Cards

Staring at the potential loss of billions in overdraft fees, some banks are generating income by abandoning the commoditylike nature of checking accounts.

When Sue Rexford decides to open a banking account for her new venture, Bodhi Tree Therapeutic Massage. she will look for a financial company that can provide two things: convenience and low fees.

I&M Bank Ltd. in Kenya has received a license from Visa Inc. to process online credit card payments for goods and services in East Africa, reports Bloomberg News.

HOUSTON – Lawyers representing more than 50 financial institutions – including some two dozen credit unions – are urging their clients to reject a $60 million settlement offer in the Heartland Payments System cards breach, saying the pro rata share amounts to pennies on the dollar of costs.

Payment Alliance International today announced it has acquired Comdata Processing Systems’ merchant-processing business, which includes 5,000 merchant locations and more than 50 independent sales organizations.

Hong Leong Bank Bhd is looking to establish a cardholder base of 2 million for its so-called combi debit card over the next five years, an official for the Kuala Lumpur-based bank tells PaymentsSource.

Wells Fargo & Co. today reported fourth quarter net income of $2.8 billion, helped in part by significantly higher credit and debit card fees. Wells Fargo reported a loss of $2.7 billion during the same quarter a year ago. Total bank revenues were $22.7 billion, up 139% compared with $9.5 billion a year ago.

U.S. Bancorp today reported credit and debit card revenue for the fourth quarter ended Dec. 31 of $273 million, up 6.6% from $256 million during the same period a year earlier. For the year, the Minneapolis, Minn.-based bank reported card revenue of $1.06 billion, up slightly from $1.05 billion in 2008.

Hammered again by weak economic conditions in the United States, Europe and Canada, Bank of America Corp.’s Global Card Services unit today reported a net loss of $1 billion for the fourth quarter ended Dec. 31; the unit reported a $9 million loss for the same period a year ago.

The continuing evolution of mobile technology has prompted a fledging mobile-payments company to develop a system that enables consumers to send free text message-based funds transfers to Central America.

Visa Europe this year expects spending on Visa debit cards to overtake spending with cash in the United Kingdom because of the recession.

Heartland Payment Systems Inc. this week announced it will offer members of the National Restaurant Association a suite of payment products that includes card processing, check services, and payroll, tip-reporting and compliance reports as part of an agreement between the payment processor and the Washington, D.C.-based trade group.

Bank of America Corp.’s Global Card Services unit today reported a net loss of $1 billion for the fourth quarter ended Dec. 31; the unit reported a $9 million loss for the same period a year ago.

Bank of India is looking to acquire more than 100,000 point-of-sale terminals this year as part of its POS-network expansion drive, an official from the Mumbai-based financial institution tells PaymentsSource.

The Canadian Minister of Finance’s draft code of conduct for the credit and debit card industry is too restrictive, contends Visa Canada, while MasterCard Canada contends “vigorous debit competition can thrive” under the proposed code. Both card brands submitted their comments on the proposal Jan. 18.

Elavon, U.S. Bancorp’s merchant-acquiring unit, has purchased Citizens National Bank’s portfolio of more than 300 merchant-processing accounts, according to the companies. Terms were not disclosed.

Retail sales in December increased slightly compared with the same month in 2008, but the weak job market continues to subdue consumer spending, according to two retail organizations. The National Retail Federation and the Retail Industry Leaders Association last week both revealed their retail sales numbers for December.

Mobile-payments company Apriva announced today the launch of the AprivaPay and AprivaPay Professional mobile-payment services. Scottsdale, Ariz.-based Apriva operates its own network that connects mobile-payment terminals to processors.

Citibank customers in Thailand can now use their cell phones to access their bank accounts with Citi Mobile, Citi announced earlier this month. The company says it is the first foreign bank to offer mobile banking in Thailand.

Axis Bank soon will outsource its ATM operations, an official for the Mumbai-based bank tells PaymentsSource. The financial institution is in the final stages of selecting a vendor for the outsourcing, says the official, who wished to remain anonymous.