Visa and MasterCard debit card issuers stand to lose up to $10.7 billion in interchange income a year in a worst-case scenario under new federal interchange controls that will take effect next year, according to a Digital Transactions News analysis. Smaller reductions are more likely as the Federal Reserve Board …

In a year when Congress is beefing up regulation of the financial system, merchant-acquiring executives not surprisingly view the tightening regulatory environment as the key challenge facing their industry in 2010 and 2011, according to a new study from Boston-based Aite Group LLC. Sixty-one percent of executives Aite researchers interviewed …

After taking a time out in June to resolve problems ranging from a parts shortage to merchant underwriting, the new payment service Square Inc. is about to commercially distribute its cube-shaped card readers for smart phones. Chief executive officer Jack Dorsey, co-founder of the Twitter social network, told attendees at …

The nation’s sluggish recovery from a long and deep recession kept second-quarter transaction volume static for e-commerce processor PayPal Inc., according to statistics released this week by PayPal’s parent company, online auctioneer eBay Inc. While PayPal added nearly 3 million active accounts in the period to reach 87.2 million, the …

As President Obama signs the Dodd-Frank Wall Street Reform Act of 2010 into law on Wednesday, at least one major merchant interest group has already fired the opening shot in what promises to be an all-out battle over the fees banks earn on debit card transactions. At the center of …

While social media sites are wildly popular with consumers, it turns out those same users give the sites low scores for satisfaction, ranking the category above only airlines and cable and satellite TV providers, according to a report released on Tuesday. Still, that dissatisfaction is unlikely to affect payments processors …

The so-called Durbin Amendment that soon will be law could cut Bank of America Corp.’s debit card revenues by up to nearly 80%, the nation’s largest debit card issuer estimates. Two major prepaid card processors that are planning IPOs and rely on growing interchange income, however, seem likely to escape …

BillFloat Inc. launched its service this week with a hefty vote of confidence from initial investors that include PayPal Inc. and a business proposition that grants spot credit to hard-up consumers so they can delay paying their bills. Like Bill Me Later, which grants so-called transactional credit for online purchases, …

It’s social payments, person-to-person payments, and micropayments all in one. And it’s sweet too. That’s the essence of a new electronic-gift service dubbed “eGift Social” that payment processor First Data Corp. launched recently with ice cream purveyor Cold Stone Creamery as its first client. Cold Stone, a unit of Scottsdale, …

Not always the best of friends, the National Retail Federation and Visa Inc. saw fit on Wednesday to jointly announce that Visa had clarified its card-number storage rules to affirm that merchants may present a truncated or disguised number on a transaction receipt for dispute resolution in place of a …