Top Acquirers in the US 2015

Transcription

FOR 45 YEARS, THE LEADING PUBLICATION COVERING PAYMENT SYSTEMS WORLDWIDE
MARCH 2016 / ISSUE 1082
FTC Inquires About PCI DSS
Top Acquirers in the U.S. 2015
The U.S. Federal Trade Commission (FTC) has ordered nine
companies that conduct audits of merchants, processors, and
other companies assessing compliance with the Payment Card
Ranked by Purchase Transactions (Bil.)
> see p. 6
Bank Cards
LendUp to Add Credit Card
Other Credit
PIN Debit
18.56
First Data
LendUp sees opportunities among the 56% of U.S. adults with
credit scores below 680 — consumers who comprise the nearprime and subprime groups of prospective borrowers. Its first
17.67
Vantiv
> see p. 6
Bancontact/Mister Cash Mobile Payments
The domestic debit card network in Belgium, Bancontact/Mister
Cash, launched a QR-code-based mobile payment application
for iOS, Android, and Windows smartphones in 2014, and at
Chase
14.97
BofA
14.44
Heartland
> see p. 7
Social Media Network Mobile Payments
4.28
Worldpay
3.65
Wells
3.38
Elavon
3.36
Share of Total*
20%
First Data
Vantiv
19%
19%
Singapore-based Fastacash says that half of the world’s population
use social media networks and messaging apps. Its technology
facilitates person-to-person (P2P) and person-to-merchant
Global
> see p. 8
Risk Ident Fraud Protection
2.74
© 2016 The Nilson Report
The Otto Group, Europe’s second largest online retailer, generates
more than $13 billion in annual sales — 50% online. Much of Otto’s
sales are household items and consumer electronics, goods that are
16%
16%
Chase
B of A
* Entire listing appears
on pages 10-11.
Top U.S. Acquirers
> see p. 8
JetBlue/Barclaycard US Co-Brand Card
Three new MasterCard products from the JetBlue Airways and
Barclaycard US co-brand partnership feature a limited-time
offer of 10,000 or 30,000 bonus points after cardholders spend
> see p. 5
Investments & Acquisitions — February 2016
Turn to page 4 to see a list of 45 mergers, acquisitions, and
corporate financing deals that occurred in February 2016.
Visa, MasterCard, Discover, American Express, Diners
Club, UnionPay, and JCB global brand credit, debit, and
prepaid cards as well as Interlink, Star, Nyce, Pulse, Accel,
and other domestic-only PIN-based debit card transactions
handled by the five largest U.S. owners of portfolios of
merchant card processing contracts totaled 69.71 billion
last year, up 7.7% over 2014. First Data, Vantiv, Chase
Commerce Solutions, Bank of America, and Heartland
ranked as the top five U.S. acquirers in 2015 based on
transactions handled, positions they have held since 2012.
Prior issues: 1080, 1078, 1077, 1075, 1073, 1071, 1069, 1067, 1065
> see p. 4
INSIDE
2–4 5 12 Fast Facts
Bluebird Industrial Tablet POS Device
Retailers File New Antitrust Litigation
© 2016 HSN Consultants, Inc. THE NILSON REPORT
CHARTS
> see p. 9
9 10 12 Top Acquirers in the U.S. — 2015
Merchant Acquirers in the U.S. 2015 —
Ranked by Visa/MasterCard Volume
Ecommerce/MOTO Business 2015
VISIT US ONLINE AT WWW.NILSONREPORT.COM
FAST
FACTS
MARCH 2016
ISSUE 1082
Objective,
independent
reporting for
45 years.
No paid
advertising.
No sponsored
content of
any kind.
Ever.
VANTIV, the 2nd largest U.S. merchant acquirer, has
formed a partnership with global payment services provider
and merchant acquiring bank Credorax, to offer its
merchants the ability to process and settle card payments
in the local currencies of 34 countries. Greg Worch is SVP of
eCommerce Sales at Vantiv, (978) 275-6530, greg.worch@
vantiv.com, www.vantiv.com. Rod Katzfey is VP of Business
Development and Sales at Credorax, (770) 330-7141,
rod.katzfey@credorax.com, www.credorax.com.
MONEYGRAM INTERNATIONAL will pay $13 million
to make settlement with attorneys general in 49 states
and Washington, D.C. regarding consumer complaints that
criminals duped them into wiring funds via the money
transfer service. Of the $13 million, $9 million will be
returned to MoneyGram customers and $4 million will cover
states’ costs and fees.
PAYSTAND’S cloud-based payments-as-a-service platform
is being offered to 335,000 small businesses that use One
Up, an app that integrates accounting, inventory, invoicing,
and CRM. One Up users will add a “Pay Now” button to
electronic invoices generated by the One Up application.
Francois Nadal is CEO at One Up, (415) 779-6536, nadal@
oneup.com, www.oneup.com. Jeremy Almond is CEO at
PayStand, (831) 325-0293, jalmond@paystand.com,
www.paystand.com.
MYCHECK’S MyWallet SDK supports native apps for
iOS, Android, and HTML websites, and permits storage of
payment methods including Apple Pay, PayPal, MasterPass,
Visa Checkout, and American Express Checkout in addition
to payment cards. Shlomit Kugler is CEO, (917) 287-5780,
shlomit@mycheckapp.com, www.mycheck.io.
PAYVISORS, a technology and sales consulting company
focused on payment management, recurring billing, and
merchant services integrations, provides an advanced payment gateway as a hosted service for card and ACH processing. The gateway, which can be white labeled, operates on
United Thinkers’ UniPay Payment Management Platform.
Chad Roll is President at PayVisors, (561) 262-3474,
chad@payvisors.com, www.payvisors.com.
ASCENTIUM CAPITAL now provides leasing and
financing programs that ISOs can offer their merchant
customers for POS equipment and working capital loans.
Bob Neagle is President, (281) 902-1993, bobneagle@
ascentiumcapital.com, www.ascentiumcapital.com.
SYNCHRONY FINANCIAL, the largest private label credit
card issuer in the U.S. based on purchases and receivables
and the 3rd largest credit card issuer on the MasterCard
network, has received a long-term contract extension from
Stein Mart to continue providing co-branded MasterCard
and private label credit card programs. Greg Kleffner is CFO
at Stein Mart, (904) 346-1500, gkleffner@steinmart.com,
www.steinmart.com. Tom Quindlen is CEO, Retail Card at
Synchrony Financial, (203) 585-6244, tom.quindlen@
synchronyfinancial.com, www.synchronyfinancial.com.
TEMPUS TECHNOLOGIES’ PaymentMate SaaS end-toend encryption and tokenization service for payment cards
will be embedded with Ingenico Group’s Telium POS terminals. Brian Merena is EVP at Tempus Technologies,
(978) 352-4057, brian.merena@tempustechnologies.com,
www.tempustechnologies.com. Howard Finch is VP of Sales,
North America at Ingenico, (678) 456-1200, howard.finch@
ingenico.com, www.ingenico.com.
