nilson report june 2013 #1020 - sccp group

INSIDE: Fast Facts P 2-4 | chess POs terminal P 5 | nFc Patent inFringement legislatiOn P 5 | Debt buyers certiFicatiOn PrOgram P 12

CHARTS: creDit carD Debt in the u.s. P 6 | latin america general PurPOse carDs 2012 vs. 2011 P 7 | check guarantee & veriFicatiOn P 9

tOP merchant acquirers in miDDle east/aFrica 2012 P 10 | tOP 50 u.s. PrePaiD carD issuers 2012 P 11

LATIN AMERICA GENERAL PURPOSE CARDSPurchases of goods and services at merchants generated by credit, debit, and prepaid general purpose-type cards issued in Latin America with the Visa, MasterCard, American Express, and Diners Club brands increased 20.9% to $612.17 billion last year. Visa purchase volume increased by $65.25 billion over 2011. MasterCard purchase volume grew by $33.78 billion. American Express

MIDDLE EAST/AfRICA’S LARGEST ACqUIRERSThe 22 largest merchant acquirers of card purchase transactions in the Middle East/Africa region collectively processed $113.51 billion in spending volume from 1.47 billion transactions. Acquirers in

TOP 50 PREPAID CARD ISSUERSPurchase volume at merchants generated by the 50 largest U.S. bank and credit union issuers of general purpose-type prepaid cards accounted for $99.57 billion in spending at merchants in

U.S. HOUSEHOLD DEbT AND CREDIT CARDSTotal household debt was $12.819 trillion at the end of 2012 and credit cards accounted for 6.41% or $821.54 billion of that amount. The credit card debt to household debt ratio peaked at 10.05%

VISA/ETHOCA fRAUD fIGHTING SERVICEThe Visa Fraud Intelligence service is now available to e-commerce merchants in the U.S. and Brazil through Ethoca and CyberSource. Ethoca pioneered the service, which sends messages to merchants

CHECK AUTHORIZATION — 2012Check verification and/or guarantees were deployed by merchants to provide risk management for 5.41 billion checks last year, down 8.9% from 2011. The monetary value of these authorized

INTELCAV TO INTELIGENSAInteligensa Group has acquired the remaining 50% of IntelCav it didn’t already own. Terms were not disclosed. IntelCav operates three card manufacturing and personalization plants in Brazil.

SwIff wHITE LAbELS MObILE PAyMENTSAcquiring banks in 12 countries have signed up to use technology from Swiff to offer smartphone and tablet-based mobile payment processing to their merchant customers. Transactions from those

Visa67%

MasterCard30%

Amex3%

Diners1%

© 2013 The Nilson Report

LATINAMERICA

Share of 12.96 Bil. Purchase Transactions in 2012

Purchase Transactions 2007 vs. 2017 (Bil.)Visa

MasterCard

Amex

Diners

3.98/13.831.56/6.25

0.07/0.120.20/0.67

JUNE 2013 Issue 1,020For 42 years, the leading publication covering payment systems worldwide.

© HSN Consultants Inc. 2013 THE NILSON REPORT Reproducing or allowing reproduction or dissemination of any portion of this newsletter in any manner for any purpose is a copyright violation subject to substantial fines. Yearly Subscription for 23 print and electronic issues is $1,295. ISSN 1087-8718THE NILSON REPORT: 1110 Eugenia Place, Suite 100, Carpinteria, CA 93013 USA • PHONE (805) 684-8800 • FAX (805) 684-8825 • [email protected]

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U.S. SUPREME COURT has voted 5 to 3 in favor of American Express and its existing practice of using arbitration agreements with retailers who accept its payment cards. Litigation was brought against Amex by a restaurant that wanted to sue rather than engage in individual arbitration over discount fees it had to pay the card company.

THE FEDERAL DEPOSIT INSURANCE CORP. (FDIC) filed liti-gation in federal court in Philadelphia June 17 seeking $219 million from former Advanta executives Dennis Alter and William Rosoff. The FDIC expects losses to reach $160 million from the collapse of Advanta, once ranked among the 20 largest U.S. credit card issuers. Alter and Rosoff countersued in federal court in Salt Lake City, Utah, the same day, citing FDIC approval for their plan to rescue the bank. Ultimately about 400,000 credit card accounts were cancelled and more than 40% of the outstanding balances couldn't be collected.

USA TECHNOLOGIES will be the exclusive service provider for all payment card processing from Setomatic's SpyderWash payment hardware and data services. They are deployed primarily in the commercial laundry and multihousing laundry markets where there are an estimated 5.9 million coin-operated washers and dryers. Michael Schantz is President at Setomatic, (516) 752-8008, [email protected], www.setomaticsystems.com. Stephen Herbert is CEO at USA Technologies, (610) 989-0340, [email protected], www.usatech.com.

THE NILSON REPORTNUMBER 1020 June 2013 - 1 -

ALLIANCE DATA RETAIL SERVICES has received a contract extension from home and apparel retailer Orchard Brands for private label and co-branded credit card programs in the U.S. The contract expands the private label card program to another nine brands owned by Orchard. Melisa Miller is President at ADRS, (614) 729-4900, [email protected], www.alliancedata.com.

PUNCHEY is a start-up that offers small businesses the hardware and software for payment processing and customer relationship management. Card rates are optimized for businesses whose tickets exceed $50. Nathaniel Stevens is CEO, (857) 350-0837, [email protected], www.punchey.com.

BANKING UP is the new business name for prepaid card platform provider Plastyc. Clients include H&R Block. Banking Up products include the UPside Visa prepaid card and the iBankUp online financial portal. Patrice Peyret is CEO, (212) 671-1015, [email protected], www.bankingup.com.

SAN DIEGO COUNTY CREDIT UNION now lets its Visa credit cardholders use their online banking user name and password to log into a mobile app called Easy Balance Transfer, which they then use to take a photo of the payment stub from a credit card bill from another issuer. The app, which was created by Mitek, reads the com-pany's name, address, and payment amount. James DeBello is CEO at Mitek, (858) 503-7810, [email protected], www.miteksystems.com. Nathan Schmidt is Head of Marketing and Business Development at SDCCU, (858) 597-2504, [email protected], www.sdccu.com.

PARAGON APPLICATION SYSTEM has produced a free white paper called "EMV: Your Best Defense Against Counterfeit Card Fraud." Download the pdf at www.paragonedge.com/images/whitepapers/emv_against_card_fraud.pdf.

MOBEY FORUM'S North America chapter has produced a new white paper called "The MPOS Breakthrough: How the Power of Mobile has Disrupted Payments." Download a free copy from http://www.mobeyforum.org/whitepaper/the-mpos-break-through-how-the-power-of-mobile-has-disrupted-payments/.

WHAT EMV MIGRATION MEANS FOR U.S. PAYMENTS FIRMS is a free white paper available from Dublin-based Bayberry Consulting. Download at http://tinyurl.com/cezumnw.

