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Aug 26th, 2011 Edition #267 New to NewsFilter? Click here to subscribe. In this Issue In Other News This Day in History 1939 First televised Major League baseball game On this day in 1939, the first televised Major League baseball game is broadcast on station W2XBS, the station that was to become WNBC-TV. Announcer Red Barber called the game between the Cincinnati Reds and the Brooklyn Dodgers at Ebbets Field in Brooklyn, New York. At the time, television was still in its infancy. Regular programming did not yet exist, and very few people owned television sets--there were only about 400 in the New York area. Not until 1946 did regular network broadcasting catch on in the United States, and only in the mid-1950s did television sets become more common in the American household. In 1939, the World's Fair--which was being held in New York--became the catalyst for the historic broadcast. The television was one of fair’s prize exhibits, and organizers believed that the Dodgers-Reds doubleheader on August 26 was the perfect event to showcase America's grasp on the new technology. Click here to read more.
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Economy in U.S. Grew at 1% Annual Pace in 2Q 8/26/11 Bloomberg The U.S. economy grew less than previously estimated in the second quarter, capping the weakest six months of the recovery that began in mid 2009. Gross domestic product climbed at a 1 percent annual rate from April through June, down from a 1.3 percent prior estimate, revised Commerce Department figures showed today in Washington. The median forecast of economists surveyed called for a 1.1 percent increase. The reduction reflected a smaller increase in inventories and fewer exports. Bernanke Mum on Next Fed Steps, Stresses Jobs 
8/26/11 Reuters Federal Reserve Chairman Ben Bernanke delivered a keenly awaited speech to policymakers gathered in the mountains of Wyoming on Friday. Following are some key points of his speech: Stimulus Options - Bernanke disappointed investors hoping for a fresh steer on what the Fed might do next to boost the U.S. economy, saying the central bank "has a range of tools that could be used to provide additional monetary stimulus. "We will continue to consider those and other pertinent issues, including of course economic and financial developments, at our meeting in September." Uncertainty Still Clouds Durbin Amendment’s Effects 8/24/11 ISO & Agent After months of wrangling, the Federal Reserve Board’s decision to cap debit card interchange rates may have seemed like the final word. The reality, however, appears more complex. From a legal standpoint, the 350-page document that accompanied the Fed’s ruling constitutes merely an interpretation of the law, says Holli Targan, a lawyer with Southfield, Mich.-based Jaffe, Raitt, Heuer & Weiss PC. That lengthy interpretation will itself be open to further interpretation and then interpretation of interpretations that could go on for years, she says. Pillars of Payments - An Interview with Kurt Strawhecker 
8/22/11 GreenSheet I first came to know Kurt Strawhecker, Managing Director of The Strawhecker Group, while he was an executive at First Data Corp., and I was a member of the company's client advisory team and one of its customers. Kurt had the difficult job of interpreting diverse user system requests and then scoping each request. With input from the advisory group, he determined which capabilities to enable. I admired the way Kurt was able to assuage customer egos, inspire his staff and develop coherent initiatives within First Data's prescribed budget. I continue to value his friendship and advice and hope you, too, are able to gain some insight from this interview. Fifth Third Bank Introduces Duo Card; Fifth Third is First U.S. Issuer to Offer Combined Credit and Debit Card 8/24/11 MyBankTracker Fifth Third Bancorp (NASDAQ: FITB) is reportedly the first card issuer in the U.S. to combine the debit and credit card functions into one piece of plastic. The Duo MasterCards are now available. At the point of sale, customers using the Duo Card can select to make a purchase using either a line of credit or by drawing funds that are available in their checking account. Like with any debit card, cardholders can simply choose “debit” and enter their PIN when making a purchase. Fifth Third’s Credit/Debit Card: A Response to Customers, But Also Suited to Durbin 8/24/11 Digital Transactions Fifth Third Bank on Wednesday introduced a combined credit and PIN-debit product called the Duo Card that the Cincinnati-based institution says is the first of its kind in the U.S. The bank says it produced the card in response to customer demand for one card that could be used for both credit and debit purchases, but its business model seems to be suited for the new, more regulated economics of payment cards. When a customer uses the MasterCard-branded card at the point of sale, she simply signs to use the credit feature or enters her PIN for a debit