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Up The Momentum

Wed, 22 May 2013 15:27:55 -0400

I’m going to state the obvious, financial institutions need to grow their revenues. Not a shocking statement at all, but one that is worth restating. The question remains, “but how?” In an environment where less than half of consumers trust their bank, how does a financial institution increase revenues?

Get UP Ahead of the competition with an enterprise payments strategy

Wed, 08 May 2013 12:06:35 -0400

Objects in the rear view mirror ARE closer than they appear.

UP Turns Heads at ACI Exchange EMEA

Fri, 26 Apr 2013 13:54:45 -0400

A diverse crowd of ACI customers gathered for the ACI Exchange, EMEA Customer Conference last week in the seaside city of Barcelona. The information-packed annual event provided a full agenda of keynote speakers, customer presentations, partner and vendor meetings, workshops and product demos.

What the industry is saying at NACHA

Wed, 24 Apr 2013 11:40:55 -0400

The message from day two at NACA Payments 2013,is that it is clear that innovation will lead. The payments of the future will be defined in the moment who, what, where, when, and why and not the settlement network.

The myth of 'checking accounts' and other early lessons from the floor at Payments 2013

Tue, 23 Apr 2013 12:51:21 -0400

Here at the Payments 2013 conference there is plenty of hype around real time payments, mobile payments and protecting it all.

EMV - The Time is Now

Fri, 19 Apr 2013 15:43:14 -0400

The next EMV deadline is looming large. By April 2013, U.S. merchant processors must have their systems ready to process EMV transactions.

Merging Cash and Trade

Fri, 19 Apr 2013 15:39:54 -0400

Can cash and trade get along? How can corporations benefit and how can banks deliver the benefits?

What Retailers Told Us at NRF

Fri, 19 Apr 2013 15:37:36 -0400

A lot of people and organizations like to gauge the retail industry. I know of several studies which aim to tell us what retailers are thinking. Interestingly, very few studies have asked the ultimate source, the retailers, their opinion on their own industry.

The future of banking: Multi-channel convergence to an Omnichannel endpoint

Fri, 19 Apr 2013 13:59:34 -0400

Channel convergence has been a topic of discussion in the banking industry for some time but what that truly means to the bank and their clients is still coming into focus.

The Misconception of Credit Card Fees

Thu, 18 Apr 2013 18:26:00 -0400

I was recently at an interior design store looking for some window dressing. After many samplings my wife and I couldn’t make up our minds (or she couldn’t make up her mind so I had nothing to agree to).

The Buzz from BAI: Fraud, Mobile and Innovation in Payments

Thu, 18 Apr 2013 16:27:00 -0400

I spent a good portion of my week at the BAI Payments Connect 2013 conference which was held at the Phoenix Convention Center in Arizona. This year the agenda included tracks on Consumer Payments Insights, The Future of Payments Fraud, Payments Innovation and Check Imaging.

Woeful dispute processes create consumer unhappiness

Thu, 18 Apr 2013 16:15:00 -0400

Andrew, a friend of mine, recently went through a dispute with his card issuer and is seriously dissatisfied with his bank.

Warning "Signs" of Mobile Fraud, Literally

Tue, 26 Feb 2013 21:08:00 -0500

As I hopped in my taxi cab on Broadway in NYC, I was pleased to see a “For Your Protection” sign posted to the partition on the back of the driver’s seat.

Dodd-Frank - Be careful it does not increase fees...

Fri, 25 Jan 2013 20:50:00 -0500

The Dodd-Frank legislation is intended to allow consumers to fully understand the cost of sending a wire transfer and the exact amount that will be received when they send a remittance transfer to someone in a foreign country.

Why you should review your existing issuing system

Tue, 08 Jan 2013 21:10:00 -0500

Vendors, analysts and industry watchers believe now is the time to conduct a significant review of your card issuing system.

Paying Tribute to Innovation

Thu, 20 Dec 2012 21:39:34 -0500

Does the name Norman Joseph Woodland mean anything to you? It might not, but on a daily basis you most likely utilize something he invented more than 60 years ago.

2012 Wrap Up

Fri, 30 Nov 2012 19:43:16 -0500

In the U.S. and around the world, consumers are getting into spending mode with the beginning of the holiday shopping season, which means transactions are likely to be at their greatest amount yet.

