Thursday, November 4, 2010

PayPal's Cashless Utopia

Logo of PayPal.Image via Wikipedia

Leave your wallet behind as PayPal & Thom Filicia show you the future of money in PayPal’s Cashless Utopia!

“The Seven Wonders of the Cashless World”
Thom Filicia- Author, TV Celebrity, Interior Designer
Claudia Lombana- PayPal Shopping Specialist
Laura Chambers- Senior Director, PayPal Mobile
Sam Shrauger- VP of Global Product Strategy, PayPal
  • Experience how to live a more convenient life in “The Seven Wonders of the Cashless World
    • HOLIDAY: Skip the lines and the stress, get expert shopping tips from PayPal’s Shopping Specialist
    • TRAVEL: Bring PayPal with you on your next trip and find out where to save on travel year round
    • FASHION: eBay’s Karina Sokolovsky shows you how to stay on-trend with eBay and PayPal
    • HOME & LIFESTYLE: Get Thom Filicia’s insider tips on using PayPal in the home
    • MOBILE: See how PayPal is defining the future of money
    • STUDENT ACCOUNT: Give your teens financial freedom and parents peace of mind.
    • SECURITY: Learn how to stay safer while shopping online or from your mobile device
  • Wine and dine with celebrity hosts and top PayPal executives
  • Get exclusive insight from PayPal executives on the future of payment technology
  • Learn about PayPal’s newest announcements and test out our newly-released technology and mobile apps
Tuesday, November 9th from 6:00p.m. to 10:00p.m.
The Glass Houses
At the Chelsea Arts Tower
545 West 25th Street
New York, NY 10001


Access Communications
Ashley Carter, 917-522-3529
***Please indicate your media affiliation in your RSVP
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American Express to Acquire Accertify to Broaden Fraud Prevention Services

American Express logoImage via Wikipedia

Offering comprehensive fraud management platform for all transactions

CHICAGO--(BUSINESS WIRE)--American Express today announced it has agreed to acquire Accertify Inc., a leading provider of solutions that help merchants combat fraudulent online and other card-not-present transactions.
“Merchants are interested in fraud tools that cover every aspect of the payment process; and we’re pleased that we will now be able to deliver an industry-leading solution to them”
Launched in 2007, Accertify provides a hosted software application that offers an extra level of security for transactions over any of the major payment networks, including American Express, Visa, MasterCard, Discover, PayPal or any other alternative payment method. Accertify also offers merchants the option to outsource their end-to-end fraud management process. Many of its customers have quickly achieved significant gains in the efficiency, accuracy and productivity of their fraud prevention efforts with reductions of 50% or more in their fraud losses and customer complaints due to fraud.
American Express currently provides fraud prevention tools such as Electronic Verification, Enhanced Authorization and Charge Verification. These tools help merchants to evaluate the potential risk of e-commerce and card-not-present transactions on the American Express network. With the acquisition of Accertify, American Express will be able to broaden its fraud prevention services to merchants for transactions that take place on all networks. Accertify’s capabilities will be incremental and complementary to what American Express offers merchants today.
“Merchants are interested in fraud tools that cover every aspect of the payment process; and we’re pleased that we will now be able to deliver an industry-leading solution to them,” said Bill Glenn, president, American Express Global Merchant Services. “While we already provide innovative fraud services for American Express transactions, merchants increasingly want single source platforms to address all types of transactions, regardless of the payment brand. We understand merchants’ payment needs on a broader scale, and we’re building on our commitment to expand e-commerce solutions and value-added services. Accertify will enable us to further increase trust and confidence in the online payment space.”
Jeff Liesendahl, co-founder and chief executive officer of Accertify, will continue as president.
“Since forming Accertify, our goal has been to build a fraud prevention platform that can help transform the industry and accelerate e-commerce growth,” said Liesendahl. “Becoming part of American Express will enable us to build on our success by scaling our business, providing even more merchant benefits, and extending our global presence. Together, we look forward to strengthening our platform with enhanced features and functionality that provide greater value and efficiency for merchants.”
The transaction, which is subject to customary closing conditions, is expected to close in the fourth quarter of 2010. The purchase price is expected to be approximately $150 million. Upon closing, Accertify would operate as a wholly owned subsidiary of American Express.
About Accertify
Accertify Inc., based in Itasca, IL, is a leader in providing e-commerce companies with software, tools and strategies for preventing online fraud and mitigating enterprise-wide risks. Its Interceptas® platform integrates every component of fraud prevention, applies state-of-the-art automation to each step in process and offers advanced capabilities for managing fraud data. Built with a merchant's perspective, Interceptas delivers unparalleled flexibility in preventing various types of criminal behavior, including fraud related to card-not-present purchases, online scams and policy abuse, merchandise returns and exchanges and other data management challenges. Accertify is committed to providing online companies with the most cost-effective solution to fraud available. For more information, visit
About American Express
American Express is a global services company, providing customers with access to products, insights and experiences that enrich lives and build business success. Learn more and connect with us on and
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MasterCard to Participate in the J.P. Morgan Ultimate Services Investor Conference

