December 12th, 2013 by Elma Jane
The Consumer Financial Protection Bureau is reviewing whether credit card rewards program are misleading to credit card users.
Results of the review may be new. Strict rules about the transparency of rewards programs, including details about cash back offers, mileage awards and how these rewards must be redeemed.
In an email to Bloomberg News, CFPB Director Richard Cordray said, we will be reviewing whether rewards disclosures are being made in a clear and transparent manner, and we will consider whether additional protections are needed.
Credit card issuers like American Express, Bank of America, Chase, Citi and Discover rely on rewards programs to attract new customers as well as increasing the use of their cards by existing cardholders. Rewards are the No. 1 reason why customers select the card, and there’s almost a battle to provide the highest rewards.
What we’ve learned over time is, our best customers value rewards. Their spend behaviour changes based on rewards, said Edward Gilligan, the President of American Express.
The CFPB’s restrictions could put a damper on each company’s ability to draw in new cardholders.
While there are no apparently abuse issues with rewards programs at this time, the CFPB is taking the initiative to catch a problem before it happens.
Keep an eye out for notices from your credit card issuer about changes in your rewards program. Changes, or at least clarifications, could come as a result of this examination.
Posted in Gift & Loyalty Card Processing, Visa MasterCard American Express Tagged with: American Express, Bank of America, cardholders, Chase, Citi, consumer, credit-card, Discover, financial, issuer, protection, rewards
December 9th, 2013 by Elma Jane
Credit Cards accepted on the American Express network will be offered by U.S. Bank. in the fall of 2014.
U.S. Bank becomes another major bank to form a partnership with American Express. As previously reported in August, Wells Fargo began issuing new credit cards accepted on the American Express network on a limited basis this year, with a full scale launch planned for the first half of 2014.
Pam Joseph, Vice Chairman of U.S. Bank, said in a statement, We believe that the American Express network provides a combination of benefits and services that many of our customers want.
The cards will be available to bank customers in the 3,088 branches of U.S. Bank, as well as online and by phone. U.S. Bank customers will also have a choice of obtaining a Visa or MasterCard.
Posted in Credit card Processing, Electronic Payments, Financial Services, Visa MasterCard American Express Tagged with: accepted, American Express, credit cards, MasterCard, network, online, U.S. Bank, visa, Wells Fargo
November 19th, 2013 by Elma Jane
ISIS Electronic Wallet
Available Nationwide Isis Mobile Wallet
Latest version of the Isis Mobile Wallet has been announced. This is now available to consumers for download in the Google Play app store and at thousands of AT&T, T-Mobile and Verizon Wireless retail stores nationwide. Isis Mobile Wallet allows customers to pay at contactless payment terminals, and to save money through special offers and loyalty cards at participating merchants – all from their Isis Ready smartphone.
Today’s Isis Mobile Wallet nationwide launch is a milestone for consumers, merchants and banks. It’s the start of a smarter way to pay.
Together with Isis partners, a seamless mobile commerce experience have been built. Isis pleased to bring the magic and simplicity of the Isis Mobile Wallet to consumers across the U.S.
The redesigned Isis Mobile Wallet features a simplified user interface with a clean, white background and easy-to-navigate toolbars. Starting today, customers with one of the more than 40 Isis Ready smartphones available from AT&T, T-Mobile or Verizon Wireless can receive a free enhanced SIM card from their wireless carrier and download the Isis Mobile Wallet for free from Google Play. Integration with American Express Serve makes it convenient for Isis Mobile Wallet users to load funds to their American Express Serve Account from a U.S. debit or credit card, bank account, or through direct deposit, as well as pay bills online and send money to friends and family using an American Express Serve Account.
Posted in Digital Wallet Privacy, Electronic Payments, Mobile Payments, Near Field Communication, Smartphone, Visa MasterCard American Express Tagged with: American Express, AT&T, banks, bills, carrier, contactless, debit or credit, google, interface, ISIS, loyalty cards, Merchant's, mobile wallet, online, payment terminal, play app, smartphone, T-Mobile, Verizon, wireless
November 8th, 2013 by Elma Jane
If you want to make the most out of your shopping adventures, you need to have a credit card that helps you save money. The question is, which option is better for you? Some people automatically think about store credit cards, and others go for cash back credit cards. Before you apply for a card, assess which type of card would be more beneficial for your personal needs.
Cash Back Credit Cards
The main perk to having a cash back credit card is the fact that you can use it anywhere. It still acts as a traditional credit card. The only difference is that you get rewards from the money you spend on it. The average cash back credit card offers 1% cash back on all purchases. Some may also pay an additional 2% to 5% cash back on select purchases made with the card. Example, the Citi ThankYou Preferred Card offers 2 reward points per $1 spent on dining and entertainment. Blue Cash Everyday card from American Express offers 3% cash back at supermarkets, 2% cash back at gas stations and 1% on all other purchases. You could earn a great deal of your money if you choose the right cash back card and use it correctly.
