Monday, June 21, 2010

Electronic Payments Coalition Responds to So-Called Compromise to Interchange Amendment

POSTED BY JOHN B. FRANK MONDAY, JUNE 21, 2010  - 6:18 PST

WASHINGTONJune 21 /PRNewswire/ -- The Electronic Payments Coalition issued the following statement in response to the proposed changes to Senator Dick Durbin's debit interchange amendment to financial reform:

"Senator Durbin has underscored his commitment to big box retailers and their bottom lines through his so-called compromise. The fact that he has to carve anyone out to provide 'protection' from his amendment gives some indication as to the damage this amendment will cause. Consumers will pay higher fees, lose rewards programs, and have limited choices for debit cards due to the disruption this amendment will bring to the economics of the debit card market. We will continue to fight to ensure that retailers do not succeed in their decade-long lobbying campaign to shift the cost of what they pay to accept cards onto the backs of consumers."
About Electronic Payments Coalition
The Electronic Payments Coalition is dedicated to protecting consumer value, choice, and competition in electronic payments systems. The coalition is a broad-based group of payment card networks, financial services companies, and financial services trade associations whose primary goal is to educate policy-makers, consumers, and the media about the value of electronic payments systems — including economic growth, convenience, speed, reliability, and security — and to ensure the continued growth of global commerce by promoting consumer choice and the stability of the vast payment networks that connect millions of consumers with millions of retailers each and every day.




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Electronic Payments Coalition Responds to So-Called Compromise to Interchange Amendment

WASHINGTONJune 21 /PRNewswire/ -- The Electronic Payments Coalition issued the following statement in response to the proposed changes to Senator Dick Durbin's debit interchange amendment to financial reform:

"Senator Durbin has underscored his commitment to big box retailers and their bottom lines through his so-called compromise. The fact that he has to carve anyone out to provide 'protection' from his amendment gives some indication as to the damage this amendment will cause. Consumers will pay higher fees, lose rewards programs, and have limited choices for debit cards due to the disruption this amendment will bring to the economics of the debit card market. We will continue to fight to ensure that retailers do not succeed in their decade-long lobbying campaign to shift the cost of what they pay to accept cards onto the backs of consumers."
About Electronic Payments Coalition
The Electronic Payments Coalition is dedicated to protecting consumer value, choice, and competition in electronic payments systems. The coalition is a broad-based group of payment card networks, financial services companies, and financial services trade associations whose primary goal is to educate policy-makers, consumers, and the media about the value of electronic payments systems — including economic growth, convenience, speed, reliability, and security — and to ensure the continued growth of global commerce by promoting consumer choice and the stability of the vast payment networks that connect millions of consumers with millions of retailers each and every day.
SOURCE Electronic Payments Coalition

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House, Senate Reach Tentative Deal on Debit Cards

