Credit

Many online merchants in the United Kingdom may experience downtime during the holiday shopping season because their systems used to detect fraud card-not-present fraud may not be reliable or current, new research suggests.

Think Computer Corp. has introduced a digital-coupon system integrated into its mobile-payments application that relies on facial recognition to confirm a user’s identity at the point of sale to help combat payment fraud.

Visa Inc. unveiled its new special offers mobile payment app, placing it in a crowded market for merchant perks that also includes a major push by rival MasterCard Worldwide.

Missouri Attorney General Chris Koster announced this week that his office has reached a consent judgment with Elite Financial Services Inc., a debt settlement company that allegedly misrepresented its services.



Snapper Services Ltd. has become the latest organization to join the new “super ticket” system planned for Auckland, New Zealand’s public transport system, the integrated ticketing provider announced Dec. 16.

As major financial services providers sever ties to WikiLeaks, a little-known alternative payments startup in the U.K. has stood by the embattled organization.

Credit card issuers in the Philippines no longer are allowed to issue pre-approved credit cards, the Bangko Sentral ng Pilipinas ruled via a circular dated Dec. 20. The central bank also directed credit card issuers to inform cardholders seven days in advance before their delinquent accounts are sent to collection.

Major card brands such as American Express Co. support sports sponsorships to keep existing cardholders happy and loyal, but the events they sponsor may spur interest from potential new customers, observers say.

Dead phone batteries. Wrong merchant terminals. Terminals turned off. Terminals unrepaired. No terminals at all.

As credit card portfolio health continues to improve and consumer spending gradually picks up, card issuers are poised to see the first increase in overall credit card receivables next year, Moody’s Investors Service predicts in a Dec. 21 report.

American Express Co. has signed a three-year sponsorship deal with the National Basketball Association, reuniting with the sports organization after a five-year hiatus, AmEx announced Dec. 20.

Indian Bank Ltd. has awarded Tata Consultancy Services Ltd. a contract to assist in a smart card-based financial-inclusion project for India’s rural villages, the Chennai-based financial announced Dec. 16.

As consumers continue to spend more frugally, issuers are stepping up the competition for loyalty programs, where there is still room to develop niches, according to Mintel Comperemedia, which tracks card mailings.

Consumers who purchased discounted goods early in the holiday season and during Black Friday and Cyber Monday likely contributed to an overall dollar volume decline through the first two weeks of December, suggests First Data Corp.’s SpendTrend payment card transaction analysis of all store sales activity that First Data processes.

This story has been updated from an earlier version.

Merchant acquirers might be breathing a sigh of relief following the Federal Reserve Board’s proposal to cap debit card interchange rates at 12 cents per transaction (see story). But though the proposed rules would not directly affect them, issuer reaction might, observers say.

With so-called debit card fees poised to take a severe hit, some payments analysts say a similar attack on credit card interchange rates is inevitable.

Only two of the 2,150 U.S. credit unions with credit card receivables of $1 million or more sold portfolios during the third quarter ended Sept. 30, as many buyers still remain wary about overall credit union health, according to AssetExchange, a Portland, Ore.-based credit union card broker.

Australia’s ongoing migration to using chip technology on payment cards instead of magnetic stripes, which the country will complete in 2013, should reduce the country’s card-fraud losses, according to the Australian Payments Clearing Association, a self-regulatory body of the Australian payments industry.

As consumers continue to spend more frugally, issuers are stepping up the competition for loyalty programs, where there is still room to develop niches, according to Mintel Comperemedia, which tracks card mailings.