"THE MIGRATION TO EMV CHIP TECHNOLOGY" is a white paper produced by Gemalto, the world's largest smart card manufacturer. Download at: http://www.gemalto.com/brochures/download/documentgating/fin_wp_Migration_to_EMV.pdf.

RISE AND FALL OF A FRAUDULENT TRANSACTION is a free white paper available from Compass Plus, provider of retail banking and card management software. Its customer base includes banks, processors, and personalization centers worldwide. Download at http://compassplus.com/collateral/whitepapers/298.

FIME, a global provider of EMV test tools as well as a certification service, has opened an office to serve the U.S. market. Xavier Giandominici is Director at FIME America, (514) 935-1331 x219, [email protected], www.fime.com.

PAYMENT METHODS LATAM SUMMIT 2013(Medios De Pago Latam Summit 2013)

Three-Day ConferenceJuly 23-25, 2013The Eden Roc RenaissanceMiami Beach, Florida

Topics include: position the mobile financial services of your organization as an effective business platform, understand if your organization is ready to implement multichannel strategies, break paradigms inside the organization and implement cross financial solutions, stay ahead of the latest technology to improve the customer experience, consolidate loyalty strategies, customer acquisition and relations. Speakers represent: Rockland Trust, Banco Ripley, Raddar Consumer Knowledge, Banco Nacional de Costa Rica, Banco Azteca, Transbank, Uff Movil!, Citigroup, BanRegio, Banco Caja Social, Banco Solidario, Serfinansa, Asobancaria, BBVA Provincial, Sí Vale Prestaciones Universales, Banco Colpatria, HSBC, Euromonitor, Banco de Mexico, Tarjeta Shopping, Atento, Sabadell America, Charge Anywhere, Scotiabank, HID Global, Morpho e-Documents, Redeban Multicolor, 7-Eleven, American Express, and more. Cost is $2,790. Contact Laura Paganini at WBR, 55 (11) 3463-5630, [email protected]. Register at www.wbresearch.com/mediosdepagolatam.

FEATURED CONFERENCE 15%

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Subscribers to The Nilson Report will receive a 15% discount. (Use code NILSON.)

Fast Facts > > > > > > > > >

2 June 2013 issue 1,020 the nilsOn rePOrtIf you are being forwarded a copy of this report, you are not an authorized user and must delete the report

immediately. Your obtaining an unauthorized copy may violate the intellectual property rights of HSN Consultants, Inc. d/b/a The Nilson Report. The right to possess digital versions of this report is granted solely to the individual subscriber.

http://www.paragonedge.com/images/whitepapers/emv_against_card_fraud.pdf

http://www.paragonedge.com/images/whitepapers/emv_against_card_fraud.pdf

http://www.mobeyforum.org/whitepaper/the-mpos-breakthrough-how-the-power-of-mobile-has-disrupted-payments/

http://www.mobeyforum.org/whitepaper/the-mpos-breakthrough-how-the-power-of-mobile-has-disrupted-payments/

http://www.gemalto.com/brochures/download/documentgating/fin_wp_Migration_to_EMV.pdf

http://www.gemalto.com/brochures/download/documentgating/fin_wp_Migration_to_EMV.pdf

NETWORK INTERNATIONAL, operator of the largest third-party issuing and acquiring processing platform in the Middle East, has become a strategic partner of OpenWay's WAY4 card manage-ment and financial switching software in the Middle East, Africa, and Southeast Asia. Bhairav Trivedi is CEO at Network International, 971 (4) 303-2465, [email protected], www.network.ae. Hans Van Buylaere is Managing Director at OpenWay Middle East, 971 (4) 446-4815, [email protected], www.openwaygroup.com.

INGENICO'S ICT250 device is the first POS terminal to be fully compliant with the OSCar Integration Specifications (version 1.2) aimed at implementing Europe's SEPA standards and ensuring fully cross-border EMV transactions. OSCar certifications are provided by PayCert, which is based in Paris. Pierre-Antoine Vacheron is EVP, Europe-SEPA at Ingenico, 33 (1) 5801-8705, [email protected], www.ingenico.com. Jean-Claude Marelli is President at PayCert, 33 (1) 1401-55930, [email protected], www.paycert.eu.

BLUESNAP, a payment services provider with more than 5,000 merchant customers, has opened an office in London. Katrina Beckwith is Sales Director, U.K. and EMEA, 44 (144) 289-1817, [email protected], www.bluesnap.com.

BANAMEX has deployed 3,000 Ingenico iCT 220, iCT 250, and iWL 220 POS terminals as well as iPP320 PIN pads. It could deploy Ingenico devices at 30,000 points of sale by year-end. Last year Banamex acquired 275 million Visa and MasterCard transactions. Marcus Vendrúscolo is Marketing & Business Development Director at Ingenico Latin America, (305) 671-6264, [email protected], www.ingenico.com. José Ignacio Goyeneche Polo is Acquiring Business Services Director at Banamex, 52 (55) 1226-1368, [email protected], www.banamex.com.

SETIS, a Brazil-based developer and integrator of software for EMV payment systems, has joined the Multos Consortium. Multos is a smart card operating platform for payment cards and e-passports. Setis has been developing POS terminal payment applications for 15 years. More than 1.7 million terminals in Brazil use Setis technol-ogy. Wilson Martins is CTO at Setis, 55 (11) 5084-2782, [email protected], www.setis.com.br. Stuart Attwood is Com-mercial Director at the Multos Consortium, 44 (78) 5070-7790, [email protected], www.multos.com.

PAYSMART'S Software as a Service approach to EMV migration leverages the Multos smart card platform to reduce to 30 days the time needed to issue chip cards for independent projects. Daniel Nunes de Oliveira is Bus. Devel. Dir. at paySmart, 55 (51) 3221-4879, [email protected], www.paysmartservices.com.

MICROS, a top provider of applications, services, and hardware to the hospitality and retail industries, is working with mobile payment specialist payleven to offer merchants a cloud-based pay-as-you-go system with integrated mobile Chip & PIN card payment technology. Paul Broome is CTO, eCommerce at Micros, 44 (7590) 761-058, [email protected], www.micros.com. Alston Zecha is COO at payleven, 44 (7867) 361-792, [email protected], www.payleven.co.uk.

OGONE FRAUD EXPERT is the new online fraud protection service available from Ingenico-owned Ogone, a global online pay-ment services provider. Fraud Expert gives merchants the flexibility to set rules according to their unique requirements, leveraging the services set of over 20,000 control rules, device fingerprinting, a pooled knowledge database, and industry-specific templates. Merchants also have the option of outsourcing transaction reviews to Ogone’s team of fraud experts. Filip Gossele is Product Director at Ogone, 32 (2) 613-0508, [email protected], www.ogone.com.

