All GLG News Analyses Filed Under: Transaction & Payment Processing

Kamala WorthingtonPresidentKW Marketing Consultant

Pay By Touch Fades To Black After Chapter 11 Bankruptcy and Contentious Boardroom Battles

April 10, 2008

Analysis of:Pay By Touch Fades into History As Lenders Buy Core Assets | www.digitaltransactions.net

Pay By Touch fades to black after filing Chapter 11 Bankruptcy reorganization in December 2007 and enduring contentious boardroom battles to decide the fate of the company. Pay By Touch used biometrics to authenticate consumers at the POS (Point-of-Sale) for secure check cashing and ACH based purchases. Pay By Touch was successful at bringing biometric technology to the retail payments space, however, processing fingerprint payments didn't take off as expected and the once POS (Point-of-Sale) biometric payments leader officially closes shop. Pay By Touch grew primarily through acquisitions with the help of hedge funds and venture capitalists and went on to raise over $300 million to acquire at least six companies between 2005-2007, however, the company still needed more cash to fund operations. Pay By Touch's owners was also some of its biggest creditors. In court filings Pay By Touch indicated it owed its 30 largest unsecured creditors over $39 million.

MasterCard attempts to get in the US online debit game

April 10, 2008

Analysis by: GLG Expert Contributor

Analysis of:MasterCard to introduce new debit processing platform | www.finextra.com

MasterCard, which has long been a laggard in the US pin-debit market, continues to improve its offer and match-up against Visa, Star, NYCE, Pulse and Accel. It’s now positioned to move from the back of the pack and through additional processing to capture more of its transactions’ value.  

Discover Diners Club acquisition a coup

April 8, 2008

Analysis by: GLG Expert Contributor

Analysis of:Discover Taps Diners Club as Diversifier | www.americanbanker.com

Discover continues to play a relatively weak hand well against American Express, MasterCard and Visa. In Diners Club it acquired a meaningful international acceptance network, increased visibility and volume for its underappreciated network business, and added a payment brand decidedly different from its own.   Knitting together the brands will be critical for acquisition’s ultimate success and is the principal risk.

Kamala WorthingtonPresidentKW Marketing Consultant

As Check Volumes Plummet The Fed Speeds Up Infratructure Changes

April 8, 2008

Analysis of:Plunging Check Volumes Spur Fed to Speed up Downsizing Efforts | www.digitaltransactions.net

Since the passage of the Check 21 Act in October 2004, significant changes have occurred in traditional check processing. Banks, credit unions, image networks and the Federal Reserve are working to build the infrastructure to transition banks and credit unions to 100% electronic check imaging/exchange from traditional check processing, which could save banks and credit unions as much as $2 billion annually by reducing transportation costs, float time, check fraud and check processing costs. Additionally, consumers' shift in payment preferences from cash and checks to e-Payments has accounted for over 66% growth of all noncash payments in 2006, contributing to the sharp decline in check volumes annually. Check volumes began declining in 1995, when approximately 49.5 billion checks were paid. ACH payments has also trumped check payments as ACH e-Check conversion programs has expanded with billers and merchants who convert checks at the POS (Point-of-Sale) and POP (Point-of-Purchase).

“Credit Card Fair Fee Act of 2008” Would Devastate Card Payments Industry

April 1, 2008

Analysis by: GLG Expert Contributor

Analysis of:Credit-Card Wars | online.wsj.com

Congress is on the brink of causing enormous damage to the card payments industry. The “Credit Card Fair Fee Act of 2008” would convert it into a regulated public utility. Small merchants’ access to MasterCard and Visa products would be curbed. Cardholders would pay more. And, card issuers, the networks and particularly merchant acquirers such as First Data, Global Payments, Heartland, Nova, Paymentech, et al would be harmed.

Kamala WorthingtonPresidentKW Marketing Consultant

Banks Charged Over $36 Billion In ATM & Overdraft Fees In 2007 to Boost Revenues

March 31, 2008

Analysis of:Banks Boost Fees for ATMs, Overdrafts | www.smartmoney.com

Banks boosted revenues by charging over $36 billion in ATM and Overdraft fees in 2007. Banks and credit unions are netting a stream of fee revenue from ATM and debit transactions in ATM and overdraft fees as consumers continue to pay steeper penalties and fees for not having sufficient funds in their checking account or when they use another bank's ATM to withdraw cash. Debit card transactions at the POS (Point-of-Sale) and ATM transactions trigger over 43% of overdrafts, while paper checks trigger 27% of overdrafts and banks and credit unions are charging fees for each overdraft occurrence and raking in huge fee revenue at the same time. As recent as 2004, 80% of banks declined debit and ATM transactions without charging a fee when consumers' didn't have sufficient funds in their account, however, this trend has shifted and banks and credit unions now charge an overdraft fee to generate fee revenue when consumers' overdraw their accounts when conducting ATM & debit transactions.

Regulatory tide continues to threaten Visa and MasterCard

March 31, 2008

Analysis by: GLG Expert Contributor

Analysis of:EU Probes Visa Europe Over Fees: New Antitrust Action Looks for Cartel Signs; The MasterCard Case | online.wsj.com

Regulators in Europe and elsewhere will continue to ratchet up their interference in the global card payment networks’ business unless and until MasterCard and Visa (V) find effective strategies to stonewall or deter them. While no regulation contemplated would put the networks in the “death spiral” MasterCard (MA) professed to fear, all would reduce payment transaction growth, payments innovations and network value.

The Downside of ATM's: High Fees

March 27, 2008

Analysis by: GLG Expert Contributor

Analysis of:Are rising credit card interchange fees hurting ATM usage? | www.atmmarketplace.com

Implications: 1.Merchantability - interchange fees may , likely, be forced by Regulatory Authorities to control fees and a limitation of credit card company power to control the same. 2.The alternative - swipe the plastic Debit card rather than a credit transaction. 3.There appears to be a contradiction - ATM usage is on a decline, however there is no hard evidence that an increase in the credit card interchange fees at the merchant level are a Direct causation and affect. 4.Objective of ATM Industry - convince the merchants that it is in the best interest of their customers to use Credit Transactions rather than Debit Transactions. 5.The Ultimate challenge for the Consumer - " Merchants WILL find a way to push Debit over the Credit Card Transaction. The most viable option for the consumer is to use cash or check!"

Industry Police Thyself - Or Else

March 27, 2008

Analysis by: GLG Expert Contributor

Analysis of:Are rising credit card interchange fees hurting ATM usage? | www.atmmarketplace.com

Hurting ATM usage, or not, by adjusting fees is the least of our problems. The problem is Washington and the Credit Card Fair Fee Act of 2008.

ATM's Wearing the Emporer's New Clothes

March 26, 2008

Analysis by: GLG Expert Contributor

Analysis of:Are rising credit card interchange fees hurting ATM usage? | www.atmmarketplace.com

ATM’s may think they have on the cutest outfit in town, but merchants and consumers are continuing to chuckle and just move on by.  The convergence of transparency and information are making them much savvier players these days and ATM’s aren’t keeping up.  It’s not just all about interchange, but all about creating relevancy in a world where virtual payments exist.

Previous Page : 12345678910Next51 to 60 of 306