MasterCardImage via Wikipedia
PURCHASE, N.Y.--(BUSINESS WIRE)--On Tuesday, November 9, Laura Kelly, group executive, Global Prepaid Solutions for MasterCard (NYSE: MA), will participate in the J.P. Morgan Ultimate Services Investor Conference in New York City. The presentation will begin at 2:00 p.m. Eastern Time and last for approximately 40 minutes.
A listen-only live audio webcast will be accessible through the Investor Relations section of the MasterCard website at An audio replay of the session will also be available for 30 days at the same website location.
About MasterCard Incorporated
As a leading global payments company, MasterCard Incorporated prides itself on being at the heart of commerce, helping to make life easier and more efficient for everyone, everywhere. MasterCard serves as a franchisor, processor and advisor to the payments industry, and makes commerce happen by providing a critical economic link among financial institutions, governments, businesses, merchants, and cardholders worldwide. In 2009, $2.5 trillion in gross dollar volume was generated on its products by consumers around the world. Powered by the MasterCard Worldwide Network – the fastest payment processing network in the world – MasterCard processes over 22 billion transactions each year and has the capacity to handle 140 million transactions per hour, with an average network response time of 140 milliseconds and with 99.99 percent reliability. MasterCard advances global commerce through its family of brands, including MasterCard®, Maestro®, and Cirrus®; its suite of core products such as credit, debit, and prepaid; and its innovative platforms and functionalities, such as MasterCard PayPass™ and MasterCard inControl™. MasterCard serves consumers, governments, and businesses in more than 210 countries and territories. For more information, please visit us at


MasterCard Incorporated
Investor Relations:
Barbara Gasper, 914-249-4565
Media Relations:
Chris Monteiro, 914-249-5826

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First Data Reports Third Quarter Results

Image representing First Data Corp as depicted...Image via CrunchBase

Adjusted revenue of $1.6 billion, up 2%; consolidated revenue $2.6 billion, up 8%

