For 40 years, the leading publication covering payment systems worldwide. AUGUST 2011 Issue 978
BC Card/ViSa roUting diSpUte
BC Card, the largest payment card brand and top merchant
acquirer in South Korea, was fined $50,000 in July and the same
U.S. Visa & MasterCard
amount again this month for alleged violations of Visa Inc. Credit Card Issuers – Midyear
... turn to page 12 Outstandings (Bil.) June 30, 2011
VerSatile Card BankrUptCy Chase .........$124.4
Voluntary petitions for relief under Chapter 11 have been filed BofA............$109.6
in the U.S. Bankruptcy Court for the District of Delaware by Citi ................. $86.1
Qualtec, Inc., which does business as VCT New Jersey, on behalf CapOne....... $47.5
... turn to page 8 $469.7 Wells ............ $33.5
two-way eMail for MerChant rewardS Bil.
U.S. Bank... $22.4
Cardlytics and ActivePath have formed a partnership that will give HSBC............. $18.4
credit and debit card issuers a new channel to deliver merchant-
USAA ............ $12.6
funded rewards — interactive email. ActivePath technology, which
Barclays......... $9.7
... turn to page 9
Target............. $5.5
BarClayCard/Cartera rewardS prograM Change in Outstandings (Bil.) vs. June 30, 2010
Barclaycard US, the 9th largest Visa/MasterCard credit card issuer
U.S. Bank > > > > > > >
The Nilson Report #978 • 1st draft • August 30, 2011 • 11:51 AM • ddr
CITI COMMERCIAL CARDS, a division of Global Transaction
Services, is offering corporate card customers an EMV-compliant
smart card to use when they travel abroad. David Ruda is Director, The Largest Issuers
Commercial Cards Market Management, North America,
(312) 876-3374, david.b.ruda@citi.com, www.citimanager.com. of Payment Cards
APRIVA, a top provider of end-to-end wireless transactions and Worldwide 66-page issuers
840 more than
report names
secure information technologies, has formed an alliance with
MEI, a top manufacturer of unattended payment systems, that in 106 countries.
supports integrated cashless payments at vending machines Asia/Pacific, Canada,
in North America. Stacey Tappin is VP, Sales and Marketing at Europe, Latin
Apriva, (480) 421-1210, stappin@apriva.com, www.apriva.com. America, United States,
Chuck Reed is Director of Marketing Americas & Southeast Asia and Middle East/Africa.
at MEI, (610) 430-2524, chuck.reed@meigroup.com, Listings cover both credit
www.meigroup.com. and debit cards and
ING OF THE TOP
300 include total $volume
WELLS FARGO plans to charge debit card customers in Georgia, LARGEST
INCLUDES: RANK
ISSUERS IN ALL WOR
LD REGIONS
EST ISSUERS IN (merchants & cash), and
COMBINED LARG
New Mexico, Nevada, Oregon, and Washington $3 every month PAYMENT ASIA/PACIFIC, CAN
ADA , EUROPE,
they make PIN- or signature-based purchases beginning October CARD
LATIN AMERICA
MIDDLE EAST/AFR
, UNITED STATES,
ICA CREDIT CARD
S
DATED CREDIT
purchase $volume
T CARDS CONSOLI
14. Brenda Yost is SVP and Head of Debit Card Marketing, ISSUERS
VS. DEBI
CARD OUT STANDINGS MAE
WORLDWIDE TOP
STRO ISSUERS
ACQUIRERS IN THE
RICA
(merchants only).
EUROPE, LATIN AME
WORLDWIDE
UNITED STATES,
(415) 222-5556, yostbrl@wellsfargo.com, www.wellsfargo.com. ing or allowing reproduc
tion or dissemination
est issuers. Reproduc r subscription $1,295, see www.nilsonreport. .com
of any
com. Also lists the
onreport.com/larg
REPORT, www.nils al fines. Yearly newslette • FAX (805) 684-8825 • info@nilsonreport
Inc. 2010 THE NILSON subject to substanti
Largest Acquirers in
© HSN Consultants a copyright violation • PHONE (805) 684-8800
t in any manner is ria, CA 93013 USA
portion of this documen Eugenia Place, Suite 100, Carpinte
1110
THE NILSON REPORT:
PAYMATE, a payment services provider for Web, mobile, and
MOTO merchants in the U.S., Australia, and New Zealand, processes Europe, Latin America,
and the U.S.
transactions from buyers in 60 countries. It offers risk management,
as well as foreign currency exchange and recurring
Order Today
payments processing. Consumers in China reach sellers in Australia www.nilsonreport.com/largestissuers
through a gateway with Alipay. Visa, MasterCard, Discover, and
American Express are payment options. Garrett Gafke is CEO at
Paymate, (650) 216-9561 x2101, garrett@paymate.com, FORTUMO, an international mobile payments provider to app and
www.paymate.com. game developers, will use Payfone to offer its merchants direct bill-
ing to wireless accounts at mobile network operators. Martin Koppel
40%
is Chief Revenue Officer at Fortumo, (415) 763-7721,
FEATURED CONFERENCE martin.koppel@fortumo.com, www.fortumo.com. Rodger Desai is
CEO at Payfone, (212) 614-6927, rdesai@payfone.com,
Conference links at www.nilsonreport.com
AlternAtive PAyments & Subscribers to www.payfone.com.
The Nilson Report
mobile retAil services
20%
will receive a 40%
summit 2011 FEATURED CONFERENCE
Conference links at www.nilsonreport.com
discount. (Use codes
RAMP-NILS-D for
Two-Day Conference
industry and RAMP- WesPAy PAyments symPosium Subscribers to
September 13-14, 2011 (Plus
NILS-R for retailers.) The Nilson Report
Complimentary Pre-Conference 2011 will receive a 20%
Workshop on September 12)
Congress Plaza Hotel in Chicago, Illinois Two-Day Conference discount.
September 19-20, 2011
Topics include: mobile payments, POS solutions and Westin Hotel, San Diego, California
technologies, payment ecosystems, loyalty programs, mobile
coupons, social media, smart advertising, mobile marketing, Topics include: same day ACH, enterprise risk management,
and so much more. Speakers and attendees already include social media, ACH rules update, prepaid card strategy,
Sears, Walmart, United Airlines, Macy’s, Dairy Queen, Yum mobile payments risk, global payments, and more. Speakers
Brands, Nordstrom, Home Depot, Starwood, Darden, Kroger, represent: NACHA, The Federal Reserve, Fiserv, Treasury
McDonalds, Pepsi, Starbucks, Sunoco, HEB Grocery, Coca Cola, Alliance, ECCHO, ACH Alert, Aptys Solutions, and others.
Google, Accenture, MasterCard, Citibank, and more. Cost is Cost is $675 for an AAP WesPay member, $750 for a WesPay
$1,495 for industry delegates and $795 for retailers. Contact member, and $1,150 for a nonmember. Contact Shannon
Melissa Morrissey at The Morrissey Group, (646) 593-1439, Cooper, Symposium Manager at (812) 339-6374,
melissa@retailramp.com. Register at www.retailramp.com/ shannon@prodevmeetings.com. Register at
register.html. www.wespay.org/symposium.
