Cards

House conferees reached an accord Monday with Sen. Richard Durbin, D-Ill., on a provision of the regulatory reform bill that would allow the Federal Reserve Board to regulate interchange fees on debit cards.

House and Senate conferees have apparently reached an agreement on the controversial interchange amendment to the bank reform bill that would retain a provision establishing the Federal Reserve as a regulator of so-called swipe fees on debit card transactions, a measure that is avidly opposed by credit unions and banks.

Card industry representatives are criticizing a Washington hearing into federal payment of interchange fees that they say gave their side little opportunity to advance its position.

U.S. Sen. Richard Durbin, D-Ill., on June 21 announced adjustments to the debit-interchange amendment he hopes will smooth its passage as members of the House-Senate conference committee convene tomorrow to discuss its inclusion in the joint financial-reform bill.

As negotiations over the debit-interchange amendment in the financial-reform bill come to a head this week, the National Retail Federation is airing a 60-second radio commercial urging consumers to call their congressmen to “stop the bailout” of big banks and credit card companies.

Nokia Corp.’s decision last week to include an NFC chip in every one of its smart phones starting next year finally could help move the technology from scattered worldwide pilots to a major rollout and widespread consumer adoption, observers say.

Point-of-sale terminal makers want to be known for more than solely selling hardware. All three of the major terminal makers–Ingenico S.A., Hypercom Corp. and VeriFone Systems Inc.–are turning to recurring service revenue to bolster their financial results.

ItzCash Card Pvt. Ltd. has partnered with India-based travel portal AkbarTravelsOnline.com to create an air-travel site called Itzicwtravel.in, a spokesperson for Essel group, operator of the multi-service prepaid cash card, tells PaymentsSource.

Kuwait Finance House Co. Ltd. has begun issuing a Visa-branded prepaid card in Kuwait, a spokesperson for the Kuwait City-based bank tells PaymentsSource.

Financial institutions long have served the consumer market for debit cards, but issuers also see potential new revenue from business debit cards, Cindy Ballard, executive vice president for the Houston-based Pulse electronic funds transfer network, tells PaymentsSource.

PayPal Inc. is beginning its second contest to encourage third-party software developers to create applications that tie into its payment system.

Mobile payments have yet to take off domestically, but NACHA is positioning the automated clearing house network to play a prominent role, if and when they do.

As the House-Senate conference committee prepares to tackle the debit-interchange amendment next week in the financial reform-bill, the U.S. payments industry hopes the bipartisan nature of a group of House lawmakers opposing the amendment will play in their favor.

Nokia Corp. plans to include a Near Field Communication chip in every one of its smart phones next year, the handset maker announced June 17 at a conference sponsored by the Mobey Forum, a Finland-based mobile-payments trade association.

Commuters on the newly launched Gautrain train network may use only prepaid contactless cards to access the transit system, a spokesperson for the Gauteng Department of Transport tells PaymentsSource.

First Data Corp. said Thursday that The Bankers Bank of Oklahoma City will use its Internet banking technology.

Socialwise Inc. said three sports retailers plan to accept and promote its BillMyParents online payment system.

First Federal Savings Bank is doing something different from other banks that issue contactless payment stickers. It's doing something pink.

An ad running in the Capitol Hill newspaper Roll Call is attacking credit unions in a manner reminiscent of an ad run years ago by credit unions’ main nemesis – the bankers – except this time bankers are on the same side, and in fact are partners with credit unions in the fight to block the interchange amendment to the bank bill.

As the window for negotiations on the debit-interchange amendment narrows, its supporters seem willing to grant a narrow concession to state governments, which payment-network representatives say underscores the amendment’s potential to harm other groups.