  • Generated $962 million in operating cash flow during the last 12 months and ended the quarter with $1.8 billion in unrestricted liquidity
ATLANTA--(BUSINESS WIRE)--First Data Corporation today reported its financial results for the third quarter ended Sept. 30, 2010. Consolidated revenue of $2.6 billion was up 8% compared to a year ago primarily driven by increases in debit network fees. Adjusted revenue of $1.6 billion increased 2% year-over-year driven by growth in both Retail and Alliance Services and Financial Services.
“I am excited to be joining First Data—our management team is committed to continuing to grow this business organically and profitably by putting the customer first, introducing innovative products, and achieving operational efficiencies across the organization”
For the third quarter, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $526 million compared to $525 million in the third quarter of 2009. The year-over-year EBITDA comparison was positively affected by a timing benefit of $23 million from card association fees while higher incentive compensation accruals of $31 million and asset write-offs of $9 million negatively impacted the year-over-year comparison. For the quarter, the net loss attributable to First Data was $431 million, which included a charge of $178 million associated with U.S. tax legislation signed in August that adversely affects the company’s ability to use foreign tax credits to offset future U.S. taxes.
First Data generated $104 million in operating cash flow for the third quarter, which included semi-annual interest payments of $505 million and had $1.8 billion in unrestricted liquidity—$135 million in cash available for corporate use plus $1.7 billion under the line of credit—at quarter end.
“I am excited to be joining First Data—our management team is committed to continuing to grow this business organically and profitably by putting the customer first, introducing innovative products, and achieving operational efficiencies across the organization,” said First Data Chief Executive Officer, Jonathan J. Judge, a 34-year technology-industry executive who began his new role Oct. 1, 2010. Previously, Judge served as president and CEO at Paychex, Inc. and is a 26-year veteran of IBM Corporation.
Segment Results
Retail and Alliance Services segment revenue of $851 million increased 7% in the third quarter of 2010 compared to 2009. Revenue growth was driven by transaction growth of 9%, continued penetration of complementary products including check processing, prepaid card, and point-of-sale equipment, and a timing benefit from card association fees. Credit mix remained stable at 72% and regional average ticket was $69, down 3% compared to the same quarter a year ago. EBITDA was $356 million, up $51 million or 17% compared to 2009 driven by revenue growth across all lines of business. Margin for the third quarter was 42%. During the quarter, Retail and Alliance Services added 10 referral agreements, one new revenue sharing agreement and 20 new independent sales organizations.
Financial Services segment revenue for the third quarter increased 4% to $354 million compared to the same quarter of 2009. New business and growth in transaction volumes were offset by pricing pressures and customer losses. Active card accounts on file declined 4%. Debit issuer transactions were up 7% excluding the impact of the loss of Washington Mutual. Segment EBITDA was $144 million down $4 million or 3% compared to 2009. Margin for the third quarter was 41%. During the quarter, Financial Services renewed 419 contracts.
International segment revenue for the third quarter was $402 million, down slightly compared to the prior year. On a constant currency basis, segment revenue was up 2%. Growth was driven by increases in the merchant acquiring business offset by declines in the card issuing business. Merchant acquiring growth was driven by transaction volumes and a new alliance in India. The card issuing business decline was driven by price compression from renewing long-term contracts and reduced demand for ancillary services. Segment EBITDA was $82 million, compared with $99 million in the same quarter of 2009 and margin was 20%. The decline in segment EBITDA includes asset write-offs of $9 million and the timing of incentive compensation accruals.
Recent Events
Amendment to Credit Facilities
On Aug. 10, 2010, First Data amended its existing credit agreement. This amendment provided the company with additional flexibility to extend its borrowings, execute various refinancing alternatives to address future maturities, and take action to improve the company’s overall capital structure. In connection with the amendment, the company issued $510 million in senior secured notes with a coupon of 8.875% due in 2020 to refinance existing debt and extend the company’s debt maturity profile.
Strategic Global Partnership with SK C&C
Committed to bringing one of the newest innovations in payments to its customersFirst Data signed a partnership with SK C&C in September to bring expertise in mobile commerce from South Korea to the United States. SK C&C has successfully provided services such as Trusted Service Manager (TSM), a Mobile Wallet and Mobile Banking, to the South Korean market since 2002.
STAR CertiFlash and TransArmor
Continuing to innovate, STAR Network launched a new PIN debit application that advances point-of-sale security using one-time card number technology. The STAR CertiFlash technology is programmed onto a contactless chip embedded within a payment device. For each transaction, the chip encrypts and transmits a card number that is good for only a single use.
On Sept. 1, 2010, the First Data TransArmor payment security service became available to U.S. merchants through the company’s network of resale partners. TransArmor changes the way merchants secure and manage cardholder data. The service protects consumer payment card data from the moment it enters the merchant environment and replaces card data with a token number that preserves the value of card data for merchant business operations but removes all value for fraudsters. As a result, merchants are able to reduce the scope, risk and costs associated with Payment Card Industry (PCI) compliance without requiring new hardware or extensive changes to existing business processes.
Non-GAAP Measures
In certain circumstances, results have been presented that are non-GAAP measures and should be viewed in addition to, and not in lieu of, the company's reported results. Reconciliations to comparable GAAP (generally accepted accounting principles) measures are available in the accompanying schedules and in the "Investor Relations" section of the company's website
Investor Conference Call
The company will host an investor conference call and webcast on Thursday, Nov. 4 at 8 a.m. ET to review third quarter financial results. Ray Winborne, First Data chief financial officer, will lead the call. Joining him for Q&A will be Jon Judge, CEO; Ed Labry, president of Retail and Alliance Services; and Kevin Schultz, president of Financial Services.
The call will be webcast on the “Investor Relations” section of the First Data website at and a slide presentation will accompany the call.
To listen to the call via teleconference, dial 866.578.5801 (U.S.) or 617.213.8058 (outside the U.S.), pass code 94267902.
A replay of the call will be available through Nov. 18, 2010, at 888-286-8010 (U.S.) or 617-801-6888 (outside the U.S.), pass code 77957221, and via webcast at
Please note: All statements made by First Data officers on this call are the property of First Data and subject to copyright protection. Other than the replay, First Data has not authorized, and disclaims responsibility for, any recording, replay or distribution of any transcription of this call.
Financial tables related to this release are available in PDF format at:
About First Data
First Data powers the global economy by making it easy, fast and secure for people and businesses to buy goods and services using virtually any form of electronic payment. Whether the choice of payment is a gift card, a credit or debit card or a check, First Data securely processes the transaction and harnesses the power of the aggregate data to deliver intelligence and insight for millions of merchant locations and thousands of card issuers in 36 countries. For more information, visit