MasterCard Cracked
By JIM KUHNHENN (AP) – 42 minutes ago
WASHINGTON — Limits on the fees banks charge merchants who accept debit cards would not apply to government-issued cards, under a tentative House-Senate deal aimed at easing worries raised by state treasurers.
The agreement announced Monday softens a Senate provision in a broad financial regulation bill that requires the Federal Reserve to limit the amount banks collect from merchants for every debit card transaction.
Separately, House negotiators tentatively agreed to accept a Senate proposal to set up a consumer financial protection bureau as an independent agency inside the Federal Reserve. The House and the Obama administration had wanted a stand alone agency.
The debit card provision, approved by the Senate last month 64-33, aimed to save retailers billions of dollars in debit card fees. Merchants said the charges resulted in inflated costs to consumers.
Under the tentative deal, the limits would not cover debit cards issued by the federal or state governments, which use the cards for programs such as unemployment or child support payments. Several state treasurers argued that restricting fees paid by merchants could force banks to increase charges for the cards to states.
Merchants typically pay between 1 and 2 percent of a debit card transaction to banks and the credit card networks, mainly Visa and MasterCard. Most of the money goes to the banks.
The agreement requires the Federal Reserve to set limits on those fees, based on what it considers "reasonable and proportional" to the cost to banks. The agreement allows the Fed, in determining the fee amount, to consider the banks' costs of protecting against debit card fraud. The changes also would require the Fed to regulate only the fees set by banks, not by the credit card networks such as Visa and MasterCard. The bulk of the fees are imposed by banks.
The legislation already contains an exclusion for banks with less than $10 billion in assets. But bankers say the exemption doesn't help because small banks would still have to cut their fees to remain competitive.
The deal was struck by Sen. Dick Durbin, D-Ill., lead sponsor of the debit card proposal, and Democratic Reps. Carolyn Maloney and Gregory Meeks of New York, both members of a House-Senate panel working out differences between the two chambers' financial regulation bills. The original House legislation did not contain restrictions on debit card fees.
Banks and credit unions have been battling retailers in a lobbying war over the fees. The Senate's vote to have the Fed set limits caught the financial industry by surprise, adding yet another front to their efforts to soften the bill's impact.
The changes did not satisfy card issuers.
"Despite some improvements, this provision remains a terrible deal for consumers, for lower-income bank customers, for government benefits programs, and for community banks," said Edward Yingling, president and CEO of the American Bankers Association. "The harm is real consumers will see higher costs, basic banking accounts in low-income communities will either be eliminated or involve higher prices, and government programs will cost taxpayers more money, all for the purpose of increasing merchant profits."
The debit card deal is included in a broader House offer to the Senate from Rep. Barney Frank, D-Mass., who is leading the House-Senate effort to assemble a compromise bill.
Frank's offer, which the panel will discuss Tuesday, leaves a consumer bureau inside the Federal Reserve, as provided for in the Senate bill. It calls for auto dealers and pawnbrokers to be exempt from the bureau's regulations and oversight.
The House bill passed in December excluded auto dealers and pawnbrokers, while the Senate's did not.
Auto dealers have argued that while they might assemble loans for car buyers, they do not administer or service the loans.
Frank also proposed to add a provision that would place payday lenders, money remitters, check cashers and firms that provide private student loans under the consumer bureau's supervision. The Senate had called for a study of how the consumer agency could regulate private student loan issuers.


Read more: http://pindebit.blogspot.com/2010/06/house-senate-reach-tentative-deal-on.html#ixzz0rXDyParS

House, Senate Reach Tentative Deal on Debit Cards

MasterCard CrackedImage by Steve Rhode via Flickr


WASHINGTON — Limits on the fees banks charge merchants who accept debit cards would not apply to government-issued cards, under a tentative House-Senate deal aimed at easing worries raised by state treasurers.
The agreement announced Monday softens a Senate provision in a broad financial regulation bill that requires the Federal Reserve to limit the amount banks collect from merchants for every debit card transaction.
Separately, House negotiators tentatively agreed to accept a Senate proposal to set up a consumer financial protection bureau as an independent agency inside the Federal Reserve. The House and the Obama administration had wanted a stand alone agency.
The debit card provision, approved by the Senate last month 64-33, aimed to save retailers billions of dollars in debit card fees. Merchants said the charges resulted in inflated costs to consumers.
Under the tentative deal, the limits would not cover debit cards issued by the federal or state governments, which use the cards for programs such as unemployment or child support payments. Several state treasurers argued that restricting fees paid by merchants could force banks to increase charges for the cards to states.
Merchants typically pay between 1 and 2 percent of a debit card transaction to banks and the credit card networks, mainly Visa and MasterCard. Most of the money goes to the banks.
The agreement requires the Federal Reserve to set limits on those fees, based on what it considers "reasonable and proportional" to the cost to banks. The agreement allows the Fed, in determining the fee amount, to consider the banks' costs of protecting against debit card fraud. The changes also would require the Fed to regulate only the fees set by banks, not by the credit card networks such as Visa and MasterCard. The bulk of the fees are imposed by banks.
The legislation already contains an exclusion for banks with less than $10 billion in assets. But bankers say the exemption doesn't help because small banks would still have to cut their fees to remain competitive.
The deal was struck by Sen. Dick Durbin, D-Ill., lead sponsor of the debit card proposal, and Democratic Reps. Carolyn Maloney and Gregory Meeks of New York, both members of a House-Senate panel working out differences between the two chambers' financial regulation bills. The original House legislation did not contain restrictions on debit card fees.
Banks and credit unions have been battling retailers in a lobbying war over the fees. The Senate's vote to have the Fed set limits caught the financial industry by surprise, adding yet another front to their efforts to soften the bill's impact.
The changes did not satisfy card issuers.
"Despite some improvements, this provision remains a terrible deal for consumers, for lower-income bank customers, for government benefits programs, and for community banks," said Edward Yingling, president and CEO of the American Bankers Association. "The harm is real consumers will see higher costs, basic banking accounts in low-income communities will either be eliminated or involve higher prices, and government programs will cost taxpayers more money, all for the purpose of increasing merchant profits."
The debit card deal is included in a broader House offer to the Senate from Rep. Barney Frank, D-Mass., who is leading the House-Senate effort to assemble a compromise bill.
Frank's offer, which the panel will discuss Tuesday, leaves a consumer bureau inside the Federal Reserve, as provided for in the Senate bill. It calls for auto dealers and pawnbrokers to be exempt from the bureau's regulations and oversight.
The House bill passed in December excluded auto dealers and pawnbrokers, while the Senate's did not.
Auto dealers have argued that while they might assemble loans for car buyers, they do not administer or service the loans.
Frank also proposed to add a provision that would place payday lenders, money remitters, check cashers and firms that provide private student loans under the consumer bureau's supervision. The Senate had called for a study of how the consumer agency could regulate private student loan issuers.