Conferences & Seminars
NBPCA’s Power of Prepaid
2016: April 27-29, 2016. The RitzCarlton, Washington, D.C. (new
venue). Estimated attendance:
300+. Cost for the three-day conference ranges from $495 to $1,995.
Subscribers to The Nilson
Report will receive a $300
discount. (Use code NR300.)
Contact Matt Godson at
Momentum, (646) 807-8555, matt@
momentumevents.com . To register
and for information on workshop
and group discounts, please
visit http://prepaidevent.com/
register/.
2
1
Loyalty Expo 2016: May 24-26,
2016. The DoubleTree by Hilton,
Orlando, Florida. Estimated attendance: 575. Cost for the three-day
conference ranges from $999 to
$1,799. Subscribers to
The Nilson Report will receive
a 20% discount. (Use code
TNR20.) Contact Steve Taggart at
Loyalty360, (513) 800-0360, x118,
steventaggart@loyalty360.org.
Register at
www.loyaltyexpo.com.
10th Annual Payment China
Summit 2016: May 25-26, 2016.
The InterContinental Hotels,
Shanghai, China. Estimated
attendance: 250. Cost for the twoday conference is $1,495 before
April 1 ($1,895 after that).
Subscribers to The Nilson
Report will receive a 20%
discount. (Use code SC0526.)
Contact Rose Zhong at Shine
Consultant International,
86 (21) 5242-8084, rose.zhong@
shine-consultant.com. Register at
www.paymentchina.com.
Cards & Payments Middle East
2016: May 31 to June 1, 2016. The
Dubai International Convention
& Exhibition Centre, Dubai, UAE.
Estimated attendance: 10,000. Cost
for the two-day conference is from
$1,795 (exhibition and seminar
pass are free). Subscribers to
The Nilson Report will receive
a 20% discount. (Use code
TMWH.) Contact Prima Castelino
at Terrapinn, 971 (4) 440-2535,
prima.castelino@terrapinn.com.
Register at
www.terrapinn.com/cardsNR.
Order Back Issues / Preview Upcoming Conferences / View Newsletter Archive
WELLS FARGO, the 5th largest U.S. credit card issuer and the 2nd largest
U.S. debit card issuer on the Visa and MasterCard networks, is offering
Samsung Pay to cardholders who have compatible handsets. Samsung Pay
generates payments at terminals using Near Field Communication readers as
well as existing magnetic stripe readers. Jim Smith is Head of Virtual
Channels at Wells Fargo, (415) 222-2044, smithjp@wellsfargo.com,
www.wellsfargo.com.
VISA will offer Planet Payment’s global transaction processing platform to
acquirers and merchants in emerging markets that use its Accelerated
Connection Platform (ACP). Transactions handled by ACP are authorized
directly by Visa. Planet Payment’s platform supports back-office settlement.
Phil Kumnick is SVP Acquiring Processing at Visa, (415) 805-4627, phkumnic@
visa.com, www.visa.com. Carl Williams is CEO at Planet Payment,
(516) 670-3200, cjw@planetpayment.com, www.planetpayment.com.
KASASA, formerly BancVue, a financial technology and marketing provider
to community financial institutions, offers its credit card issuing clients Credit
Card As A Qualifier (CCAAQ), a rewards program that encourages credit card
adoption and usage. CCAAQ is a feature available with Kasasa Cash, Kasasa
Cash Back, and Kasasa Tunes accounts. Kasasa has 374 community bank and
credit union clients that use it to provide premium rewards-based checking
and savings accounts to consumers. Gabe Krajicek is CEO at Kasasa,
(512) 349-4210, gabriel.krajicek@kasasa.com, www.kasasa.com.
PEOPLE’S UNITED BANK debit card customers using compliant Samsung
devices can register for Samsung Pay, which is accepted for payment at the
majority of POS terminals in the U.S., including most that read only magnetic
stripes. Samsung Pay uses tokenization, and fingerprint authentication to
secure payments. People’s United has 75,000 MasterCard debit cards.
Ted Josephson is FVP Payments and Direct Banking at People’s United Bank,
(203) 338-7171, ted.josephson@peoples.com, www.peoples.com.
BLUEPAY will provide payment card processing services to Mizuno,
manufacturer and distributor of sporting equipment, apparel, and footwear.
CDI Technology, a subsidiary of BluePay, will provide its SnapPOS eCommerce
software. The combination provides encryption and tokenization of all
transactions processed through Mizuno’s website or retail channel.
Kristen Gramigna is Chief Marketing Officer at BluePay, (630) 990-7732,
kgramigna@bluepay.com, www.bluepay.com.
BILL.COM’S cloud-based system offers automated, end-to-end processes
that reduce by half the time companies require to handle financing and
accounting for bill payments. The Bill.com Network includes 1 million businesses. Last year they used Bill.com to handle $25 billion in transactions.
Rene Lacerte is CEO at Bill.com, (650) 353-3301, rlacerte@hq.bill.com,
www.bill.com.
PAYSCOUT, a merchant service provider and payment service provider
with tier-one bank sponsorships in the U.S., Latin America, Asia-Pacific, and
Europe, will provide payment processing services on behalf of International
Currency Exchange at airports in Honolulu, Houston, Los Angeles, Miami,
New York (JFK), Orlando, San Jose, and Washington, D.C. (Dulles).
Cleveland Brown is CEO at Payscout, (760) 302-6155, cleveland@
payscout.com, www.payscout.com.
© HSN Consultants, Inc. 2015 THE NILSON REPORT
MOBILE MAESTRO, also called Bankomatkarte Mobile, is available
nationwide in Austria, on select Android phones. The NFC mobile payment
app offers consumers access to 250,000 MasterCard PayPass outlets worldwide, including Austrian locations with 35,000 contactless POS terminals.
Transactions will be processed by Payment Services Austria in a data center
hosted by Austria Card. Rainer Schamberger is CEO at PSA, 43 (1) 717-180,
rainer.schamberger@psa.at, www.psa.at. Konstantinos Lagios is
Chief Commercial Officer at Austria Card, 43 (1) 610-65288,
konstantinos.lagios@austriacard.at, www.austriacard.at.
CREACARD PCS, a provider in France of prepaid products to 800,000
customers, will begin offering MasterCard’s MasterPass contactless
payments and a digital wallet developed by Smartlink. Philip Aim is CEO at
CreaCard PCS, 33 (1) 8096-1600, paim@creacard.net, www.creacard.net.
Eric La Marca is Managing Director at Smartlink, 41 (22) 310-5910,
eric.lamarca@\smartlink.ch, www.smartlink.ch.
BILLPRO, a PCI DSS Level 2 compliant gateway and payment service
provider, has been integrated into Lime Light CRM, a top provider of
subscription processing and campaign management services to online marketers. Daria Rippingale is CEO at BillPro, 61 (7) 3088-3025,
daria@billpro.com, www.billpro.com.
GETT, an on-demand taxi service that operates in 57 cities worldwide
including New York, London, Moscow, and Tel Aviv, will use Zooz for payment
processing. The Zooz platform also provides payment monitoring,
configuration, management, and data-driven optimization. Oren Levy is
CEO at Zooz, 972 (73) 742-9668, oren@zooz.com, www.zooz.com.
