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NF Edition #510 - 6/17/16
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Highlights this week...

EMV Impact on Merchant Processing
Did you know? In an attempt to recover high and underestimated EMV-related POS software certification costs, one major third-party processor has proposed a $.025 monthly fee for all merchants, while another has introduced an "EMV non-enabled fee" of 10 basis points that would be assessed only to merchants who were not EMV compliant.

Learn what you don't know from TSG's latest Merchant Processing Pricing Benchmark Study, which analyses 83 front-end authorization portfolios and 78 back-end settlement relationships split into four, easily digestible, volume bands: Small, Medium, Large and Jumbo.

Preview  |  Purchase - priced competitively at $4,900

Why Square's Stock Is Struggling Even Though Customers Love It 
The Street | 6.17.16

HandyNYC owner Tommy McGhee has been using Square's mobile credit card reader in his construction, renovation and design business for more than a year. He likes it so much that he dropped other services like PayPal. Despite praise from merchants like McGhee, however, Square stock has climbed less than 1% since going public in November. That's better than the broader S&P 500 financials index but not as good as PayPal's 2.1% gain, and it reflects the challenges facing the San Francisco-based payment processor in an industry that may be worth more than $2 trillion by 2020.

Related: Square's Stock Price

Wal-Mart ‘Unfairly Dragging’ Shoppers Into Spat, Visa Says
Bloomberg | 6.15.16

Visa Inc. appealed to the public as it responds to Wal-Mart Stores Inc.’s decision to stop accepting the network’s cards in Canada, accusing the retailer of “unfairly dragging” millions of shoppers into private negotiations over card fees. Wal-Mart’s Canada unit said Saturday it will reject Visa cards starting July 18 at certain stores in Ontario, eventually extending the ban to stores across the country. The subsidiary, which pays more than $100 million in credit-card fees annually, said it’s looking out for shoppers and seeking to save them money.

Apple Takes on PayPal with Apple Pay on the Web
Tech Crunch | 6.14.16

Online shopping is about to get even easier. At WWDC today in San Francisco, Apple finally announced that Apple Pay is coming to the web this fall. Mac users will be able to pay online in Safari using a “Pay with Apple Pay” button, and authenticate their purchase using Touch ID on their phone or watch. Previously, Apple Pay could only be used in select iOS apps, as well as at physical retail stores.

Related:

Home Depot Antitrust Suit Challenges Networks over Chip Cards and Visa’s FANF
Digital Transactions | 6.15.16

The Home Depot Inc.’s new lawsuit against Visa Inc. and MasterCard Inc. makes many of the same antitrust allegations that other merchants have lodged against the big networks in recent years. The suit, however, is notable for asking the court to quash Visa’s Fixed Acquirer Network Fee (FANF) and, like that of Wal-Store Stores Inc., for challenging the networks’ rollout of EMV chip cards in the U.S. The networks, meanwhile, quickly moved to have the Home Depot case, which was filed in U.S. District Court in Atlanta, transferred to the federal court in Brooklyn, N.Y., for consolidation with the big merchant credit card class action against the networks and some banks known as MDL 1720.

Related: Home Depot: US Credit Card Firms Slow to Upgrade Security

Why PayPal Sees Itself as the Future of Payments
CNET | 6.15.16

It didn't take long for the backlash to smack PayPal CEO Dan Schulman after his company took a stand for LGBT rights in North Carolina. He was on the receiving end of threatening letters and public criticism for his decision in April to kill plans to create a 400-person operations center in Charlotte and walk away from $3 million in tax credits, just two weeks after the company unveiled the project. The reversal came after state legislators introduced a controversial bill that limited protections for lesbian, gay, bisexual and transgender people.

Visa to Help Accelerate EMV Chip Migration and Support Merchants
Yahoo! Finance | 6.16.16

Visa Inc. announced a series of initiatives to help accelerate EMV chip migration for merchants. Visa has streamlined its testing requirements, amended and simplified the terminal certification process, and committed to investing further resources and technical expertise in a manner that can reduce timeframes by as much as 50 percent. Visa is also making policy changes to help limit exposure to counterfeit fraud liability for merchants who are not yet chip-ready.

