …
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3 November
Wachovia Cuts MBNA Ties As MBNA Shareholders OK BofA Deal
Wachovia Corp. has announced it is re-entering the credit card business and will end a relationship with MBNA Corp. under which MBNA has issued cards for Wachovia since 2002. The news comes on the same day that MBNA shareholders voted overwhelmingly to approve a $35 billion acquisition of the monoline …
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1 November
First American Buys Govolution, Enters Booming Bill-Pay Market
Consolidation in the rapidly growing electronic bill payment business continued today with the acquisition of Govolution Inc. by Fort Worth, Texas-based processor First American Payment Systems LP. The deal, terms of which were not disclosed, hands First American an immediate stake in the business of processing taxes, fines, permit fees, …
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1 November
MasterCard Reports Debit Increase Nearly Triple That of Credit
Reflecting a recent trend in card-based payments, signature-debit card dollar volume on MasterCard International's U.S. network grew at double-digit rates in the first nine months of the year, far outstripping growth in credit card transactions. MasterCard reported today that its signature, or offline, debit cards in the U.S. accounted for …
October, 2005
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28 October
TransFirst Looks to Buy a Bill Processor to Create Card-Based Service
Noted in recent years for its strategy of buying assets in high-growth processing niches, TransFirst LLC is back in the hunt, this time looking for a bill-payment processor that can help it create a service for small financial institutions that would allow customers to pay bills on the banks' Web …
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28 October
Is Peppercoin Eyeing Opportunities in Hot Contactless Market?
Could Peppercoin Inc., a processor of micropayment transactions both online and in card-present venues, be eyeing opportunities in the hot market for contactless payments? Though he refuses to comment on whether the company has any such plans, Mark Friedman, the Waltham, Mass.-based company's chief executive, he has clearly watched developments …
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27 October
Chase Brings Contactless Payments to the Northeast Corridor
JPMorgan Chase & Co. is extending its rollout of contactless payment technology to the populous northeast corridor of the country. Its Chase Bank U.S.A. N.A. said today it will begin sending new cards equipped with chips and tiny radio transmitters to some 2.9 million cardholders this week. In addition, about …
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26 October
Federal Regulators Get Behind Strong Online Authentication
A new guidance from federal banking regulators calling traditional user names and passwords “inadequate” for online banking could lead to a major push for strong authentication next year. The guidance, released last month by the Federal Financial Institutions Examination Council, recommends what it calls multi-factor authentication, or identification systems involving …
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25 October
Volume Grows for AmEx, As Does Dependence on Acquiring
U.S. transaction volume for American Express Co. grew nearly 19% in the third quarter, to $89 billion, over the year-ago period, the New York-based travel-and-entertainment company reported. Its U.S. card base increased 10%, to 42 million, of which 31.9 million are so-called basic cards. The U.S. accounts for nearly three-quarters …