-1-
2 august 2011
THE NILSON REPORT
issue 978 the nilson report IF YOU ARE BEING FORWARDED a copy of this report, there has been a violation of copyright law which carries
substantial fines. The right to possess digital versions of this newsletter are granted solely to the individual subscriber.
NUMBER 978 AUGUST 2011
> > > > > > > > > Fast Facts
TEXT2PAY’S direct-to-carrier mobile billing platform has linked to
Rogers, Bell, Fido, and Telus mobile network operators (MNOs) in
Canada. Customers’ mobile phone accounts are billed using a two-
FBC BANK in Zimbabwe will use ElectraCard Services to provide
end-to-end processing for its MasterCard debit and prepaid cards.
Agrippa Mugwagwa is Executive Director, Retail Banking and
factor PIN/ZIP code authentication for each transaction. Text2Pay e-commerce at FBC Bank, 263 (4) 783-437, agrippa.mugwagwa@
offers 95% MNO coverage in over 50 countries. Mark Reiken is CEO fbc.co.zw, www.fbc.co.zw. Ramesh Mengawade is CEO at
at Text2Pay, (646) 673-4972, mark@text2pay.com, ElectraCard Services, 91 (20) 6627-2139, ramesh.mengawade@
www.text2pay.com. electracard.com, www.electracard.com.
CITIZENS FINANCIAL now offers AccessCard Command, an INTERBANKING SYSTEMS (DIAS) in Greece has deployed BPC
expense management service, to its MasterCard commercial Banking Technologies’ SmartSwitch to provide online interfaces to
card customers with annual revenue of less than $25 million. Greek banks in support of authorization and transaction routing.
Dias provides processing services to 20 clients with 7,400 ATMs.
AccessCard Command lets businesses set spending controls for Nicolaos Alexopoulos is Managing Director and General Manager at
employees and receive real-time account information including Dias, 30 (210) 617-1702, mazarakips@dias.com.gr, www.dias.com.gr.
purchases made or attempted. Stephen Wooters is Head, Com- Vasily Grigoriev is CEO at BPC Banking Technologies,
mercial Cards at Citizens Financial, (203) 551-3445, 7 (495) 780-3165, grigoriev@bpcbt.com, www.bpcbt.com.
steve.wooters@rbsnb.com, www.citizensbank.com. Mike Fiore is
> CHANGES
Group Head and SVP MasterCard inControl at MasterCard,
(914) 249-2000, michael_fiore@mastercard.com, management
www.mastercard.com.
SHAZAM NETWORK, an EFT system that provides ATM process-
ing, debit & ATM card processing, card authorization services, mer-
chant processing, Automated Clearing House services, and informa- Anthony Marando has been appointed EVP and CFO at
tion security to community banks and credit unions in 30 states, PSCU Financial Services, (727) 572-8822, amarando@
has created a dual-message (separate authorization and settlement pscufs.com. Soner Canko, formerly at Ziraat Bank, has
messages) product for PIN-based transactions. Michael Hollinger is been appointed CEO at Interbank Card Center (BKM),
CEO, (515) 288-2828, mhollin@shazam.net, www.shazam.net. 90 (212) 350-7900, scanko@bkm.com.tr. Ravi Divi has
,
been appointed VP Information Technology at FirstView
ANDREWS FCU, whose customers include military personnel Financial, (678) 224-9462, rdivi@fvfn.com. Jorge Ruiz,
stationed at bases in Maryland, New Jersey, Germany, Belgium, and formerly at Stratus Technologies, has been appointed
the Netherlands as well as select employer groups and residents ,
SVP Latin America Sales at BPC Banking Technologies,
of the District of Columbia, now offers the GlobeTrek Visa Rewards 52 (55) 5005-6741, bpcla@bpcbt.com. Jason Putnam has
credit card with an EMV chip. The CU will first target cardhold- been appointed VP of Sales, Strategic Partner Channel at
ers living in Europe. PSCU is the card account processor. Chris First American Payment Systems, (817) 317-2605,
McDonald is CEO at Andrews FCU, (301) 702-5500, cmcdonald@ jason.putnam@first-american.net. Hal Hanna, formerly
andrewsfcu.org, www.andrewsfcu.org. Mike Kelly is CEO at PSCU, at Ingenico, has been appointed Business Development
(727) 571-4656, mkelly@pscufs.com, www.pscufs.com. Director at Global eTelecom, (850) 344-4400, hhanna@
globaletelecom.com. Paul Bridgewater, formerly at Digital
LEXCEL SOLUTIONS, owned by Clear2Pay, has updated its Lexcel River, has been appointed Group Executive, Global
Network Simulator with all U.S. payment network rules and Product at TSYS, (706) 649-4480, pbridgewater@tsys.
transaction types to facilitate automated debit network testing. com. Eric Guerrino, formerly at Bank of New York Mellon,
Durbin Amendment rules for debit cards require banks with assets ,
has been appointed EVP Operations at FS-ISAC,
of $10 billion or more to certify with two unaffiliated debit card (732) 938-5425, eguerrino@fsisac.us. Doug Lambert,
networks as clearing and settlement options for merchants by formerly at Bank of America, has been appointed
October 1, 2011. Carl Kubitz is CEO at Lexcel, (480) 429-2083, General Manager, North America at GlobalCollect,
carl.kubitz@lexcel.com, www.lexcel.com. (415) 975-0969, doug.lambert@globalcollectusa.com.
Abdulhameed Rajab, formerly at ACI Worldwide, has
BLUEPAY, a full-service Tier 1 payment card processor with offices been appointed Business Development Manager, Middle
and data centers in several U.S. locations, now offers BlueChex, an
East at BPC Banking Technologies, (973) 3962-2732,
ACH payment processing service for electronic payments transmit-
rajab@bpcbt.com. Andrey Tikhonov, formerly at PAX,
ted through the Automated Clearing House. Kristen Gramigna is
has been appointed CTO at Dejavoo, (516) 921-6183,
Director at BluePay, (630) 990-7732, kgramigna@bluepay.com,
atikhonov@dejavoosystems.com. Dave Keenan, formerly
www.bluepay.com.
at BankServ, has been appointed GM, ACCEL/Exchange
COMPASS PLUS has produced a white paper called “Optimizing Payments Network at Fiserv, (973) 682-5980,
Payment Platforms for Profitability and Commercial Success.” david.keenan@fiserv.com. Timothy Prunk has been
The free report can be downloaded at ,
appointed EVP Sales at Epsilon Targeting,
www.compassplus.com/collateral/whitepapers. (303) 410-5193, tim.prunk@epsilon.com.