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Kaspersky Says Mobile Malware is a Reality

Mobile malware is a reality says Kaspersky

From InfoSecurity.com:  Mobile malware has been bubbling along in the background of the security world for the last few years but, according to Denis Maslennikov, Kaspersky Lab's mobile research group manager, the rise in smartphone sales is triggering a surge in mobile malware amongst cybercriminals.  Research by Kaspersky Lab, he said, has shown that botnets built using infected mobile devices will become more like standard botnets, i.e. they can send spam, steal passwords en masse, carry out DDoS attacks on mobiles, etc. 


Read the Article in it's Entirety at InfoSecurity.com




From Kaspersky's Site:  Denis Maslennikov, Head of Kaspersky Lab's Mobile Research Group, gave a talk on 'Mobile Malware and the Internet: Myth or Reality?' Denis took an in-depth look at the evolution of mobile malware that exploits the Internet to achieve its aims. Statistically, the number of such threats has dramatically increased since the middle of 2009 and the forecast for the future seems even bleaker. In his report, Denis discussed the emergence of mobile botnets and explained just how cybercriminals can use them to make money.

Debit Fee Agreement Reached, Visa and MasterCard Shares Jump

Graphic from International Business Times Click to Enlarge
According to StreetInsider.com,

"The stocks of several
 credit card processors have moved sharply higher in intraday trading amid reports that Senator Dick Durbin has said that an agreement with the House has been reached on the heavily-debated debit card fee cap issue. Shares of Visa (NYSE: V) are now up more than 7% to $82.59, while shares of MasterCard (NYSE: MA) have jumped about 6% today."






  1. VisaMastercard Shares Rally On Interchange Rule Agreement


    Wall Street Journal - David Benoit - 1 hour ago
    The new proposal would prevent the government from regulating network fees charged and accrued by Visaand MasterCard. When the rules, which would regulate ...




    VisaMasterCard Climb as Congress Weighs Debit-Fee Compromise

    BusinessWeek - Peter Eichenbaum - ‎33 MINUTES AGO‎
    “If the counter-proposal becomes law, Visa and MasterCard still may have to cope with some business-model changes, but these would likely be less than had ...




    VisaMastercard up on swipe fee regulation pact

    MarketWatch - Alistair Barr - ‎1 HOUR AGO‎
    SAN FRANCISCO (MarketWatch) -- Visa Inc. (NYSE:V) and Mastercard Inc. (NYSE:MA) shares climbed Monday afternoon as US politicians reached an agreement on ...

    The Political Power Of Global Grind: Defending The Poor

    Global Grind (blog) - Michael Skolnik - ‎5 HOURS AGO‎
    Durbin (D-IL), believes that a merchant should no longer pay a fee to Visa or Mastercard when a customer uses a debit card. Right now, the merchant pays a ...

    Lobbyists Win? Visa (V) and Mastercard (MA) Explode Midday

    International Business Times - ‎1 HOUR AGO‎
    Both Mastercard (MA) and Visa (V) have exploded upward around 1 PM. I can only assume some piece of punitive legislation was successfully blocked by ...

    Proposed New Debit Card Rules May Not Help Consumers Much

    ABC News - Dalia Fahmy - ‎8 HOURS AGO‎
    His biggest complaint is directed at MasterCard and Visa, who he says charge him more than $100000 in debit card "swipe fees" a year. ...

    Lane: Time for Congress to Stand Up for Small Businesses on Swipe Fees

    Roll Call (subscription) - Dennis Lane - ‎4 HOURS AGO‎
    Because these swipe fees are set by a cartel (Visa and MasterCard) that controls more than 80 percent of the market and can unilaterally hike up its prices. ...

