Credit

MasterCard Worldwide has promoted Ajay Banga, president and chief operating officer, to chief executive officer, effective July 1. Banga also was named a member of MasterCard’s board of directors. Banga succeeds Joseph W. Selander, who will become executive vice chairman until his retirement on Dec. 31. MasterCard also promoted Alfredo Gangotena to chief marketing officer from global products and solution lead for MasterCard in Europe. Gangotena replaces Lawrence Flanagan, who is retiring.

Nearly 30 years after the department store chain set out to become "the largest financial services entity," as its then-chairman put it, Sears is once again challenging banks.

The passage this week of a Vermont bill to let merchants set minimum amounts for card payments (see story) has refocused retailer groups' attention on similar federal proposals.

The economic downturn last year caused holders of American Express cards to cut spending sharply in such key categories as electronics, apparel and travel. However, cardholders increased their spending on education, pets, groceries, and medical or health-related activities, new customer-spending data American Express Co. released this week show.

The PCI Security Standards Council, which oversees data-security standards for the payments industry, is responding to inquiries from payments companies for more staff training by launching an internal security assessor certification program, a council spokesperson tells PaymentsSource.

Chantilly, Va.-based electronic biller Online Resource Corp last week announced it was granted a patent by the U.S. Patent and Trademark Office for a broad range of biller service provider bill payment transactions.

The Reserve Bank of India says Yes Bank Ltd. may proceed with plans to provide a mobile-phone based payment and funds-transfer service in association with handset-maker Nokia Corp., a spokesperson from the central bank confirms to PaymentsSource. The service enables bill payments and funds transfers for Yes Bank customers using Nokia handsets.

Major U.S. banks’ credit card-issuing units brought in billions in interest income during the fourth quarter of 2009, led by JPMorgan Chase & Co.’s Chase Bank USA, which earned $8.43 billion in credit card interest income during the period. Credit card interest income accounted for 87% of the unit’s total interest income of $9.7 billion, which also includes commercial, industrial, installment and some student loans. Mortgage loans are handled by another business unit.

MasterCard Inc.'s e-commerce and mobile technology initiatives could help it impress banks whose debit contracts with archrival Visa Inc. are set to expire in the next few years.

Vermont merchants are a step closer to being able to set minimum purchase amounts for card payments after the state's Senate passed a bill Tuesday giving retailers more control over card acceptance.

Monett, Mo.-based Jack Henry & Associates yesterday reported net income for its fiscal third quarter surged 28%, based on a 19% rise in revenues.Net income for the third quarter was $31.6 million and revenues were $215.5 million.

Despite a continued slump in consumer spending, MasterCard Worldwide today reported strong results for the first quarter ended March 31, especially in worldwide purchase volume and cross-border spending. U.S. debit purchase volume also continues to grow.

More than half of consumers contend a new rule requiring credit card issuers to disclose how long it would take to eliminate balances by making only minimum payments is irrelevant to them. But one in four consumers believe the debt snapshot has inspired them to increase monthly payments toward their credit card debts, suggest new survey data the National Foundation for Credit Counseling released this week.

Inside Contactless is buying the secure microcontroller business from chip maker Atmel Corp., France-based Inside announced today.

Euronet Worldwide Inc., which conducts the majority of its operations outside the United States, last week reported net income of $2.8 million for the first quarter ended March 31. The Leawood, Kan.-based electronic-payments processor reported a net loss of $12.3 million during the same period last year. Revenue totaled $250 million, up 7% from $233.7 million.

Australians increasingly are using debit cards more than credit cards in an economy that has begun recovering from a financial crisis that begun in late 2008, analysts say and government data show.

With merchants and card companies pushing people to abandon paper statements, financial companies are using electronic billing services to keep customers from abandoning their online bill payment sites as well.

MasterCard Inc.'s new rewards program is a step closer to the industry's goal of real-time redemption.

Credit bureau Equifax’s first-quarter profit climbed 4.2% as a slight increase in revenue more than offset higher operating expenses and lower operating margins.

With prospects for the Japanese economy still dismal after years of stagnation, Japan-based JCB Co. Ltd. is continuing to look abroad for growth. Since hitting bottom in March of last year, Japanese economic activity has shown signs of “gentle,” but not necessarily sustainable, growth, and it appeared ready to slip back into decline in the first half of this year, according to the Japan Research Institute Ltd., a local think tank.