December 14, 2012 Americans See Smartphones Replacing Cash and Cards

About 60 percent of U.S. adults believe that smartphone payments will eventually replace payment cards and cash transactions for most purchases, according to a new Harris poll. Moreover, 27 percent of Americans, and 44 percent of smartphone users, say they want to use their smartphone to process in-person payments. The survey also uncovered a generational divide, as 40 percent of Echo Boomers and 34 percent of Gen Xers were interested in adopting smartphone payments, compared to 18 percent of Baby Boomers and 7 percent of Matures. The respondent's sex also was a factor, as 32 percent of men are interested in the technology compared to 22 percent of women. In addition, 38 percent of those in households with children favor the use of smartphone payments compared to 22 percent of those in households without children. Beyond security concerns, another major issue is the fact that 52 percent of respondents said they do not see a reason to switch from cash or payment cards. The survey also found that 30 percent of Americans expressed interest in digital wallets that contain all of their loyalty cards, identification, and other documents.

April 17, 2012 Mobile Devices Increase Sales At Nordstrom

Nordstrom, the Seattle-based fashion and beauty retailer offering apparel, shoes, makeup and other beauty products, is rolling out mobile point-of-sale (POS) devices throughout their full-line stores, as well as in some of their Nordstrom Rack stores.

These mobile POS devices, which is a modified iPod Touch with a merchandise scanner and credit card slider, allow employees to check out customers from anywhere in the store.  The app on the device also provides Nordstrom's sales staff access to the company's entire inventory, which is useful when helping customers check in an alternative size or color is available elsewhere, without needing a register to look up that information.

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Jan 12, 2012 Durbin Amendment Debit Fees Hurt Small Merchants

Retailers are taking other steps to protect their profit margins from swipe fees. For instance, a Georgia coffee shop will sell customers $5 gift cards and deduct the value of their purchases from their cards, or will open tabs for customers who plan to stay for an extended period of time. Other merchants, including some in New York, are opting to install ATMs.

Jan 2, 2012 PCI Compliance is working

The 7-year-old Payment Card Industry data-security standard (PCI) is proving its effectiveness in preventing data breaches among small merchants, according to a survey of payments-industry acquirers set to be released next week.

The survey, cosponsored by ControlScan Inc., an Alpharetta, Ga.-based vendor of PCI-compliance solutions, and the Merchant Acquirers’ Committee, a trade group, found that, among acquirers who said 10% or fewer of their small merchants comply with PCI, 100% said at least one of their merchants had sustained a breach in the preceding year.  At the other end of the spectrum, however, only 17% of those acquirers with a 61% or better compliance rate reported at least one merchant with a breach.


Dec 20, 2011 Effects of Durbin Amendment

Debit cards will remain popular with consumers, but the Durbin Amendment will take as much as three percentage points off its annual growth rate over the next five years, according to a new analysis from First Annapolis Consulting Inc. Some transactions that might have gone to debit cards will switch to credit cards, while re-pricing by banks will force some underbanked consumers to drop traditional bank products such as debit cards.

Dec 9, 2011 ACH Payments grow

The financially struggling U.S. Postal Service is bemoaning the accelerating shift by consumers away from sending everything from Christmas cards to bill payments by physical mail. But, on the other side of the coin, new data confirm that the automated clearing house is where a lot of former paper-based payment traffic is going.

For example, ACH transactions under the so-called WEB standard entry class code for Internet bill-payment debits grew 8.6% in the third quarter to 672.2 million versus 618.8 million transactions a year earlier, according to a report from NACHA, the rules-setting body of the ACH. WEB transactions typically are consumer payments from biller-direct Web sites or third-party processors. NACHA statistics exclude on-us traffic.

Dec 1, 2011  Investments grow in remote deposit and person-to-person payments on mobile devices

Transactional services such as remote deposit capture (RDC) and mobile person-to-person (P2P) payments will account for the majority of mobile investment in 2012 by financial institutions, according to a survey released today that was conducted by Forrester Research on behalf of Fiserv. The "Mobile Banking and Payments" survey evaluated the plans of 10 banks and credit unions that in total hold more than one-third of all U.S. deposit accounts.

Nov 15, 2011  What is EMV?

EMV® is a global standard for credit and debit payment cards based on chip card technology. As of Q3 2011, there were more than 1.34 billion EMV compliant chip-based payment cards in use worldwide.

EMV chip-based payment cards, also known as smart cards, contain an embedded microprocessor, a type of small computer. The microprocessor chip contains the information needed to use the card for payment, and is protected by various security features. Chip cards are a more secure alternative to traditional magnetic stripe payment cards.