MasterCard CFO On X-Border, EMV, Brexit And PayPal
PYMNTS | 6.16.16

Not too much to be alarmed at, especially bigger picture, according to MasterCard Chief Financial Officer Martina Hund-Mejean. Speaking at the William Blair Growth Stock Conference on Wednesday (June 15), Hund-Mejean, in an interview with Bob Napoli, an analyst with William Blair, said that not much had changed with the overall business climate since results were announced this past earnings season. Drilling down a bit, though, the executive offered some insight as to how some separate and even nascent trends have been shaping up in the weeks since the company reported results.

Alibaba Targets $1 Trillion in Transaction Volumes by 2020
Reuters | 6.16.16

Chinese e-commerce giant Alibaba Group Holding Ltd is aiming to double its annual transaction volume to over $1 trillion within four years, the firm's chief executive said on Wednesday. “What I can share with you is that in four years we have a very clear goal which is in fiscal 2020."

Microsoft-LinkedIn Deal Ignites Twitter Speculation
The New York Times | 6.16.16

In the relentless push toward consolidation in technology and social media, Twitter, the social networking site that allows users to send and receive short messages, or tweets, has been the perennial bridesmaid. But this week’s megadeal between Microsoft and LinkedIn has renewed speculation on Wall Street that Twitter needs to attract a suitor or risk being overtaken by ever-larger competitors.

Related: Expect A Lot More M&A, Says Marc Andreessen

Boom, Bubble, or Bust for Fintech? 
Tech Crunch | 6.15.16

The term “fintech” has become all the rage; investors and media can’t stop talking about it. Many people also have been talking about the “bubble” in the tech industry, but could there be a “bubble” in fintech, as well? The Wikipedia definition for financial technology is pretty daunting, and states global investment for fintech has increased from $930 million in 2008 to $12 billion in 2014. It even mentions Bitcoin and startups like Lending Club, TransferWise, Prosper, Affirm and Wealthfront.

Bitcoin Price Passes $750 to Hit 28-Month High
CoinDesk | 6.16.16

The price of bitcoin broke $750 today, building on recent gains to hit a 28-month high. Bitcoin prices reached $750.37 during the day's session, the highest since 7th February, 2014, CoinDesk USD Bitcoin Price Index figures reveal. The digital currency exceeded its latest milestone of $750 after surpassing $700 early on 13th June, and then nearing $720 later that day. Of late, bitcoin has benefited from a multitude of factors, including concerns about China’s economy, anticipation surrounding the upcoming halving and fear of a Brexit, and this momentum is showing signs it is continuing to build.

Square Cash Users Will Be Able to Send Money Via Apple iMessage
Fortune | 6.13.16

But the feature isn’t ready to ring up just yet. If you so choose, you will soon be able to send money to friends and family via Apple’s iMessage, powered by Square’s payments app, Square Cash. Announced at Apple’s annual Worldwide Developers Conference on Monday, the feature is part of Apple‘s plan to encourage developers to build apps integrated into iMessage.

Visa & MasterCard to Help Bring Apple Pay Mobile Payment Service to Hong Kong
South China Morning Post | 6.14.16

Global payment technology giants Visa and MasterCard will be supporting the much-anticipated rollout of Apple Pay service in Hong Kong in the next few months, according to Apple. The announcement was made at this year’s Apple Worldwide Developer Conference in San Francisco. Apple previously announced in October that American Express would bring Apple Pay to eligible customers of the credit card in Hong Kong this year. The updated Apple Pay page on the Hong Kong Apple website now showed Visa, MasterCard and American Express as the credit card platforms for its mobile payment service.

Samsung Pay Launches In Australia: What You Need To Know
Tech Times | 6.16.16

Samsung Pay has finally reached Australia, aiming to provide a simple and convenient solution for payments so you can forget about your wallet. The company teamed up with American Express and Citibank to launch Samsung Pay in Australia, the fifth market to get the contactless mobile payments service. These partnerships mean that Australian citizens can use their Amex or Citibank cards to tap and pay with their Samsung smartphone at contactless terminals. It's worth pointing out, however, that cards branded Amex, but issued by other banks, will not work with Samsung Pay.