sale. Buffett Invests $5 Billion in Bank of America 8/25/11 DealBook On Thursday, Berkshire Hathaway, run by Mr. Buffett, announced plans to invest $5 billion in Bank of America, a vote of confidence for the beleaguered financial firm. While investors initially cheered the news bidding up bank stocks in trading this morning, the sector settled down in the afternoon as the market digested the deal. Shares of Bank of America, which spiked more than 25 percent on Thursday, is currently at $7.55, up roughly 8 percent. Steve Jobs Reshaped Industries 8/25/11 The New York Times When Steve Jobs resigned as the chief executive of Apple on Wednesday, his note to the public and the Apple board was short and classy. The gist was this: “I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple’s C.E.O., I would be the first to let you know. Unfortunately, that day has come.” Patents Offer Clues to Apple's Post-Jobs Payment Plans 
8/25/11 BTN Apple has signaled for years that its mobile payments plan differs dramatically from those of the banking industry. Apple, for example, is considering ways to pay for and receive digital goods in the absence of a stable connection to the Internet or a payments system, according to Patently Apple, a website that aggregates and analyzes the Cupertino, Calif. company's patent applications. By contrast, many of the digital wallets that banks are testing are built around always-on remote connections to customer accounts. Visa VS. Google Wallet in Mobile Payments 8/25/11 CNET Even though Google is likely to be a competitor to Visa in the digital wallet market, there's also a chance that Google may include Visa's payWave payment technology into the Google Wallet offer. When the service launches, Mastercard will be the initial credit card payment partner with its PayPass system. But Gajda said that Visa is also talking to Google about being included in the Google Wallet.This wouldn't be the first competing digital wallet that Visa will work with. Your Smartphone or Tablet Now Takes Plastic: Verizon Wireless and Intuit Team Up to Offer GoPayment; Mobile Credit Card Processing for Small Businesses 8/25/11 Intuit Verizon Wireless and Intuit Inc. today announced a strategic alliance to give all small businesses - from the sole proprietor to a medium-sized business - the ability to process credit card payments on smartphones and tablets. The companies are now offering Intuit's GoPayment app and pocket-sized credit card reader in Verizon Wireless' 2,300 retail stores and business-to-business sales channels. GoPayment makes it easier and more affordable for small businesses to process credit cards. A Woman, A Cupcake, A Bank And A Square: Why Credit Card Companies Are Scared Of Change 8/23/11 The Washington Post In the sleepy Columbus, Ohio suburb of Canal Winchester there is a shop that makes cupcakes. These are not ordinary cupcakes; these are fantastic cupcakes. A relatively new business owned and operated by Leah Dotson, Fantasy Cupcake chose Square as its processor when it came time to set up a transaction mechanism for accepting credit cards. And then a funny thing happened - several banks and processors approached Leah about setting up merchant services with them instead of Square. Cyber Criminals' New Frontier: Mobile Payments 8/22/11 The Street As Google, Visa and reportedly Apple get closer to perfecting mobile payments -- the technology that will allow us to pay for goods with a mere wave of our smartphones -- they're up against a significant block: Consumers worried about the technology's security. Spooked by the spate of recent high-profile cyber-attacks on governments and corporations like AT&T, folks fret that mobile devices and the credit card information stored within could be cyber criminals' next frontier. Lowe's and Urban Outfitters Go Mobile POS. Does Apple have this Locked Up? 8/24/11 StorefrontBacktalk Will any retailer ever use a non-Apple device for mobile POS again? Last week (Aug. 15), Lowe’s and Urban Outfitters both said they’ll finish rolling out in-store mobile devices to associates by the end of the year: iPhones at Lowe’s, iPod Touches at Urban Outfitters. To be precise, Urban Outfitters is already using them for mobile POS, while Lowe’s is just doing inventory and Web site checks but not POS—yet. Combine that with Nordstrom, JCPenney and Gucci all piloting iPads for in-store use, and it begins to look like Apple really does have a lock on in-store mobile devices. Is Recent EMV Announcement the Catalyst the U.S. Needs to Catch Up? 8/22/11 Portals and Rails During this past year, the team at Portals and Rails has published several articles exploring the growing risks in card-based payments and the need to move to a more sophisticated and secure enabling technology. But overhauling a payment system is no easy task, as there are many players that need to collaborate, from the card networks to the bank issuers and merchants. How does the industry organize itself to orchestrate a much-needed transition? Instant Discounts