3 august 2011 issue 978 the nilson report IF YOU ARE BEING FORWARDED a copy of this report, there has been a violation of copyright law which carries
THE NILSON REPORT
- 2 to to the AUGUST subscriber.
substantial fines. The right - possess digital versions of this newsletter are granted solely 978 individual 2011
NUMBER
> > > > > > > Fast Facts
ADMERIS PAYMENT SYSTEMS’ OneTouch Mobile Payment
Platform will be distributed worldwide by Global Transaction
APP55’S Card Hub platform, now available from WorldPay, lets
merchants offer their customers password-protected payment card
purchasing in-app from any Web-enabled device. Gabriel Hopkins is
Services Group. The OneTouch mobile gateway supports payment
Head of eCommerce Products at WorldPay, 44 (203) 246-5423,
card transaction processing from any mobile network on 1,300+ gabriel.hopkins@worldpay.com, www.worldpay.com. Richard
browser-enabled feature phones and through Android, Apple, or Beaton is CEO at App55, 44 (161) 408-3550, richard.beaton@
BlackBerry smartphone apps. Mike Wofford is CEO at GTSG, app55.com, www.app55.com.
(402) 250-8900, mwofford@gtsgglobal.com,
www.gtsgglobal.com. Jim Brown is SVP, Business Development AMERICAN EXPRESS cardholders in Hong Kong who use
eligible Amex cards for transactions on the Groupon Hong Kong
at Admeris, (416) 294-5754, jbrown@admeris.com, website will automatically receive one entry to a drawing to win
www.admeris.com. one million Amex Membership Rewards points, as part of a
promotion that will run through September 30. Y.C. Koh is CEO,
PROMOCION Y OPERACION S.A. DE C.V., (PROSA), which Greater China & Southeast Asia at American Express,
handles acquiring processing for merchants in Mexico on behalf of (852) 2811-6634, y.c.koh@aexp.com,
bank clients, will offer Fintrax’s Dynamic Currency Conversion (DCC). www.americanexpress.com.hk.
DCC gives foreign cardholders the option to pay in their local
currencies. Miguel Balcazar is Business Development Director at ME BANK in Australia has deployed GFG Group’s Cadencie card
PROSA, 52 (55) 5268-1545, miguel.balcazar@prosa.com.mx, management software to handle its debit MasterCard cards, which
www.prosa.com.mx. Juan Antonio Povea is Americas Director at support the PayPass contactless standard. Wayne Robinson is SVP
Fintrax, 353 (91) 558-200, juan.povea@fintrax.com, Sales & Marketing at GFG, 64 (9) 966-7070, wrobinson@
www.fintrax.com. gfg-group.com, www.gfg-group.com. Shane Kuret is Exec. Mgr. IT
at ME Bank, 61 (3) 9708-3929, skuret@membershipequity.com.au,
NYCE PAYMENTS NETWORK, the PIN-based shared EFT system www.mebank.com.au.
in the U.S., has signed an agreement with China UnionPay (CUP) to
open ATMs in both networks to their respective cardholders. Nyce
VISA JORDAN CARD SERVICES (VJCS), the top acquirer
is a wholly owned subsidiary of FIS Global. Cai Jianbo is First EVP
at CUP, 86 (21) 6840-1888 x2082, caijianbo@chinaunionpay.com, of merchant card transactions and operator of an ATM switch in
www.chinaunionpay.com. Neil Marcous is President at Nyce, Jordan, has been acquired by Emerging Markets Payments Hold-
(201) 605-4802, neil.marcous@fisglobal.com, ings (EMPH), backed by private equity firm Actis, for
www.fisglobal.com. $87 million. Last year, EMPH paid $30 million to acquire
Mediterranean Smart Cards Company in Egypt. VJCS processed
15 million transactions in 2010. Paul Edwards is Executive
ConFeRenCes & seMInARs Chairman at EMPH, 27 (83) 709-7007, pedwards@
emp-holdings.net, www.emp-holdings.net. Rick Phillips is
Conference links at www.nilsonreport.com
ICMA RegIonAl events: EuroForum:
October 12-13, 2011. The Le Meridien Munich, Munich, Partner at Actis, 44 (16) 553-8929, rphillips@act.is, www.act.is.
Germany. Estimated attendance: 75-100. Cost for the Radwan Darwish is Managing Director at VJCS, (962) 6565-6361,
two-day conference is $450 before September 23 darwishr@vjcs.com.jo, www.vjcs.com.jo.
($480 afterward). Technology Summit: October 25,
Job Mart
2011. The InterContinental Chicago O’Hare, Rosemont, Subscribers pay $750 per 100 words
Illinois. Estimated attendance: 75-100. Cost to attend (nonsubscribers $950) for Job Mart listings.
Summit is $300 for members, $500 for nonmembers.
North American Workshop: October 26-27, 2011.
POSITIONS AVAILABLE
The InterContinental Chicago O’Hare, Rosemont, Illinois. PLANET PAYMENT
Estimated attendance: 75-100. Cost for the two-day Planet Payment, Inc., a leading international payment and
conference is $450 before October 3 ($480 afterward). data processor, provides internationally focused banks
Contact Elizabeth Roe at IMCA, (609) 799-4900, eroe@ and their merchants with innovative solutions that enable
icma.com. Register at www.icma.com. them to accept, process, and reconcile payments, anytime,
anywhere and in any currency. Headquartered in New York,
sMARt CARds In goveRnMent 2011: with other global commercial centers, we have several
November 2-4, 2011. The Ronald Reagan International positions available throughout the organization: Sales
Trade Center, Washington, D.C. Estimated attendance: Engineers, Product & Business Analysts, Java Software
900+. Cost for the three-day conference ranges from Engineers, Project & Implementation Coordinators,
$940 to $1,490 (depending on sessions and membership). Underwriting & Periodic Review, Business Development,
Subscribers to The Nilson Report will receive a 20% discount. Technical Sales Support, & eCommerce Product Manager
(Use code SCD2011.) Contact Bill Rutledge at SCA/Cnxtd, to name a few. Full descriptions of the openings are listed
(212) 866-2169, bill@cnxtd.com. Register at www.cvent. on our website www.planetpayment.com: (select “About Us”
com/d/7dqh6r. and click on Careers).
4 august 2011
THE NILSON REPORT nilson report
issue 978 the IF YOU ARE BEING FORWARDED a copy of this report, there has been a violation of copyright law which carries
NUMBER 978 AUGUST 2011
– possess digital versions of this newsletter are granted solely to the individual subscriber.
substantial fines. The right to 3 –
ViVOtech POS terminal
Vivotech’s Vivopay 8100 terminal, now available in contactless chip (card and phone). It comes with
the U.S. and Canada, was designed to be the first a 32-bit ARM9 processor, the Linux operating
POS device able to handle system, 16MB Flash, 32MB SDRAM, and 2MB data
mobile commerce flash memory. It integrates ISO 14443 contactless
transactions — and ISO 18092 peer-to-peer NFC and MiFare
loyalty, coupon technologies. Post-deployment firmware updates
issuance, and can be handled via remote download, eliminating
redemption, the need for additional hardware or device
as well as resetting.
payments.
