Cards

NCR Corp. says its Scalable Deposit Module for ATMs has strong momentum at large banks.

The online banking and bill payment provider Online Resources Corp. said Friday that its board is "evaluating unsolicited expressions of interest in potential business combinations."

As transaction volume for U.S.-based online merchants increased in 2010, so did the number of fraudulent attempts, which may mean merchants should reexamine their fraud-prevention systems to fend off potential attacks, new research suggests.

Two companies are trying to bring the decade-old merchant cash advance concept into new — and starkly different — markets.

After a year in testing, RDM Corp.’s smartphone check-imaging application Simply Deposit Mobile is now available for all merchants, RDM announced Jan. 20.

Japanese conglomerate Mitsui & Co. Ltd. has acquired 14.9% stake in Qiwi Ltd., a Russian company registered in Cyprus that specializes in instant-payment kiosks, the two companies announced Jan. 18. Terms were not disclosed.

SoftBank Mobile Corp. will start a Near Field Communication payment pilot with smartphones powered by Android 2.2 operating system late this quarter, the Tokyo-based subsidiary of Japanese telecommunication operator SoftBank Corp. announced Jan.18.

The Tennessee Department of Labor and Workforce Development has begun offering the state’s unemployed workers the option to receive unemployment benefits either through an account tied to a Visa-branded prepaid debit card or through direct deposit to a traditional bank account.

Neovia Financial PLC’s $50 million acquisition of Montreal-based Optimal Payments will provide Neovia with a “meaningful” presence in North America, the United Kingdom-based merchant processor announced Jan. 20.

First Data Corp. will handle credit card processing for Kohl’s Corp.’s private-label credit cards in a multiyear agreement the two companies announced Jan. 20.

Citing the effects of fewer losses and healthy growth in new accounts and purchase volume, Capital One Financial Corp.’s credit card unit earned $586 million during the fourth quarter ended Dec. 31, up 14.9% from $510 million a year earlier. Revenues were down 13.8%, however, to $2.5 billion from $2.9 billion, driven by a full quarter of lower late fees resulting from implementation of the CARD Act, Cap One reported Jan 20.

WASHINGTON – NAFCU began efforts today aimed at repealing the Dodd-Frank Act’s debit interchange amendment, calling on Senate leaders to eliminate the provision they approved just last year. “The Durbin Amendment, which called on the Federal Reserve to implement burdensome new price caps on debit interchange fees, was a hastily included provision that was never fully considered or even debated by the Senate,” Dan Berger, chief lobbyist for NAFCU, told leaders of the Senate Banking Committee in a letter this morning. “Last-minute handwritten modifications on the Senate floor were never deliberated and did little to alleviate the concerns of small financial institutions like credit unions.” The NAFCU leader was referring to the introduction of the controversial amendment to the landmark financial reform bill which was added to the bill with no debate by Democrats or Republicans. “Instead,” wrote the credit union lobbyist, “this price-fixing language interjects the government between two industries and destroys a system that was developed by the free market and has worked successfully for the American public, as evidenced by the continued record use of debit cards during the holiday season. In fact, based on the Federal Reserve’s proposed rule, it appears that the worst case scenario is materializing.” NAFCU sent a similar letter to leaders of the House Financial Services Committee today and the Electronic Payments Coalition, comprised of banking and credit union groups, as well as Visa and MasterCard have also begun working for repeal. NAFCU’s bid comes as credit unions, which are meant to be exempt from the interchange provision, are deluging the Federal Reserve with comments saying the Fed’s proposal to slash interchange by an average of 70% for the largest institutions will negatively impact them too. The credit unions overwhelmingly say the market will not support a two-tiered system–one tier of lower fees for large institutions and one for smaller ones.

Citing reductions in charge-offs and a rise in interchange revenue, Bank of America Corp.’s Global Card Services unit earned net income of $1.5 billion for the fourth quarter ended Dec. 30; it reported a $994 million loss during the same period last year, BofA reported on Jan. 21

Twitter co-founder Jack Dorsey has filed suit against a local college professor over the patent rights to Square, a credit card reader that can be attached to smartphones.

JPMorgan Chase & Co. is issuing a prepaid card for the New York State Office of Children and Family Services to handle payments to parents receiving adoption subsidies, the New York-based issuer announced Jan. 20.

InsurCard has chosen Visa Inc. as the preferred payment network for the debit cards it offers to pay insurance claims, the Philadelphia-based card marketer announced Jan. 20.

Proposed limits on debit card interchange fees should have a neutral to positive impact on eBay Inc.’s PayPal Inc. operations, at least in the short term, Bob Swan, eBay chief financial officer, told analysts Jan. 19 during a conference call to discuss fourth-quarter earnings.

WASHINGTON — The banking industry is mounting an assault on multiple fronts to weaken, stall or repeal the restrictions on debit interchange fees championed by Sen. Dick Durbin in the Dodd-Frank Act before the policy goes into effect this summer.

The head of TCF Financial Corp., which filed a lawsuit against the Federal Reserve Board in October challenging its proposed debit card interchange rate cuts, said Jan. 20 that growing opposition to the proposal may help his case. The effort is part of a multi-pronged attack from banks on the debit interchange restrictions (see story).

EBay Inc.’s PayPal Inc. unit in 2010 nearly tripled its eBay Mobile gross merchandise volume to $2 billion from the previous year, driven by strong holiday shopping, John Donahoe, eBay president and CEO, told analysts Jan. 19 during a conference call to discuss fourth-quarter earnings.