The Green Sheet Online Edition
May 5, 2012 • 12:05:01
Industry Update
#h3 NEWS
- "Native" electronic payments
- Consumer online payments
- Vendor payments and other types of business-to-business transactions
ETA welcomes Oxman as CEO
Jason Oxman, former Senior Vice President of Industry Affairs for the Consumer Electronics Association, was named Chief Executive Officer of the Electronic Transactions Association on April 18, 2012.
Eddie Myers, ETA Board President as well as President and Chief Operating Officer of Payment Processing Inc., said. "We are thrilled that Jason Oxman will bring two decades of technology, policy and association experience and strategic thinking to steer this great organization into the future."
Oxman replaced Carla Balakgie, who left the organization in 2011 to become CEO of the National Automatic Merchandising Association. Interim CEO Pamela Furneaux will resume her previous duties as ETA Deputy Director and Chief Operating Officer.
Oxman told The Green Sheet the most important aspect of his job is helping ETA members "take advantage of technology to provide new products and services." He intends to spend his first 100 days in office meeting with a diversity of ETA members to learn how the organization can be aligned with their needs. Oxman, who has spent more than 15 years in Washington working on government regulation and lobbying, is in favor of the ETA's lobbying efforts.
"The ETA role is to be a helpful resource to decision makers and let them know of the benefits our industry provides," he said. "It's not an exaggeration to say ETA members make commerce possible."
Facebook sued over payments by minors
Glynnis Bohannon, the mother of a teenage boy, filed a class action lawsuit in March 2012 against Facebook Inc. that challenges the social network's payment policy regarding minors. The suit was filed in Santa Clara County Superior Court in California.
Bohannon claims her son, a minor, asked for permission to spend $20 on Facebook credits. He gave his mother $20 cash, and she provided her credit card number. She claims Facebook marketing then pushed her child into using her card number to purchase several hundred dollars worth of Facebook Credits for the online game he was playing. Bohannon alleges her son purchased the Facebook Credits without even realizing he was making the charges.
Bohannon said she attempted to contact Facebook to cancel the charges and obtain a refund, but she was unable to find anyone at the company to process her complaint. Facebook policy declares all credit sales to be final and nonrefundable.
The suit alleges Facebook violates California law by inducing minors to make unauthorized purchases. The suit also claims Facebook's marketing violates California's Unfair Competition Law prohibiting unfair, unlawful and deceptive business practices.
ECB endorses security recommendations
On April 11, 2012, the European Central Bank endorsed Recommendations for the Security of Internet Payments, a report created by the European Forum on the Security of Retail Payments.
The report contains recommendations for payment services providers. These include advice on best practices for card payments on the Internet, registration of payment data in electronic wallets, Internet credit transfers and direct debit mandates. Other recommendations target acquiring and issuing services and card payment governance authorities.
In its press release promoting the recommendations, the ECB said, "Implementation of the recommendations will be based on the existing legal framework. The authorities represented in the Forum are committed to supporting implementation in their respective jurisdictions and will strive to ensure consistency across countries."
The EFSRP was established in early 2011 by the ECB's Payment and Settlement Systems Committee. The forum is a voluntary initiative among European authorities - particularly those supervising payment services providers. It was created to promote knowledge and understanding of electronic retail payment security. The ECB is accepting comments on the recommendations until June 20. The recommendations can be downloaded at www.ecb.int/pub/pdf/other/recommendationsforthesecurityofinternetpaymentsen.pdf?3a462b10248b950c3bb179a78c121283.
ACH growth stoked by 50 endpoints
The automated clearing house (ACH) system was used to deliver 20.2 billion transactions in 2011, an increase of 4.35 percent over 2010, according to statistics just released by NACHA - The Electronic Payments Association. Altogether, financial institutions moved $33.91 trillion through the ACH last year, NACHA reported.
NACHA said greater adoption of three specific types of transactions drove "the steady growth" of the ACH network in 2011:
Native electronic payments are end-to-end electronic transactions; no checks are involved. The total number of these ACH payments rose 5.31 percent in 2011 over 2010 volumes, NACHA stated.