A recessed keyboard (13 tactile keys) provides
The privacy and is compliant with
8100, standards for the visually disabled.
which the 8100 iS Mobile applications are supported
is PCI 2.1 deSigned to by Ethernet connectivity along with
certified, is Meet ViSa’S serial and USB communications.
designed to meet tip reqUire- ,
Bob Cook is Senior VP Sales at
recently announced Visa Vivotech in Santa Clara, California,
MentS.
Technology Innovation Program (TIP) (408) 248-7001, bcook@vivotech.com,
requirements in the U.S. Its readers www.vivotech.com.
handle mag-stripe, contact chip, and
BlackBOard’S Student id/PrePaid card
(from page 1) ...
handle payments for dining, account. Initial funding for to offer both the closed-loop
vending, laundry, etc. These the prepaid Discover account and open-loop accounts on the
closed-loop systems rely on is the balance of the financial same card as well as to deliver
aid students receive from that card on an instant-issuance
the federal government after basis on the first day of school.
payment of tuition — typically Other companies offer students
from $1,800 to $2,100. Cards general-purpose-type payment
can then be used to pay school cards separate from their
fees, purchase books, get cash student IDs. U.S. Bank (Visa)
from ATMs, and pay bills online and Heartland Payment Services
as well as at any Discover (MasterCard) both offer prepaid
merchant. Cards are also cards. Sallie Mae and Higher
available to students who don’t One offer a MasterCard debit
get financial aid. card tied to a demand
deposit account.
Prepaid funds
are held at
CloSed-loop Blackboard’s Money
individual and open- Network-enabled
a magnetic stripe, although a loop aCCoUntS
FDIC-insured Discover Campus Cards
growing number use contactless
accounts at are on the have been issued to more
chips embedded in the student’s
MetaBank. First SaMe Card. than 120,000 students,
photo ID.
Data handles but that number could
Last year Blackboard formed cardholder double in a year. If so, it
a partnership with First Data account processing through its will likely be the largest prepaid
and Discover Financial Services Money Network unit. Discover card program in the
to add an open-loop (general- market measured by card base.
Blackboard has filed for patents
purpose-type) prepaid payment
on its system, which is the first turn to page 6
5 august 2011 issue 978 the nilson report IF YOU ARE BEING FORWARDED a copy of this report, there has been a violation of copyright law which carries
substantial fines. The right to possess digital versions of this newsletter are granted solely to the individual subscriber.
BlackBOard’S Student id/PrePaid card
(from page 5)
About 65% of students continue to use the sign up for email or text alerts, and pay bills
prepaid Discover account after one month, some online through First Data’s partnership with TIO
having their work-study paychecks automatically Networks. Money Network paper checks, given to
deposited via the ACH to MetaBank. First Data all students in a welcome kit when they get their
manages that process and handles all funds going card, can be used to pay bills as well as to cash out
into and out of the Discover accounts. Pedro prepaid accounts at any Walmart store or Money
Marzo is Senior Director, Transact Financial Network check-cashing outlet. Both services are
Services at Blackboard Inc. in Washington, D.C., free. Abbe Conrad is Director, Prepaid Products
(202) 463-4860 x2363, pedro.marzo@blackboard. at First Data in Atlanta, Georgia, (404) 890-2312,
com, www.blackboard.com. abbe.conrad@firstdata.com, www.firstdata.com.
Cards can be swiped at POS terminals at any U.S. Discover helped develop a PCI compliant
merchant connected to the Discover Network, method for instant issuance of the multifunction
as well as inserted at ATMs connected to Pulse cards. It provides on-campus, email, and
(owned by Discover), Allpoint, or Star (owned SMS text marketing and is working on Flash
by First Data). Withdrawals at Allpoint ATMs media-based communication material. It will
are free. First Data also operates one or two also advise local merchants about the card,
surcharge-free ATMs at the campuses where which is different in appearance from other
Discover Campus Cards are issued. Discover cards. John Badovinac is Group Senior
Manager, Prepaid Products at Discover Financial
First Data handles all card account customer
Services in Riverwoods, Illinois, (224) 405-3417,
service with students. It also operates a website
johnbadovinac@discover.com, www.discover.com.
where they can review POS and ATM transactions,
Barclaycard/cartera rewardS PrOgram
(from page 1) ...
funded offers to encourage point for each dollar spent on acquired in its merger with
credit card spending in order their credit cards. Vesdia, which closed earlier
to accelerate a cardholder’s this year. Cartera has also
By year-end select co-brand
accumulation of points that can been building its capacity for
clients will join Cartera’s
better-targeted marketing. This
merchant network, which will
includes ongoing and daily
give Barclaycard and its clients
deals from national and local
the opportunity to cross-sell
merchants. Cardholders don’t
their products. And by the first
need a coupon — the offer is
quarter of 2012 Rewards Boost
credited on their card statement.
will roll out a second phase,
Groupon, the specialist
delivering merchant offers to
marketer of local daily deals,
mobile phones. Eric
is a Cartera partner.
Crozier is Senior
Cartera can distribute
Director of Product Cartera Can Groupon deals to card
be redeemed for rewards. The
Development at giVe Card issuers. Those deals
Barclaycard US iSSUerS aCCeSS
new loyalty program leverages require coupons.
in Wilmington,
the 60,000 retailers connected to to groUpon Marc Caltabiano
Delaware, (302)
Cartera Commerce.
255-8001, ecrozier@
offerS. ,
is VP Marketing
and Products at
Cardholders linked to barclaycardus.com,
Cartera Commerce
Barclaycard’s larger co-brand www.barclaycardus.
in Lexington, Massachusetts,
clients will be the first to receive com.
(781) 541-6815, mcaltabiano@
the merchant-funded offers.
Cartera recently added onto carteracommerce.com,
They will continue to receive
its platform the merchants it www.cartera.com.
from Barclaycard one bonus
6 august 2011 issue 978 the nilson report IF YOU ARE BEING FORWARDED a copy of this report, there has been a violation of copyright law which carries
substantial fines. The right to possess digital versions of this newsletter are granted solely to the individual subscriber.
check authOriZatiOn FirmS
(from page 1) ...
down 2.1%. Of all authorized checks, 5.73 billion firms collect any check returned for insufficient
or 91.6% were verified against negative files of bad funds.
check writers and fraudulent accounts, and the
To receive guaranteed payment, merchants paid
remaining 527.2 million were guaranteed using
an average of 0.93 basis points of the amount of
negative files, positive files that hold information
the check, earning guarantee firms revenue of
about the check writer, and analytic risk
$733.0 million. Guarantee firms pay the face value
management models. Driver’s licenses are used in
of the check to the merchant if it is returned for
authorization and guarantee to establish identity.