PEGASYSTEMS, which provides dispute processing between merchants
and 8 of the top 10 card issuers in North America, has signed a partnership
with Ethoca to automate the resolution of customer service and fraud-related
disputes. Ethoca’s service significantly reduces the costs associated with
manual chargeback processing. Scott Andrick is Industry Principal,
Retail Banking and Cards at Pegasystems, (408) 813-5889, scott.andrick@
pega.com, www.pega.com. Trevor Clarke is EVP, Issuer Relations at Ethoca,
(416) 849-6094, trevor@ethoca.com, www.ethoca.com.
HEARTLAND PAYMENT SYSTEMS, the 5th largest U.S. merchant
acquirer, has signed an agreement with Computop, a global payment service
provider. The Heartland Portico Gateway will be integrated with Computop
Paygate, a platform that offers 150 international payment options supported
by fraud prevention services. Joe Wysocki is Senior Director of E-commerce
at Heartland, (603) 736-5801, joseph.wysocki@e-hps.com,
www.heartlandpaymentsystems.com. Ralf Gladis is CEO at Computop,
49 (951) 980-090, gladis@computop.com, www.computop.com.
Management Changes
Jonna Boyle has been appointed Director at NewOak Credit
Services, (469) 249-1423, joboyle@newoak.com. Paolo Bortolotto
has been appointed Head of Debit, Asia-Pacific at MasterCard,
(65) 6390-6084, paolo.bortolotto@mastercard.com.
MARCH 2016 / ISSUE 1082 / THE NILSON REPORT
2
3
TRANSPAY, provider of a platform that lets businesses send mass, rapid
payouts to recipients and businesses in more than 120 countries and 60+
currencies, is now available in the Ukraine. Transpay’s clients can send funds
same day, directly to 17 million account holders of PrivatBank, Ukraine’s
largest commercial bank. Nagarajan Rao is SVP at Transpay, (212) 994-0345,
nagarajan.rao@transpay.global, www.transpay.global. Maria Strashko is
Head of Cross-Border Payments at PrivatBank, 380 (800) 500-003,
marija.strashko@privatbank.ua, www.privatbank.ua.
NORDEA will deploy FICO’s Falcon Platform in Sweden, Norway, Denmark,
and Finland to offer fraud protection to 11 million credit, debit, and current
accounts. It will also use FICO’s adaptive analytics technology. Steve O’Malley
Heads FICO’s operations in the Nordics, U.K., and Ireland, 44 (207) 940-0240,
stephenomalley@fico.com, www.fico.com. John Moller is Head of Cards at
Nordea, 45 (40) 530-080, john.moller@nordea.com, www.nordea.com.
ACCEO SOLUTIONS’ EMV-certified Tender Retail Software will run directly
on the Equinox Payments’ Luxe 8000i PIN pad. Canada-based Acceo has
approximately 60,000 clients. Equinox is part of NBS Payment Solutions.
Joey Vaccaro is VP of Business and Strategic Alliances at Acceo,
(514) 868-0333 x4420, joey.vaccaro@acceo.com, www.acceo.com.
Drazen Ivanovic is CEO at Equinox, (416) 621-2154, divanovic@nbsps.com,
www.nbsps.com.
MONERIS SOLUTIONS, the largest acquirer in Canada, will offer its
merchants in that country dynamic currency conversion from multicurrency
processor Planet Payment. Pete Ellis is SVP of the Americas at
Planet Payment, (312) 643-1932, pellis@planetpayment.com,
www.planetpayment.com. Karen Cox is VP, Payments and Retail Solutions at
Moneris, (416) 734-1692, karen.cox@moneris.com, www.moneris.com.
Investments & Acquisitions February 2016
Company
Amount
(mil.)
Buyer/Investor
Country
B2B PAYMENTS
StoneEagle (VPay)
undisclosed round 1
$76.0
Fit Pay
seed funding
Ciﬁn
TransUnion 3
$3.1
U.S.
*
Colombia
CREDIT CARDS
Nat’l Bank of Canada 4
Citi 5
*
$1,000.0
Canada
U.S.
Series A6
Alliance Data 7
Series B 8
seed funding 9
Series A 10
seed funding 11
BTL Group 12
Signifyd
Thumzap
Series B 13
seed funding 14
Series A 19
$55.0
*
*
$1.5
$7.0
$0.3
<$0.2
Canada
U.S.
U.S.
U.S.
Israel
Chile
Canada
$20.0
$3.0
U.S.
U.S.
*
U.S.
Collector Solutions
Emvantage Payments
Moip Pagamentos
Payleven
Provus Group
JetPay 20
Amazon 12
Wirecard 12
Series D 21
Wirecard 12
Droplet
Justpay
Modo Payments
MovoCash
PayQR M
PowaTag
PowaWeb
Shopbox
Vanso
crowdfunding
Series A22
angel round 18
seed funding 23
undisclosed round 24
private investors 12
Greenlight Digital 12
undisclosed round18
Interswitch 12
Covercy Tech. Trading
Revolut
WorldRemit
seed funding 25
seed funding 26
line of credit 27
Nimble Commerce
Blackhawk 12
ECOMMERCE
Invoice Cloud 12
crowd funding
Quickservice Tech.
Panasonic Canada 12
Spotcap
third financing round 15
$0.7
U.K.
*
Canada
$34.7
Germany
LENDING
$20.0
$0.1
$0.6
Israel
Australia
U.S.
*Terms not disclosed. 1 From FTV Capital. 2 Led by Giesecke & Devrient.
Purchased 71% of the credit bureau. 4 Purchased Canadian Automobile
Association portfolio. 5 Acquisition of co-branded card portfolio. 6 Including
Horizons Ventures. 7 Purchased private label card portfolio. 8 Led by SBI
Investment. 9 Led by Hayaat Group. 10 Including Cumberland and Bitmain.
11
Including Digital Currency Group. 12 Acquisition. 13 Led by Menlo Ventures.
3
4
3
$0.6
$5.8
$2.0
$0.7
$3.9
*
*
$2.2
$50.0
U.K.
India
U.S.
U.S.
Russia
U.K.
U.K.
Denmark
Nigeria
$1.5
$2.5
$45.0
U.K.
U.K.
U.K.
*
U.S.
Billhighway
GoldMoney
NWP Services
BluePay 12
stock sale 28
RealPage 12
*
$11.3
$67.9
U.S.
Canada
U.S.
Riskiﬁed
growth financing 29
$25.0
Israel
*
U.S.
SECURITY
LOYALTY
Series B 16
seed funding 17
seed funding 18
U.S.
India
India
Germany
Romania
PROCESSING
HARDWARE
AppCard
Birch
Kard Financial
*
*
$40.7
$10.0
$34.9
PREPAID CARDS
FOREIGN EXCHANGE
Kwanji
U.S.
MONEY TRANSFERS
ELECTRONIC BILL PRESENTMENT
MCC
Country
$4.0
MOBILE PAYMENTS
CRYPTOCURRENCY
Blockstream
Boscov (cards)
Kraken
Ribbit.me
Simplex
SurBTC
Xapcash
Stellar Loyalty
Amount
(mil.)
