Tuesday, February 8, 2011

Electronic Funds Transfer Association Launches Information Portal on Federal Reserve Debit Card Rules

EFTA website provides information on Durbin Interchange Amendment and proposed Federal Reserve debit card regulations and interchange fees

FAIRFAX, Va.--(BUSINESS WIRE)--The Electronic Funds Transfer Association has launched an informational website to provide public information on issues surrounding the implementation of the Federal Reserve’s proposed new regulations governing debit card interchange fees. The new rules were mandated by the Durbin Interchange Amendment, part of 2010’s Wall Street Reform and Consumer Protection Act.
“could force the biggest restructuring of the electronic payments industry in 30 years”
www.durbininterchangeamendment.org is designed to provide news, opinions and analysis on those issues that are critical to understanding the changes that will result from the law including the Fed’s effort to cap debit card interchange fees.
Debit card interchange fees are what banks charge retailers for authorizing consumer debit card payments.
The site provides access to a library of information related to the Federal Reserve’s proposed cap on debit interchange fees, as well as a blog and commentary providing opinions and analysis of the issue.
The new Fed interchange fee rules “could force the biggest restructuring of the electronic payments industry in 30 years,” according to Kurt Helwig, president and CEO of the Electronic Funds Transfer Association. “The purpose of the Durbin Interchange Amendment site is to provide one more tool for organizations to understand the implications of that restructuring and to help manage it.”
The Federal Reserve is currently accepting comments on its proposed regulations covering debit card interchange fees, which were unveiled on December 16. Public comment is due no later than February 22. The new rules are scheduled to be completed by April 21 and go into effect July 21.
About the Electronic Funds Transfer Association
The Electronic Funds Transfer Association is a leading trade association for organizations involved in electronic payments or commerce. Its mission is to inform and educate the public on issues of importance to the electronic payments industry and to objectively promote the adoption of electronic payments and commerce.


for Electronic Funds Transfer Association
Chaddsford Planning Associates, LLC
Bob Bucceri, 610-918-1161
Permalink: http://www.businesswire.com/news/home/20110208006639/en/Electronic-Funds-Transfer-Association-Launches-Information-Portal
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MasterCard BOD Announces .15 cent Quarterly Dividend

MasterCardImage via Wikipedia

MasterCard Board of Directors Announces Regular Quarterly Dividend

PURCHASE, N.Y.--(BUSINESS WIRE)--MasterCard Incorporated (NYSE: MA) today announced that its Board of Directors has declared a quarterly cash dividend to holders of shares of its Class A common stock and Class B common stock. The cash dividend of 15 cents per share will be paid on May 9, 2011 to holders of record of its Class A common stock and Class B common stock as of April 8, 2011.
Additionally, the company announced that its annual meeting of stockholders will take place at its corporate headquarters on June 7, 2011.
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 2010, $2.7 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 23 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 www.mastercard.com.


MasterCard Incorporated
Investor Relations:
Barbara Gasper, 914-249-4565
Media Relations:
Jennifer Stalzer, 914-249-5325
Permalink: http://www.businesswire.com/news/home/20110208006674/en/MasterCard-Board-Directors-Announces-Regular-Quarterly-Dividend

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Third of European Computers Infected by Virus or Trojans

Third of European Computers Infected by Virus or Trojans
(from cellular-news at 7-2-2011)
Across the 27 countries that make up the European Union, nearly a third (31%) of computers connected to the internet were infected by a computer virus or similar problem, according to Eurostat, the statistical office of the European Union. The highest shares of internet users who caught a virus or other computer infection were found in Bulgaria (58%), Malta (50%), Slovakia (47%), Hungary (46%) and Italy (45%), and the lowest in Austria (14%), Ireland (15%), Finland (20%) and Germany (22%).... read more»
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Identity Fraud Fell 28 Percent in 2010 According to New Javelin Strategy & Research Report