insufficient funds. Since 2000, verifications have
Revenue for check verification averaged 7.5¢ per fallen 36%, and guarantees have fallen 45%. Prior
check last year, generating $429.6 million for the issues: 953, 925
providers. Additional revenue is earned when
Check Guarantee 2010
Rank Check Volume No. of Checks Avg. Merchants
‘10 ‘09 Company, Headquarters (mil.) Chg. (mil.) Chg. Amt. Clients Chg. Outlets
1 1 TeleCheck (First Data) Houston, Texas $17,343.0 –13% 199.4 –10% $87 126,900 –6% 203,472
2 2 Certegy Check Serv. (FIS) St. Petersburg, Fla. $16,300.0 –12% 132.2 –15% $123 14,800 –10% 264,800
3 6 United Tranz*Actions Miramar, Florida $11,756.6 38% 10.1 23% $1,164 5,200 –6% 32,250
4 4 EnCircle Payment Solutions Miami, Florida $10,544.7 8% 34.6 8% $305 31,694 8% 53,270
5 3 CrossCheck Rohnert Park, California $8,988.0 –8% 24.7 –4% $364 43,120 –2% 64,786
6 5 CheckCare Group Louisville, Kentucky $7,984.6 –9% 87.6 –4% $91 14,798 4% 43,981
7 7 Global Payments Atlanta, Georgia $2,527.5 4% 8.6 1% $292 7,313 –23% 19,949
8 8 Global eTelecom Ft. Walton Beach, Florida $959.6 –2% 3.1 –11% $312 37,328 –6% 41,821
9 9 Intuit Pymt. Solutions Woodland Hills, Calif. $286.3 9% 4.5 5% $63 5,900 4% 7,449
10 10 EZCheck Houston, Texas $182.8 –10% 1.0 –10% $182 6,943 –8% 8,500
Others $1,938.8 –1% 21.4 –9% $91 26,187 –4% 39,947
TOTAL $78,811.9 –3% 527.2 –8% $149 320,183 –4% 780,225
Others include Check America, First American Payment System, PagoVision, Secure Payment Systems, and more. © 2011 The Nilson Report
Check Verification 2010
Rank Check Volume No. of Checks Avg. Merchants
‘10 ‘09 Company, Headquarters (mil.) Chg. (mil.) Chg. Amt. Clients Chg. Outlets
1 1 Certegy Check Serv. (FIS) St. Petersburg, Fla. $228,600.0 –5% 3,472.1 –6% $66 14,800 –10% 264,800
2 2 TeleCheck (First Data) Houston, Texas $98,434.0 –3% 1,950.0 –2% $50 12,864 –4% 63,650
3 3 Intuit Pymt. Solutions Woodland Hills, Calif. $13,427.2 54% 117.8 –11% $114 39,712 11% 50,282
4 4 CheckCare Group Louisville, Kentucky $7,623.4 –1% 56.9 –1% $134 16,484 –7% 29,768
5 5 Fastcheck Network Greeley, Colorado $4,107.8 18% 43.9 15% $94 195 21% 239,750
6 6 EnCircle Payment Solutions Miami, Florida $3,904.3 15% 35.9 15% $109 3,021 15% 3,986
7 7 ACH Direct Allen, Texas $2,210.0 45% 22.1 56% $100 2,245 16% 3,400
8 8 Global eTelecom Ft. Walton Beach, Florida $1,672.3 27% 5.0 6% $333 41,715 –2% 76,627
9 9 CCV Bothell, Washington $1,030.0 –1% 10.7 –7% $96 2,232 –7% 3,455
10 10 Secure Payment Systems San Diego, Calif. $364.0 5% 1.0 –9% $364 1,500 3% 1,600
Others $1,233.6 –2% 13.9 –10% $89 17,901 0% 21,432
TOTAL $362,242.6 –2% 5,728.3 –5% $63 151,169 0% 757,150
Some prior year figures have been restated. Others include EZCheck, First American Payment Systems, Global Payments, and more. © 2011 The Nilson Report
7 august 2011 issue 978 the nilson report IF YOU ARE BEING FORWARDED a copy of this report, there has been a violation of copyright law which carries
substantial fines. The right to possess digital versions of this newsletter are granted solely to the individual subscriber.
VerSatile card BankruPtcy
(from page 1) ...
of itself and 13 affiliates including Versatile Card judgments against him. This triggered default
Technology (VCT), Unique Embossing Services, provisions in unrelated loans made to the various
Unique Mailing Services, Unique Data Services, affiliates. Subsequently, other personal creditors
and Global Card Services. VCT India is not part of obtained judgments against Pethinaidu Veluchamy
the petition. and/or his wife. These too were
unrelated to the business activities of
The debtor companies operate nine the CoMpanieS
Qualtec and the affiliates.
U.S. facilities and handle more than ColleCtiVely
six billion marketing messages generate Some customers of VCT became
annually. Global Card Services, concerned enough to take their business
approx. $155
Qualtec, and VCT are manufacturers to competitors, negatively impacting the
of high-security payment cards
Mil. in groSS companies’ continued operations and
and custom card carriers. Unique reVenUeS. precipitating the voluntary bankruptcy
Embossing and Unique Data provide petition.
personalization, thermal imaging, and
Scouler and Company has been retained to
related services.
restructure debts to creditors with unsecured
The bankruptcy petition states that the companies claims including Quad Graphics, CFC
collectively generate approximately $155 million International, Multos, and Kurz Transfer, in
in gross revenues annually and generate a small addition to financial institutions and other
profit. Problems began in December 2010 when nonbank lenders. Dan Scouler is CEO at Scouler
individuals who were owed $2.2 million by one of and Company in New York, (212) 362-1140,
VCT’s founders, Pethinaidu Veluchamy, obtained dscouler@scouler.com, www.scouler.com.
BOFa SellS internatiOnal cardS
(from page 1)
In April BofA’s MBNA Europe Finance Fund (AFPF). For now
Bank subsidiary sold a $200 cardholders can continue to BofA Credit Cards
million portfolio make new purchases. Nicolas
Huss, current CEO at Spain
Outside the U.S.
Card Services (MBNA Spain), Country Outstandings (bil.) Cards
will continue in that role at U.K. $16.88 5,975,195
of small Apollo EPF in Madrid, Spain, Canada $9.07 11,852,603
business 34 (91) 271-4081, nicolas.huss@ Ireland $0.96 253,815
MasterCard card outstandings bankofamerica.com,
Spain $0.61 300,626
in the U.K. to Barclaycard, www.bankofamerica.com.
Figures are as of year-end 2010.
while retaining the consumer
Other payment industry © 2011 The Nilson Report
cards.
investments of Apollo Capital
This month Management include and it confirmed that consumer
Apollo Capital Affinion Group
U.k. & ireland card businesses in the United
Management Inc., a (loyalty marketer) in Kingdom and Ireland are on the
private equity fund,
portfolioS the U.S. and Evertec market.
signed a definitive are on the (card transaction
agreement to buy Market. processing) in Puerto TD ranked fifth largest in the
MBNA Europe’s Rico. Canadian market based on
card business outstandings at year-end 2010
This month Bank of America with $8.45 billion. It will pay
in Spain. Control of the
announced it will sell the Bank of America a premium
portfolio will be transferred to
MBNA credit card portfolio of about $100 million to take
Apollo’s nonperforming fund
(and other assets and liabilities) over a MasterCard portfolio
called European Principal
in Canada to TD Bank Group,
8 august 2011 issue 978 the nilson report IF YOU ARE BEING FORWARDED a copy of this report, there has been a violation of copyright law which carries
substantial fines. The right to possess digital versions of this newsletter are granted solely to the individual subscriber.
that ranked fourth largest at year-end 2010. The 100% Visa credit card issuer to a 56% Visa and
premium is based on a projected $8.50 billion 44% MasterCard mix. Over time the MasterCard
in outstandings when the deal closes in the first accounts, which operate on an in-house card
quarter of 2012. management system, will migrate to TD’s platform
operated by TSYS.