It’s the most wonderful (and cautious) time of the year

Wed, 21 Nov 2012 09:14:09 -0500

According to the National Retail Federation, the holiday shopping season can represent between 20–40% of annual sales*. In 2011, holiday sales accounted for 19.5% of total retail industry sales. For this year for the first time, Shop.org, NRF’s digital division, has announced an online holiday sales forecast - projecting online sales this holiday season to increase by 12%. Every year the flurry of in-person and online purchasing activity is not only monitored by the retail and payments industry, but is also closely watched by the growing numbers of criminals seeking out ways to de-fraud vulnerable account holders of their hard earned (and saved) cash.

Solving the problem of excessive write-offs

Fri, 09 Nov 2012 21:22:48 -0500

The issue of excessive write offs in credit card disputes remains a source of constant and growing irritation. Think of a dripping faucet or a leak in car tire. It’s not the biggest problem you might have, but it sure is inconvenient.

The underappreciated capital risk: Dispute write-offs

Fri, 09 Nov 2012 21:11:22 -0500

A number of risks to banking capital are well known and rightfully monitored closely. However one risk that is seemingly overlooked is that if financial institutions are not mindful, capital will disappear off of their balance sheet due to the antiquated disputes management system. Despite the technological improvements made to other areas of the payment lifecycle, card disputes are largely being handled much the same way they were 20 years ago or longer.

Your best ally in the fraud fight? Customers!

Thu, 08 Nov 2012 13:25:00 -0500

One finding from the recent 2012 ACI Fraud Survey was clear: 82% of card holders want to be notified by their financial institution in the event that suspicious activity is detected on their account. Another way to look at this is that 4 out of 5 card holders want to be part of the fraud prevention process.

The overlooked capability of multi-applications on the chip

Tue, 06 Nov 2012 19:19:44 -0500

My colleague, Jan Spanke, recently wrote about the potential consequences of outsourcing smart chip management. I would like to build upon her thoughts and offer my own opinion on the empowering technology of chip cards which will be adopted to support the EMV standard.

ATM, Debit Prepaid Forum

Wed, 31 Oct 2012 12:04:35 -0400

The industry’s movers and shakers convened upon Phoenix, Arizona for an intensive four days of the 20th annual ATM, Debit and Prepaid Forum. For those of you would could not make it, I would sum up the discussions into three categories: Durbin, EMV and revenue generation.

Why travel half way around the world for SIBOS? Just look out of the window

Wed, 31 Oct 2012 10:50:10 -0400

The enormity of global trade is on display this year in Osaka, and it is more evident than ever that payments and trade finance are critical banking services supporting global economic growth.

Mitigate Fraud by Engaging Your Customers

Tue, 30 Oct 2012 21:52:00 -0400

The recent ACI Global Fraud Survey reveals a number of important takeaways for financial institutions. One of the many key data points in this study is the 21 % post-fraud attrition figure. To be specific, more than one-in-five card holders will either switch to another bank or stop using their card altogether after experiencing fraud. This indicates a kind of post traumatic stress affect, if you will.

Innovation must be built on solid ground

Mon, 29 Oct 2012 14:48:33 -0400

Innovating to address the ever evolving needs of the customer will always be a matter of importance to banks, as they strive to deliver new services both faster and competitively priced. However, delivering robust transaction banking capabilities is fundamentally key for financial institutions to maintain a stable and sustainable business on behalf of their customers.

At last, a Sibos where conversation around SEPA is welcome

Fri, 26 Oct 2012 16:12:39 -0400

After years of speculation, next week in Osaka we finally appear to have a Sibos with a SEPA conversation worth having. With the date for compliance across the Eurozone now set for February 2014, we are beginning to see a move by corporates to start to adopt SEPA standards.

EMV Features Create Confusion - Online vs. Offline PIN Validation and Transaction Authorization

Thu, 18 Oct 2012 21:29:23 -0400

In recent conversations with card issuers, the offline features of EMV seem to be a source of confusion and misunderstanding. As issuers consider how to provision their EMV cards, it is important to note there are two distinct and independent offline features that can be allowed on the card.

The value of participating in a vendor driven development program

Thu, 18 Oct 2012 21:26:17 -0400

Why would you give up your time to participate in a customer-centric development project driven by your software vendors? In a previous blog, I wrote about four expected outcomes for client participants in a customer-centric development project. To provide further context, I will look at each of these anticipated outcomes.