“Friendly Fraud” and Consumer Costs on the Rise; Non-Credit Card and New Account Fraud Also Increased Findings Underscore Need for Continued Vigilance
SAN FRANCISCO--(BUSINESS WIRE)--The 2011 Identity Survey Report, released today by Javelin Strategy & Research (www.javelinstrategy.com), reports that in 2010 the number of identity fraud victims decreased by 28 percent to 8.1 million adults in the United States, three million fewer victims than the prior year. Total annual fraud decreased from $56 billion to $37 billion, the smallest amount in the eight years of the study. While overall fraud declined, consumer out-of-pocket costs rose significantly, mainly due to the types of fraud that were successfully perpetrated and an increase in “friendly fraud.”
“The financial services industry, businesses and law enforcement have been working harder than ever to crack down on fraud and to educate consumers about how they can protect themselves, and this year’s study clearly indicates these efforts are having a positive impact”
Now in its eighth consecutive year, the comprehensive survey is independently produced by Javelin Strategy & Research and sponsored byFiservIntersections Inc. and Wells Fargo & Company, companies dedicated to consumer fraud prevention and education. It is the nation’s longest-running study of identity fraud, with 37,929 respondents over the past eight years. Identity fraud is defined as the unauthorized use of another person’s personal information to achieve illicit financial gain. From September through November of 2010, 5,004 telephone interviews were conducted with U.S. consumers to identify important findings about the impact of fraud and to uncover areas of progress and areas in which consumers must exercise continued vigilance.
“Identity fraud underwent a marked decline and shift over the past year. This great news is a testament to the significant efforts businesses, the financial services industry and government agencies are making to educate consumers, protect data, and prevent and resolve identity fraud,” said James Van Dyke, president and founder of Javelin Strategy & Research. “Economic conditions also appear to have contributed to this year-over-year decline, as well as increased security measures and some significant law enforcement successes. However, the rise in out-of-pocket costs carries a warning. Consumers cannot put their finances on autopilot or ignore important safeguards. Simple safeguards may dramatically reduce fraud risk, such as frequently monitoring banking, credit and other financial activities, securing computers and paper records, and activating electronic alerts to help prevent fraud and address the situation quickly when it occurs.”
Key Survey Findings
The survey found five overall fraud trends:
  • Overall identity fraud incidents decreased in the United States in 2010—The number of identity fraud incidents decreased by 28 percent over the past year, which brought them down to levels not seen since 2007. The mean fraud amount per victim declined from $4,991 in 2009 to $4,607. One likely contributing factor was the significant drop in reported data breaches according to industry reports: 404 in 2010 with 26 million records exposed, compared to 604 in 2009 with 221 million records exposed.
  • Consumer fraud costs increased in 2010—While fraud incidents decreased, the mean consumer out-of-pocket cost due to identity fraud increased 63 percent from $387 in 2009 to $631 per incident in 2010. This may be attributable to changes in the types of fraud perpetrated in 2010, including new account and debit card fraud, highlighting the need for continued consumer vigilance. Consumer fraud costs include costs incurred by the victim towards payoff of any fraudulent debt as well as fees (legal or otherwise) to resolve fraudulent claims.
  • New account fraud was most damaging—Although all types of fraud declined over the past year, new account fraud was responsible for the greatest fraud amount ($17 billion). New account fraud, in which accounts have been opened without the victim’s knowledge, is harder to detect and is the most likely to severely impact the victims. Existing card fraud amounts declined by 38 percent to $14 billion from $23 billion in 2009.
  • “Friendly fraud” is on the rise—Friendly fraud - fraud perpetrated by people known to the victim, such as a relative or roommate - grew seven percent last year, with consumers between the ages of 25-34 most likely to be victims of this type of fraud. People in this age group are most likely to have their Social Security number (SSN) stolen—with 41 percent of fraud victims in this group reporting theft of their SSN.
  • Fraud inversely mirrors retail sales—The Javelin study found an interesting correlation between retail sales and fraud incidence, with the amount of fraud almost perfectly inversely mirroring retail sales over the past seven years. When retail sales have increased, fraud has decreased, which points to economic hardships as an overall contributor to fraudsters committing identity crimes.
Understanding the Findings
Approximately three million fewer adults were victimized by identity fraud in 2010, compared to 2009. This is the largest single-year decrease since Javelin started tracking data in 2003 and exceeds the combined decline from 2003-2007, when identity fraud started to increase again. The largest drop previously was 800,000 consumers between 2003 and 2004.
Some factors leading to this decline include the more stringent criteria financial institutions are applying to authenticate users and determine credit risk; as well as more Americans monitoring accounts online and using monitoring protection services that can provide updates to mobile devices. Additionally, according to industry data, reported data breaches dropped significantly, with just seven percent of the U.S. population receiving notifications that their information was exposed in a data breach.