MERCHANT ACQUIRING
CREDIT BUREAU
Bridgewater Bank
Costco/Amex Cards
Buyer/Investor
U.S.
CONTACTLESS PAYMENTS
2
Company
SOFTWARE
Beanstalk Data
Heartland Pymt. Sys.12
Including Sierra Wasatch Capital. 15 Led by Finstar Financial. 16 Led by PLDT
Capital. 17 From H2 Venture. 18 Undisclosed investors. 19 Led by InterWest Partners.
20
Merger. 21 Including Holtzbrinck Ventures. 22 Led by Accel Partners. 23 Led by Cox
Orange. 24 From Sergey Kozlovsky. 25 Led by SGVC. 26 Including Index Ventures.
27
From TriplePoint Venture and Silicon Valley Bank. 28 Shares sold totaled 3.8 mil.
29
Led by Qumra Capital.
14
JetBlue/Barclaycard US Co-Brand Card
from page 1...
$1,000 in the first 90 days. Two
consumer cards, JetBlue card
and JetBlue Plus card, and one
commercial card, JetBlue Business
card, offer TrueBlue program
benefits including no blackout
dates on JetBlue-operated flights,
unlimited earning potential,
family pooling of points, and
TrueBlue points that don’t expire.
JetBlue Plus Card and JetBlue
JetBlue’s consumer and
Business card offer 30,000 bonus
commercial (small business)
points after cardholders spend
Amex portfolios had outstandings
$1,000 in the first 90 days. The
of $1.25 billion at year-end 2015.
bonus for JetBlue card is 10,000
Barclaycard purchased those
points for $1,000 spent in 90 days.
outstandings this month.
JetBlue’s MasterCard
partnership with Barclaycard
Amer Sajed is CEO at Barclaycard
replaces its co-brand consumer
in Wilmington, Delaware, (302)
and commercial cards with
255-7953, amer.sajed@barclaycard.
American Express. Amex
co.uk, www.barclaycardus.com.
customers
will receive
Barclaycard ranks 7th among Visa/
replacement
MasterCard issuers in the U.S.
cards that can
be activated on
March 21, 2016.
Michael Cyr is Group Executive
Barclaycard was the 7th largest
at MasterCard Worldwide in
issuer of Visa and/or MasterCard
Purchase, New York, (914) 249-2000,
credit cards in the U.S. ranked by
michael_cyr@mastercard.com,
outstandings with $22.93 billion
www.mastercard.com.
at year-end 2015.
Bluebird Industrial Tablet POS Device
South Korea’s largest POS terminal manufacturer has
expanded its product line to include retail-focused
handheld computer and tablet devices (RT 100,
ST 100, and ET 100) that use Android 5.1 Lollipop
and Windows 8.1 and 10 IoT Enterprise operating
systems. The handheld computers and tablets are
designed for inventory management, price control,
employee communications, scheduling, and order
taking, as well as customer engagement. When
paired with the Bluebird EP200 PIN pad, they can be
used for mobile POS.
All components in the
industrial-use tablets incorporate
the company’s TankSmith
technology, which aims
to eliminate operational
failures once the devices are
deployed. TankSmith tablets
are resistant to dust, protected
against jets of water, and can
survive multiple drops of up
to 4 feet off a counter or from a
worker’s hands.
The high-definition display
screens are protected by Corning
Gorilla Glass 3. They also incorporate
sun glare protection, anti-fingerprint sealing, and
can be worked indoors with a stylus or outdoors by a
worker wearing industrial gloves.
The tablets can be mounted on a counter in a POS
cradle. Other options include an Ethernet cradle,
barcode scanner, smart card reader, spin hand strap,
POS keyboard, square handle, and shoulder strap.
Wi-Fi and 4G LTE wireless connectivity allows for
access to real-time analytics.
Last year Bluebird shipped 228,198 handheld
computers, tablets, and payment
devices to clients in 74
countries. Included in that
number were 160,738
POS terminals and PIN
pads to customers in
51 countries.
Eunbi Kim is Marketing
Manager at Bluebird in
Seoul, South Korea, 82 (2)
2258-9189, eunbik@bluebird.
co.kr, www.bluebird.co.kr.
Prior issues: 1024, 991, 895
5
FTC Inquires About PCI DSS
from page 1...
Industry Data Security Standards
(PCI DSS) to provide information
on exactly how they do their work.
The FTC says the request for
information is not related
to any complaint,
to a search for
wrongdoing, or to
groundwork tied to
future legal action.
When a failure
to adequately
protect data is
determined, the FTC
can take action through
civil lawsuits. However, it also
promotes data security through
education, policy initiatives, and
recommendations to lawmakers
for new legislation. Section 6(b)
of the FTC Act authorizes the
commission to issue special orders
and studies.
Audits are required by Visa,
MasterCard, American Express,
and Discover when more than
The companies receiving
1 million card transactions are
orders from the FTC range in
handled annually. The aim is
size and geographic footprint.
third party confirmation that best
That decision was based in
practices are in place to protect
part on recognition that data
cardholders’ personal information.
security measures should
FTC enforcement actions
balance protection of consumer
occur when in its judgment there
information with the scale of
are unfair or deceptive acts or
operations of companies involved.
practices in commerce or affecting
Companies required to forward
commerce. It considers data
information are Foresite MSP,
security a factor that impacts
Freed Maxick CPAs, GuidePoint
commerce. Enforcement action by
Security, Mandiant, NDB
the FTC has occurred in various
industries in
which personal
The request is not related to a cominformation
plaint or to a search for wrongdoing.
about
consumers has
Accountants and Consultants,
been compromised.
PricewaterhouseCoopers,
However, no FTC enforcement
SecurityMetrics, Sword and Shield
actions against processors,
Enterprise Security, and Verizon
merchants, or other companies
Enterprise Solutions (also known
storing card payments have
as Cybertrust). The FTC hopes
occurred, even after dozens of data
the information gathering will be
breaches have compromised tens
completed this year.
of millions of payment cards.
LendUp to Add Credit Card
from page 1...
product, LendUp Ladder, was launched in the U.S.
in 2012. It took aim at payday loans used by lower
income individuals. Payday loans are structured to
be repaid in 2 to
4 weeks, though a
large percentage
of borrowers fail
to meet the payoff
date. Those loans
are notorious for
saddling their high-risk users with multiple fees on
top of interest rates that often exceed 400% when
annualized. The multiple fees charged can collectively
amount to 100% of the original loan. LendUp
Ladder charges interest rates commensurate with
those charged by established payday loan providers.
However, it differentiates itself by adding only one
flat fee in the 12% range and making that amount
clearly known to the borrower before they submit any
personal information.
6
In addition, repeat LendUp Ladder borrowers who
consistently make payments on time qualify
for higher amounts of credit at lower
interest rates. Payments are reported to
the credit bureaus, which helps
improve credit scores.
LendUp introduced installment
loans in 2014. Borrowers have
between 6 to 12 months to repay
up to $1,000 at interest rates of
19% to 36%. Payment information is
provided to the credit bureaus.