    Small business owners rally in DC

    Creditnet.com - Sam Lee - ‎3 HOURS AGO‎
    "The facts are on our side against the massive lobbying campaigns by Visa and MasterCard," said national spokesman for Reform Swipe Fees NOW! and 7-Eleven ...

    Visa Shares Soar On Swipe Fee Fegulation Agreement

    NewsyStocks.com - ‎25 MINUTES AGO‎
    Visa shares were up $3.89 or 5.05% to $80.93 in afternoon trade. Rival MasterCard (NYSE: MA) rose $8.46 or 3.95% to $222.71. Disclosure: Author doesn't own ...

    Qik-n-EZ president supports Durbin proposal on debit-card fees

    The State Journal-Register - Bernard Schoenburg - ‎10 HOURS AGO‎
    “Small businesses have to accept Visa and MasterCard to survive, and so they have no choice but to accept the outrageous fees that are imposed on them by ...

Read more: http://pindebit.blogspot.com/2010/06/interchange-fee-pact-reached-visa-and.html#ixzz0rWIURTPB
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Interchange Fee Pact Reached, Visa and MasterCard Shares Jump




Graphic from International Business Times Click to Enlarge
According to StreetInsider.com,



"The stocks of several
 credit card processors have moved sharply higher in intraday trading amid reports that Senator Dick Durbin has said that an agreement with the House has been reached on the heavily-debated debit card fee cap issue. Shares of Visa (NYSE: V) are now up more than 7% to $82.59, while shares of MasterCard (NYSE: MA) have jumped about 6% today."











  1. VisaMastercard Shares Rally On Interchange Rule Agreement



    Wall Street Journal - David Benoit - 1 hour ago

    The new proposal would prevent the government from regulating network fees charged and accrued by Visaand MasterCard. When the rules, which would regulate ...




    VisaMasterCard Climb as Congress Weighs Debit-Fee Compromise

    BusinessWeek - Peter Eichenbaum - ‎33 minutes ago‎
    “If the counter-proposal becomes law, Visa and MasterCard still may have to cope with some business-model changes, but these would likely be less than had ...



    VisaMastercard up on swipe fee regulation pact

    MarketWatch - Alistair Barr - ‎1 hour ago‎
    SAN FRANCISCO (MarketWatch) -- Visa Inc. (NYSE:V) and Mastercard Inc. (NYSE:MA) shares climbed Monday afternoon as US politicians reached an agreement on ...

    The Political Power Of Global Grind: Defending The Poor

    Global Grind (blog) - Michael Skolnik - ‎5 hours ago‎
    Durbin (D-IL), believes that a merchant should no longer pay a fee to Visa or Mastercard when a customer uses a debit card. Right now, the merchant pays a ...

    Lobbyists Win? Visa (V) and Mastercard (MA) Explode Midday

    International Business Times - ‎1 hour ago‎
    Both Mastercard (MA) and Visa (V) have exploded upward around 1 PM. I can only assume some piece of punitive legislation was successfully blocked by ...

    Proposed New Debit Card Rules May Not Help Consumers Much

    ABC News - Dalia Fahmy - ‎8 hours ago‎
    His biggest complaint is directed at MasterCard and Visa, who he says charge him more than $100000 in debit card "swipe fees" a year. ...

    Lane: Time for Congress to Stand Up for Small Businesses on Swipe Fees

    Roll Call (subscription) - Dennis Lane - ‎4 hours ago‎
    Because these swipe fees are set by a cartel (Visa and MasterCard) that controls more than 80 percent of the market and can unilaterally hike up its prices. ...

    Small business owners rally in DC

    Creditnet.com - Sam Lee - ‎3 hours ago‎
    "The facts are on our side against the massive lobbying campaigns by Visa and MasterCard," said national spokesman for Reform Swipe Fees NOW! and 7-Eleven ...

    Visa Shares Soar On Swipe Fee Fegulation Agreement

    NewsyStocks.com - ‎25 minutes ago‎
    Visa shares were up $3.89 or 5.05% to $80.93 in afternoon trade. Rival MasterCard (NYSE: MA) rose $8.46 or 3.95% to $222.71. Disclosure: Author doesn't own ...

    Qik-n-EZ president supports Durbin proposal on debit-card fees

    The State Journal-Register - Bernard Schoenburg - ‎10 hours ago‎
    “Small businesses have to accept Visa and MasterCard to survive, and so they have no choice but to accept the outrageous fees that are imposed on them by ...







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