The use of new ACH formats that allow consumers to access the network for online banking and bill payment services rose 13.35 percent. WEB transactions - ACH debit payments authorized by consumers online or via mobile devices - grew 9.45 percent and made up 16.67 percent of total ACH traffic last year. NACHA estimates 80 percent of these payments were online bill payments.
"These statistics show that more and more consumers and businesses are making a conscious decision to use electronic payment options over paper checks or cash," said Janet O. Estep, NACHA's President and CEO. "The breadth of safe and convenient payment options available through the ACH network makes electronic payments a flexible choice for consumers."
#h3 ANNOUNCEMENTS
Heartland enjoys income boost, honors CRA
Heartland Payment Systems Inc. released its 2012 first quarter report on May 1, 2012. The company said its small and midsize enterprise processing was up 8.3 percent to $16.7 billion. Net revenues climbed to $128.7 million, an increase of 14.2 percent. Robert O. Carr, Heartland Chairman and CEO, said operating income in the quarter set a new company record with steady growth in most key areas.
In other company news, Heartland recently named the California Restaurant Association its Partner of the Year. This is the second year Heartland has presented the Partner of the Year award. Carr said the CRA is "a critical component in helping our organization build outstanding relationships in the California restaurant industry."
New Meritus gateway
ISO Meritus Payment Solutions released a new proprietary gateway called Payment XP. The gateway includes certification with First Data Corp. platforms, which allow transaction authorization and settlement through host capture for in-store POS, e-commerce and offline transactions. The gateway will enable merchants to process transactions by phone directly to their accounts.
Tabbedout signs T.G.I. Fridays
Tabbedout, the restaurant payment software manufacturer owned by ATX Innovation Inc., signed an agreement with the national restaurant chain T.G.I. Fridays. The casual dining restaurant's customers can now use Apple Inc. iPhone and Google Inc. Android devices to download the new T.G.I. Fridays' payment app, which enables them to start tabs and pay their restaurant checks from their phones. The application includes quick pay, restaurant locator and social networking.
This announcement came shortly after Tabbedout celebrated signing close to 100 restaurant and hospitality locations in the Dallas-Fort Worth and Houston areas combined.
In other company news, Tabbedout entered into a contract with POS hospitality software company Digital Dining under which Digital Dining will offer the Tabbedout payment option in its product portfolio.
USA Technologies upgrades
Wireless and cashless payment provider USA Technologies Inc. upgraded its ePort Connect service platform to support customers with the next generation of payment services in mobile marketing and mobile payment. The customer-facing portion of the upgrade launched in April 2012. Upgrades include faster and more customizable reporting and new search functions, the company noted.
Vantiv mobile check deposit
Vantiv Inc. launched Mobile Check Deposit, a product that allows consumers and small business owners to deposit checks by snapping photos of the checks with their smart phones. More than 40 financial institutions have already ordered the service. Vantiv is offering the service to financial institutions in a pay-as-you-go model.
#h3 PARTNERSHIPS
Apriva, CardSmith team
Apriva and cloud-based campus card payment solutions company CardSmith are in a strategic partnership to integrate Apriva's mobile payment solutions with CardSmith's payment platform. Apriva said the result is a cost-effective campus wireless vending and mobile payment acceptance service. The service supports campus identification card and all major credit card transactions.
DocuSign, PayPal partner
Electronic signature company DocuSign Inc. is teaming with payment company PayPal Inc. to provide instant payments. The service will reportedly allow DocuSign to not only accept signatures on legally binding contracts, but also simultaneously collect payment. The service is targeted at global enterprises, small to midsize businesses and professionals.
ePN on Equinox terminals
Payment gateway and software development company eProcessing Network LLC is integrating with POS terminals manufactured by Equinox Payments LLC. The new terminals offer security and touch-screens in color in addition to PIN debit, signature capture and other capabilities. The resulting system is a user-friendly, interactive experience, according to the companies.
First Data signs with SignaPay
First Data is now featured on ISO SignaPay Ltd.'s list of processing partners. SignaPay President Kevin Jones said First Data joins a roster that includes Total Systems Services Inc. and Chase Paymentech Solutions LLC. Jones said the First Data addition expands SignaPay's "boutique model of providing partners with every option in any combination."