LendUp has made more than one million loans
leveraging proprietary credit risk management
algorithms that include information from top credit
bureaus, public records, alternative bureaus, and/
or bank statements. LendUp says that adding these
other information sources identifies good customers,
especially among near-prime prospects who are cut
off from those bank lenders that rely exclusively on
FICO scores.
LendUp’s third product is a Visa credit card
created in partnership with Fidelity Information
Services. The L Card has been in beta testing over the
The L Card is aimed at both nearprime and subprime prospects.
last 8 months. Product features include proprietary
software for smartphones that informs customers
about their unused credit. If they have spent more
than 30% of their available credit, a bar on the
smartphone’s screen turns yellow. Spending more
than 70% turns the bar red. The aim is to influence
the kind of responsible behavior with credit that
generates stronger scores at the credit bureaus.
The L Card, aimed at both near-prime and
subprime prospects, is a proof of concept. LendUp
plans to develop other products for groups including
millennials, new immigrants, and new to credit
small business owners and families. It wants all of its
products to be issued by local banks to prospects in
their regions. All card products from LendUp will be
aimed at getting the consumer to pay on time and in
full to build stronger credit scores and qualify for less
expensive credit.
LendUp, which is profitable on a per-loan basis,
has received nearly $225 million in equity and debt
financing. All LendUp applications are made over the
phone or online.
Sasha Orloff is CEO at LendUp in San Francisco,
California, (415) 548-6175, sorloff@lendup.com,
www.lendup.com.
Bancontact/Mister Cash Mobile Payments
from page 1...
year-end 2015 more than 1.5
million Belgians were using it.
Customers fund
payments by
linking the app
to their current
(checking)
account. Last
year in-store and
online purchases
of goods and
services as
well as personto-person
payments
(P2P) were
valued at $22.2
million (€20.4
million), up
429% over 2014.
Bancontact app
payments have
a $272 (€250)
daily limit, which is
also the per-transaction limit.
Online payments, which
account for 98% of Bancontact
app transactions, are initiated
when the consumer scans a QR
code displayed on the merchant’s
payment page and enters their
app. Recipient and
PIN on their smartphone
sender must be physically
or tablet. If the
present to initiate the
consumer is using one
payment. The recipient
of those devices to shop,
clicks “receive” in their
they can select the “Pay
app and enters the
with App” option on the
amount. The app generates a
payment page instead of scanning
QR code, which the sender scans
a QR code. They are redirected to
with their handset. The sender is
the Bancontact app on the same
prompted to enter a PIN before
device to confirm the transaction
the money transfer is initiated.
with their PIN. More than 600
Bancontact/Mister Cash
ecommerce websites in Belgium,
developed its mobile app with
the Netherlands, the U.K.,
Worldline, Belgium’s top merchant
and France accept Bancontact
acquirer, and In The Pocket, a
app payments.
mobile app specialist. Worldline
In-store payments are initiated
and Ingenico Payment Services,
when the consumer uses the QR
two of the largest payment
code feature in the app to scan a
service providers in Belgium,
QR code displayed on the POS
handle Bancontact integration
terminal or at the cash register.
at merchants.
The payment is initiated once the
customer verifies
the transaction and
Online payments account for 98%
confirms payment
of Bancontact app transactions.
by entering their
PIN. Currently,
400 stores offer Bancontact app
Kris De Ryck is CEO at Bancontact/
payments. Additional stores will
Mister Cash in Brussels,
be added this year.
Belgium, 32 (475) 538-113,
P2P payments are enabled
kris.deryck@bc-mc.eu,
between users of the Bancontact
www.bancontact.com.
7
Social Media Network Mobile Payments
from page 1...
payments over 24 social media
networks and messaging apps
by connecting consumers’ social
media profiles and contact lists to
their banking apps. Fastacash is
live in India, Indonesia, Russia,
Singapore, Vietnam, and the U.K.
Visa Europe has integrated the
Fastacash API with Visa Direct.
Fastacash’s system stores
money transfers and payments to
merchants in a tokenized format.
Recipients receive notification
of a P2P transfer in their social
media messaging application such
as Facebook Messenger, Line,
Twitter, WeChat, and WhatsApp.
A URL in the message launches
the recipient’s mobile banking
application so the money can
be accepted.
Fastacash’s latest partner
is Hungary-based mobile
transactions company Cellum,
which offers banks and telcos
a client-server mobile payment
service. The client is an app on
the consumer’s smartphone.
reassembled and decrypted for
The server is Cellum’s Mobile
just a fraction of a second when a
Next platform, a private cloud
transaction is initiated and sent
environment that communicates
for authorization.
with all operating systems and
Cellum, a PCI DSS Level
SIM-based apps.
1 vendor handles 2 million
Cellum operates
transactions a month for
a mobile payment
customers including MasterCard,
switch that
OTP Bank, PaysBuy, and Erste
routes transactions
Bank. It says it has never
between consumers
experienced fraud in more than 99
who use the mobile
million payment transactions.
wallets it builds for banks
and telcos that
offer those wallets,
The technology creates a cryptoand for merchants
gram from card credentials.
that have signed
payment-acceptance
Fastacash will integrate
agreements with banks and telcos.
Cellum’s wallet, mobile payment
Customers in Indonesia, Thailand,
switch, and secure card data
Austria, Bulgaria, and Hungary
storage capabilities, and offer an
offer Cellum-managed wallets,
end-to-end service on a whitemost of which are white labeled
label basis to existing clients.
with the bank/telco service mark.
Cellum will offer Fastacash
Evercoss, a handset manufacturer
technology to its existing clients.
in Indonesia, will preinstall
a Cellum wallet in 5 million
Gilberto Arredondo is Chief
devices annually.
Commercial Officer at Fastacash
Wallets are supported by
in Singapore, (65) 9086-2508,
technology that creates a
gilberto@fastacash.com,
cryptogram from card credentials,
www.fastacash.com.
then splits it into pieces. Some
Abel Garamhegyi is COO at Cellum
pieces are stored on the mobile
in Budapest, Hungary, 36 (30) 606device, and some on servers
9841, abel.garamhegyi@cellum.
operated by Cellum. They are
com, www.cellum.com.
Risk Ident Fraud Protection
from page 1...
desired by criminals using
stolen credit cards because
they can be resold for cash.
Otto Group created
an internal business unit
in 2012 to address fraud,
which amounted to 1% of sales.
This amount is typical for merchants selling online.
That business unit is now a stand-alone company
called Risk Ident. It sells a combination of machinelearning and rules-based software that retailers can
use to replace existing rules-based-only fraud fighting
technologies. Risk Ident proves the usefulness of its
8
Frida software to new clients
by scoring a retailer’s historical
transactions, identifying
fraud missed and good
transactions rejected
by their legacy systems.
It also tests its software
concurrently with legacy systems, comparing three
months of new transactions.
Because Risk Ident’s algorithms are agnostic to
data sources imputed for evaluation, Frida software
can be used for account registration, account
utilization, account theft, and risk management in
two transactions, identifying which is fraud and
which is not. Scoring takes less than a second. Once a
transaction is scored as high risk, similar transactions
get higher fraud scores.