The MBNA portfolio, Canada’s largest MasterCard
business, is also the country’s largest affinity co- MBNA will continue to exist as a brand originating
brand credit card program operator with about 900 new credit card accounts. It will also continue
contracts. to provide credit cards marketed by CUETS,
a consortium of credit unions in Canada. Tim
The acquisition could make TD the largest issuer
Hockey is CEO at TD Bank Trust in Toronto,
in Canada ranked by outstandings and active
Ontario, (416) 982-3433, tim.hockey@td.com,
accounts depending on runoff in the MBNA
www.td.com.
portfolio before closing. TD will change from a
twO-way email FOr merchant rewardS
(from page 1) ...
is being used by banks in Brazil in New York, (212) 946-4904, Cardholders never need
and Israel, allows the reward jason.schwartz@activepath. coupons. All merchant offers are
to be embedded in the body of com, www.activepath.com. rewarded on card statements
Prior issue: 959 instead.
Cardlytics Cardlytics has 150
bank clients who
have customers
... perMitS the
reward to Be
Rod Witmond is
,
Senior VP Product
Management
in 17 million U.S. eMBedded in & Marketing at
the email. The current practice
for Cardlytics merchant-funded
households. There the Body of Cardlytics, Inc. in
are several hundred an eMail. Atlanta, Georgia,
rewards is to reach cardholders
national and local (404) 425-5957,
through online or mobile
merchants in its rwitmond@
banking channels. Cardholders
system including 15 of the cardlytics.com,
click to view and load the offer
25 largest U.S. retailers. www.cardlytics.com.
onto their credit, debit,
or prepaid card account.
The offer is based on the
cardholder’s prior spending
habits.
ActivePath can track when
the email has been opened,
a feature that also lets
it deliver time-sensitive
offers in real time based
on when the email is read.
Cardholders can activate
their offers directly from
the email message without
having to open a new
browser or log onto their
bank’s website.
The companies say they
could get an issuer ready
to offer the interactive
marketing service in three
to four months. Jason
Schwartz is CFO and Head
of Marketing at ActivePath
9 august 2011 issue 978 the nilson report IF YOU ARE BEING FORWARDED a copy of this report, there has been a violation of copyright law which carries
substantial fines. The right to possess digital versions of this newsletter are granted solely to the individual subscriber.
Top 100 U.S. Visa/MasterCard Credit Card Issuers Ranked by Volume Midyear 2011
‘11 ‘10 Issuer Total Vol. (mil.) Chg. Purchases (mil.) Chg. ‘11 ‘10 Issuer Total Vol. (mil.) Chg. Purchases (mil.) Chg.
1 1 JPMorgan Chase $187,295.0 12% $177,600.0 13% 51 52 SchoolsFirst FCU $326.6 6% $289.5 7%
2 2 Bank of America $125,324.1 5% $116,293.1 5% 52 54 BV Card Assets $315.2 3% $314.0 3%
3 3 Citigroup $80,848.5 –4% $80,341.8 –4% 53 56 PSECU $301.8 9% $245.9 5%
4 4 Capital One $55,924.0 14% $53,594.0 15% 54 59 Arvest Bank $301.0 18% $294.6 18%
5 5 U.S. Bank $42,022.8 13% $40,015.6 14% 55 53 San Diego County CU $298.7 –2% $171.7 0%
6 6 Wells Fargo $29,015.0 8% $25,961.0 10% 56 57 State Employ. CU N.C. $298.3 9% $267.4 10%
7 7 Barclays $15,092.4 4% $14,335.4 3% 57 71 First Tech FCU $298.0 71% $290.0 71%
8 8 HSBC $14,601.0 3% $13,925.6 2% 58 55 Suncoast Schools FCU $295.0 1% $267.5 3%
9 9 USAA $14,551.5 6% $13,779.9 9% 59 48 1st Financial Bank $274.5 –27% $268.8 –26%
10 10 PNC $7,954.4 10% $7,657.8 13% 60 60 The Golden 1 CU $252.0 –1% $228.3 2%
11 11 Cabela’s WFB $6,473.3 16% $6,450.3 16% 61 61 Randolph-Brooks FCU $251.8 5% $236.2 8%
12 13 First Nat’l Omaha $4,568.8 14% $4,261.7 11% 62 62 Simmons First $242.2 7% $237.7 8%
13 14 Navy FCU $4,310.9 17% $3,732.2 12% 63 66 Bank of the West $239.2 17% $234.1 18%
14 22 Comdata $4,010.5 56% $4,010.5 56% 64 63 Redstone FCU $226.2 1% $221.0 2%
15 16 GE Money $3,953.1 30% $3,934.0 30% 65 64 Delta Community CU $224.9 7% $207.4 9%
16 12 Target $3,737.2 –9% $3,718.6 –9% 66 67 VyStar CU $207.9 2% $198.1 4%
17 25 Wright Express $3,336.7 77% $3,336.7 77% 67 68 Intrust Bank $202.5 5% $199.8 5%
18 19 Fifth Third Bank $3,265.3 19% $3,032.5 20% 68 65 Associated Bank $195.3 –5% $22.5 –15%
19 15 BMO Harris Bank $3,035.9 –8% $3,027.9 –8% 69 70 Mich. State Univ. FCU $193.6 8% $160.6 8%
20 18 SunTrust $2,964.2 7% $2,896.0 8% 70 69 BCU (Baxter CU) $193.5 4% $184.7 4%
21 20 BB&T $2,922.0 11% $2,806.0 12% 71 82 Whitney National Bank $176.1 22% $174.4 22%
22 21 Nordstrom $2,784.2 8% $2,773.4 8% 72 72 FirstBank Colorado $175.5 7% $174.0 7%
23 24 Commerce Bank Mo. $2,668.6 26% $2,547.9 29% 73 76 United Nations FCU $173.1 10% $145.2 11%
24 23 ICBA Bancard $2,238.7 3% $2,206.1 3% 74 74 BancorpSouth $171.7 7% $163.5 8%
25 26 State Farm Bank $1,922.6 3% $1,841.7 0% 75 75 First Interstate Bank $170.4 7% $169.0 7%
26 17 RBS Citizens $1,817.9 –35% $1,710.3 –36% 76 94 T-Chek Systems $168.0 68% $168.0 68%
27 27 Pentagon FCU $1,400.0 2% $1,230.0 5% 77 77 FirstMerit Bank $166.4 8% $146.2 8%
28 33 UMB Bank $975.1 39% $970.0 39% 78 79 Tower FCU $160.1 6% $158.1 6%
29 29 TIB $928.1 3% $919.5 4% 79 80 Wash. State Employ. CU $157.5 5% $156.2 5%