Account takeover was one of the most common forms of identity fraud. When examining account takeover trends, the two most popular tactics for fraudsters were adding their name as a registered user on an account or changing the physical address of the account. In 2010, changing the physical address became the most popular method, with 44 percent of account takeover incidents conducted this way.
New account fraud is the most damaging to consumers, and the study found that fraudsters are changing their patterns to make it harder to detect. There was a shift to fraudulent opening of non-bank and non-card accounts, such as health club memberships, home phone and cable subscriptions. This type of fraud will not necessarily be caught by checking credit reports. To detect them, consumers should carefully examine financial statements, and consider using a service that monitors public records.
New account fraud was also the type of fraud most likely to be perpetrated by “friendly fraudsters,” and accounted for roughly 30 percent of new account fraud for which the cause was known. While existing card information would appear to be easy to obtain from acquaintances, existing card fraud was less than half as common as new account fraud.
Retail Sales and Identity Fraud
Notably, for at least the past seven years, the state of retail sales has had a direct, inversely proportional correlation to identity fraud. This strongly indicates that as retail sales grow, fraud incidents decrease. This may indicate how the state of individuals’ financial conditions correlates to their likelihood to perpetrate identity fraud.
Financial Services, Business and Law Enforcement Working Together to Protect and Educate Consumers
“The financial services industry, businesses and law enforcement have been working harder than ever to crack down on fraud and to educate consumers about how they can protect themselves, and this year’s study clearly indicates these efforts are having a positive impact,” said Steve Cox, president and CEO, Council of Better Business Bureaus. “In order to retain consumer trust and confidence, businesses must continue to take all steps necessary to safeguard data and educate customers about how to protect themselves and respond to incidents. Now is not the time to let up. Consumers should remain vigilant and be careful not to expose personally identifiable information over social networks and to acquaintances.”
Six Safety Tips to Protect Consumers
1. Keep Personal Data Private—At home or work, secure your personal and financial records in a locked storage device or behind a password. In 2010, 14 percent of all identity fraud crimes were committed by someone previously known to the victim when the method was known. Avoid mailing checks to pay bills or to deposit funds in your banking account. Instead, use online bill payment. Continue to use the shredder for information that contains your personal information as well as any non-online statements.
2. Don’t Overshare on Social Networks—While people connect with friends and acquaintances on social networks, sometimes they share too much information (full birthdate, pet’s name, etc.). For example, the AARP found that 27 percent of people age 50+ use social networks, but the Javelin research found that 36 percent of people aged 65+ do not use the privacy settings on their network,1 potentially exposing crucial information to fraudsters. The good news is 89 percent of 25-34 year olds were actively using the privacy settings on social network sites.
3. Use Your Debit Card Wisely—With the declining use of credit cards and the rise of debit cards, debit card fraud returned to 2006 levels. Obtain credit and debit cards from financial institutions that provide zero liability protection if a card is ever lost, stolen or used without authorization. Report lost or stolen cards, or suspected fraud, immediately.
4. Be Vigilant—Monitor your accounts regularly online at bank and credit card websites, ATMs or by phone, and set up alerts that can be sent via e-mail and to a mobile device. The study found that 48 percent of all reported identity fraud cases are first detected by consumers. At a minimum, consumers should review their credit report no less than once per year.
5. Learn About Identity Protection Services—There are services for consumers who want extra protection and peace of mind. These include credit monitoring, fraud alerts, credit freezes and database scanning, some of which can be obtained for a fee and others at no cost. These services can detect much of the fraud that a credit report does not detect.
6. Report problems immediately—Work with your bank, credit union or protection services provider to take advantage of resolution terms, loss protections and methods to secure your accounts. A fast response can enhance the likelihood that losses are reduced, and law enforcement can pursue fraudsters so they experience consequences for their actions.
For Additional Educational Tips, Consumers Should Visit:
To take an identity fraud safety quiz and download a free consumer version of Javelin’s identity fraud report, and get additional safety tips, visit www.idsafety.net.
Law Enforcement Professionals who are interested in obtaining a copy of the complete report, please contact: etravers@javelinstrategy.com.
About Javelin Strategy & Research
Javelin is the leading independent provider of quantitative and qualitative research focused exclusively on financial services topics. Based on the most rigorous statistical methodologies, Javelin conducts in-depth primary research studies to pinpoint dynamic risks and opportunities. Javelin helps its clients achieve their initiatives through three service offerings, including syndicated research subscriptions, custom research projects and strategic consulting. Javelin’s client list includes some of the largest financial institutions, technology enterprises and security firms.
For more information on this project or other Javelin studies, visit www.javelinstrategy.com/research.
All trademarks are the property of their respective owners.