The software can spot account takeover fraud and
advise online sellers to contact the buyer to confirm
the legitimacy of the purchase.
The Otto Group accounts for less than 20% of
Risk Ident’s annual revenue. The company expects to
expand through a strategic partnership, which will be
announced later this year.
addition to transaction fraud protection. Algorithms
can create a score for orders that request express
delivery of items. Deutsche Telekom uses Risk Ident’s
...can spot fraudsters who move
frequently, change emails, etc.
Frida software to fight fraudsters who try to receive
a free phone in the mail from the network operator,
never intending to fulfill a multiyear user contract.
Risk Ident’s Device Ident software analyzes the
Roberto Valerio is CEO at Risk Ident in Hamburg,
user’s device independently from any personal data.
Germany, 49 (40) 6094-52590, roberto@riskident.com,
Factors include geolocation, malicious IP blacklist,
www.riskident.com.
cookie identification, browser plugin
detection, OS and browser detection,
time difference detection, VPN and
proxy piercing, TCP/IP protocol
Ranked by Volume (Bil.)
Ranked by Transactions (Bil.)
analytics, and more. Personal data
$886.49
18.36 1
First Data 1
1 Chase
reviewed includes credit scores, customer
Top Acquirers in the U.S.
data and purchase history, and shopping
cart contents.
Risk Ident says it can spot organized
fraudsters who move quickly from city
to city, often change the email addresses
they use, and vary the goods they try
to buy. Instead of using a relational
database, Frida presents a graph that
shows clusters of transactions that look
similar. It gives the distance between
Top U.S. Acquirers
from page 1
Based on card purchase volume
(spending at merchants), the five
largest acquirers were First Data, Chase
Commerce Solutions, Vantiv, Bank of
America, and Elavon. Card payments
they acquired totaled $3.526 trillion, up
7.0% over 2014.
Worldpay, Wells Fargo, Elavon, Global
Payments, and North American Bancard
were the acquirers ranked 6 to 10 based
on transactions processed. Collectively,
they handled 13.93 billion, up 9.0%.
Those ranked 6-10 based on purchase
volume were Wells Fargo, Global
Payments, Heartland, Worldpay, and
TransFirst. Collectively, they acquired
card payments valued at $777.50 billion,
up 10.2%.
> see p. 10
2
First Data 1
$819.32
Vantiv
17.67
2
3
Vantiv
$771.75
Chase
14.97
3
4
BofA
$720.34
BofA
14.44
4
5
Elavon 2
$328.16
Heartland 3
6
Wells Fargo
$283.16
Worldpay
3.65
6
7
Global Pymts.
$157.77
Wells Fargo
3.38
7
8
Heartland
3
$139.42
Elavon
2
3.36
8
9 Worldpay
10 TransFirst 4
11 PNC
$135.27
Global Pymts.
2.74
$62.48
N. A. Bancard
4.28 5
9
0.80 10
0.78 11
$58.70
PNC
12 TSYS
13 N. A. Bancard
$54.40
TSYS
$38.97
TransFirst
14 Intuit
15 EVO
$32.17
Merrick Bank
$28.22
iPayment
16 Merrick Bank
17 iPayment
$28.15
Priority Pymt.
$27.83
EVO
18 Priority Pymt.
19 Moneris
$27.71
First American
$26.24
CardConnect
20 First American
21 BB&T
$25.92
Moneris
$21.69
BB&T
0.23 20
0.23 21
22 CardConnect
23 FIS
$21.54
Total Merchant
0.20 22
$19.6
Harbortouch
0.19 23
Merch. Choice
0.18 24
0.17 25
$18.01
24 MeS
25 Sage Pymt. Sol. $17.23
Intuit
4
0.68 12
0.56 13
0.47 14
0.46 15
0.37 16
0.34 17
0.34 18
0.26 19
Rankings are based on consolidated volume and transactions (all general purpose
credit and debit cards). 1 Includes business tied to contracts owned by its First Data
Merchant Services Group and First Data Independent Sales division called Ignite
Payments. Also includes merchant acquiring business tied to revenue-sharing
alliances with Citi, Santander, and SunTrust, which are effectively wholly owned
by First Data. 2 Includes its joint venture with Key Merchant Services.
3
Heartland is being sold to Global Payments. 4 TransFirst is being sold to TSYS.
9
Top U.S. Acquirers
Independent Sales business is also included with
First Data in the table below, where Citi, Santander,
and SunTrust are listed separately. Elavon figures on
pages 1 and 9 include Key Merchant Services because
Elavon owns those merchant contracts as part of their
joint venture.
Purchase volume increases greater than 10% last
year among the 10 largest acquirers of MasterCard
from page 9
When measuring Visa and MasterCard payment
card volume only (as ranked on the table below),
the 5 largest handled 60.41 billion transactions
(up 6.7%) valued at $3.288 trillion (up 7.8%). The
acquirers ranked 6 through 10 handled 21.23 billion
transactions (up 11.0%) valued at $871.28 billion
(up 7.3%).
In the charts on pages 1 and 9, First Data figures
shown include business tied to contracts with
merchants owned directly by its First Data Merchant
Services Group and its First Data Independent
Sales division, in addition to portfolios of merchant
card processing contracts tied to revenue-sharing
alliances with Citi, Santander, and SunTrust, which
are effectively wholly owned by First Data. First Data
Merchant Acquirers in the United States 2015
Rank
‘15 ‘14
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
10
1
2
3
4
5
6
7
8
9
10
12
11
13
14
22
15
16
20
19
17
18
28
21
24
27
23
25
26
29
30
31
32
36
33
34
37
41
35
Company, Headquarters
Chase Commerce Solutions Texas
Bank of America Georgia 1
First Data Georgia 2
Vantiv Ohio
Elavon Georgia 3
Wells Fargo Merchant Serv. Calif. 4
Citi Merchant Services Illinois 5
Global Payments Georgia
Heartland Payment Systems N.J.
Worldpay Georgia
TransFirst New York
TSYS Merchant Services Georgia
PNC Merchant Serv. Pennsylvania 6
SunTrust Merchant Services Georgia 5
North American Bancard Michigan
Merrick Bank Utah
Intuit California
Priority Payment Systems Georgia
iPayment New York
EVO Payments International New York
Moneris Solutions Illinois
First American Payment Systems Texas
Santander Bank Massachusetts 5
BB&T North Carolina
CardConnect Pennsylvania 7
FIS (Fidelity Nat’l Info. Serv.) Florida
Merchant e-Solutions California
Sage Payment Solutions Virginia
Merchants’ Choice Pymt. Sol. Texas
Total Merchant Services California
Harbortouch Pennsylvania
Key Merchant Services Ohio 8
BluePay Illinois
Commerce Bancshares Missouri
Gravity Payments Washington
Capital One Merchant Serv. Virginia
Clearent Missouri 7
M&T Bank New York
Bank Cards (V&MC)
Volume
Trans.
(mil.)
Chg.
(mil.)