BANCO SANTANDER has made a $6.7 million (€5 mil.) strate-gic investment in Sweden-based payment processing company iZettle. The companies will also work together in the U.K., Mexico, and Spain. Ramon Tellaeche is Head of Payment Cards at Banco Santander, 34 (91) 289-1333, [email protected], www.gruposantander.com. Jacob de Geer is CEO at iZettle, 46 (8) 1213-1918, [email protected], www.izettle.com.

INSIDE SECURE'S VaultSEcure secure element for mobile devices is now supported by NBS Technologies' Xpressi Trusted Service Manager. Financial institutions, mobile network operators, and service providers can use Xpressi to provision applications and download cardholder credentials to mobile devices. Bryan Hills is CEO at NBS Technologies, (416) 621-1911, [email protected], www.nbstech.com. Bernard Vian is EVP for the Secure Payment division at INSIDE Secure, 33 (4) 4239-6300, [email protected], www.insidesecure.com.

Didier Lamouche has been appointed Chief Executive Officer at Oberthur Technologies, 33 (1) 7814-7000, [email protected]. Bill Sheedy has been appointed Global Executive, Corporate Strategy, M&A, Government Relations at Visa, (650) 432-2990, [email protected]. Peter Quadagno has been appoint-ed Partner at Bank Solutions Group, (610) 662-9459, [email protected]. Nick Parsons, formerly at Monitise and Ingenico, has been appointed Managing Director at Spire Payments Northern Europe, 44 (1722) 430-212, [email protected]. Julie Counterman, formerly at Harland Financial, has been appointed Senior VP of Business Development and Sales at Bluefin Payment, (404) 964-8122, [email protected]. Mark Pyke has been appointed Senior Executive Vice President at TSYS, (480) 333-7633, [email protected]. Ludovic Houri has been appointed Chief Sales Officer at Ogone, 32 (2) 286-9611, [email protected]. Jason Tymms has been appointed Prepaid Lead, Asia/Pacific, Middle East, and Africa at MasterCard, 61 (3) 9098-2303, [email protected]. Sherry Magwire has been appointed Chief Technology Officer at Planet Group, (402) 964-1985, [email protected]. Paul Halpern, formerly at Capital One, has been appointed Managing Director at Novantas, (212) 953-4444, [email protected].

MANAGEMENT > CHANGES

> > > > > > > > > Fast Facts



> > > > > > > > Fast FactsBANK OF MONGOLIA and TRADE DEVELOPMENT

BANK in Mongolia have entered into a master acquiring agree-ment with JCB. The agreement covers all 7,000 POS terminals in the country. Gantsetseg Khasaarai is Head of Card Mgmt. at TDBM, 976 (11) 331-883, [email protected], www.tdbm.mn. Kochi-ro Wada is SVP, Head of Sales and Mktg., East Asia at JCB Int'l, 81 (3) 5778-8373, [email protected], www.jcbcorporate.com/english/.

ICC SOLUTIONS has received third-party accreditation from MasterCard in two categories - Guidance and Technical Support Acquirers. The Third Party Accreditation Program helps issuers and acquirers identify suppliers needed to prepare for migration to chip cards. Dave Maisey is CEO, 44 (1925) 629-001, davemaisey@ iccsolutions.com, www.iccsolutions.com.

HYBRID PAYTECH, a subsidiary of Freeport Capital, has opened an office in Hong Kong to promote its mobile payments platform. Ronald Chua is President at Hybrid Paytech Asia/Pacific, (852) 9162-3116, [email protected], www.hybridpaytech.com.

HUA NAN BANK in Taiwan will issue a JCB-branded debit card with optional contactless payment service for use on public transport and at some retailers and restaurants. The bank is now the largest JCB card issuer in Taiwan where there are 30 banks and financial institution partners for merchant acquiring and card issuing. More than 1.5 million JCB cards have been issued in Taiwan. Yuichiro Komuro is Director & President at JCB International (Taiwan), 886 (2) 2531-0055, [email protected], www.jcb.tw. Tsung-Hsien Li is Head of Cards at Hua Nan Bank, 886 (2) 8772-3112, [email protected], www.hncb.com.tw.

EUROPEAN CENTRAL BANK'S white paper on virtual currencies is available at www.ecb.int/pub/pdf/other/ virtualcurrencyschemes201210en.pdf.

CF CARD FACTORY, a joint venture of Swiss Post Solutions and Vogt Follendruck, has been certified by MasterCard and Visa. CF Card Factory produces up to 200 million cards a year. Stephan Rüttimann is Member of the Board at Vogt, 49 (0) 5602-917440, [email protected], www.cardfactory-gmbh.de.

THE NILSON REPORTNUMBER 1020 June 2013

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NFC BOOTCAMP SYDNEY 2013: July 24-25, 2013. Sydney, Australia. Estimated attendance: 30. Cost for the two-day conference is $1,318. Subscribers to The Nilson Report will receive a 20% discount. (Use code NILSON.) Contact Tracee Lee Beebe at OTA, (972) 386-9655, ext. 9972, [email protected]. Register at www.nfcbootcamp.com/event-registration/.

LOYALTY CANADA 2013: July 24-25, 2013. The Hilton Toronto, Ontario, Canada. Estimated attendance: 50-60. Cost for the two-day conference starts at $2,695. Subscribers to The Nilson Report will receive a $200 discount. Contact Robin Yegelwel at MarcusEvans, (312) 540-3000 x6483, [email protected]. Register at www.marcusevansch.com/LCDN2013_TNR.

HEALTHCARE PAYMENTS INNOVATIONS 2013: July 30-31, 2013. The Le Méridien Cambridge-MIT, Cambridge, Massachusetts. Estimated attendance: 150. Cost for the two-day conference ranges from $995 to $2,095. Subscribers to The Nilson Report will receive a $300 discount. (Use code NILSON.) Contact Kathleen Daffner at Strategic Solutions, (203) 209-0520, [email protected]. Register at www.hcpaymentsinnovations.com.

THE PREPAID PRESS EXPO 2013 (TPPEXPO13): August 12-14, 2013. Planet Hollywood, Las Vegas, Nevada. Estimated attendance: 1,700. Cost for the three-day conference is $450 with discount code TNRTPP. Combo tppEXPO/Financial Mobility Summit Pass is $600 with discount code TNRCOMBO. Contact Robin Tobias at The Prepaid Press, (305) 421-7209, ext. 503, [email protected]. Register at www.prepaidpressexpo.com.

CONFERENCES & SEMINARS

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THE FINANCIAL MOBILITY SUMMIT 2013: August 13-14, 2013. Planet Hollywood, Las Vegas, Nevada. Estimated attendance: 500. Cost for the two-day conference is $450 with discount code TNRFM. Combo tppEXPO/Financial Mobility Summit Pass is $600 with discount code TNRCOMBO. Contact Robin Tobias at The Prepaid Press, (305) 421-7209, ext. 503, [email protected]. Register at www.financial-mobility.com.