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Bankrate Releases 2010 Gift Card Study

New Research Reveals Fees and Trends for 2010's Gift Card Season

NEW YORKNov. 4, 2010 /PRNewswire/ -- A new study released by Bankrate, Inc. reveals key tips and data regarding gift cards, an industry which analysts expect to once again report record sales this holiday season.  Bankrate surveyed 54 gift card issuers to determine fees that come from major gift card providers as well as where consumers can get the most value for their money.  The full 2010 Gift Card Study can be viewed at  
Bankrate's study reveals the following data about different types of gift cards:
  • There are two main types of gift cards: "Closed-loop," which can be used only at a single retailer or chain, and "open-loop," better known as one of the leading credit card brands;
  • Closed-loop cards are the more forgiving of the two gift card types.  Very few have fees attached to them and none of them expire;
  • Open-loop cards are slightly more punitive.  Six of the eight open-loop cards surveyed have expiration dates while two have a "Valid Thru" date – a date in which a card must be replaced if there is unspent money remaining;
  • Gift card rules taking effect this past August as part of the Credit CARD Act ensure that all gift card funds must remain valid for five years since their last load.  Another result of the CARD Act  is that gift cards are required to communicate any expiration information explicitly on the gift card itself;
  • Inactivity fees remain something to watch for, but not necessarily a prohibitive factor: Only one closed-loop card charged a fee after 24 months of nonuse, while five open-loop cards charge an inactivity or monthly fee after 12 months of nonuse.

Additionally, Bankrate's 2010 Gift Card Study features a chart highlighting all of the information about many top gift card choices, including which have expiration dates, fees, and even free shipping or delivery.
"Given that gift cards are more and more popular each year, odds are that most people will receive or give a gift card this holiday season," said Julie Bandy, editor-in-chief of  "With the information in Bankrate's 2010 Gift Card Study, consumers can arm themselves with the resources they need to make the most out of their gift card choices."
About Bankrate, Inc.
The Bankrate network of companies includes Bankrate.comInterest.comMortgage-calc.comNationwide Card Services,Savingforcollege.comFee DisclosureInsureMe and NetQuote.  Each of these businesses helps consumers to make informed decisions about their personal finance matters. The company's flagship brand, is a destination site of personal finance channels, including banking, investing, taxes, debt management and college finance. is the leading aggregator of rates and other information on more than 300 financial products, including mortgages, credit cards, new and used auto loans, money market accounts and CDs, checking and ATM fees, home equity loans and online banking fees. reviews more than 4,800 financial institutions in 575 markets in 50 states. provides financial applications and information to a network of more than 75 partners, including Yahoo! (Nasdaq: YHOO), America Online (NYSE: AOL), The Wall Street Journal and The New York Times (NYSE: NYT).'s information is also distributed through more than 500 newspapers.  Bankrate, Inc. was acquired by Apax Partners, one of the world's leading private equity investment groups, in September 2009.  Apax operates across the United StatesEurope and Asia and has more than 30 years of investing experience. For more information on Apax,
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