Recent News

Direct ACH debit payments made when authorization is given via the Internet or a mobile device grew 9.5 percent in 2011, accounting for nearly 17 percent of total ACH network payments, according to NACHA, the organization that manages the ACH payment network. NACHA estimates that 80 percent of these transactions are to pay bills via companies' or billing services' Websites.

“Consumers want convenient, versatile, and secure payment options,” said Janet O. Estep, president and CEO of NACHA. “Direct payment via ACH puts consumers in control and provides them with the flexibility to make payments through their bank or credit union’s online banking service, the companies they do business with, and via mobile applications.

”Total ACH payment volume grew 4.35 percent in 2011 to more than 20.2 billion transactions worth nearly $34 billion.

Visa and MasterCard both experienced increases in their payments volumes last month. Visa's total U.S. payments volume increased by 10 percent in February compared with February 2011, while the gross dollar volume of U.S. transactions that were processed by MasterCard increased by 14 percent for the quarter through February. Meanwhile, Visa reported that credit and debit card payments volume increased by 15 percent and 7 percent last month, respectively. The increase in Visa's debit card volume comes as growth in overall debit card volume in the United States is slowing following the enactment of Dodd-Frank. The limit that was placed on debit card swipe fees prompted both Visa and MasterCard to eliminate the discounted swipe fees they had offered for smaller transactions, which in turn has spurred some retailers to go back to encouraging customers to use cash for these sales.

Kount delivers an all-in-one fraud and risk management solution for companies that have card-not-present environments looking to simplify their fraud/risk operations while dramatically improving bottom line results.  Kount provides a single, turnkey fraud solution that is easy-to-implement and easy-to-use.  Kount's proprietary technology has reviewed hundreds of millions of transactions and provides maximum protection for some of the world's best-known brands.

To learn how it works, go to: http://www.kount.com/technology

To spot fraud, retailers have long relied on the unmatched depth and breadth of data, powerful analytics and exclusive data-linking technology available through LexisNexis®. Now, those advantages are rolled into a robust, highly accessible fraud management solution known as LexisNexis® Retail Fraud Manager.  Using advanced workflow automation capabilities, Retail Fraud Manager connects leading fraud detection tools, including LexisNexis® Risk Research for Retail and LexisNexis® Chargeback Defender®, to help you quickly gather and interpret fraud data into meaningful information for a faster transaction review process. When used as a seamless “end-to-end” solution, it can help automate the decision process and reduce the number of Card Not Present (CNP) transactions flagged for review. Or, customers can use it to fit your unique business needs by creating specialized workflows that speed up manual review.

ECS is now offering SparkBase’s Paycloud mobile wallet and loyalty application. This program launched recently with more than 3,000 merchants. Paycloud transforms iPhones and Android smartphones into mobile wallets that enable loyalty rewards and deliver merchant coupons and promotions directly to the consumer’s phone. The Paycloud is the first mobile wallet that integrates with merchants’ existing point of sale terminals without using expensive NFC technology. Instead, Paycloud allows customers using virtually any smartphone to connect with their favorite merchants by tapping their phone to a countertop sensor linked to the merchants’ existing terminal.

In response to complaints about problems implementing a new federal law requiring acquirers to report merchants’ electronic payment transactions, the Internal Revenue Service delayed the penalty provisions and withholding requirements for a year, until Jan. 1, 2013. All acquirers are still required to file the 1099-K reporting form by the end of the year.

Beginning January 2013, First Data and Global will be instructed to withhold funds from merchants whose Tax Id Number (TIN) and Tax Filing Name (TFN) do not match. Once funds are withheld, First Data and Global will send them directly to the IRS. Merchants will not be able to retrieve their withheld money until they file their tax return for 2013. California and Maine are also imposing State Withholding amounts.

In order for merchants to avoid withholding, they need to update their TIN and/or TFN if they receive notification that their information does not match. Recently, First Data sent letters on our behalf notifying merchants of their unmatched status. Global merchants will be receiving notification directly from us shortly.

On June 29, 2011, the Fed announced the final regulation on the Durbin Amendment which went into effect on October 1, 2011. This final regulation caps interchange fees at $.21 per transaction plus 5 basis points for both PIN based and signature debit transactions for banks with over $10 billion in assets. Any institution with less than $10 billion in assets are exempt from the cap. More than 70% of the debit cards issued in the US are from banks with over $10 billion in assets which means merchants will see this cap in 70% of debit transactions.

The mobile revolution continues to grow exponentially. Millions of Americans no longer need their leather wallets with Google Wallet—a mobile app that securely stores credit cards, offers, gift cards and more on your mobile phone. This virtual wallet is changing the face of commerce by enabling customers to simply make “tap and go” payments with their mobile devices, while increasing loyalty at your merchant locations.

Google, First Data, Citi and MasterCard® brought this latest innovation in commerce to life, and all partners continue to invest heavily for its success. With mobile contactless transactions expected to top 2.2 billion in 2011 and with enhanced functionality on Google Wallet to come (virtual coupons, receipts, tickets, and more), consumers may never go back to traditional payments. ECS can provide merchants the equipment, installation and all the necessary training to take advantage of this new and exciting payment platform.

Apriva has launched Apriva Wallet, an m-commerce platform for its network of independent sales organizations and merchant acquirers that enables consumers to make payments via Android and iPhone devices. Apriva Wallet is available for download at any participating retailer when consumers supply their mobile number at the point of sale. The platform is compatible with any payment processor, wireless carrier, and financial institution, and also interoperates with NFC and EMV standards. In addition, Apriva Wallet can support magnetic stripe payment technologies and requires no changes to the POS environment.

President Barack Obama has used his recess appointment powers to install Richard Cordray as head of the new Consumer Financial Protection Bureau (CFPB), effectively enabling the agency to monitor payday lenders, credit bureaus, and utilize all of the powers given to it under the Dodd-Frank law. Without a director at the helm, the agency was only able to monitor and enforce existing regulations on consumer financial products and not able to write new regulations for banking products. "Now, with a director, the CFPB can exercise its full authorities—with respect to both banks and nonbanks—to help those markets operate fairly, transparently, and competitively," Cordray says. The CFPB had begun its mission by placing regulators in the largest banks to review mortgage lending and consumer banking fees, and the CFPB director can now influence banking policy as a member of the Federal Deposit Insurance Corp.