C4 CONGRESS 2013: September 4-5, 2013. The Frei Caneca Convention Center, São Paulo, Brazil. Estimated attendance: 400+ delegates. Cost for the two-day conference is $1,945. Subscribers to The Nilson Report will receive a 20% discount. (Use code TNR_1320_C4.) Contact Rafael Rinaldi at Next Business Media, 55 (11) 3173-4410, [email protected]. Register at www.congressoc4.com.br.

WESPAY PAYMENTS SYMPOSIUM 2013: September 9-10, 2013. The Renaissance Palm Springs Hotel, Palm Springs, California. Estimated attendance: 240. Cost for the two-day conference is $1,200 (nonmember), $795 (member), and $715.50 (AAP member). Subscribers to The Nilson Report will receive a 20% discount off the nonmember price. (Use code Nilson13PS.) Contact Shannon Cooper, Symposium Manager, (812) 339-6374, [email protected]. Register at www.wespay.org/symposium/.

EMERGING PAYMENT SYSTEMS 2013: September 18-19, 2013. The Grand Hyatt Washington, Washington, D.C. Estimated attendance: 150. Cost for the two-day conference ranges from $1,995 to $2,295. Subscribers to The Nilson Report will receive a $300 discount. (Use code NR300.) Contact Evan Ring at ACI, (212) 352-3220 x5511, [email protected]. Register at www.americanconference.com/emergingpayments.



http://www.ecb.int/pub/pdf/other/virtualcurrencyschemes201210en.pdf

http://www.ecb.int/pub/pdf/other/virtualcurrencyschemes201210en.pdf

https://www.nfcbootcamp.com/event-registration/

https://www.nfcbootcamp.com/event-registration/

http://www.marcusevansch.com/LCDN2013_TNR

http://www.marcusevansch.com/LCDN2013_TNR

http://www.wespay.org/symposium/

http://www.wespay.org/symposium/

The newest Pay4You POS terminal from Chess Payment Technology features a 32-bit MIPS core, weighs 570 grams with print paper, and uses li-

polymer batteries that can provide continuous

operation for 12 hours or 200 transactions.

Pay4You meets all EMV and

PCI PED

certifications. Application management uses an XML browser. Its thermal printer functions at 50mm per second. The backlit graphic display measures 128x64. Communication modes are GPRS modem and Ethernet (10/100MB autosensing). The device can switch from one mode to the other in case of loss of connection, and can be used as a handheld or countertop device.

The all-in-one design includes a mag-stripe reader, EMV chip card reader, and contactless interface. The PIN pad and printer are integrated. Its XML browser, which runs on the terminal, enables third-

party content and consumer interaction.

Chess also offers a small contactless reader designed for multiple industries including mass transit.

The current version of Pay4You GO is not EMV certified. However, the next version expected to be available later

this year will be, so that it can be used for Visa payWave and MasterCard PayPass transactions.

All Chess devices are sold in the

Netherlands and Belgium. It is looking for distributors in other countries. Jan Gepko de Haan is Managing Director at Chess Payment Technology International in Haarlem, The Netherlands, 31 (85) 401-1640, [email protected], www.chess-pt.com. Prior issue: 919

On Track Innovations filed a patent infringement lawsuit in United States District Court for the

Southern District of New York (Brooklyn) in March 2012. The complaint alleged that phones enabled with near field communication (NFC) sold by T-Mobile USA infringed on OTI’s U.S. Patent No. 6,045,043.

OTI’s patent concerns

connecting a microprocessor with both contact and contactless modes of communication without the need to use a switch. The use of separate, dedicated connections between the microprocessor and the data entry points allows for different contact and contactless communication protocols as well as the ability to alter a protocol through software only, not a change in hardware.

After a technology tutorial and a related hearing last month, Judge Alison Nathan issued a decision June 20 in favor of OTI, accepting that company’s expert testimony on the meaning of four terms that the parties had disputed.

OTI and T-Mobile must now complete the fact discovery phase of the trial within 10 weeks. All expert discovery is supposed to be completed in 14 weeks. Any dispositive motions need to be filed

within 18 weeks.

OTI owns an extensive portfolio of intellectual proprietary rights related to contactless chip technology. Among its products are NFC-based reader devices for use at the point of sale, and COPNI (Contactless Payment and NFC Insert), a device that adds NFC capability to non-

NFC mobile phones. Ofer Tziperman is CEO at On Track Innovations in Rosh Pina, Israel, 972 (4) 686-8000, [email protected], www.otiglobal.com.

APPLICATION MANAGEMENT USES AN XML bROwSER.

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http://www.chess-pt.com

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grew by $6.53 billion and Diners by $0.30 billion.

Visa’s market share of purchase volume was 61.18% in 2012, down 10 basis points from 2011. MasterCard’s share was 29.62%, up 48 basis points from 2011. American Express’s share was 8.20%, down 43 basis points. Diners Club’s share was 1.00%, down 15 basis points.

Total volume — the combination

of purchases at merchants and cash — reached $1.348 trillion last year, up 13.42%.

Cash advanced against lines of credit or as withdrawals from funds on deposit and received over the counter at bank branches, through balance transfers, or from ATMs totaled $735.88 billion. Cash accounted for 54.59% of total volume, down from 57.40% in 2011.

Cash accounted for 62.14% of total Visa volume, down from 65.01%, and 39.89% of total MasterCard volume, down from 42.02%. Cash accounted for 0.45% of total American Express volume and 9.60% of total Diners Club volume.

General purpose cards in circulation in the region reached 579.5 million at the end of 2012, up 4.2% over the prior year. Visa

in 1996. Credit card debt includes outstanding receivables tied to general purpose and private label accounts. Card debt is a subset of total consumer credit, which was $2.768 trillion at the end of last year.

Total consumer credit is reported in the Federal Reserve Statistical Release, Z.1, Financial Accounts of the United States, Flow of Funds, Balance Sheets, and Integrated Macroeconomic Accounts, Table D.3, Credit Market Debt Outstanding by Sector. Credit card debt is compiled from surveys

of financial institutions and other card-based lenders conducted by The Nilson Report.

Credit card debt equaled 29.68% of total consumer credit at the end of last year, the lowest level of card debt to total consumer credit since 1990, when it was 29.42%. The highest level for card debt was 40.95% in 1997.

Installment and noninstallment unsecured personal loans, both closed and open-ended comprise total consumer credit. Mortgage debt and low-value bank loans are not counted by the Federal Reserve as consumer credit. When consumer credit is added to mortgage debt and low-value bank loans, the resulting figure represents household debt.

Mortgage debt (and other loans) of $10.051 trillion last year declined by $196.90 billion, while credit card debt declined by $5.27 billion, and total consumer credit grew by $152.50 billion.