$705,779.3
$522,418.7
$439,410.3
$415,623.7
$271,188.0
$224,073.6
$156,257.1
$138,289.4
$108,251.6
$87,216.2
$51,340.1
$46,635.1
$43,476.0
$36,292.5
$31,860.1
$25,886.2
$24,440.2
$24,109.0
$22,475.7
$22,448.1
$22,418.9
$20,290.5
$20,175.8
$19,542.4
$18,776.3
$18,041.4
$16,292.6
$15,469.4
$12,000.0
$9,503.7
$8,787.9
$8,117.1
$7,946.8
$7,718.3
$7,716.9
$7,263.9
$7,016.7
$6,718.9
Other Credit
Volume
Trans.
(mil.)
(mil.)
14% 12,051.9 $120,571.0 1,400.1
1% 10,535.3 $61,134.0 764.0
1% 6,539.6 $17,653.2 300.4
12% 9,105.6 $59,356.3 987.4
9% 2,769.6 $28,807.7 152.8
16% 2,775.7 $44,596.4 325.4
–4% 7,189.4
—
—
6% 2,427.4
$9,587.4 113.0
4% 3,012.0 $15,397.9 193.8
11% 2,360.7 $18,431.2 279.7
15%
488.7 $10,040.3
48.6
4%
601.6
$6,001.0
53.7
6%
638.6
$9,662.1
58.1
–3%
443.9
$6,822.9
40.0
76%
696.4
$3,894.7
49.7
5%
410.2
$715.2
8.7
3%
135.7
$6,920.1
17.0
22%
326.6
$2,514.6
18.7
3%
348.9
$3,278.1
40.8
–4%
282.3
$4,662.9
35.3
1%
211.1
$3,839.0
23.8
84%
274.4
$4,259.5
25.0
3%
291.5
$3,079.7
26.9
14%
204.3
$1,125.5
7.4
28%
223.3
$1,957.4
7.9
2%
131.5
$1,204.6
4.5
8%
104.0
$1,528.1
6.2
4%
129.0
$1,478.2
12.3
20%
156.4
$2,008.0
13.8
1%
165.5
$739.9
15.6
1%
168.4
$1,717.2
14.5
–5%
103.6
$739.8
3.0
23%
51.6
$2,013.7
6.5
–6%
87.5
$1,520.5
9.7
19%
126.7
$987.4
9.9
17%
50.9
$1,337.4
4.5
26%
82.0
$1,083.1
6.1
4%
41.7
$1,262.0
3.7
> see p. 12
Ranked by Visa/MasterCard Volume
PIN Debit
Volume
Trans.
(mil.)
(mil.)
$60,144.5
$136,788.8
$132,765.4
$296,770.9
$19,131.7
$14,485.0
—
$9,297.4
$15,770.7
$29,625.1
$1,099.1
$1,763.1
$5,559.1
$5,254.5
$3,215.6
$1,547.5
$805.1
$1,089.1
$2,080.6
$1,110.5
—
$1,374.7
$1,609.5
$1,023.4
$805.6
$352.1
$186.6
$282.5
$624.0
$709.0
$386.0
$173.8
$71.3
$648.2
—
—
$219.9
$53.8
and Visa card payments included Chase Commerce
Solutions, Vantiv, Wells Fargo, Global Payments,
and Worldpay.
Acquirers with more than $10 billion in American
Express, Discover, Diners Club, UnionPay, and JCB
credit card purchase volume combined (shown
as Other Credit on the table below) were Chase
1,518.1
3,140.0
3,390.3
7,574.0
332.1
277.8
—
199.6
1,071.7
1,005.3
20.8
27.7
81.5
91.2
55.9
48.4
16.2
28.5
72.4
25.1
—
37.9
44.5
16.9
25.6
4.2
2.2
2.4
10.3
17.9
11.9
2.9
1.0
10.1
—
—
5.8
0.8
Active
Merchant
Outlets
430,000
650,000
820,000
815,036
1,122,720
423,672
234,016
814,000
255,098
186,018
235,913
411,971
126,117
90,657
433,581
114,716
466,457
156,355
98,257
315,579
103,000
149,103
63,960
59,248
61,791
126,929
32,198
60,810
60,000
92,521
88,700
57,979
41,428
10,304
20,200
41,645
26,315
16,000
Rank
‘15 ‘14
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
40
42
39
38
50
43
44
46
45
47
48
53
49
59
54
56
51
55
52
62
58
60
57
61
63
66
64
65
67
68
69
70
71
72
Company, Headquarters
Electronic Payments New York
MLS Direct Network Texas
Redwood Merchant Services California 7
JetPay Merchant Services Texas
i3 Verticals Tennessee
BBVA Compass Texas
TD Bank New Jersey
First Hawaiian Hawaii
Payment Alliance Int’l Kentucky
Newtek Electronic Pymt. Proc. Wisconsin 7
Bankcard Services California
Security Card Services Mississippi
United Merchant Services New Jersey
TransFund Merchant Services Oklahoma 7
Electronic Merchant Systems Ohio
First Citizens Bank North Carolina
MeritCard Solutions Texas
Vanco Payment Solutions Georgia 7
TIB–The Independent BankersBank Texas
Epicor Software California
Approval Payment Solutions Indiana 7
Complete Merchant Solutions Utah
Bank of Hawaii Hawaii
Fulton Bank Pennsylvania
UMS Banking California
NCMIC Finance Corporation Iowa
MainStream Merchant Services Georgia 7
FirstMerit Bank Ohio
Intrix Technology California
Columbia Bank Washington
Umpqua Bank Oregon
Security BankCard Center Arkansas
Intrust Bank Kansas
Apogee Payment Systems Wisconsin
Bank Cards (V&MC)
Volume
Trans.
(mil.)
Chg.
(mil.)
$6,401.4
$6,209.8
$5,836.4
$5,409.3
$4,644.7
$4,496.8
$4,496.4
$4,084.5
$4,012.2
$3,818.0
$3,623.7
$3,441.7
$3,341.9
$3,179.3
$3,010.8
$2,852.8
$2,730.4
$2,354.2
$2,058.2
$2,046.5
$2,001.5
$1,948.8
$1,854.3
$1,474.4
$1,326.8
$1,199.0
$1,198.5
$1,096.8
$864.7
$739.5
$697.4
$649.8
$544.4
$66.0
12%
21%
1%
–8%
64%
3%
8%
2%
–3%
3%
4%
37%
2%
80%
22%
22%
1%
–1%
–20%
66%
12%
17%
0%
4%
13%
16%
5%
3%
–1%
7%
8%
6%
6%
6%
122.7
104.6
62.8
41.6
54.3
43.8
42.7
38.6
54.0
34.7
84.7
32.1
84.7
22.2
40.0
18.0
38.6
17.8
18.2
33.1
26.1
20.7
24.7
13.4
7.9
15.5
24.8
7.5
5.4
8.4
6.7
3.9
9.5
0.4
Other Credit
Volume
Trans.
(mil.)
(mil.)