30 30 First Hawaiian Bank $870.2 5% $863.7 5% 80 81 Bank-Fund Staff FCU $157.2 5% $152.9 6%
31 31 M&I Bank $814.6 7% $807.7 7% 81 78 Patelco CU $151.1 0% $137.4 2%
32 40 BBVA Compass Bank $799.3 54% $510.1 6% 82 85 Affinity FCU $148.3 7% $128.7 2%
33 32 First Premier Bank $767.9 3% $753.2 3% 83 86 Alaska USA FCU $141.3 8% $135.2 8%
34 37 Regions Bank $753.0 39% $734.0 36% 84 84 Mountain America CU $140.8 2% $139.0 2%
35 38 Credit One Bank $746.7 38% $722.1 40% 85 83 Mission FCU $140.3 1% $138.4 1%
36 36 Comerica Bank $684.5 21% $681.4 21% 86 87 Farm Bureau Bank $133.7 3% $132.3 4%
37 34 BECU $679.1 8% $656.0 8% 87 88 The Bank of N.Y. Mellon $133.3 4% $132.9 4%
38 39 TD Bank $638.3 21% $614.5 20% 88 90 City National Bank Calif. $132.8 17% $132.0 17%
39 35 First Citizens $617.0 4% $600.0 4% 89 73 Wescom CU $121.3 –25% $111.8 –29%
40 46 M&T Bank $603.7 50% $587.3 47% 90 92 CEFCU $118.9 11% $116.1 12%
41 41 Zions Bancorporation $589.6 18% $580.4 17% 91 96 ESL FCU $113.0 18% $100.0 22%
42 45 RBC Bank $535.5 26% $523.9 25% 92 100 University FCU $106.7 17% $105.4 18%
43 51 FleetCor $517.0 67% $517.0 67% 93 95 Security Service FCU $104.9 8% $90.6 12%
44 43 First Horizon $474.6 10% $470.1 11% 94 97 Members 1st CU $102.9 9% $100.8 9%
45 58 Merrick Bank $473.7 73% $442.5 72% 95 99 Virginia CU $102.7 12% $85.5 10%
46 42 America First CU $466.3 –1% $384.0 3% 96 101 GTE FCU $98.4 10% $91.7 5%
47 44 Synovus/Columbus B&T $427.6 0% $426.3 0% 97 103 AA Credit Union $93.4 12% $87.5 15%
48 49 Ameriprise Bank $406.8 10% $398.8 11% 98 98 Amalgamated Bank $91.8 –2% $90.5 –1%
49 47 BMW Bank $361.2 –4% $356.2 –3% 99 104 Hudson Valley FCU $82.7 5% $79.8 6%
50 50 Digital FCU $359.5 0% $356.0 1% 100 105 Kinecta FCU $80.5 5% $79.9 6%
First 6 months of 2011 vs. first 6 months of 2010. Includes both consumer and commercial cards © 2011 The Nilson Report
10 august 2011 issue 978 the nilson report IF YOU ARE BEING FORWARDED a copy of this report, there has been a violation of copyright law which carries
substantial fines. The right to possess digital versions of this newsletter are granted solely to the individual subscriber.
Top 100 U.S. Visa/MasterCard Credit Card Issuers Ranked by Outstandings Midyear ’11
‘11 ‘10 Issuer Outstandings (mil.) Chg. Cards (000) Chg. ‘11 ‘10 Issuer Outstandings (mil.) Chg. Cards (000) Chg.
1 1 JPMorgan Chase $124,383.4 –9% 90,200.0 –3% 51 54 Security Service FCU $224.8 6% 64.2 5%
2 2 Bank of America $109,575.0 –10% 55,566.9 –3% 52 86 First Tech FCU $221.2 94% 111.0 82%
3 3 Citigroup $86,127.0 –8% 50,924.6 –9% 53 52 State Employ. CU N.C. $212.2 –3% 273.5 2%
4 4 Capital One $47,536.0 –5% 36,400.4 –8% 54 56 Zions Bancorporation $211.7 7% 260.8 5%
5 5 Wells Fargo $33,502.0 10% 16,200.0 –4% 55 57 Virginia CU $207.7 7% 77.7 5%
6 6 U.S. Bank $22,394.0 0% 15,029.4 9% 56 62 Mich. State Univ. FCU $194.6 6% 98.2 4%
7 7 HSBC $18,432.0 –10% 26,519.0 –2% 57 59 First Horizon $192.0 2% 160.0 –3%
8 8 USAA $12,619.9 0% 4,894.3 6% 58 99 M&T Bank $191.6 95% 187.8 135%
9 9 Barclays $9,680.0 –5% 10,539.9 –1% 59 64 Randolph-Brooks FCU $190.1 12% 125.4 4%
10 10 Target $5,448.7 –16% 9,408.0 –16% 60 40 CompuCredit $187.0 –53% 178.0 –50%
11 11 Navy FCU $5,302.8 12% 2,208.1 13% 61 61 Redstone FCU $185.0 0% 92.0 0%
12 12 PNC $4,254.1 1% 3,397.6 6% 62 67 Ameriprise Bank $182.6 17% 98.2 109%
13 13 First Nat’l Omaha $3,634.8 –7% 4,541.3 0% 63 63 Simmons First $179.3 0% 188.5 1%
14 14 GE Money $3,457.9 29% 10,040.0 6% 64 60 Patelco CU $162.6 –13% 65.8 –2%
15 15 Cabela’s WFB $2,716.7 11% 2,685.0 5% 65 65 BCU (Baxter CU) $161.3 –2% 73.0 0%
16 16 Fifth Third Bank $2,411.8 3% 2,251.1 1% 66 58 Arizona FCU $158.6 –16% 47.9 –7%
17 17 BB&T $1,877.1 5% 1,444.9 5% 67 70 Wash. State Empl. CU $158.0 7% 112.6 –3%
18 21 Nordstrom $1,581.1 10% 1,211.7 –21% 68 87 Comdata $158.0 39% 3,296.0 14%
19 18 RBS Citizens $1,568.7 –6% 1,828.3 –31% 69 76 ESL FCU $152.5 18% 58.0 9%
20 19 Pentagon FCU $1,507.7 2% 637.0 1% 70 75 Arvest Bank $150.2 13% 145.0 6%
21 20 State Farm Bank $1,461.3 0% 1,042.2 –6% 71 69 Delta Community CU $149.6 1% 62.6 2%
22 22 Associated Bank $1,072.6 –12% 88.8 –7% 72 66 Affinity FCU $147.4 –6% 82.7 3%
23 27 Credit One Bank $1,020.1 15% 1,933.3 18% 73 53 Wescom CU $146.8 –31% 62.0 –53%
24 26 Commerce Bank Mo. $955.4 0% 991.3 1% 74 71 FirstMerit Bank $144.4 –1% 176.6 8%
25 29 Merrick Bank $929.0 11% 787.0 34% 75 68 GTE FCU $143.2 –4% 42.1 –27%
26 24 ICBA Bancard $920.8 –14% 1,328.3 –20% 76 74 Mountain America CU $140.2 2% 143.7 2%
27 25 SunTrust $768.7 –25% 797.7 83% 77 115 Wright Express $136.1 64% 3,250.0 83%
28 28 1st Financial Bank $728.7 –17% 378.7 –20% 78 79 Bank of the West $135.3 6% 158.3 7%
29 31 First Premier Bank $720.6 –3% 2,859.0 –14% 79 72 Farm Bureau Bank $134.3 –6% 75.0 –4%
30 30 BMO Harris Bank $654.0 –12% 349.0 –17% 80 73 Educ. Employ. CU Calif. $128.6 –8% 41.0 16%
31 34 BBVA Compass Bank $611.6 8% 464.0 9% 81 81 Municipal CU $125.3 8% 48.4 7%
32 33 BECU $608.9 3% 253.7 –1% 82 77 Intrust Bank $124.0 –3% 77.0 –26%
33 32 Suncoast Schools FCU $599.2 –8% 261.5 5% 83 78 Mission FCU $121.9 –5% 53.0 –4%