Javelin Strategy & Research
Elizabeth Travers, 925-225-9100 ext. 15
For Javelin Strategy & Research
Julie Goldman or Michael McDonough, 781-684-0770
Permalink: http://www.businesswire.com/news/home/20110208005626/en/Identity-Fraud-Fell-28-Percent-2010-Javelin
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Heartland Payment Systems Announces Conference Call to Discuss Fourth Quarter and Year End 2010 Results

PRINCETON, N.J.--(BUSINESS WIRE)--Heartland Payment Systems, Inc. (NYSE: HPY), one of the nation’s largest payments processor, today announced that its results for the fourth quarter and fiscal year end of 2010 will be released before the market opens on Wednesday, February 16, 2011. A copy of the earnings release will be available on the investor relations portion of the Company’s website at: www.heartlandpaymentsystems.com.
http://www.heartlandpaymentsystems.comChairman & Chief Executive Officer Robert Carr and President & Chief Financial Officer Robert Baldwin will host a conference call beginning at 8:30 AM Eastern Time, Wednesday, February 16, 2011, to discuss fourth quarter and fiscal year end 2010 results and conduct a question and answer session.
Heartland Payment Systems invites all interested parties to listen to its conference call broadcast through a webcast on the Company’s website. To access the call, please visit the Investor Relations portion of the Company’s website at: www.heartlandpaymentsystems.com. The webcast will be archived on the Company’s website within two hours of the live call and will remain available through Friday May 13, 2011.
You may also participate by calling (888) 297-0360 and providing the operator with Pin Number 4365755.
About Heartland Payment Systems
Heartland Payment Systems, Inc. (NYSE: HPY), the fifth largest payments processor in the United States, delivers credit/debit/prepaid card processinggift marketing and loyalty programspayroll,check management and related business solutions to more than 250,000 business locations nationwide. A FORTUNE 1000 company, Heartland is the founding supporter of The Merchant Bill of Rights, a public advocacy initiative that educates merchants about fair credit and debit card processing practices. The company is also a leader in the development of end-to-end encryption technology designed to protect cardholder data, rendering it useless to cybercriminals. For more information, please visit HeartlandPaymentSystems.comMerchantBillOfRights.org,CostOfABurger.com and E3secure.com.


Gregory FCA Communications
Joe Hassett, 610-228-2110
Permalink: http://www.businesswire.com/news/home/20110208006596/en/Heartland-Payment-Systems-Announces-Conference-Call-Discuss
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FIS Reports Strong Fourth Quarter and Full Year 2010 Results

