April 3, 2006, by admin
The New York Times: ATMs have long been a staple in convenience stores, but now several major chains, including 7-Eleven, are installing transactional kiosks able to do a lot more. 7-Eleven is introducing its second wave of custom-made terminals called Vcoms this year. The chain’s more than 1,000 Vcoms dispense cash, sell Verizon services, and handle bill payments and money transfers. They can also cash checks to the penny and print digital check images on receipts. Aiming to keep up with 7-Eleven, Exxon Mobil and Circle K have introduced Info Touch’s bill-payment kiosks in some regions, with plans to take the programs national. Sunoco also just set up a pilot involving the same kiosks.
“What most companies are looking at it for is to drive new customer traffic as opposed to driving revenues from the specific kiosks,” said Jeff Lenart, spokesman for the National Association of Convenience Stores. The goal of the Vcom program is to make 7-Eleven a major financial services brand, said Rick Updyke, vice president for corporate business development. Plans call for the installation of Vcoms in all 5,400 domestic 7-Eleven stores and for the imminent addition of a feature that will let customers make deposits to any bank account.
October 17, 2005, by admin
WILMINGTON, Del.– MBNA has begun issuing credit cards that feature MasterCard PayPass contactless payment technology to its new and existing customers in Atlanta, with customers in additional markets to follow in the coming months.
PayPass integrates a radio frequency chip and antennae in the card plastic. Cardholders simply “tap” their cards on specially equipped merchant terminals to pay. PayPass eliminates the need for consumers to fumble for cash and coins, hand over their payment card to a clerk or swipe it through a reader. And since most purchases under $25 do not require a signature, PayPass ensures fast and convenient transactions at places like fast food restaurants, gas stations, movie theaters, and convenience stores.
October 12, 2005, by admin
Digital Transactions News
Oct. 12, 2005
“Financial institutions lost an estimated $546 million to debit card fraud in 2004, with fraud rates running much higher on signature-based cards than on cards secured with PINs, according to study released this week. Banks lost $345 million in fraud committed on ATMs, while fraud on signature-debit cards cost them $193 million and PIN debit cards at the point of sale sustained $8 million in losses. These are among new debit card fraud statistics compiled by the study, which was conducted this summer by Dove Consulting and sponsored by Pulse EFT Association, a Houston-based unit of Discover Financial Services LLC. “Transaction volumes for both PIN and signature debit continue to grow, yet observers increasingly are questioning the soundness of these payment mechanisms,” says an executive summary of the report in explaining why Dove and Pulse sought to measure fraud rates, and in particular to compare the loss rates on PIN and signature-based cards.
The loss rate attributable to signature-debit cards is approximately 15 times greater than that for PIN debit when losses are measured against either transaction or dollar volume, the study says. Fraud on signature cards ran 1.6 cents per transaction, whereas the loss rate on PIN debit ran 1/10 of a penny per payment. On average, issuers lose $1.15 per card per year to signature-debit fraud, compared with 4 cents on PIN debit cards, though the average loss on a PIN card is significantly higher: $160 versus $86 on a signature card.
April 4, 2004, by admin
Digital Transaction News
April 4, 2004
“Debit cards linked to personal identification numbers are slowly but surely penetrating more and more merchant locations, and as a result PIN debit transactions will begin to overtake transactions on signature-based debit cards within five years, says an analyst at Speer & Associates Inc., Atlanta, who has studied the issue. For years, says Ali Raza, vice president at Speer, merchants resisted PIN debit because of the cost of the point-of-sale PIN pads necessary to process transactions, but the devices have steadily dropped in price and now range between $100 and $150. The devices are still rare among small retailers and in certain merchant categories, such as hotels and restaurants, but they are beginning to migrate down the retailing ranks from large supermarket chains, which were among the first to deploy them “Mid-tier merchants have started to install them,” says Raza. He figures anywhere from 25% to 30% of all U.S. merchant locations are now equipped with PIN pads, up from 20% a year ago.