Below are interesting stories the Banking.com staff has been reading over the past week. What have you been reading? Let us know in the comments section below.
- Card Issuers Battling Fraud with Limited Resources
Credit and debit card fraud leads other types of fraud at most U.S. banks and credit unions, but most institutions are fighting such activity under constrained resources, according to a survey. Data released by ISMG Corp.’s BankInfoSecurity.com showed that banks have teams averaging one to five workers, regardless of the institution’s size, focused on fraud activity. The findings were released at the BAI Payments Connect conference here on Monday. Seventy-two percent of the 255 institutions surveyed online in October said they had credit or debit card fraud within the previous 12 months, followed by ATM fraud, 41%, and fraud conducted through automated clearing house channels, 30%. Also, fraud initiated from insiders or employees, wire fraud and other types of payment fraud were each cited by 20% of the institutions.
- Making a Bad Business Case Worse: Dodd Franck and Mobile NFC
Celent keeps hearing that mobile payments are coming, but to date there has been more light than heat. Why is this? In a previous Celent report, The View from the Mobile NFC Finish Line: Bank Economics in a Mature Mobile NFC Payments World, September 2009, Celent made the case that NFC payments were not in the interest of the established players. Where does Celent see an opportunity for mobile NFC? In closed loop retail payment systems.
- Where Are You Investing Technology Dollars?
Credit Union Journal asked attendees of NAFCU’s Technology & Security Conference here where their CUs will be investing their technology dollars in 2011, and why. Lewis Terry, VP of information systems, Fort Bragg FCU, Fayetteville, N.C. says, “The first thing we are looking into is finding a partner to manage our third-party vendors for us. Second, we are updating our disaster recovery service. Also, we are starting to replace some of our older ATMs with ADA-compliant [Americans With Disabilities Act] ATMs.”
- Durbin: A Consumer-Friendly Regulation?
As the regulatory environment in the U.S. continues to evolve, payment services providers are being challenged to sustain revenue by developing new approaches to products and services, accounts and fee structures. At the same time, merchants are likely to see significant reductions in payments acceptance costs for some forms of payment. The implications of regulations on financial institution practices are also unlikely to favor consumers. The combination of Durbin with other regulations is causing many banks to reassess their revenue models for DDA accounts, payments services, rewards and for other products, services and features
- Debit Card Fees Prompt a Push Near Deadline
Without much warning or debate, the Senate passed an amendment directing the Federal Reserve to reduce the hidden “swipe fees” that banks collect from retailers each time a customer makes a purchase with a debit card. Now, as the Fed faces a deadline in April to write the rules for the lower fees, banks and debit card companies are engaged in an all-out assault on Capitol Hill, enlisting a growing cadre of lawmakers and lobbyists to push for changes, delay or outright repeal. Banks contend the proposed cut in fees — to 12 cents per transaction from an average of 44 cents — will leave many of them unable to afford to issue debit cards to customers or will force them to raise other consumer banking charges to cover the costs. They also claim retailers will reap unfair profits.
- Which banks and credit unions still offer free checking?
Big banks are tacking on fees and conditions, but some smaller competitors are ready to pick up the check. Plenty of financial institutions still offer free, no-frills checking. But increasingly, they’re taking away perks or charging for other services. Some institutions refrain from promoting their free products. They say they’re still not sure they can provide it until new rules on debit-card fees become clear.