All articles by Verdict Staff
Verdict Staff
First Data continues overseas expansion with Deecal
The solution is offered using a hosted on-demand application service provider model that ensures rapid implementation and minimises start-up costs.According to First Data, this technology supports the full range of the companys commercial cards, business, purchasing and corporate travel and entertainment cards, meeting the requirements of local and multinational organisations.Deecal has an existing client base of more than 200 banks, corporations and government agencies across Europe and in the US, maintaining direct connections with banks, payment card associations and travel agents to provide daily reporting
EC’s Kroes scores double whammy
Only two weeks after imposing a 10.2 million ($14.5 million) fine on Visa for restrictive practices (see “EC fines Visa Europe over Morgan Stanley dispute”), the European Commission has once again decided to remind the European payment card industry that it is not afraid to take action against card players that it judges to be engaging in anti-competitive practices This time, Frances Cartes Bancaires (CB) is on the receiving end of the ECs strong-arm treatment, having been deemed to be in breach of EU anti-trust rules.European Commissioner for Competition Neelie Kroes, who has long incurred the wrath of Visa and MasterCard over her interventionist stance towards interchange, said: This decision underlines the fact that, to ensure the greatest possible benefit to consumers, the Single Euro Payment Area must be an area of competition
Bank of America relaunches BankAmericard
After launching BankAmericard nearly 50 years ago, Bank of America has announced that it will be bringing back the card, which was the forerunner to the Visa credit card brand and one of the first bank-issued credit cards to gain nationwide acceptance According to the bank, the new BankAmericard will offer bonus points to customers who have at least one other bank product, such as a checking account or a loan From early 2008, BankAmericard customers can direct their cash rewards into any deposit, savings, loan or brokerage account.Its a product were bringing back primarily to give our customers additional awards, said Bruce Hammonds, president of Bank of America Card Services
EC fines Visa Europe over Morgan Stanley dispute
EC fines Visa Europe over Morgan Stanley disputeThe European Commission has ruled that Visa Europe violated EC rules on restrictive business practices, and has ordered the card network to pay a 10.2 million ($14.5 million) fine for refusing to let Morgan Stanley issue Visa credit cards in Europe.In 1999, Morgan Stanley incorporated Morgan Stanley Bank in the UK and in 2000 Morgan Stanley Bank sought to become a member of the Visa organisation This meant that Morgan Stanley could allow retailers dealing with it to accept only MasterCard, making Morgan Stanley a less desirable option for retailers because it would not allow them deal with the 60 percent of the market owned by Visa.Visa eventually acquiesced in September 2006.The investigation into the matter by the European Union was sparked by a complaint from Morgan Stanley in 2000, which it retracted after it was finally allowed to join the network
Thailand’s balancing act
The credit card market in Thailand has faced a number of challenges in recent years large numbers of competing issuers chasing customers, relatively low spending levels caused by slower levels of economic growth, and a series of government regulations aimed at making sure the credit card industry does not overheat. According to figures quoted by the Bank of Thailand (BOT), the central bank, Thailands use of cash currently stands at 11.3 percent of GDP, compared to 6.4 percent in Malaysia, 5.5 percent in Indonesia, 8.4 percent in Singapore, 16.3 percent in Japan and 3.2 percent in Korea
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Landesbank Berlin innovates to succeed
Landesbank Berlin is the largest credit card issuer in Germany, and has leveraged its market strength to drive innovation through co-branding and prepaid as part of its strategy to exend its reach to different demographics Truong Mellor reports.Landesbank Berlin (LBB) is the regional market leader through its Berliner Sparkasse and Berliner Bank brands, and has a market share of close to 50 percent of customers in the Berlin area
Outsourcing takes on new importance
The consolidation of Europes banking industry will have knock-on effects in the outsourcing and processing industry, and nowhere is this more apparent than in the area of cards and payments Victoria Conroy reports on the increased importance of outsourcing in Europe.As SEPA approaches, a wave of consolidation has swept over both the banking industry and the processing industry banks are getting bigger and more capable of handling their own operations, while processors continue to hunt for acquisitions and mergers in the chase for increased volumes These two factors may be at opposite purposes, but both will have a direct impact on the outsourcing industry.In relation to consolidation in processing, a clear trend is emerging, which is markedly different to the previous trend of smaller processors being acquired by larger ones, as exemplified by the likes of First Data and TSYS acquiring smaller rivals or complementary businesses
Eyes on the prize
Few, if any, such portfolios will come on to the market in the years to come, offering the potential for one of the US giants to leapfrog the competition.Target announced in August that it wanted to weigh the direct ownership of its credit card receivables against other possible ownership structures.Doug Scovanner, Targets chief financial officer, said in a message announcing the review that, even though the company is committed to maintaining the core operations of Target Financial Services and its team, it feels it is appropriate to approach the capital markets to determine whether Target or a financial institution is best suited to own our receivables.Unlike other retail credit card portfolios, Scovanner said, Targets assets include strong double-digit growth, a consistently high yield and unprecedented integration with our retail operations
Citibank Malaysia defends market share
Citibank Malaysia defends market share Citibank Malaysia has led the market in terms of card issuance and spend for a number of years. The bank sees the future battleground as increasing usee rather than customer acquisition. Titien Ahmad looks at Citibank Malaysias plans.Citibank Malaysia has seen high rates of revenue growth since the local government initiated market liberalisation moves about two years ago. Earlier this year, its then chief executive officer, Piyush Gupta, announced that the banks credit card spend growth rates should match the industrys projected rate of 15 percent per annum for the next few years.
AOL co-founder launches online credit card company
PayPal and Google Checkout, the two best-known online payment services, have been busy doing battle with each other over the last year, but now they, along with Visa, MasterCard and American Express, will have to contend with a new rival in the online payment market in the US Steve Case, better known as the co-founder of internet service provider America Online (AOL), has teamed up with a group of financial and technology companies to launch Revolution Money, a new online credit card and money exchange platform.Case says that Revolution Money, formerly known as GratisCard, will transform the payment industry by drastically altering the economics of internet-based technology in order to generate significant consumer and merchant benefits The concept of Revolution Money is centred on a secure online credit card, RevolutionCard, which comes with much lower interchange fees for merchants, and a free online money transfer service known as Revolution MoneyExchange.Lower interchange feeCase says that RevolutionCard is the industrys first anonymous, PIN-protected credit card, and will offer merchants an interchange fee of 0.5 percent, compared to an average interchange fee of 1.9 percent