Incorporating customers into the design and development cycles

Thu, 18 Oct 2012 20:26:14 -0400

Many industries, payments being no different, have working groups designed to tackle audacious goals and work towards standards (e.g., currently EMV in the US, IFX and SEPA). But, what are we doing together to improve the business acceptance of payments software on a day-to-day basis?

Annual fraud survey unveils consumer fears and loyalty

Tue, 16 Oct 2012 14:47:30 -0400

ACI commissioned its annual global fraud survey to better understand consumer awareness of, and reaction to, payment fraud. This year, ACI engaged Aite Group to analyze the results and provide a third party perspective on consumer attitudes toward fraud. With responses compiled from over 5200 consumers in 17 countries and six continents, the report covers everything from specific fraud rates over the past five years to preferences to how they want to be notified of attempted fraudulent activity (mobile phone leads the way).

Will outsourcing the creation of EMV chip cards be a wise choice for the long term?

Thu, 27 Sep 2012 20:12:07 -0400

As card issuers traverse the EMV landscape, there are many facets to consider. One of which is whether to outsource the chip program creation or keep it in-house? If this process is maintained in house, can the current card management system support EMV program creation and the related complexities or should one consider using a Smart Chip Management System (SCMS) that can manage the chip program and data? In addition, as institutions deploy mobile payment instruments, how will they create and manage those programs in different form factors?

Will the MasterCard EMV liability shift For Maestro PIN debit at the ATM have any impact on adoption plans?

Thu, 27 Sep 2012 20:12:07 -0400

As April 2013 quickly approaches, you’re probably left with the quandary of whether to EMV enable your ATM devices or not. If you are one of the many institutions that are mulling this over then you’ve probably asked yourself - is the liability shift incented by MasterCard really something that is of concern for my bank?

Will The U.S. Consumer Adopt the EMV PIN?

Mon, 24 Sep 2012 16:07:43 -0400

As the EMV era nears for the U.S. market, there are conflicting messages and directions coming from the card associations in regards to implementation dates, liability shift dates, what options to implement and how to ensure cardholder buy-in and acceptance. Most of these topics were evident in the SCA EMV Forum sessions discussions held September 12 and 13, 2012.

Rebuilding trust remains vital for our banks

Wed, 19 Sep 2012 21:55:00 -0400

We in Britain love a moan. The glass is always half empty and nothing is ever good enough for the average man on the street. But when it comes to the banking industry, many feel the criticism is justified. Personally I think that this is an emotional reaction and is often unilaterally and wrongly used to criticise ALL parts of these large institutions, however I digress.

EMV - Can card issuers' cost justify the investment?

Fri, 07 Sep 2012 22:21:00 -0400

The general consensus is that EMV in the U.S. is a hard pill for card issuers to swallow. Especially after the Durbin Act cut debit card interchange revenues significantly, how can banks justify exponentially greater cost to get Chip cards into consumer’s hands and upgrade their entire card processing infrastructure to support EMV? While it is proven that EMV will reduce counterfeit card fraud, that alone cannot cost justify the investment.

EMV Migration Forum: let the collaboration begin

Fri, 07 Sep 2012 21:15:19 -0400

Recently, the Smart Card Alliance announced the formation of the EMV Migration Forum. As was evidenced in Europe, Canada, Latin America and all other regions that have adopted EMV, the migration in those regions really didn’t take off in earnest without collaboration and a specific plan by all stakeholders. In my opinion, we would still not see widespread adoption in those regions had this not occurred.

The true cost of cash

Wed, 05 Sep 2012 16:16:38 -0400

One of the hot topics for the financial industry, the tech industry, retailers and consumers has been the development of payments via a mobile phone. Most of the talk is about how adoption will be impacted by the various technologies and which one will win out, or the fact that U.S. consumers are very concerned about the security of their financial information and how mobile transactions are processed.

Starbucks and Square push mobile payments forward

Fri, 24 Aug 2012 17:03:00 -0400

Starbucks recently announced it has inked a deal with electronic payment service Square Inc. The international coffee chain will begin processing U.S. card transactions through smartphones using Square’s payment platform this autumn.

Meeting the evolving payment needs of today's retailers

Fri, 17 Aug 2012 16:51:06 -0400

Mobile phones are changing the way we shop and pay for the items we buy. The increasing ways in which a mobile wallet can enhance that shopping experience is evolving at a rapid rate. Retailers need a solution that can rapidly adapt to the ever growing suite of payment applications and processors entering the mobile payments landscape.

