Economy

Paul A. Rianda is an attorney who has specialized in providing legal advice to the bankcard industry for more than 10 years. His e-mail is paul@riandalaw.com.

Processor Approves Way Device

The PIN Transaction Security standard consolidates three formerly separate requirements for PIN-entry devices in an update released today by the Payment Card Industry Security Standards Council.

As competition for clients intensifies and margins grow increasingly thin, many ISOs are seeking ways to reduce costs, increase efficiency and stand out from competitors. One method gaining consideration is the use of digital signatures and contracts.

Smartphone-based transactions represent an opportunity to grow the U.S. card-acceptance market, which largely has become saturated and commoditized because many brick-and-mortar merchants already accept card payments.

With fierce competition for merchants and slim margins in the U.S. acquiring market, more ISOs are expressing interest in penetrating the largely unsaturated Canadian market, according to Federated Payments, an ISO with operations in the U.S. and Canada.

Merchant acquirers should be as concerned as the card brands over proposed legislation that would alter merchant fees, according to the Electronic Transactions Association, a Washington, D.C.-based trade group representing the acquiring industry.

Hypercom Corp.’s newest point-of-sale products could help the company improve its profit margins, some analysts predict.

David Leppek has an opportunity that many in the ISO and acquiring business encounter infrequently in their careers. He has the chance to design his ISO, Transaction Services LLC, without having to use years old legacy technology.

Citing a desire to remain competitive and drive issuer participation and innovation in its network, Visa Inc. in April increased the interchange rate it applies to purchases switched through its Interlink PIN-debit electronic funds transfer network.

Sterling Payment Technologies Inc. in November launched a merchant-security compliance program with the goal of ensuring Sterling’s merchants meet the criteria established by the Payment Card Industry Security Standards Council.

Square Inc. finally has shared some of the details about its mobile card-acceptance system, but payments executives still feel as though they have not heard the whole story.

Apriva is offering training and educational tools to its ISO resellers to help increase their knowledge of and ability to sell wireless smartphone-enabled point-of-sale products, according to the Scottsdale, Ariz.-based wireless-payments provider.

Fifth Third Processing Solutions LLC is weighing its next steps as the merchant processor nears its one-year anniversary as a joint venture between Fifth Third Bancorp and Advent International Corp., a Boston-based investment firm.

Criminals increasingly are using prepaid cards to replace cash, and payment organizations should understand the risks associated with the trend, Susan Smith, senior trial attorney with the U.S. Department of Justice, told attendees last week at the Electronic Transactions Association Annual Meeting and Expo in Las Vegas.

VeriFone Holdings Inc.’s upcoming VX point-of-sale terminals will be upgradeable to future Payment Card Industry security standards, the terminal maker says.

Though some merchants experienced severe financial difficulties during the recession and some went out of business, many others made prudent business decisions and scaled back spending to remain operational, Glenn S. Goldman, president and CEO of Capital Access Network Inc., told ISO&Agent Weekly last week at the Electronic Transactions Association Annual Meeting and Expo in Las Vegas.