Technology

All U.S. merchant processors likely will benefit from anticipated reductions in debit card interchange rates once the Federal Reserve Board next year finishes its rate-setting task mandated by the Dodd-Frank financial-reform bill President Obama signed into law last week. But they will need to be careful in how they share their savings, Paul Garcia, chairman and CEO of Global Payments Inc., told analysts July 27 while discussing the company’s fiscal fourth quarter earnings.

Visa Inc. on July 28 reported net income of $716 million for the fiscal third quarter ended June 30, down 1.8% from $729 million during the same period a year earlier. Net operating revenue was $2 billion, up 21.2% from $1.65 billion, driven by growth in data processing and international transaction revenue, the company said.

Citing positive customer reviews regarding its mobile-payments service, Starbucks Corp. plans to expand the scheme later this year, CEO Howard Schultz revealed July 21 during an earnings conference call with analysts.

Fiserv yesterday reported a 9% decline in second quarter earnings, based on a drop in income from discontinued operations after last year’s sale of its insurance business.

Stuart Harvey Jr., CEO of Atlanta-based Elavon Inc., is leaving the payment processor, next month, Elavon says. Mike Passilla, currently Elavon’s executive vice president for global business development, will replace Harvey on Aug. 16 as president and CEO.

Nxgen Payment Services’ MerchReport.com service that enables merchants to pinpoint transactions that could have been processed at less-expensive rates is diversifying the independent sales organization’s portfolio, says Michael Jaffe, Nxgen vice president of global marketing and new programs.

Bharat Sanchar Nigam Ltd. has signed a partnership agreement with Mumbai-based Union Bank of India to launch a bill-payment and mobile top-up service in India, a spokesperson for the Delhi-based telecommunication operator tells PaymentsSource.

Co-op Financial Services July 26 announced three new credit union partners with institutions in Oregon and Washington.

Citigroup Inc. has told its U.S. mobile banking customers they should upgrade to a new application for Apple Inc.'s iPhone after the bank's original version was found to have a security flaw, reports Dow Jones.

Despite rising concern in some sectors about a second economic downturn taking hold this year, it is unlikely that a so-called “double-dip recession” would cause credit card charge-off rates to spike again, Moody’s Investors Service notes in a July 26 report.