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On the Back Burner in Congress, Interchange Heats up in California

Digital Transactions reports that proposed regulation of interchange is stalled in Congress, but California lawmakers are investigating the controversial revenue generator for credit and debit card issuers that merchants ultimately pay. Read more: http://www.digitaltransactions.net/newsstory.cfm?newsid=2434

Best Buy drops Visa contactless debit transactions over higher interchange fees

Best Buy drops Visa contactless debit transactions because of higher interchange fees: http://bit.ly/8ckZxz

Global Commercial Cards and Payments Summit

March 23 – 24, 2010, Hilton Hotel, New York City

Network with commercial cards and payments professionals from around the globe. CPI’s Global Commercial Cards and Payments Summit will bring together over 250 senior level commercial cards and payments professionals from financial institutions, networks, end users, and industry suppliers in one place for two days next March. This will be an unrivalled networking opportunity that you should not miss.

Bank of Montreal buys Citigroup’s Diners Club North American franchise

The Bank of Montreal said Tuesday that it has agreed to buy Citigroup’s Diners Club North American franchise, bolstering its own credit card business with Diners Club customers.

National Association of Convenience Stores responds to U.S. Government Accountability Office (GAO) report

The National Association of Convenience Stores (NACS) released the following statement in response to today’s release of the U.S. Government Accountability Office (GAO) report, "Credit Cards: Rising Interchange Fees Have Increased Costs for Merchants but Options for Reducing Fees Pose Challenges."

"The GAO confirmed key problems that we have raised about credit card interchange fees, also known as ’swipe’ fees," said Lyle Beckwith, NACS senior vice president of government relations. "They found that the 10 largest banks have a stranglehold on this market, have used it to raise their fees, which all consumers pay, and that small businesses and low-income, cash-paying consumers get the worst deal from this arrangement."

"And though Visa and MasterCard claim that swipe fees have not been increasing, and that credit card use increases sales for merchants, the GAO report solidly debunks both of those claims," said Beckwith. "The GAO report should sound the alarm that it is time for Congress to reform swipe fees."

The GAO report confirmed many of the most harmful aspects of unfair, hidden fees swipe fees that are incurred every time a consumer pays by debit or credit card. The report shows that the credit card companies and their issuing banks mislead the public about their increasing rates and about the benefits of credit cards to businesses. The report also outlines an unfair, anti-competitive system that hurts Main Street businesses and their customers in order to pad the banks’ bottom lines, with little relation to the actual costs of processing payments.

The report makes it clear that, unless Congress acts to bring competition and transparency into the interchange system, the big banks and credit card companies will keep lining their pockets at the expense of small businesses and consumers nationwide.

Join Us for a Q&A Webinar with Build-A-Bear Workshop Founder Maxine Clark!

Just wanted to remind you that today is the last day to register for tomorrow’s Q&A webinar with Build-A-Bear Workshop founder Maxine Clark. If you could share this link with your friends and colleagues, we would be grateful. http://www.bit.ly/pathways01

Holiday shoppers to spend less on gift cards in favor of deals

Gift cards are again the most-requested present for the holidays, but don’t be surprised if you receive a discounted sweater instead, reports the Los Angeles Times. The National Retail Federation retail group’s most recent survey found that on average, holiday shoppers plan to spend $139.91 on gift cards this year, a 5% drop from $147.33 last year. Total spending on gift cards is expected to reach $23.63 billion.

In another sign of the times, recipients can expect gift cards with lower monetary values. The average value per card this year will be $39.80, down from $40.54 last year, according to the survey, which polled 8,692 consumers from Nov. 3 to 10. More than three-fourths of those surveyed (77.2%) plan to buy at least one gift card this holiday season.

American Express has announced it has agreed to acquire Revolution Money

American Express has announced it has agreed to acquire Revolution Money. According to Amex, "the transaction, which is subject to regulatory review, is expected to close in the first quarter of 2010. The purchase price is expected to be approximately $300 million. Upon closing, Revolution Money would operate as a subsidiary of American Express and be the first component of its recently formed Enterprise Growth organization. Enterprise Growth was formed to leverage American Express’ existing assets and capabilities to generate incremental fee revenue and to drive the company’s entry into new payment areas and related businesses."

Shoppers likely to put away cards, pay with cash

One in four consumers will pay for holiday gifts with cash instead of credit this season, up 9.1% from last year, according to a new NRF survey. Another 42.5% said they would shop with debit or check cards, a 2.5% increase over last year. “With many holiday shoppers focused on spending within their limits, it’s no surprise that fewer people will be relying on credit cards this year,” said NRF Chief Executive Tracy Mullin.