Economy

Card-skimming attacks are on the rise this year as crooks devise relatively simple, inexpensive new ways to compromise payment terminals, the Payment Council Industry Security Standards Council’s top technology executive told attendees last week at SourceMedia Inc.’s ATM, Debit & Prepaid Forum.

Point-of-sale terminal maker VeriFone Systems Inc. says it will continue its attempts to buy Hypercom Corp., its Scottsdale, Ariz.-based rival, even though VeriFone’s $5.25-per-share offer is more than a $1 shy of Hypercom’s $6.35 closing price Tuesday.

Merchant acquirers once again may offer retailers dynamic currency conversion on Visa Inc.’s network now that the card brand has ended a six-month moratorium on expanded use of such services.

Global Payments Inc. this week reported $440.1 million in revenue for its fiscal first quarter ended Aug. 31, up 7.4% from $409.9 million in revenue during the same period last year.

It is no surprise that the maturing merchant-services industry constantly needs smart, well-trained sales agent. Agents leave the industry for a variety of reasons.

Bling Nation Ltd.’s deal with Fifth Third Processing Solutions LLC could give the company the entree they need to promote the company’s postage stamp-sized contactless payment sticker across the country.

By proposing to combine two of the world’s three largest makers of payment terminals, VeriFone Systems Inc.’s hostile bid for Hypercom Inc. appears to raise antitrust issues.

EZCheck Adds Gift, Loyalty Services

The PCI Security Standards Council this fall plans to launch a website dedicated to small merchants, which have asked the council for help in understanding how data-security measures affect them.

Online payment gateway GoToBilling Inc. has a new reseller program that it hopes will attract more ISOs and, subsequently, more merchants, the Bozeman, Mont.-based company says.

International CyberTrans wants to add more merchant-services salespeople to its roster.

Hypercom Corp.’s board of directors on Sept. 30 rejected VeriFone Systems Inc.’s unsolicited $284 million bid to buy the Scottsdale, Ariz.-based point-of-sale terminal maker.

The more than 350 independent sales organizations that work with National Processing Co. should anticipate work as usual once Fifth Third Processing Solutions LLC completes its acquisition of the Louisville, Ky.-based merchant processor.

ISOs and agents seldom question the importance of helping their merchants comply with the Payment Card Industry Data Security Standard.

Paul A. Rianda is an attorney who has provided legal advice to the bankcard industry for more than 15 years. His e-mail is paul@riandalaw.com.

High-end spenders who tightened their belts in 2009 are starting to loosen them up, as such consumers likely are behind an overall increase in credit card spending last month, suggests First Data Corp.’s August SpendTrend payment card transaction analysis of all store sales activity that First Data processes.

Many who work in the ISO and acquiring business today likely have dealt with in some way the effects of a payment card data breach.

Guest Column

Sales agents questioning the revenue-share payouts from their ISOs often ponder the fine line between complaining and complaining too much. The question may be important, however, such as whether the ISO shares revenue when an agent helps bring merchants into compliance with the Payment Card Industry Data Security Standard.

Though there are no plans yet for the U.S. to adopt EMV chip-and-PIN technology, U.S. merchants are not all in the same boat in terms of their readiness to adopt EMV technology, observers say.