Ripple Wins BitLicense from New York Regulator
BTN | 6.13.16

Ripple Labs on Monday obtained a virtual currency license from the New York State Department of Financial Services, making it the fourth company with a BitLicense. "Earning the BitLicense is incredible validation of the institutional use of digital assets by DFS, one of the most influential state regulators," Chris Larsen, Ripple's co-founder and chief executive, said in a statement published on the company's website.

Digital Currency Ethereum is Cratering Due to a $50M Hack
Business Insider | 6.17.16

The value of digital currency Ethereum has dropped dramatically amid an apparent huge attack targeting an organisation with huge holdings of the currency. The price dropped to $15 from record highs of $21.50 just hours previously, with millions of units of the digital currency worth as much as $50 million stolen at post-theft valuations.

FBI Says Corporate Email ‘Impersonation’ Scams Growing
The Wall Street Journal | 6.16.16

Even as cybersecurity grows increasingly sophisticated, more companies are falling prey to fake internals emails where scammers pose as executives seeking cash, according to the Federal Bureau of Investigation. The cash often winds up in a bogus account, typically via wire transfer from an unsuspecting staffer.

ATM Insert Skimmers In Action
Krebs on Security | 6.13.16

KrebsOnSecurity has featured several recent posts on “insert skimmers,” ATM skimming devices made to fit snugly and invisibly inside a cash machine’s card acceptance slot. I’m revisiting the subject again because I’ve recently acquired how-to videos produced by two different insert skimmer peddlers, and these silent movies show a great deal more than words can tell about how insert skimmers do their dirty work.

Who's Behind the Campaign Attacking CFPB Chief Cordray?
American Banker | 6.16.16

Richard Cordray, the director of the Consumer Financial Protection Bureau, is the target of a new TV ad campaign that alleges he is courting potential donors for a run as governor of Ohio by enacting a plan that would benefit trial lawyers. The ads appear to be the work of Lincoln Strategy Group, a political strategy firm based in Phoenix, which has been tied to allegations of voter fraud and accused of sending its operatives to public events featuring Cordray.

Retail Sales Rise More Than Forecasted as U.S. Consumers Spend 
Bloomberg | 6.14.16

Retail sales rose more than forecast in May, showing consumer spending will help boost economic growth in the second quarter. The 0.5 percent increase in purchases followed a 1.3 percent jump the previous month that was the biggest gain in a year, Commerce Department figures showed Tuesday in Washington. The median forecast of 81 economists surveyed by Bloomberg projected a 0.3 percent advance. Excluding purchases of autos and gasoline, sales climbed 0.3 percent.

10 Key Facts About the U.S. Economy
CNN Money | 6.15.16

At the worst point around the Great Recession, one in 10 Americans couldn't find work. Today the jobs picture is much better. The unemployment rate is only 4.7%, a level considered at -- or very close to -- full employment. There are some concerns that the unemployment rate is so low because many people have stopped looking for work out of frustration and are no longer counted in the workforce.

Fed Leaves Rates Unchanged in June Meeting
CNBC | 6.15.16

Amid worries about slowing job growth, Federal Reserve officials remain only tentatively committed to two more rate hikes this year, and provided indications Wednesday that there might be only one. As widely expected, the Federal Open Market Committee declined to raise its interest rate target at this week's two-day meeting from the current 0.5 percent. While the so-called dot plot of future rate projections indicates there still is a greater likelihood of two moves before the end of 2016, doubts are increasing.

Using Visa’s Intelligent Analytics, Gas Retailers See a Reduction in Fraud 
Visa | 6.14.16

Visa Inc., the global leader in payments, today reported on results of Visa Transaction Advisor (VTA), a service that extends the power of Visa’s global risk intelligence to fuel merchants, helping to reduce fraud at the gas pump. More than 35,000 gas stations are actively using the service in the U.S. On average, Visa Transaction Advisor users have seen fraud decline by more than half – a 54 percent decline in counterfeit fraud rates and a 51 percent decline in lost and stolen fraud chargeback rates. “Visa Transaction Advisor gives fuel retailers a tool for applying Visa’s real-time fraud insights to transactions at the gas pump,” said Mark Nelsen, senior vice president of Risk Products, Visa Inc.