The problem with cash back credit cards is that the rewards structure can sometimes be confusing. The Discover It Card features an attractive rewards program, but its 5% cash back offer changes every three months. It may be on home improvement purchases during one quarter, but during another quarter, it may be applicable on purchases at gas stations and for holiday shopping. You have to keep up with the rewards calendar to get the most out of your credit card. You also have to consider any fees associated with your credit card. Some cash back cards on the market have an annual fee, and many have a slightly higher interest rate than the average card. Review the terms of any card you are considering for so you can pick the perfect one for you.
Store Credit Cards
Store credit cards are usually easy to apply for and just as easy to obtain. Some of them can be used like regular credit cards, and others have to be used at a specific store. For instance, the traditional Walmart credit card can only be used at Walmart, but the Walmart Discover card can be used anywhere Discover is accepted. You need to know this about your card before applying for it. Many people get a store credit card because they receive some type of introductory offer when they apply for one. You might be able to save 10-15% off your initial purchase, or you might get a certain amount of cash back after making your first purchase. These offers are designed to lure you into getting a card, even though you may never use it again. What you may not realize in the euphoria of the introductory offer is the very high interest rate you typically have on a store credit card.
When you start looking at store credit cards, consider what kind of rewards you can get and how those rewards are accumulated. Do they only come from purchases at that store, or do they come from any transaction? Are you required to use rewards in the store, or can you use them online? Does the card have an annual fee? You must go through this type of analysis before deciding if a store credit card is worth getting.
Are Cash Back Credit Cards Better Than Store Credit Cards?
In our opinion, yes. This isn’t because we’re biased towards cash back cards. We just like the idea that you can earn rewards wherever you make a transaction. You aren’t limited to one store, either in the way you spend money or the way you collect your rewards. In addition, store cards usually have a higher interest rate. With that said, there are people who benefit from store credit cards because they shop at those stores all the time. If you spend thousands of dollars a year at Lowe’s for your construction company, a Lowe’s credit card may provide substantial savings for your business.
Don’t get overly excited when you reach the checkout counter. That one-time savings on a store credit card may not be worth it in the end. Think over your shopping habits and see if a cash back credit card is more suited for your needs. If so, you have plenty of them to choose from.
Posted in Electronic Payments, Financial Services, Gift & Loyalty Card Processing, Visa MasterCard American Express Tagged with: %, accumulated, American Express, annual, assesses, average, beneficial, calendar, cash, cash back, checkout, credit cards, dining, Discover, earn, entertainment, fee, improvement, interest, lowe's, market, money, online, pay, points, preferred, purchases, quarter, rate, rewards, savings, shopping, store, traditional, transaction, walmart
October 22nd, 2013 by Elma Jane
American Express cardmembers can now use their accumulated loyalty points to pay for taxi fares in New York City through a partnership with VeriFone.
The programme will roll out on VeriFone’s in-taxi devices that process more than 200,000 payments a day in more than 7000 cabs throughout NYC.
Leslie Berland, senior vice president, digital partnerships and development at American Express, says: “With this announcement, we’re leveraging our unique technology to bring it to life at the most critical commerce touchpoint – the physical point of sale.”
The integration is currently limited to New York taxis, but it doesn’t take a great stretch of the imagination to see it expanded to include other VeriFone point-of-sale systems.
At the end of the ride, AmEx members who have chosen to pay by card will be given the option to use points for their ride fare, including tip and tolls.
Posted in Credit card Processing, Electronic Payments, Gift & Loyalty Card Processing, Visa MasterCard American Express Tagged with: American Express, amex, card, cardholders, cardmembers, commerce, devices, digital, fares, integration, loyalty, new york, nyc, partnership, payments, point of sale, points, reward, systems, taxi, tip, tolls, touchpoint, verifone
August 19th, 2013 by Admin
1. Use newer POS systems to reduce credit card fees.
2. Find out what percentage of your gross sales go toward credit card rates.
3. Perform a statement review at least annually.
Any time a customer uses a credit card to purchase services and goods the merchant pays various rates and fees processing those transactions. Most of these fees go to the bank issuing the credit card as they take on the bulk of the risk in credit card transactions. Visa, American Express and Discover own the network on which these credit card transactions are processed on and they receive part of the fee and percentage rate as well as establish these rates and fees. Finally the bank that provides merchant account services gets part of these rates and fees.
To a small business 2, 3, or even 4% might not sound like much but when these fees are on the gross total of sales they can be significantly higher than originally thought. For this reason it’s a great idea to assess your merchant account statement to see if rates are in line and that your most frequently used cards and transaction types are getting the best rate possible. By going over your statement, you can see exactly what you pay per transaction and get details about your most common transaction types and credit card used to get the process going. Knowing how to untangle the various levels of pricing rates and fees can be daunting if you don’t know what they mean. If you are unfamiliar with what these rates and fees mean on your statement companies like National Transaction can perform the review for you. Free of charge.