Total U.S. household debt of in 2012 was down $44.40 billion from $12.864 trillion at year-end 2011. The average debt for each of the 121.1 million U.S. households was $105,871. One year before the average household debt was $108,388.

Consumer credit equaled 21.59% of household debt at the end of 2012, up from 20.33% the prior year. Consumer credit per household was $22,862. Rent payments and automobile leases are not counted by the Federal Reserve as consumer credit.

Credit card debt per household was $6,785 at year-end 2012, down from $6,878 in 2011. Prior issues: 997, 974, 952, 926, 903

5.1%

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©2013 The Nilson Report

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and MasterCard cards in Latin America totaled 567.2 million and accounted for 97.88% of all general purpose cards in the region. American Express and Diners Club cards totaled 12.3 million and accounted for the remaining 2.12%.

Visa had the largest increase in the number of cards in circulation. Its card base grew by 17.0 million in 2012. MasterCard added 5.2 million cards. American Express added 0.8 million and Diners Club added 0.1 mil. American Express had the highest percentage increase in cards in circulation, up 8.8%.

Purchase transactions at merchants reached 12.96 billion in 2012, up 15.3%. Visa and MasterCard cards combined to generate 12.50 billion purchase transactions, representing 96.50% of the region’s total, up from 96.32%.

American Express and Diners Club cards accounted for the remaining 3.50% from 0.41 billion transactions.

Visa’s market share of purchase transactions was 66.59%, down from 66.99% in 2011. Purchase transactions on Visa cards grew by 1.10 billion. MasterCard’s market share was 29.91%, up from 29.33%.

American Express’s share of purchase transactions was 2.91%, down from 3.02%. Diners Club’s share was 0.59%, down from 0.66%.

The average amount of a general purpose card purchase transaction was $47 in 2012, up 4.9% from 2011. The average purchase volume per card in 2012 was $1,056, up 16.1%.

Latin America accounted for 6.60% of Visa’s worldwide purchase volume in 2012, up from 5.90% in 2011. It accounted for 9.31% of Visa purchase transactions worldwide, up from 8.59% the prior year, and 17.30% of all Visa cards in circulation, down from 17.70%.

Latin America accounted for 6.73% of MasterCard’s worldwide purchase volume, up from 6.22% in 2011. It accounted for 9.67% of MasterCard purchase transactions worldwide in 2012, up from 9.38% the prior year, and 11.76% of all MasterCard

cards in circulation, down from 12.52%.

For American Express, Latin America accounted for 5.68% of its worldwide purchase volume in 2012, up from 5.39% in 2011 and 9.78% of all Amex cards worldwide, up from 9.45%.

Latin America accounted for 22.67% of Diners Club worldwide purchase volume in 2012, up from 21.05% in 2011. The region accounted for 38.87% of Diners Club cards worldwide, up from 35.84%. Prior issues: 995, 972, 952, 927, 902, 883, 861

CARDS IN CIRCULATION REACHED 579.5 MIL. AT yEAR-END.

Latin America General Purpose Cards 2012 vs. 2011 Dollar Volume (bil.) Transactions (mil.) Cards Brand Total Chg. Purchases Chg. Cash Chg. Total Chg. Purchases Chg. (mil.) Chg.

Visa $989.21 11.9% $374.51 21.1% $614.70 7.0% 12,423.8 10.6% 8,628.7 14.6% 431.0 4.1%

MasterCard $301.61 18.5% $181.31 22.9% $120.30 12.5% 4,593.4 15.4% 3,875.4 17.5% 136.2 4.0%

Amer. Express $50.44 14.9% $50.21 14.9% $0.22 12.0% 386.4 10.4% 376.7 10.9% 10.0 8.8%

Diners Club $6.79 4.9% $6.14 5.1% $0.65 3.9% 76.3 3.0% 76.2 3.0% 2.2 5.3%

Totals $1,348.05 13.4% $612.17 20.9% $735.88 7.9% 17,479.9 11.8% 12,957.0 15.3% 579.5 4.2%

Includes all consumer and commercial credit, debit, and prepaid cards. Currency figures are in U.S. dollars. Change figures for dollar volume reflect a year-over-year comparison in local currency. Visa includes Electron. MasterCard excludes Maestro & Cirrus. © 2013 The Nilson Report

2007(inside)

2017(outside)

$79.00

$246.97

$5.22 $8.93$22.74

$81.54

$482.46

$152.00

©2013 The Nilson Report

Purchase Volume in Latin America2007 vs. 2017 (Bil.)

Visaup 217%

Master-Card

up 213%Diners

Club

up 71%

AmericanExpressup 259%



It ranks as the eighth largest payment card manufacturer in the world.

In addition to payment cards,

IntelCav produces SIM cards, prepaid vouchers, loyalty cards, RFID cards, and electronic display cards used to authenticate online transactions. It sells to banks throughout Latin America where it supplies one-third of all high-security payment cards in circulation. Soraya Paganato Rodrigues is Marketing Manager at IntelCav in Sao Paulo, Brazil, 55 (11) 2169-0771, [email protected], www.intelcav.com.

Inteligensa also owns Intelicard, a card

manufacturing plant in Sardinia, Italy, that produces payment cards for customers in Latin America, Europe, the Middle East, and Africa. In addition, it owns Intelitec, a plant in Mexico that manufactures RFID cards for large-scale animal tracking and agricultural applications related to food consumption.

Inteligensa also sells a suite of point-of-sale hardware devices including countertop and mobile EMV-compliant POS terminals that handle contact and contactless transactions. It also provides terminal management services and technical support for installed devices. Venanzio Cipollitti is President at Inteligensa Group in

Aventura, Florida, (646) 371-0444, [email protected], www.inteligensa.com. Prior issues: 1,014, 985

merchants originate from chip card readers inserted into the mobile devices and all payments

are immediately encrypted. All messages from the device go directly to the acquirer. Or if acquirers prefer, Swiff’s Gateway can decrypt transactions and deliver messages in the standard format.

Swiff’s platform is also embedded with an application that authenticates every merchant device, giving acquirers and business owners the ability to track the device as well as the personnel who facilitate the transaction. It can also identify where the transaction occurred.

Swiff technology has been deployed or is being implemented by 38 banks and ISOs worldwide, in all cases as a bank-branded service. Swiff does not aggregate transactions. Banks maintain direct relations with merchants. Banks that have signed licensing agreements with Swiff are mainly Tier I-sized banks. However, the technology is available to smaller financial institutions.

Other Swiff products include a mobile wallet, which is available to banks, merchants, and mobile network operators, also on a white-label basis. Users include Meyclub and VikingCo in Europe. The Swiff platform can also be used to deliver loyalty programs, e-banking, and other services to merchants. When banks sell those services they share in profits with Swiff.

Swiff, which is certified by MasterCard and Visa as an mPOS solutions provider, is

headquartered in Singapore. However, it started business in Switzerland as a merchant acquirer for American Express card payments in 2003.

