Digital Transactions Authoritative, insightful and timely information for payments professionals
The jury verdict rendered Friday in favor of a small software company that says big banks and processors are trampling on its electronic-check patents may have boosted that company's cause but it hardly brings down the curtain on what has been a costly legal marathon for the payments industry. “We're …
Read More »Fed Surprises Prepaid Industry with a Tight Deadline for Compliance
Meeting the Aug. 22 deadline for complying with new rules for prepaid and gift cards released on Wednesday by the Federal Reserve will be a logistical nightmare for card companies and retailers that have to replace hundreds of millions of cards before the 2010 holiday shopping season, according to a …
Read More »Heartland Preps for Its Big End-to-End Encryption Rollout
Merchant acquirer Heartland Payment Systems Inc.'s sales force will begin selling the company's new end-to-end encryption system in the second quarter following testing that began last June, the company says. Heartland also says several terminal manufacturers are integrating the technological protocols of its system, which was developed by Voltage Security …
Read More »All-Digital Checks Get a Boost from an ‘Outsider’ Technology Startup
The concept of an all-digital check, which surfaced in a paper published in November by the Federal Reserve Bank of Chicago, could move from theory to reality in a matter of months now that a technology startup in Atlanta has won a pair of patents covering applications of the idea. …
Read More »FrontStream’s Fast Transact Deal Shows Some M&A Thaw
Growing independent sales organization FrontStream Payments Inc. made another deal last week that could be a sign that merger-and-acquisition activity in the merchant-acquiring industry is warming up after a recession-induced chill. The transaction also illustrates that private-equity firms see the merchant-acquiring space as a fertile ground for new investments. In …
Read More »Fifth Third Processing Jumps on the End-to-End Encryption Bandwagon
The merchant-acquirer encryption and tokenization train picked up speed this week when Fifth Third Processing Solutions, one of the nation's biggest payment processors, announced it would offer its merchants end-to-end encryption and tokenization systems for protecting cardholder data. Cincinnati-based Fifth Third Processing's technology comes from Voltage Security Inc., the Palo …
Read More »Capellas Leaves First Data As Hints of Recovery Appear on the Horizon
Michael D. Capellas, the former Compaq Computer Corp. and MCI chief executive who became chairman and chief executive at First Data Corp. in September 2007 when private-equity firm Kohlberg Kravis Roberts & Co. took the huge processor private, is taking a new position at KKR. Replacing him as chairman and …
Read More »Phishers Are Zeroing in on Executives with Treasury Responsibility
Online criminals are broadcasting fewer scam e-mails but are zeroing in on more individuals who have substantial assets to protect or who have access to companies' or financial institutions' money-movement capability, according to the latest report on phishing from the Anti-Phishing Working Group. The report also indicates that merchants, banks, …
Read More »Big Merchants Pay $225,000 on Average for PCI Audits, Study Says
Getting an annual assessment to determine their compliance with the Payment Card Industry data-security standard costs big merchants an average of $225,000, but some pay $500,000 or more and others much less, according to a new research report by Ponemon Institute LLC. The report also says that only about 2% …
Read More »UATP Books a Hotel As Its Airline-Card Network Diversifies
Processing volume hit some turbulence last year, but that didn't stop Universal Air Travel Plan Inc. from pursing its goal of adding merchants to its airline-owned network. Washington, D.C.-based UATP last week reported that LQ Management LLC's La Quinta Inns & Suites has become the first hotel chain in the …
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