All articles by Verdict Staff
Verdict Staff
A vision of the future
While many financial institutions and payment players are scaling back their operations and trying to minimise costs, First Data is bucking the trend with continued investment in its recently-rebranded FirstVision platform Despite posting disappointing results for the first quarter of this year, First Data has been decidedly upbeat and has rebranded its VisionPLUS full-service global issuing and consumer finance processing solution into FirstVision, already scoring several lucrative deals with UK-based Vanquis and Co-operative banks.
UK prepaid finds its feet
While debit cards have certainly benefited the most from the exodus, the UK prepaid card industry is in line to pick up those who want something different from their plastic, as John Hill reports. The prepaid card market in the UK is growing
G-T-P aiming for the top in prepaid
As one of the UKs foremost prepaid solution providers, and a full MasterCard member with its own closed-loop processing capability and heritage in complex systems integration, G-T-Ps profile is on the rise Roy Driver caught up with chief executive Helen Child to talk about the company, its plans and where it has come from. Cards International: How is G-T-P structured and what is the history of the company?
Wachovia hands over credit card processing to First Data
Wells Fargo, the fourth-largest US banking group by assets and recent acquirer of beleaguered institution Wachovia, has announced it is to move the newly-acquired banks credit card portfolio over to global payment and processing specialist First Data. The move will mean that all Wachovia credit card accounts, as well as Wells Fargo private-label and personal credit management lines of credit accounts, are to be taken over by the processor Wells Fargo completed its purchase of Wachovia in December last year.
North America round-up
RegulationObama signs credit card reform billPresident Barack Obama has signed into law the Credit Card Accountability, Responsibility and Disclosure Act which will limit fees and contract changes
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MasterCard remains unruffled
An uneasy compromise has been reached over the matter but MasterCard has made clear its intention to fight on.Eric Tomlinson, group head of debit at MasterCard Europe, talks about how the interchange ruling will affect the debit card market, why contactless payments still have a way to go before they are widely accepted, and what the current economic climate is going to do to end card payment structuring as we know it.CI: How does MasterCard view the threat of Visas rival debit scheme V-Pay?ET: I think we see it as a significant threat
Innovation in real-time rewards
A series of seminars recently hosted by VRL, publisher of CI, and loyalty programme solution provider Welcome Real-time threw the spotlight on the importance of loyalty programmes in cardholder recruitment and retention, and also profiled one of the most successful offerings in the market from PBZ BankLoyalty programmes have become increasingly popular over the years, and nowadays are prominent features of payment card programmes across the world But what exactly is a loyalty programme and what do card issuers hope to achieve by offering loyalty programmes to customers?A recent series of seminars hosted by VRL and Welcome Real-time sought to explain and answer those points, beginning with answering the question of what exactly a loyalty programme is, and what its main objectives are.Main loyalty programme objectivesLoyalty programmes may be commonly viewed as marketing tools but they also enable card issuers to achieve key strategic goals, including:
MasterCard suffers blow as WaMu debit portfolio migrates to Visa
Visa is set to gain an even bigger share of the US debit card market following JPMorgan Chases decision to migrate more than half of a $59 billion debit portfolio from MasterCard JPMorgan Chase, a predominately Visa issuer, acquired rival bank Washington Mutual (WaMu) in September last year and is now moving part of WaMus MasterCard-branded debit portfolio over to Visa.The decision is a blow for MasterCard as WaMu was its largest single debit card issuer in the US According to Credit Suisse First Boston, in 2008, WaMu signature-based volume debit purchase volume totalled around $35 billion, with PIN-based volume representing another $25-$30 billion
The law of unintended consequences?
Charles Davis reports.Only time will tell whether the legislation President Obama famously signed on 22 May overhauling the credit card industry, will usher in an era of issuer responsibility and increased consumer power, as its proponents predict, or cut off access to credit and further slow the anemic US economy, as many issuers warn.In at least one important measure, the warnings of issuers about reduced credit seem a self-fulfilling prophecy, as US credit card companies have been restricting credit for nine months or more already, and consumers slowed way down on credit usage as the economy began to sputter last year.Credit card reform or not, macroeconomic forces, including weak demand for consumer durables and the ongoing housing slump, will mask any real effects of the reform legislation for the foreseeable future.Most of the card standards will go into effect in nine months, but one that will go into effect in 90 days requires issuers to give customers 45 days’ notice before increasing rates, giving consumers time to close the account and pay off balances at the current rate.Dramatic change to industry practicesThe law the Credit Card Accountability, Responsibility and Disclosure Act – allows card issuers to increase rates on existing balances only when a payment is 60 days or more late, a promotional rate expires, the rate is tied to a variable rate or the cardholder has entered a workout agreement.It also requires consumers to opt in for over-the-limit fee protection, and it limits the number of over-the-limit fees issuers can charge for a single event of exceeding a credit limit.The law also requires promotional rates to be in place for at least six months, and it requires payments to apply to highest-rate balances first.It bans double-cycle billing and clamps down significantly on the ability of card companies to raise interest rates
Polish card market shines despite slump
Now that banks have been successful in getting cards into the hands of consumers, their focus is switching to activation and frequent usage campaigns, and Polish banks are also leading the way in pushing contactless technology, as Victoria Conroy reports Polands economyWith a population of around 38.5 million, Poland has reaped the rewards of economic liberalisation since 1990 to become one of the most dynamic card markets in the world