$331.8
—
$1,156.7
$4,945.1
$230.3
$138.9
$959.0
$569.6
$154.6
$644.4
$425.6
$494.3
$407.1
$464.6
$368.0
$90.5
$339.7
$442.2
$50.0
$338.8
$660.4
$236.3
$355.8
$203.6
$47.2
$97.4
$206.9
$167.0
$67.0
$10.8
$74.8
$24.5
$18.6
$5.3
1.2
—
6.2
14.9
1.6
1.0
4.1
4.2
1.4
5.7
4.8
2.5
7.4
1.8
2.6
0.4
3.8
1.8
1.9
3.5
7.4
1.5
2.8
1.1
0.3
0.8
2.5
0.5
0.4
<0.1
0.3
0.1
0.3
<0.1
PIN Debit
Volume Trans.
(mil.)
(mil.)
$303.2
$683.1
$405.1
$67.9
$546.3
$173.2
$88.4
$136.3
$110.9
$217.6
$757.2
$57.5
$569.1
$8.7
$165.1
$727.9
$78.3
$21.4
$165.9
$630.1
$115.7
$8.7
$397.4
$26.0
$62.6
$16.4
$64.3
$2.7
$12.7
$47.9
$31.2
—
$2.8
$0.1
11.1
18.2
7.4
0.7
20.6
3.2
1.7
5.0
3.0
2.0
24.3
1.1
19.4
<0.1
2.0
8.6
2.8
0.3
0.3
10.5
0.7
0.2
11.0
0.4
0.5
0.3
1.5
<0.1
0.4
0.5
0.4
—
<0.1
<0.1
Active
Merchant
Outlets
39,000
20,575
25,069
11,376
21,292
21,298
20,100
6,431
18,200
12,066
20,564
20,503
19,204
7,341
32,048
17,839
7,333
23,129
19,655
2,339
12,906
3,784
3,763
5,800
6,914
13,047
3,560
3,528
2,254
3,166
3,276
5,702
1,900
285
Some prior year figures have been restated. Use percent change to compute prior year figures. Figures are net (gross minus chargebacks). Bank Cards = Visa and
MasterCard credit and debit cards. Other Credit Cards = American Express, UnionPay, Discover, Diners Club, Carte Blanche, JCB, EBT, etc. 1 First Data owns 51%,
Bank of America owns 49%. 2 First Data owned and managed business distinct from alliances/joint ventures. 3 Owned by U.S. Bancorp. Does not include joint-venture
partnership with Key. 4 Wells Fargo owns 60% and First Data 40%. 5 Has a revenue sharing alliance with First Data. 6 First Data owns 40%. 7 Includes some business
for which it doesn’t own the merchant contract. 8 Elavon owns 51%.
11
© 2016 HSN Consultants, Inc. THE NILSON REPORT All Rights Reserved. Reproducing or allowing reproduction or dissemination of any portion of this newsletter in any manner for any purpose is strictly
prohibited and may violate the intellectual property rights of HSN Consultants, Inc. dba The Nilson Report.
Top U.S. Acquirers
from page 11...
Commerce Solutions, Bank of
America, Vantiv, Wells Fargo,
Elavon, Worldpay, First Data,
Heartland, and TransFirst.
Acquirers with more than
$10 billion in PIN debit
purchase volume were Vantiv,
Bank of America, First Data,
Chase Commerce Solutions,
Worldpay, Elavon, Heartland, and
Wells Fargo.
Acquisitions and revenue
sharing agreements involving
merchant card processing
contracts announced in 2015
included Heartland by Global
Payments, Capital One by
Vantiv, Premier Payments by
Newtek Electronic Payment
Processing, Advanced Payment
Systems by Payscout, American
Credit Card by Priority Payment
Systems, Chase’s ISO business
and Accelerated Card Company
by First American Payment
Systems, Innovative Financial
Technologies and Infintech by
i3 Verticals, PayLogic by Direct
Ecommerce/MOTO Business 2015
Acquirer
Trans.
(mil.)
Chase
8,740.0
Wells Fargo
1,472.0
Vantiv
1,414.5
Elavon
815.1
Worldpay
280.0
N. Amer. Bancard 214.1
TransFirst
209.1
Sage Pymt. Sol.
143.7
Merrick Bank
80.1
Merchant e-Sol.
78.4
CardConnect
69.4
SunTrust
64.5
Heartland
52.0
TSYS
47.3
Santander
36.4
BluePay
30.6
Commerce Bank
26.8
JetPay
20.6
Security Card Serv. 19.4
Volume
(bil.)
$618.58
$124.75
$116.50
$166.17
$23.35
$10.73
$21.94
$17.23
$9.16
$14.44
$6.22
$12.48
$4.85
$5.33
$2.52
$6.45
$5.40
$3.44
$2.14
Connect, Payment Revolution
by Shopkeep, SecureNet by
Worldpay, Terrapin Financial by
BluePay, and Superior Financial
Acquirer
Trans. Volume
(mil.)
(bil.)
TransFund
Complete Merchant
Clearent
First American
Total Merch. Serv.
Vanco Pymt. Sol.
First Citizens
Bankcard Services
TIB
Intrix Technology
First Hawaiian
UMS Banking
Bank of Hawaii
Approval Pymt. Sol.
Apogee Pymt. Sys.
NCMIC Finance
19.4
13.6
13.4
11.3
8.2
8.2
5.2
5.0
4.1
2.6
1.9
1.4
1.1
0.7
0.2
<0.1
$2.83
$1.52
$2.87
$1.83
$1.51
$1.72
$1.51
$0.31
$0.69
$0.39
$0.81
$0.43
$0.09
$0.07
$0.03
$0.23
Figures are for ecommerce, mail order, and
telephone order transactions handled by
U.S. acquirers. © 2016 The Nilson Report
by 5th Dimension Logistics.
Announced earlier this year was
the acquisition of TransFirst by
TSYS Merchant Services.
Retailers File New Antitrust Litigation
Two retailers in Florida want to represent a proposed
class of merchants who they claim were subjected
to the EMV chip fraud liability shift in violation of
the Sherman Antitrust Act, California’s antitrust
... 88 chargebacks, up from 4 during
the same period the prior year.
regulations, and other laws. B&R Supermarket (dba
Milam’s Market) and Grove Liquors named Visa,
MasterCard, American Express, Discover, Citibank,
Capital One, Bank of America, Wells Fargo, Chase,
PNC, EMVCo, JCB, U.S. Bancorp, USAA, UnionPay,
and Barclays Bank Delaware as defendants in the
complaint they filed in U.S. District Court for the
Northern District of California.
12
The complaint (case# 3:16-cv-01150) states that
merchants were not aware that the October 1, 2015
deadline meant not only that terminals had to be
in place, but that the terminals also needed to be
certified. Many smaller merchants had to wait until
after October 1, 2015 to receive certification because
processors were assisting larger merchants.
The plaintiffs were subjected to more than
$10,000 in chargebacks and fees tied to 88 allegedly
fraudulent payments from October 1, 2015 through
February 1, 2016. In the same period one year before,
they had 4 charged back transactions.
David Robertson, Publisher
March 16, 2016

Top Acquirers in the US 2015

Transcription

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