Economy

LAS VEGAS–Will mobile phones replace plastic payments cards?

LAS VEGAS–It may be too early to tally the numbers from new, lower debit-interchange rates that took effect Oct. 1, but three of the nation’s largest merchants already are sending signals that the new debit-pricing structure appears unlikely to boost their bottom lines.

A group of U.S. senators on Nov. 9 introduced legislation that would allow states to cap credit card interest rates, which they say are reaching “extortion” rates for some consumers.

Executives at Ingenico SA see an opportunity to boost the France-based payment-terminal maker’s market share in North America, where a shake-up has occurred over the past few months involving the region’s top two vendors.

Cardtronics Inc. on Nov. 7 reported second-quarter revenues of $165.1 million, up 21% from $136.6 million during the same period ended Sept. 30 last year. Net income rose 127%, to $46.8 million from $20.6 million.

LAS VEGAS–Debit card programs will continue to play a vital role in most large banks’ profit strategies for the foreseeable future, despite new government-mandated debit-interchange rates that have cut deeply into issuers’ debit revenues, executives at several large banks told attendees here at the ATM, Debit & Prepaid Forum Nov. 3.

LAS VEGAS–The same criteria financial institutions used to determine a debit network partnership before the Durbin amendment still should apply in its aftermath, network executives agreed here Nov. 2 at SourceMedia’s annual ATM, Debit & Prepaid forum.

Cardtronics, the nation’s largest operator of ATMs, on Nov. 3 agreed to acquire Mr. Cash ATM Network Inc., an operator of more than 600 ATMs in Canada, to expand its operations to north of the border.

LAS VEGAS–Mobile-wallet providers Google Inc. and Isis continue to position their products as more than just payments vehicles to replace plastic cards.

LAS VEGAS–The financial-services industry has lost the battle against debit interchange regulation several times over, but some executives are still fighting the good fight.

CHICAGO— The International Anti-Counterfeiting Coalition plans to launch a portal-based reporting system to help acquirers online merchants, Robert Caldwell, founding partner of Bellevue, Wash.-based G2 Web Services, told attendees here Oct. 27 during an Electronics Transactions Association leadership summit.

A glimpse of what some say represents the future of payments has arrived, but thus far only in certain geographic areas. With the Card Case smartphone application from Square Inc., consumers pay simply by saying their names at the point of sale.

Income growth may be stagnant and consumer confidence weak, but spending has been “surprisingly resilient” and has helped fuel modest revenue increases for First Data Corp., executives told industry analysts Nov. 2 while discussing third-quarter earnings.

To get a say in future card-data security standards, send feedback to the Payment Card Industry Security Standards Council during the next six months, a council executive says.

Small merchants remain woefully ignorant about card-transaction security, but ISOs and agents can do something about it, according to the industry insiders who completed a recent survey.

An Internal Revenue Service announcement that it will not penalize ISOs showing a “good faith” effort to supply the IRS with newly required merchant-transaction data for the 2011 tax year does not represent a total reprieve from the new regulations, a tax-compliance service provider says.

Bank of America Corp. has caved in to customer pressure and the competition and will not charge a $5 monthly fee for debit card use after all, the bank announced Nov. 1.

VeriFone Systems Inc. will provide EMV point-of-sale card-acceptance systems in the Caribbean to payments processor First Data Corp. in a deal the payment-terminal maker announced Oct. 31.

Wells Fargo & Co. on Oct. 28 became the latest big bank to abandon plans to start charging customers for using debit cards in the wake of a widespread backlash against new bank fees.

Bracing for the loss of some debit transactions as a result of new Federal Reserve rules requiring debit cards to carry at least two card network brands, Visa Inc. next year plans to ramp up a series of incentives for merchants and acquirers, Joe Saunders, Visa chairman and CEO, told analysts Oct. 26.