From the Retail Payments Risk Forum December 5, 2011, The future of mobile payments is explored. Although mobile payments have been much slower to develop in the United States than many industry observers had predicted, there have been a number of encouraging recent developments. Starbucks, for example, has processed more than 20 million mobile payments since launching its app, and the Chicago Transit Authority’s new fare collection system will be able to accept mobile payments starting in 2013. Still, despite these small successes, the United States has not seen the mobile phone really take off as a vehicle for point-of-sale payments.

The Retail Payments Risk Forum recently interviewed David Evans, a payments industry consultant and the founder of Market Platform Dynamics, in a podcast exploring some of the challenges facing widespread mobile payments adoption. Evans maintained that a couple of obstacles have kept mobile payments from taking off in the United States. “Barrier number one is that there is not a very persuasive mobile payments alternative for consumers to use at the point of sale, and the second is that there’s really not the technology at the point of sale capable of processing a mobile payments-type transaction.”

In addition to these barriers, he said, is the simple fact that most consumers are satisfied with the way things are. Evans explained, “I can pull out a credit or a debit card at the point of sale, I can swipe it, and it works beautifully. Takes about a second. No fuss, no muss—the clerk knows what to do. The technology is all there. So we have this wonderful system that works really well right now that’s extremely efficient.” To change the status quo, a compelling value proposition must emerge for all parties. “Someone’s going to have to come up with a really great alternative that adds value to the merchant and adds value to the consumers to make both of them want to do something different than [what] they are currently doing,” said Evans.

Regarding the prospects for mobile payments outside the United States, Evans said, “I think that where we are going to see mobile payments take off around the world is primarily in countries that do not already have a very well-developed payment card industry with acceptance at the point of sale and that have very well-developed mobile phone systems.”

The role of different types of market players has been a major source of debate among those forecasting mobile payments. Many disagree how the mobile carriers, such as Verizon and AT&T, will fit into the new landscape. Evans predicted that “the likely role of the carriers in payments is basically being a pipe.” He stressed that mobile carriers do not have the expertise to operate mobile payments and are more likely to become pipes for others who will develop mobile payments alternatives.

When asked about his predictions about the type of technology that will ultimately support mobile payments, Evans said that it was still too early to know. However, he did say that “it’s really the solution that is going to drive the adoption of a particular acceptance technology at the point of sale, rather than the acceptance technology driving the solution.” There are clearly still a lot of unknowns with regards to mobile payments, and Evans wisely concluded that “we should talk about this in 10 years when we may actually know the answer!”

By Jennifer C. Windh, a payments risk analyst in the Retail Payments Risk Forum at the Atlanta Fed

Effective October 1, 2011, Visa introduced new interchange rates to ensure compliance with the final U.S. Federal Reserve Bank rules for the debit regulation provisions of the Dodd-Frank Act. The interchange rate assessed to regulated card products including debit, prepaid, commercial prepaid, and business debit cards is 0.05% + $0.21 + $0.01 fraud adjustment. The $0.01 fraud adjustment component of the interchange rate charged was approved as part of an interim rule that allows card issuers to receive additional interchange, on a per transaction basis, if the issuer certifies adoption of specific fraud prevention policies and procedures.
Visa has confirmed that most regulated card issuers have certified their adoption of the fraud prevention policies. For the card issuers who have not certified, Visa will utilize a manual adjustment process to debit card issuers of the fraud adjustment amounts paid, to ensure compliance with the Act. Visa will utilize the following manual process to facilitate adjustments:

• Visa will manually submit debits to non-certified issuers and will pass the appropriate credits to affected acquirers.
• The first round of adjustments will begin January 12, 2012 for transactions occurring between the timeframe of October 1, 2011 through December 31, 2011 (adjustments will be made at the BIN level).
• The manual adjustment process will continue quarterly, with the next adjustment occurring in April 2012 for transactions processed from January 2012 through March 2012.
• The process will remain in effect until the U.S. Federal Reserve Bank communicates the final fraud prevention standards and timeline.