New meaning to "open your wallet"

Mon, 06 Aug 2012 14:47:08 -0400

Google announced this week that it has opened its wallet to consumers, allowing them to associate any debit and credit card with their Google Wallet. It also has eased integration requirements for card issuers wanting to participate in the initiative. With such barriers removed, consumers could now have more ways to make payments from their smart phone using their debit or credit cards. Until now, Citi was the only bank to partner with Google.

The interchange lawsuit settlement: retailers react

Thu, 02 Aug 2012 20:01:16 -0400

On July 13th 2012 the stakeholders in the seemingly never ending class-action lawsuit, which alleged that Visa, MasterCard and their member banks violated anti-trust laws when setting interchange rates, announced a preliminary settlement.

The interchange lawsuit settlement: what it could mean for the payments industry

Thu, 02 Aug 2012 19:51:08 -0400

On July 13, 2012, the stakeholders in the seemingly never-ending class-action lawsuit, which alleged that Visa, MasterCard and their member banks violated anti-trust laws when setting interchange rates, announced a preliminary settlement.

When the supermarket met the bank - a match made in heaven?

Fri, 27 Jul 2012 15:40:12 -0400

Asda is the latest supermarket to follow the trend and raise its profile in the personal finance sector. The UK supermarket giant recently announced its new brand, Asda Money, which offers its millions of customers an unlimited cashback credit card. This move follows a spate of supermarket and financial service provider collaborations, such as Marks & Spencer which celebrated the opening of its first bank branch at Marble Arch last week.

Going cashless: the heat is on

Fri, 27 Jul 2012 15:16:52 -0400

It seems that Canada’s revamped polymer currency isn’t quite holding up the way they hoped. Recent reports say the money has been melting when placed too close to a heater or when left in a hot car. Not a problem they thought they’d have in the Canadian climate, I’m sure.

A mobile payments Q & A with Chris Dunne of VocaLink

Thu, 12 Jul 2012 20:54:57 -0400

Chris Dunne is the Strategy Director of Global Transaction Services at VocaLink. Chris spoke at this year’s ACI Exchange EMEA Customer Conference about how VocaLink is delivering the infrastructure for the UK Payments Council’s national mobile payment service, and how this will act as a springboard for mass adoption of mobile payments. In this Q&A, Chris talks about the landscape for mobile payments and some of the key issues that face the industry.

Using Mobile Innovation to Reduce Fraud

Thu, 12 Jul 2012 17:18:01 -0400

The Observatory for Payment Card Security recently released a report on card fraud in France and looked at several channels, including online and face-to-face payments. The data showed the overall rate of fraud in card transactions rose to 0.077% in 2011 from 0.074% in 2010. The rate of fraud in remote transactions, which includes purchases on the Internet, was 0.321% in 2011, while the rate of fraud in transactions made in person was 0.015%.

A fraud Q & A with John Verrechia

Mon, 09 Jul 2012 21:59:02 -0400

John Verrechia is a Senior Manager on the Fraud Analytics Team at the Nationwide Building Society, analytical architect of ACI’s PRM card fraud detection system. At ACI Exchange, John spoke about how Nationwide Building Society has utilised and enhanced the ACI Proactive Risk Manager card fraud detection system to reduce their card fraud losses by 75% in the last three years. In this Q&A, John shares his thoughts on some of the key fraud issues affecting financial institutions at the moment.

Be flexible, be tactical, but whatever you do-just do it

Fri, 06 Jul 2012 16:45:58 -0400

According to the most recent figures in the annual World Payments Report*, there are about 260 billion non-cash payments made each year, with credit and debit card use up by 9.7% at the last count. The cards business is becoming a major driver of revenue and with mobile payments on the horizon, banks need to get on and make the most of this opportunity if they are to thrive.

A fraud Q & A with Arjun Medhi, CIFAS

Thu, 05 Jul 2012 21:03:24 -0400

Arjun Medhi manages the Staff Fraud Database operations at CIFAS, the UK’s Fraud Prevention Service. He was a keynote speaker at this year’s ACI Exchange EMEA Annual Conference in Monaco, where he spoke about the state of employee fraud in the UK private sector. In this Q&A, Arjun recaps some of the main pillars of his speech, looking at fraud profiling and the issue of whistleblowing.