Ultimately the best thing to have is a merchant account service provider that will take the time to go over your business with an eye lowering your rates and fees. The savings can be significant. As a business grows it changes and there should be an ongoing strategy at maintaining the best processing rates and fees possible. Today with so many different credit card types, like rewards cards, airline miles programs and more it can pay off to check once or twice a year.
Posted in Best Practices for Merchants, Credit card Processing, Electronic Payments, Merchant Services Account Tagged with: account, American Express, bank, card, credit, fees, MasterCard, merchant, process, Processing, Rates, services, Visa MasterCard American Express
August 13th, 2013 by Admin
MasterCard who has endorsed Google Wallet on the Sprint network will now endorse the ISIS network for mobile wallet solutions. Both Google and Sprint have not joined ISIS and it is interesting to see card issuers invest in both platforms. With Verizon, AT&T and T-Mobile in alliance with ISIS, could Sprint be next? Google? Well count Visa and MasterCard as Isis partners. After securing American Express both Visa and MasterCard will now have their credit cards available in Isis’ Wallet. What will be in your mobile wallet?
Many mobile wallet providers are looking at the various options for electronic transaction processing. Will NFC beat out all the others? It’s hard to say but with Apple having yet to release an iPhone model with the chip on board, it could be a yet unseen technology that wins out. QR Codes and Carrier billing are gaining traction for devices without NFC installed and SmartSD cards are coming equipped with NFC to extend devices that have a card slot available.
With device limitations, mobile wallets are still in flux. There are approximately 5 different types of mobile wallets today. There are digital bank accounts similar to prepaid credit cards offered by banks and mostly used for person to person or P2P payments. Mobile payment apps that link payment accounts like those offered by Starbucks or PayPal. Card containers like Apple Passbook store credit cards and loyalty rewards card information and can even fill in forms requesting that information. Similarly, Credential and Card containers store credit card and loyalty rewards but also store identity credentials.
True mobile wallets directly mimic a physical wallet and allow the customer to chose between various credit cards, debit cards even electronic benefits transfer or EBT cards at the point of sale. These wallets are typically app based for both iPhone and Android smartphones and tablets. These wallets can link account information to a point of sale terminal via NFC or other methods for a secure electronic transaction.
Branding and Banks
In recent times Visa, MasterCard and American Express signs at the point-of-sale was a branding element designed to instill confidence for the consumer. With digital wallets becoming the interface for payments, this branding may fade into the background. Yet payment card issuers find themselves in a precarious position. The big three are participating in multiple digital wallet programs in order to not be excluded. This early in the game there are multiple movers and shakers like Square, PayPal, Lemon, Google and now banks and cellular carriers getting into the game, no one knows who consumers and merchants will eventually prefer over the others. It’s like a wait and see game that forces them to play. As banks enter the arena they are favored to win because of the solid loyalty they enjoy from their customers. Though they may not be fair in other categories, they win the security of their customers.
Posted in Credit card Processing, Digital Wallet Privacy, Electronic Payments, Mobile Payments, Mobile Point of Sale, Near Field Communication, Point of Sale, Smartphone, smartSD Cards, Visa MasterCard American Express Tagged with: American Express, Android, Apple, AT&T, google, Iphone, ISIS, MasterCard, PayPal, Square, Starbucks, T-Mobile, Verizon, Visa MasterCard American Express
August 12th, 2013 by Admin
Small businesses are gaining traction in the mobile payment landscape. Mobile credit card readers attached to a smartphone or tablet now account for billions of dollars in m-commerce sales. “Together, mobile and social are transforming the way SMBs acquire and retain customers, With the heavy use of social media, SMB marketing is quickly becoming a two-way engagement rather than a one-way promotion.” Said Steve Marshall of BIA/Kesley. As more people switch to and upgrade their smartphones, AT&T, Verizon and T-mobile are looking to partner with digital wallet provider Isis. Read more of this article »
Posted in Credit Card Reader Terminal, Credit Card Security, Digital Wallet Privacy, Electronic Payments, Mobile Payments, Near Field Communication, Smartphone Tagged with: American Express, biometrics, electronic payments, iPhones, m-commerce, mobile, PayPal, recognition, Smartphones, Square
Any business that acknowledges Credit Card payments should be compliant with the directions and guidelines set out by the Payment Card Industry or be what is called ‘PCI compliant’. This is not commonly understood but any merchant, despite of the number of transactions, which acknowledges or conveys any cardholder information, either by phone or electronically must be PCI compliant. It’s all about holding customer’s facts and figures safe and not leaving your business revealed to hackers. And with an ever expanding use of cards, be they debit or Credit Cards, this is evolving a very important theme. Read more of this article »
Posted in Uncategorized Tagged with: American Express, credit card processing, Data Security Standard, DSS, MasterCard, Microsoft Windows Server, Payment Card Industry, PCI, Visa MasterCard American Express, Workstation 2000