  • Revenue growth of 7.6%, as adjusted, for the quarter; 4.2%, as adjusted, for the year
  • EPS of $0.64, as adjusted, for the quarter; $2.02, as adjusted, for the year
  • Free cash flow of $222 million, as adjusted, for the quarter; $791 million, as adjusted, for the year
JACKSONVILLE, Fla.--(BUSINESS WIRE)--FIS (NYSE:FIS), one of the world’s largest global providers dedicated to banking and payments technologies, today reported financial results for the quarter and full year ended December 31, 2010.
“It was a strong quarter and a very good year for our company. Full year revenue growth and earnings per share exceeded our expectations, and we are excited about the momentum we have as we enter 2011”
Fourth Quarter 2010
Consolidated GAAP revenue in the fourth quarter of 2010 was $1.4 billion, compared to $1.3 billion in the fourth quarter of 2009. GAAP net earnings from continuing operations attributable to common stockholders totaled $121.3 million, or $0.40 per diluted share, in the fourth quarter of 2010, compared to a loss of $52.3 million, or $0.14 per diluted share, in the prior year quarter.
Adjusted revenue increased 7.6% to $1.4 billion compared to adjusted revenue of $1.3 billion in the fourth quarter of 2009 and increased 6.1% organically. The foreign currency impact was not material in the quarter. Adjusted EBITDA increased 14.4% to $444.6 million in the fourth quarter of 2010, compared to adjusted EBITDA of $388.7 million in the 2009 quarter. The adjusted EBITDA margin expanded 190 basis points to 31.8%. Adjusted net earnings from continuing operations totaled $196.9 million, or $0.64 per diluted share, compared to adjusted net earnings from continuing operations of $168.9 million, or $0.45 per share, in the fourth quarter of 2009. Adjusted free cash flow totaled $221.6 million in the fourth quarter 2010 compared to $236.7 million in the 2009 quarter. Definitions of non-GAAP financial measures and reconciliations of non-GAAP measures to related GAAP measures are provided in subsequent sections of the press release narrative and supplemental schedules.
Full Year 2010
GAAP revenue for the full year 2010 was $5.3 billion compared to $3.7 billion for full year 2009. Net earnings from continuing operations attributable to common stockholders was $447.6 million, or $1.27 per diluted share, for the full year 2010, compared to $106.4 million, or $0.44 per diluted share, in the prior year.
For the full year 2010, adjusted revenue increased 4.2% to $5.2 billion, compared to adjusted pro forma revenue of $5.0 billion in 2009. Adjusted revenue increased 3.2% for full year 2010 excluding a $26.4 million foreign currency benefit and $23.4 million in acquired revenue. Adjusted EBITDA increased 13.9% to $1.6 billion, compared to pro forma adjusted EBITDA of $1.4 billion in the prior year. The adjusted EBITDA margin expanded 270 basis points to 31.3% compared to 28.6% in 2009. Adjusted net earnings from continuing operations totaled $711.1 million, or $2.02 per diluted share, compared to adjusted net earnings from continuing operations of $395.2 million, or $1.65 per share, in 2009. Adjusted free cash flow totaled $790.8 million for the full year 2010 compared to $607.5 million in 2009. Definitions of non-GAAP financial measures and reconciliations of non-GAAP measures to related GAAP measures are provided in subsequent sections of the press release narrative and supplemental schedules.
“It was a strong quarter and a very good year for our company. Full year revenue growth and earnings per share exceeded our expectations, and we are excited about the momentum we have as we enter 2011,” stated Frank Martire, president and chief executive officer of FIS. “Our management team and employees have done an excellent job executing the business plan and the Metavante integration, while remaining focused on serving our clients. These efforts have placed FIS in an even stronger position to focus on continued growth and expansion.”
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William P. Foley II Becomes Chairman of the Board at FIS

JACKSONVILLE, Fla.--(BUSINESS WIRE)--FISTM (NYSE:FIS), a leading provider of banking and payments technology, today announced a change in position for William P. Foley II from executive chairman to chairman of the board, which is a non-executive position. Foley, who has served as executive chairman of FIS since February 2006, requested the transition to non-executive chairman in order to devote more time to additional business opportunities and commitments. The change is effective immediately.
“The FIS leadership team has done an excellent job driving the Metavante integration project, while delivering on our commitments to our clients and our shareholders”
“The FIS leadership team has done an excellent job driving the Metavante integration project, while delivering on our commitments to our clients and our shareholders,” stated Foley. “I am confident that the team will continue to successfully advance the FIS strategy, and I look forward to serving the company in a more traditional chairman’s role.”
FIS (NYSE:FIS) is one of the world’s largest global providers dedicated to banking and payments technologies. With a long history deeply rooted in the financial services sector, FIS serves more than 14,000 institutions in over 100 countries. Headquartered in Jacksonville, Fla., FIS employs more than 30,000 people worldwide and holds leadership positions in payment processing and banking solutions, providing software, services and outsourcing of the technology that drives financial institutions. FIS is a member of Standard & Poor’s 500® Index and consistently holds a leading ranking in the annual FinTech 100 list. For more information about FIS, visit www.fisglobal.com.
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