Swiff has received angel financing and is in discussions with venture capital firms to raise money needed for further global expansion.

... MANUfAC-TURES ONE-THIRD Of ALL PAyMENT CARDS IN LATIN AMERICA .

CONTACTSt Americas larry schreier is senior vP, sales in atlanta, georgia, (404) 545-1211, [email protected].

t Asia/Pacific ross nicholson is head of regional business unit in singapore, (65) 6222-2883, [email protected].

t Europe benoit Delestre is head of regional business unit in Paris, France, 33 (6) 1093-2274, [email protected].

t Middle East/Africa erik holst-roness is chief of strategy in geneva, switzerland, 41 (9) 912-5819, [email protected], www.sccpgroup.com.

inTelCav To inTeligensa (from page 1)...

swiFF whiTe labels Mobile PayMenTs (from page 1)...



http://www.intelcav.com

http://www.inteligensa.com

http://www.sccpgroup.com

checks was $399.87 billion, down 7.0%. Of the total checks authorized last year, 4.96 billion or 91.8% were verified against negative files of fraudulent accounts and bad check writers. Merchants incur

the loss for any check returned for nonsufficient funds (NSF) or fraud. The remaining 441.8 million authorized checks were guaranteed using negative

Check Guarantee 2012

Check Verification 2012

Rank Check Volume No. of Checks Avg. Merchants ‘12 ‘11 Company, Headquarters (mil.) Chg. (mil.) Chg. Amt. Clients Chg. Outlets

1 1 TeleCheck (First Data) Houston, Texas $14,784.1 –6% 170.7 –5% $87 101,410 –10% 170,000

2 3 United TranzActions Miramar, Florida $14,231.0 11% 9.7 1% $1,470 5,200 4% 40,000

3 2 Certegy Check Serv. (FIS) St. Petersburg, Fla. $13,341.0 –10% 102.4 –10% $130 10,410 –12% 281,070

4 4 EnCircle Payment Solutions Miami, Florida $10,429.7 –8% 34.0 –8% $307 31,204 –8% 51,500

5 5 CrossCheck Rohnert Park, California $7,841.0 –9% 21.4 –9% $366 38,000 –8% 59,000

6 6 CheckCare Group Casselberry, Florida $6,451.0 –10% 71.5 –11% $90 11,200 –21% 38,000

7 7 Global Payments Atlanta, Georgia $2,637.7 0% 8.5 –2% $310 4,616 –20% 15,005

8 8 Global eTelecom Ft. Walton Beach, Florida $857.3 –10% 2.4 –19% $357 30,767 –17% 37,561

9 9 Intuit Pymt. Solutions Woodland Hills, Calif. $254.4 –8% 3.9 –10% $65 4,300 –16% 5,900

10 10 EZCheck Houston, Texas $176.9 –1% 0.9 –9% $196 6,542 –3% 8,006

11 11 Secure Payment Systems San Diego, Calif. $115.0 –10% 0.5 –10% $232 4,600 15% 5,200

12 12 First American Pymt. Sys. Ft. Worth, Texas $41.8 –22% 0.4 –28% $103 4,553 –11% 4,553

13 13 Pago Vision Austin, Texas $9.7 51% <0.1 46% $252 1,526 23% 1,598

Others $1,511.1 –11% 15.3 –15% $99 11,200 –17% 23,300

TOTAL $72,681.6 –5% 441.8 –8% $165 265,528 –11% 740,693© 2013 The Nilson Report

Rank Check Volume No. of Checks Avg. Merchants ‘12 ‘11 Company, Headquarters (mil.) Chg. (mil.) Chg. Amt. Clients Chg. Outlets

1 1 Certegy Check Serv. (FIS) St. Petersburg, Fla. $199,300.0 –10% 2,981.0 –10% $67 10,410 –12% 281,070

2 2 TeleCheck (First Data) Houston, Texas $86,521.0 –7% 1,697.8 –8% $51 11,240 –7% 61,000

3 3 Intuit Pymt. Solutions Woodland Hills, Calif. $13,284.1 –9% 101.4 –10% $131 42,000 –2% 56,000

4 5 Forte Payment Systems Allen, Texas* $7,520.0 49% 22.1 2% $340 2,380 3% 3,535

5 4 CheckCare Group Casselberry, Florida $6,540.2 –9% 48.8 –10% $134 13,800 –10% 27,400

6 6 EnCircle Payment Solutions Miami, Florida $4,324.0 –8% 40.5 –8% $107 3,405 –8% 4,683

7 8 Global eTelecom Ft. Walton Beach, Florida $3,712.4 47% 13.9 30% $266 39,305 2% 97,640

8 7 Fastcheck Network Greeley, Colorado $3,481.5 –9% 37.7 –9% $92 178 –1% 214,410

9 9 CCV Bothell, Washington $901.2 –8% 9.2 –9% $98 1,930 –8% 3,048

10 10 Secure Payment Systems San Diego, Calif. $829.0 46% 2.0 31% $422 1,600 7% 1,700

11 11 Global Payments Atlanta, Georgia $125.4 2% 1.1 –21% $116 4,279 0% 4,292

12 13 EZCheck Houston, Texas $33.0 12% 0.2 9% $193 1,308 10% 1,411

13 12 First American Pymt. Syst. Ft. Worth, Texas $32.1 –20% 0.2 –27% $138 4,553 –11% 4,553

Others $585.0 –10% 8.8 –11% $67 3,880 –10% 6,900

TOTAL $327,189.0 –7% 4,964.8 –9% $66 265,528 –11% 740,693*Was ACH Direct. © 2013 The Nilson Report

CheCK auThoRiZaTion — 2012 (from page 1)...

... turn to page 10



this group represented 10 countries. They processed 1.42 billion MasterCard and Visa transactions valued at $106.80 billion.

In addition to figures shown on this table, another 4.7 million American Express, UnionPay, Diners Club, and JCB transactions valued at $1.08 billion were also processed.

Also not shown are domestic debit transactions totaling 41.4 million that generated $5.63 billion for brands that included SPAN in Saudi Arabia, Al-Amil and KNET in Kuwait, eCASH in Qatar, and AutoBranch in Kenya.

Banks from South Africa continued to rank first through fourth largest in the region with Absa remaining the largest. Standard Bank moved ahead of Nedbank to claim third place. Al Rajhi Bank, one of four banks from Saudi Arabia shown here, is the largest acquirer in that country. It moved ahead of Mashreq Bank to claim sixth place. Prior issues: 996, 983

files as well as positive files that hold information about the check writer. In addition these checks are scored for risk using analytic models. Guarantee firms incur the loss for any NSF check or fraudulent check they approve.

Verification revenue averaged 8.7¢ per check last year, generating $431.9 million for firms that provide the service.

Additional revenue is earned by any of those firms that also collect checks returned for insufficient funds on behalf of merchants.