34 35 San Diego County CU $493.1 –9% 77.0 –1% 84 85 Alaska USA FCU $118.5 4% 83.0 2%
35 36 The Golden 1 CU $465.1 –6% 131.7 2% 85 80 BV Card Assets $118.0 –1% 145.0 2%
36 39 PSECU $449.8 10% 190.0 3% 86 83 Tinker FCU $117.2 1% 46.0 –2%
37 45 TD Bank $420.9 17% 283.7 –2% 87 91 United Nations FCU $117.1 8% 27.0 5%
38 43 UMB Bank $407.4 12% 397.0 15% 88 95 AA Credit Union $113.8 13% 44.9 12%
39 38 America First CU $403.1 –1% 209.9 1% 89 88 Hudson Valley FCU $110.3 –2% 62.7 –11%
40 41 SchoolsFirst FCU $396.6 1% 214.3 3% 90 89 SECU Md. $108.5 –2% 70.4 0%
41 50 American Savings $373.7 31% 36.9 16% 91 117 Regions Bank $106.3 32% 58.4 36%
42 37 TIB $368.3 –15% 436.5 –15% 92 82 South Carolina FCU $106.1 –9% 24.6 –13%
43 44 M&I Bank $361.7 –1% 246.5 0% 93 96 Police & Fire FCU $106.1 6% 56.0 4%
44 42 BMW Bank $349.1 –7% 199.9 11% 94 84 Bellco CU $105.3 –9% 61.0 –7%
45 46 First Hawaiian Bank $343.3 –4% 231.0 –3% 95 94 Tower FCU $105.2 4% 49.2 5%
46 47 First Citizens $328.0 3% 240.0 3% 96 100 Lockheed FCU $105.0 7% 34.4 3%
47 49 VyStar CU $293.3 –3% 112.0 –15% 97 93 BancorpSouth $102.0 0% 84.9 –2%
48 48 DCU (Digital FCU) $291.6 –8% 180.0 –4% 98 104 Veridian $101.9 10% 50.9 9%
49 51 Synovus/Columbus B&T $262.3 –6% 231.5 –13% 99 90 Kinecta FCU $100.6 –8% 61.2 –3%
50 55 RBC Bank $236.3 13% 187.0 25% 100 110 Chartway FCU $100.1 12% 39.5 15%
Change is vs. June 30, 2010. Consumer and commercial cards combined. © 2011 The Nilson Report
11 august 2011 issue 978 the nilson report IF YOU ARE BEING FORWARDED a copy of this report, there has been a violation of copyright law which carries
substantial fines. The right to possess digital versions of this newsletter are granted solely to the individual subscriber.
Bc card/ViSa rOuting diSPute
(from page 1) ...
operating regulations for the Middle East (see issues #966, has had a reciprocal terminal
routing of cross-border card #950). sharing agreement with Star
transactions. Specifically,
In Korea where BC Card
acquires card payments from
three million merchants, clerks
press a special button on
POS terminals to route China
UnionPay (CUP) transactions
.
directly to CUP BC Card
transactions acquired in Korea since 2009. In this case, BC
says cardholders ask for the
by BC Card and credit and Card was fined by Visa as a
direct routing. Among these
debit cards carrying the BC card issuer because it gives Star
transactions are those initiated
Card brand used at ATMs in the Network both proprietary
by dual-currency (U.S. dollar
U.S. disintermediated VisaNet. BC Card and Visa card
and Chinese renminbi)
BC Card has been a principal bank identification
cards that carry
member of Visa since 1989. It numbers and
both Visa
manages cards and merchant the network puts
and China
accounts on behalf of 11 these BINs into a
UnionPay
financial institutions. routing table used
service
by acquirers to
International routing rules marks
determine what is
are in place for all Visa cards (there are
a Star (versus Visa)
worldwide. The $50,000 70 million).
transaction.
monthly penalty fees paid Merchants are given a lower
by BC Card are discount rate versus The BC Card brand is carried
not related to penalty feeS transactions that go on 54 million credit and debit
the volume of over VisaNet. cards issued in Korea. About
are written
transactions 59% of those cards are for use
that might have
into liCenSing Under Visa rules,
only in Korea. The remaining
been routed over agreeMentS. banks in China that
41% are co-branded with Visa,
issue Visa cards are
VisaNet. MasterCard, China UnionPay,
bound by the same
and Discover/Diners Club
Penalty fees are written into international routing rules.
service marks and are capable
issuer and acquirer licensing However, they are caught in
of generating transactions
agreements to help ensure the middle between Visa and
outside the country.
compliance with regulations the People’s Bank of China,
Visa says are needed to ensure whose directive (No. YINFA 153 BC Card filed a complaint
the acceptance, reliability, and [2005]) compels them to accept about the penalty fees with
international transactions Korea’s Fair Trade Commission
delivered by CUP — “No other (FTC) on July 4. Visa has since
entity may impose any obstacles provided responses to questions
or intervention.” from the FTC, and advised the
agency that it acted because its
In the United States when any
licensing agreement had been
of the 15 million co-branded
violated.
BC Card/Visa cards are used at
security of the transaction.
Star Network’s ATMs, network
Other companies that have
owner First Data routes the
been assessed penalty fees for
transactions directly to BC Card
violating international routing
in Korea, bypassing VisaNet.
rules include issuers in the
It does so because BC Card
David Robertson, Publisher
august 31, 2011
12 august 2011 issue 978 the nilson report IF YOU ARE BEING FORWARDED a copy of this report, there has been a violation of copyright law which carries
substantial fines. The right to possess digital versions of this newsletter are granted solely to the individual subscriber.