First Data Corporation
“First Data Study Re-Confirms Debit as the Fastest Growing Payment Method; Transaction Volume Increases When Choice is Offered”
DENVER, Aug 01, 2006 (BUSINESS WIRE) — Having the option to make payments via PIN or signature debit increases the number of transactions consumers make monthly, according to a recent survey released by First Data Corp. (NYSE:FDC). The STAR(R) Consumer Payments Usage Study, conducted by an independent research firm, found that consumers who use both PIN and signature debit at the point-of-sale (POS) conduct an average of nearly 23 transactions per month versus 14 for those who solely use signature and 10 for those using only PIN.
“By the responses provided in this study, along with other independent research, consumers have made it clear they prefer businesses — from their doctor’s office to the movie theater — to offer a variety of electronic payment options,” said Ron Congemi, senior vice president, Strategic Industry Relations, First Data. “It’s important for retailers to promote consumer choice and for financial institutions to provide consumers with the features and products to meet their preferences. Doing so will help attract new customers, increase revenue and enhance customer retention.”
Continue reading PIN Debit Transactions on the Rise
WASHINGTON — The Federal Reserve said last week it won’t intervene in the growing market of card interchange fees, now as much as $30 billion a year.
A Fed official said the United States’ central bank should not get involved in the conflict going on between the two major card companies, Visa USA and MasterCard International, and the merchants. (Read also, Interchange wars: Merchants tug networks for change.)
The Fed also concluded it doesn’t have the legal authority to set interchange rates under the Electronic Funds Transfer Act.
Continue reading Fed won’t set Interchange Fees
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.