Guarantee firms earned revenue of $719.5 million last year. Merchants paid an average

of 0.99 basis points of the amount of the check to receive a

guaranteed payment.

The average amount of a verification transaction in 2012 was $66. The average amount of a guarantee transaction in 2012 was $165.

Bank Cards (Visa & MasterCard) Rank Transactions Volume Merchant POS ‘12 ‘11 Company, Headquarters (mil.) Chg. (mil.) Chg. Outlets Terminals

1 1 Absa South Africa (1) 443.0 26% $19,181.5 30% 55,240 66,200 2 2 First National Bank South Africa 233.7 19% $13,317.5 22% 47,535 52,693 3 4 Standard Bank South Africa (2) 206.4 54% $10,286.4 49% 42,977 50,299 4 3 Nedbank South Africa 160.2 17% $10,348.9 19% 37,185 45,165 5 5 Network Int’l U.A.E. (3) 96.4 17% $15,248.5 16% 26,950 46,187 6 7 Al Rajhi Bank Saudi Arabia 77.7 160% $12,976.3 176% 11,494 24,133 7 6 Mashreq Bank U.A.E. (4) 45.5 14% $6,343.8 13% 12,696 20,494 8 8 Nat’l Comm. Bank Saudi Arabia 33.3 12% $4,373.0 12% 6,100 12,947 9 10 Qatar National Bank Qatar (5) 19.2 21% $2,259.3 18% 2,651 5,472 10 9 Nat’l Bank of Kuwait Kuwait (6) 18.9 14% $2,679.9 12% 9,457 10,568 11 12 Bank Alfalah Pakistan 14.7 14% $408.4 15% 26,997 20,248 12 11 SABB Saudi Arabia (7) 12.3 –12% $2,255.1 –15% 5,842 8,470 13 13 Emerging Mkt. Pymts. Jordan (8) 9.5 21% $919.4 14% 10,588 14,890 14 14 Commercial Int’l Bank Egypt (9) 8.9 20% $845.6 26% 5,546 8,130 15 15 Kuwait Finance House Kuwait 8.4 14% $927.0 21% 3,783 3,982 16 16 Arab African Int’l Bank Egypt 8.1 18% $625.0 22% 4,635 6,165 17 17 Bank Audi Lebanon (10) 7.7 15% $1,210.0 10% 6,600 7,100 18 18 Credit Libanais Lebanon 6.6 22% $878.1 19% 9,799 11,607 19 19 Doha Bank Qatar (11) 5.0 75% $658.7 41% 1,395 2,200 20 20 Riyad Bank Saudi Arabia (12) 2.8 22% $444.9 30% 3,945 13,400 21 21 Commercial Bank Kuwait 2.2 20% $515.3 2% 3,012 3,963 22 22 Equity Bank Kenya (13) 2.0 51% $101.3 50% 1,328 2,940

Figures are net (gross minus chargebacks). Bank Cards = Visa and MasterCard credit, debit, and prepaid cards including Electron and Maestro. Change in volume is based on local currency. (1) Other credit (0.7 mil., $63.1 mil.). (2) Other credit (2.8 mil., $488.7 mil.). (3) Other credit (0.3 mil., $212.4 mil.). (4) Other credit (0.1 mil., $49.4 mil.). (5) Other credit (<0.1 mil., <$0.1 mil.) and eCASH domestic debit (3.8 mil., $577.5 mil.). (6) Other credit (<0.1 mil., $5.6 mil.) and Al-Amil and KNET domestic debit (6.5 mil., $1.15 bil.). (7) Other credit (0.2 mil., $96.9 mil.) and SPAN domestic debit (3.9 mil., $686.8 mil.). (8) Domestic debit (5.0 mil., $353.2 mil.). (9) Other credit (<0.1 mil., $1.3 mil.). (10) Other credit (0.3 mil., $104.0 mil.). (11) Other credit (<0.1 mil., $9.6 mil.). (12) Other credit (0.1 mil., $36.3 mil.) and SPAN domestic debit (21.7 mil., $2.85 bil.). (13) Domestic debit AutoBranch (0.5 mil., $17.1 mil.).


Top Merchant Acquirers in Middle East/Africa 2012

GUARANTEE TRANSACTIONS AVERAGED $165 IN 2012.

MiDDle easT/aFRiCa’s laRgesT aCquiReRs (from page 1)...

CheCK auThoRiZaTion — 2012 (from page 9)...



2012, up 21.2% from 2011. That spending was tied to 2.78 billion purchase transactions, up 19.0% from the prior year. The average transaction amount was $35.87.

Volume shown in the table here excludes cash withdrawals from ATMs or obtained over the counter at financial institutions.

At year-end 2012 there were 181.0 million general purpose — Visa, MasterCard, and Discover brand — prepaid cards in circulation from these 50 financial institutions. This included one-time-only cards issued with a specific monetary value at the time of purchase as well as reloadable types. This was up 27.6% from year-end 2011.

These cards included consumer gift, corporate incentive, state and federal government benefits (including child support, unemployment, etc.), payroll, healthcare, insurance claims, travel/transportation/transit, tax and other refunds, teen cards, and rebates/rewards.

The Bancorp Bank became the largest issuer in 2012. It increased its market share of purchase volume among the 50 largest to 20.71% from 13.53%. The Bancorp Bank’s market share of cards in circulation was 24.62%, up from 18.56%.

MetaBank dropped into second place. Its market share of the top 50 issuers’ purchase volume declined to 15.90% from 17.53% in 2012. MetaBank’s market share of cards in circulation was 14.50%, down from 20.85%. Prior issues: 997, 975

Top U.S. Prepaid Card Issuers – 2012 Purchase Vol. Cards Purch. Trans. Avg. Rank Company (mil.) Change (000) Change (mil.) Change Amt.