American Express Launches Quick Chip Service to Provide a More Seamless Process for EMV Chip Card Transactions at Point of Sale
American Express | 6.15.16

American Express today announced the availability of Amex Quick Chip, a technology that enables merchants to provide a more seamless experience at the point of sale for Card Members when they pay with their EMV chip cards. Amex Quick Chip is available to merchant processors, which may deploy the service to interested U.S. merchants through a software update to the merchants’ EMV-enabled payment terminals. This provides another option for merchants in industries where having a fast check-out process is especially important.

MasterCard Empowers Local Businesses with Big Data, Digital Tools
MasterCard | 6.13.16

“The potential for businesses operating in today’s technology environment is unlimited, but to harness those opportunities business owners need first to understand how their business is performing,” said Brian Lang, President, MasterCard. “Gone are the days of guessing your business share against neighborhood competitors. Local Market Intelligence offers deep insights into how you’re doing, how your competitors are doing and how to capitalize on your customers’ shopping patterns.”

TSYS Acquires Remaining 45-percent Ownership Stake in TSYS Managed Services EMEA Joint Venture
TSYS | 6.13.16

TSYS announced that it has acquired — from The Merchants Group Limited (a Dimension Data company) — the remaining 45-percent ownership share in its TSYS Managed Services EMEA joint venture. TSYS Managed Services is now a wholly owned TSYS company focused on providing outsourced business process and contact-centre services and support to TSYS’ international clients.

Matt Kane Becomes CEO of Commerce Solutions at JPMorgan Chase
Yahoo! Finance | 6.14.16

JPMorgan Chase today announced that Matt Kane has been named CEO of Commerce Solutions reporting to Gordon Smith, CEO of Consumer & Community Banking. He will relocate to Dallas, where the business is based, and join the Consumer & Community Banking Leadership Team. Kane succeeds Mike Passilla, who will become Vice Chairman of Commerce Solutions also reporting to Smith. Passilla stepped down from the CEO role to spend more time in Atlanta, where he and his family live.

KeyBank Expands Mobile Payments With Android Pay
PR Newswire| 6.15.16

KeyBank is expanding client access to simple mobile payments with the addition of Android Pay. With Android Pay, KeyBank clients can use their Android phones to make purchases anywhere contactless payments are accepted, as well as in supported mobile apps. With Android Pay you can simply unlock your phone, place it near a contactless terminal, and you're done!

Shift4 Shares EMV Certifications With Dozens of Vendors and Thousands of Merchant

PR Newswire | 6.16.16

With the U.S. EMV liability shift coming up on its first anniversary, many merchants are still struggling with adoption. That's why the provider of the DOLLARS ON THE NET® payment gateway, Shift4, today announced that the company now offers merchants more EMV implementation options than any other payment gateway provider.

Revel Systems and Vantiv Integrated Payments Inspire Entrepreneurs to Start Their Dream Business
Mobile Commerce Insider | 6.15.16

Revel Systems, the world's leading iPad-based business management solution for brick-and-mortar retail, food businesses and more, today announced they are partnering with Vantiv Integrated Payments, a leading provider of payment processing services and related technology solutions for small and medium-sized businesses (SMB), to launch the 'Revel Up Your Dream' social media contest. In addition, Revel is launching their 'Revel Up Your Dream' Fund and blog, both with the mission to support and inspire entrepreneurs to start their dream business.

Cayan Further Expands Executive Team, Taps Rachel Trueblood as Senior Vice President of Marketing
Market Wired | 6.16.16

Rachel joins Cayan at a time of expansive growth -- both domestically and internationally -- having just completed two build outs of their Boston headquarters and a brand new office space in Belfast, Ireland. As the mobile payments industry continues to expand, Rachel's marketing leadership experience in the retail industry will be integral to Cayan's continued development and success.