Street Savings, VeriFone collaborate
Street Savings, a San Diego-based short message service mobile coupon and rewards company, integrated its service with VeriFone Inc.'s PAYware Connect gateway service. Street Savings enables merchants to connect with customers at the POS and outside the retail environment.
USA ePay integrates with First Data, WorldPay
Payment gateway USA ePay said it is now integrated with the First Data North processing platform. The integration complements USA ePay's integration with the First Data Nashville platform. The new integration allows customer access to PIN debit and Level III corporate card purchasing. USA ePay said the integrations demonstrate support for high volume and corporate clients.
USAePay also reported it is integrated with the WorldPay processing platform for merchants wishing to process in the e-commerce, retail, direct marketing and restaurant industries. This partnership provides support for such features as traditional sales, authorization-only transactions, refunds, recurring billing, debit processing, contactless credit cards, partial authorizations, partial reversals and real-time releasing of funds.
Vantiv named NAFCU preferred partner
Vantiv reported that the National Association of Federal Credit Unions Services Corp. added Vantiv Merchant Services to its suite of solutions in the NAFCU Services Preferred Partner program. Vantiv is also the NAFCU Services Preferred Partner for ATM and debit card processing solutions, as well as credit card processing and servicing.
Voltage Security, Ingenico team
Data encryption system provider Voltage Security Inc. said it is expanding its partnership with POS terminal provider Ingenico S.A. The expansion is expected to provide more security in mobile payments through a combined solution developed by the two companies. The companies are integrating Voltage SecureData Payments software onto Ingenico's iSMP smart mobile payment devices.
#h3 ACQUISITIONS
First Data acquires OmniPay
First Data said it acquired the remaining equity stake in global payment processor OmniPay Ltd. from Ireland's financial transaction processing, foreign exchange and outsourcing services company Fexco. First Data took an equity position in OmniPay in 2002 and a majority interest in 2006. Terms of the purchase of the remaining 30 percent stake were not disclosed.
Intuit purchases AisleBuyer
Financial software company Intuit Inc. purchased AisleBuyer LLC, an in-store mobile commerce provider that untethers shoppers and retailers from a static POS, according to the companies. The sale was reportedly for between $80 million and $100 million.
#h3 APPOINTMENTS
Lewis new Alpha Card exec
Craig J. Lewis is the new Vice President of Payroll Services at Alpha Card Services LLC. Lewis was previously a software consultant with payroll technology and business solutions company AdaptaSoft Inc. At Alpha Card he is responsible for hiring, training and mentoring for the ISO.
ScanSource promotes Ramsey
Tim Ramsey was promoted to Vice President Worldwide Reseller Financial Services at ScanSource Inc. Ramsey will now oversee ScanSource's worldwide sales in addition to the U.S. operation he has led since 2005. He will be responsible for planning, implementing and executing strategies globally.
Siewczynski joins USA Payment Systems
ATM industry veteran Carlos Siewczynski is the new Senior Vice President of Sales and Marketing for USA Payment Systems. Siewczynski served previously as Vice President of Retail Sales with Nautilus Hyosung, an ATM manufacturing company. At USA Payment Systems Siewczynski is responsible for direct sales support for independent ATM merchants and financial institutions.
Skelton tapped by Fiserv
Cliff Skelton joined Fiserv Inc. as Executive Vice President and Chief Information Officer in April 2012. Skelton was previously Global Chief Technology and Operations Officer at Ally Financial Corp. At Fiserv Skelton will be responsible for the company's global information technology infrastructure and operations, as well as increasing the efficiency and effectiveness of the company's technology platforms.
Skelton takes over for Fiserv Executive Vice President and Chief Information officer Maryann Goebel, who is retiring in July.
#h3 BOTTOM LINES
- The U.S. Department of Commerce indicated retail sales were solid in March 2012. Notably, clothing and clothing accessories sales increased 12.5 percent, and building material and garden supplies sales increased 12.4 percent, unadjusted year-over-year.
- According to a recent IBM forecast, in-store home furnishings sales in the United States are expected to rise nearly 8 percent to $23.2 billion during the second quarter of 2012.
- A Research and Markets report, Used Merchandise Stores, estimates total combined annual revenue for the used merchandise stores industry, representing approximately 25,000 U.S. stores, currently stands at $16 billion.
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