1. The Bancorp Bank $20,619.8 85.5% 44,567 69.3% 455.6 94.2% $45 2. MetaBank $15,829.1 9.9% 26,253 –11.3% 471.9 14.0% $34 3. Comerica Bank $10,268.5 35.6% 9,263 30.6% 343.7 28.0% $30 4. JPMorgan Chase $9,840.0 10.6% 8,200 10.8% 216.3 9.6% $45 5. H&R Block $9,435.0 13.1% 3,010 21.4% 107.5 13.4% $88 6. GE Capital Retail $8,960.6 7.6% 3,700 5.7% 310.6 8.8% $29 7. Bank of America $4,297.6 17.4% 5,586 41.7% 174.4 45.0% $25 8. U.S. Bank $4,110.6 16.1% 31,688 95.4% 145.9 1.8% $28 9. Citibank $3,088.7 0.1% 22,434 –5.8% 130.6 2.2% $24 10. Green Dot Bank $2,814.4 — 2,370 — 101.6 — $28 11. Wells Fargo $2,450.8 13.5% 973 5.5% 102.8 9.9% $24 12. UMB Bank $2,197.4 26.5% 2,914 –5.5% 33.5 24.9% $66 13. ADP FCU $753.0 88.4% 192 73.8% 27.0 84.4% $28 14. PNC Bank $618.4 –9.6% 982 –3.2% 26.3 –10.1% $24 15. Comdata $520.0 47.1% 975 64.8% 19.2 59.3% $27 16. Webster Bank $517.1 17.4% 692 28.1% 5.0 17.9% $104 17. Central Trust Bank (Mo.) $515.6 –10.1% 423 –13.1% 21.2 –9.3% $24 18. First California Bank $449.0 2.0% 1,059 0.3% 14.7 2.0% $30 19. Sunrise Banks $414.4 — 4,772 — 11.8 — $35 20. SunTrust Bank $289.9 13.6% 1,488 –60.7% 11.9 14.3% $24 21. BB&T $277.1 48.3% 414 52.8% 8.0 52.7% $35 22. Regions Bank $216.9 –33.7% 1,654 –1.1% 5.8 –47.0% $38 23. Inter National Bank $157.3 6.3% 165 3.1% 4.3 6.8% $37 24. TD Bank $151.3 13.0% 2,052 17.9% 5.4 10.6% $28 25. Fifth Third $149.4 14.9% 853 23.3% 2.1 8.2% $71 26. USAA $140.5 9.4% 227 4.4% 8.7 8.8% $16 27. Navy FCU $66.3 14.2% 476 19.1% 2.9 15.7% $23 28. MB Financial $49.7 — 42 — 1.2 — $40 29. Patelco CU $37.1 16.1% 50 –5.2% 0.4 17.6% $102 30. Arvest Bank $32.8 –2.7% 76 –18.3% 1.2 –10.1% $28 31. KeyBank $32.6 16.8% 630 31.0% 1.0 20.3% $34 32. Commerce Bank (Mo.) $31.8 14.3% 44 –3.7% 1.1 12.1% $28 33. Metropolitan Nat’l Bank $28.6 46.2% 38 42.3% 0.7 66.7% $43 34. Kinecta FCU $27.9 24.0% 30 –5.8% 0.6 18.1% $44 35. FNB Bank (Ala.) $24.2 9.8% 45 2.7% 0.8 9.9% $31 36. TIB-TheIndep.BankersBank $23.0 –3.7% 141 –3.9% 0.5 –2.8% $49 37. BMO Harris $18.3 –14.0% 165 16.6% 0.6 –17.6% $32 38. State Employees CU (N.C.) $17.9 7.9% 1,078 19.4% 0.8 9.5% $23 39. BBVA Compass $17.4 7.4% 18 7.7% 0.6 3.6% $30 40. Zions Bancorporation $14.6 44.2% 21 3.0% 0.3 7.7% $43 41. FirstMerit Bank $11.4 –11.3% 157 –29.1% 0.5 –21.1% $24 42. IBC Bank $9.7 21.5% 14 –9.1% 0.4 19.3% $27 43. State Farm Bank $7.7 –16.1% 1,099 80.8% 0.6 –1.9% $13 44. First Horizon $6.9 –95.2% 19 –88.1% 0.2 –87.6% $31 45. Synovus/Columbus B&T $6.6 –99.9% 4 –99.8% 0.2 –99.9% $28 46. Intrust Bank $5.5 16.0% 23 2.2% 0.2 13.4% $22 47. Hancock Bank/Whitney $4.6 — 3 — 0.2 — $26 48. BancFirst $3.4 –5.9% 9 –2.5% 0.1 –0.9% $28 49. Old National Bank $3.4 3.8% 131 –5.6% <0.1 9.0% $38 50. City National Bank (Calif.) $3.2 –4.4% 23 2.2% <0.1 –29.1% $50


ToP 50 PRePaiD CaRD issueRs (from page 1)...



that an issuer-approved transaction has subsequently been determined to be fraud

after a review. CyberSource is a payment management company, wholly owned by Visa Inc., that delivers a variety of risk management services to e-commerce merchants.

Ethoca has been signing up issuers and merchants to this service in the U.S. since 2010. However, the length of the sales cycle and the subsequent integration requirements are

time-consuming. The new service significantly boosts the program as every Visa card authorization for an e-commerce purchase at an Ethoca or CyberSource merchant can be rescinded if the issuer subsequently determines it to be fraud. Ethoca doesn’t have to sign issuers directly to a contract.

Merchants receive the security alerts usually within 24 hours. Ethoca’s platform notifies them through its alerts dashboard, giving merchants time to stop the fulfillment process, limiting their losses to fraud and chargebacks. Andre Edelbrock is CEO at Ethoca in Toronto, Canada,

(416) 849-6091, [email protected], www.ethoca.com.

Visa plans to use CyberSource as a reseller of the Ethoca system

in other countries where privacy and data usage laws permit. Mark Nelsen is Head of Global Risk and Authentication Product Development at Visa

Inc. in Foster City, California, (650) 432-4825, [email protected], www.corporate.visa.com.

Debt buyers purchase debt at a discounted rate to assume ownership of nonperforming loans, which they then attempt to collect from consumers. Credit card issuers sell charged off debt to maximize returns from their distressed assets, using it alongside in-house and third-party collection efforts.

However, after rising almost continuously for more than a decade, debt sales plunged more than 31% last year. While some decline in the amount of card debt sold was the result of issuers having fewer nonperforming accounts available for sale, most of the decline was attributable to issuers wanting to avoid association with debt buyers.

Despite the fact that once credit card charge-offs are sold they are 100% the property of the buyer, issuers were getting most of the bad press when unethical or even illegal actions on the part of the buyers were brought to light by consumers who believed they had been victimized.

Attorneys General in more than a dozen states have started investigations against debt buyers, and the Federal Trade Commission as well as

the Consumer Financial Protection Bureau are planning new regulations of the practice.

DBA International, a trade group representing 600 collectors, lawyers, and debt buyers, is leading an

effort to help its members self-regulate.

The DBA established a certification process this March for Chief Compliance Officers (CCOs) at its 450 debt-buying members. On behalf of their companies, CCOs must agree to 19 best practices standards for their businesses and for any subcontractors they engage. All DBA debt-buying members must

be certified by the end of 2015 or they will not be able to renew their memberships. Jan Stieger is Executive Director at DBA International in Sacramento, California, (916) 482-2462, [email protected], www.dbainternational.org. Prior issue: 1,019

... IS AVAILAbLE TO E-COMMERCE MERCHANTS IN THE U.S. AND bRAZIL.

bUyERS MUST bE CERTIfIED by 2015 OR CANNOT RENEw MEMbERSHIP.

David Robertson, Publisher June 27, 2013

visa/eThoCa FRauD FighTing seRviCe (from page 1)...

DebT buyeRs CeRTiFiCaTion PRogRaM



http://www.ethoca.com

http://www.corporate.visa.com

http://www.dbainternational.org