Ltd. launches its Loyalty Anywhere Voucher/Coupon Solution for All Smart Phones, including Android, Blackberry, iPhone and iPads 8/25/11 IDL Instant Discounts Limited (IDL) launched their Loyalty Anywhere mobile solution this week and believes their solution is the killer app for all retailers looking to install a cost effective coupon redemptions solution and loyalty scheme that will appeal to every customer with a mobile phone. Neeta Dhorajiwala, CEO and Founder of IDL announced “This app is the one every retailer has been waiting for.” She describes the solution as the holy grail of retailer apps. ACH Fraud: The Impact on Banks 8/26/11 Bank Info Security Incidents of corporate account takeover are increasing, but banking institutions are doing a better job of preventing financial losses. That's the word from the Financial Services Information Sharing and Analysis Center, better known as FS-ISAC, whose Account Take Over Task Force has completed a first-time survey about ACH- and wire-related fraud. Five Places to Never Use your Debit Card 8/25/11 MSN No doubt about it, debit card usage is a big part of the new normal on Main Street these days as consumers try to manage credit card debt. According to the TSYS & Mercator Advisory Group Debit Survey 2011, debit is now the preferred payment type in most point-of-sale locations, beating cash, credit cards and checks. But that doesn't mean you should use debit cards all the time. In fact, there are some places and times that using a debit card is actually a lousy proposition. Dealtalk: Undervalued, NetSpend May Be Scooped Up 8/24/11 WTAQ Less than a year since it went public, NetSpend Holdings depressed stock price and cut-throat competition in the pre-paid debit card market make it a potential takeout target. Pre-paid cards grew significantly during the economic downturn, but the card market is now over-crowded and has attracted regulatory scrutiny, priming the sector for consolidation. "NetSpend could be a strategic fit for other card companies, a direct competitor, or even private equity," said Sterne Agee analyst Greg Smith. Erply Takes on Square, Verifone with New Mobile Payment Device 8/23/11 ZDNet As mobile payments continue to make gains in popularity and availability, this market is getting more crowded with external devices and solutions. Erply, which specializes in cloud-based point-of-sale solutions for mobile devices as well as desktops and laptops, has unveiled a new mobile credit card reader for handheld mobile devices. Touted for both small and large businesses, the Erply card reader is designed to support traditional credit card processing as well as NFC technology. SHAZAM Announces Dual Message PIN Transactions and EMV Card Support 8/23/11 Shazam The SHAZAM Network today announced the creation of a dual-message PIN product, a first for the EFT industry, and plans to expand its support of EMV. The product will use a dual-message transaction with separate authorization and settlement messages for PIN-based transactions, a capability previously only available on signature-based transactions. First Drop in Number of Problem U.S. Banks Since 2006 8/23/11 The New York Times The number of banks on the government’s list of institutions most at risk for failure fell in the second quarter. Twenty-three lenders came off the list of so-called problem banks during the second quarter, bringing the total to 865, according to data released Tuesday by the Federal Deposit Insurance Corporation. Not all of the troubled lenders will inevitably fail, but the F.D.I.C. considers them most at risk, making the quarterly update one of the clearest measures of the banking industry’s health. SB Authority Index Depicts Weak Small Business Economy 8/22/11 PR Newswire Newtek Business Services, The Small Business Authority, announced the release of the SB Authority Index for July 2011 reaching 107.26 points. The SB Authority Index is up .96% from June 2011. Approved SBA loan volumes, the Russell microcap index and Retail Sales caused the increase in the index. President and CEO, Barry Sloane said, "We have stated and been consistent since the beginning of the year that the small business economy has been extremely sluggish and struggles to grow. Despite Recent Economic Turmoil, TSG Metrics Study Displays Payments Industry Resiliency 8/19/11 PaymentsPulse The cloud hanging over the U.S. economy (and symbiotically the world economy) since the end of the recession has not cleared much. A driving factor behind the stagnant cycle that could be at play is described by some economists as a “feedback loop” — when one piece of bad economic data has a way of making everything else worse. For example, a national unemployment report showing limited job growth is released and makes headlines across the country. Despite employment being a lagging indicator, consumer confidence continues to drop, and retail sales suffer. Click here for a report preview. Click here to order now. Free for ETA Members |
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