Fiserv Transforms In-Person Banking Experience with the Scan of a Palm
Business Wire | 6.15.16

Fiserv, Inc., a leading global provider of financial services technology solutions, announced today the availability of Verifast: Palm Authentication, which can be used by banks and credit unions to help mitigate fraud, reduce transaction times and improve service delivery in the branch. Traditional authentication in the branch can be a manual and inefficient process. With Verifast: Palm Authentication from Fiserv, consumers can be authenticated quickly, securely and accurately by holding their palm over an infrared sensing device, which detects a person’s unique palm vein pattern.

TD Bank Chosen to Provide New Credit Card Offering by Ally Bank

Payment Week | 6.16.16

TD Bank’s Credit Card and Merchant Solutions business announced that Ally Bank has selected TD as the issuer of the Ally CashBack Credit Card. Through this union, Ally will be able to leverage TD’s expertise in customized card programs and respectable history of successful card relationships. “Our top considerations for Ally Bank’s first credit card product were providing our customers with a competitive product that reflected the value and service they have come to expect, while also balancing speed to market,” said Diane Morais, Chief Executive Officer and President of Ally Bank.

Elavon Deploys Simplify EMV for The Stinking Rose
The Green Sheet | 6.14.16

The Stinking Rose, San Francisco’s prized restaurant specializing in all things garlic, has leaped into the new normal of accepting Europay, MasterCard, and Visa (EMV) payments by becoming EMV certified, thanks to Elavon, a leading global payments provider and subsidiary of U.S. Bancorp. Elavon is a Gold level member of Oracle Partner Network (OPN) and integrated its Simplify EMV solution within Oracle’s Point-of-Sale application on behalf of the restaurant.

Cedarville University Partners with ACI Worldwide for New Campus Payment System
EON | 6.13.16

ACI Worldwide, a leading global provider of real-time electronic payment and banking solutions, today announced that Ohio-based Cedarville University has selected the company to power its tuition payments across multiple channels.

Ingenico Group and nanoPay Corporation Partner to Enable Canadian Retailers to Accept MintChip Digital Cash
Ingenico | 6.15.16

Ingenico Group embraces innovative solutions in Canada that expand our reach to a new generation of digital customers,” said Suzan Denoncourt, Managing Director, Canada for Ingenico Group. “This partnership further reinforces our leadership position in payments technology by enabling MintChip digital cash transactions for the thousands of retailers using our smart terminals across Canada.

Walmart Introduces Walmart Pay in Georgia
Business Wire | 6.16.16

Walmart knows customers want to save not just money, but also time. That’s why Walmart introduced Walmart Pay – a fast, easy and secure way for customers to pay with their smartphones in Walmart stores. Now, customers in Georgia are among the first to use the checkout-changing service as it’s available in each of the more than 180 Walmart stores in the state.

PromisePay Has Raised $14M to Boost Global Expansion
Business Insider AU | 6.15.16

PromisePay, a payments platform, has just closed a $14 million funding round. The raising was lead by Carsales.com Limited, Australian tech VC Rampersand, Westpac-backed Reinventure, US fintech fund Cultivation Capital, 99Designs co-founder Mark Harbottle and former Hitwise CEO Andrew Walsh. The cash will go towards the fintech startup’s global expansion, taking advantage of its position as the only fully managed payments solution for the platform economy.

Florida Bank Issues First US Credit Card for Use in Cuba
SF Gate | 6.14.16

A small Florida bank will issue the first U.S. credit card intended for use in Cuba and make it easier for Americans to travel and work on an island largely cut off from the U.S. financial system, the bank said Tuesday. Stonegate Bank in Pompano Beach said its Mastercard, available Wednesday, will let U.S. travelers charge purchases at state-run businesses and a handful of private ones, mostly high-end private restaurants equipped with point-of-sale devices. Until now, Americans have generally had to bring cash to Cuba and change it either at state institutions that impose a 10 percent penalty on the dollar or in informal exchanges with locals.

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