On October 27, 2011, the IRS announced that backup withholding will be postponed for one year. Backup withholding will be applied to amounts paid after 12/31/2012.  The penalty relief will not, however, extend to entities that fail to file or make no effort to file 2011 Forms 1099-K as required.

Bottom line: If your IRS TIN does not match your merchant account information, then you could be subject to penalties.
“First Data continues to review State regulations related to Section 6050W backup withholding.    Based on our research to date, we currently believe that the backup withholding delay will apply to both Federal and State.    As a result, First Data is in the process of adjusting our project timelines to support backup withholding for missing / invalid TINs as of January 1, 2013. Although the delay impacts activation of backup withholding processes, development efforts continue for timely implementation.
We are in the process of researching IRS plans for the CP2100 process, expected for the Fall of 2012. Once we have additional details we will notify you.
The above announced changes do not impact our client’s responsibility to obtain valid Tax Filing Names and Tax Identification Numbers from their merchants as applicable. This information is required to ensure accurate filing of the form 1099-K reporting to the merchants and the IRS.”

Related article, Jan. 1, 2011 Deadline for credit processing reporting to IRS looms.

First Data released an article called Perspective: IRS 1099-K “Transitional Relief” Offers Backup Withholding Breather to Impacted Merchants. It’s critical for merchants to understand that while recent IRS changes with respect to payment processor reporting have been delayed, the merchant is still responsible. The two recent IRS notices do not bring merchants additional time in which to prepare for the new reporting requirements. They do, however, bring more time before affected merchants will likely have to worry about financial impacts, such as backup withholding.

RELATED ARTICLES:
Link to full article on First Data

Link to IRS New Payment Card Reporting Requirements

SAN FRANCISCO–(BUSINESS WIRE)–Nov. 21, 2011– Visa Inc. (NYSE:V), a global leader in payments and shopkick, an award-winning mobile app that rewards consumers for simply walking into stores, announced today that cardholders can now qualify for valuable rewards just for paying with Visa. Shopkick now lets mobile users earn more redeemable kicksTM by choosing to link their eligible Visa debit or credit card into its new Buy & Collect program and then making qualifying purchases at participating shopkick merchants with the linked card. Shopkick users have the option to earn more rewards while shopping in their favorite stores and merchants can increase sales and better measure the effectiveness of their location-based marketing efforts.

“Through our relationship with Visa, we have closed the loop – rewarding shoppers at every step of the shopping process from discovery to purchase. No one else is doing that. We combine our popular walk-in rewards with rewards for purchase,” said Cyriac Roeding, co-founder and CEO of shopkick. “Shoppers get more rewards, and our retail partners get more shoppers and purchases– all made possible through the Visa network – it equals a win-win-win.”

Shopkick aims to dramatically improve consumers’ shopping experiences in-store by offering an award-winning app that rewards them just for walking in. At the core of the mobile shopping app is the patent-pending Shopkick Signal ultra-precise location technology, which lets the user’s shopkick app detect its presence in enrolled stores accurately and seamlessly, automatically crediting rewards to the right account, and delivering offers relevant to that retail location.

Now, through Visa’s real-time messaging platform, shopkick merchants can offer Visa cardholders rewards not only for visiting and browsing in a store, but also for making qualifying purchases while they are in the store. Registered shoppers will qualify for Buy & Collect offers such as “spend $40 and receive 250 kicks,” while they are in the store. The first shopkick merchants offering Buy & Collect include American Eagle Outfitters, Arden B., Old Navy, Toys”R”Us, and Wet Seal – available immediately in participating shopkick locations.

The relationship with shopkick’s Buy & Collect program aligns with Visa’s ongoing commitment to deliver greater value to financial institutions and merchants, while enhancing the consumer shopping experience.

“Visa’s ability to analyze transactions in real-time provides retailers a new way to reach enrolled customers while they are shopping and to measure the results of their marketing efforts – so they can deliver the right offer to the right consumer at the right time,” said Leigh Amaro, senior business leader, Information Products, Visa Inc. “Further, the alliance with shopkick can make shopping with a registered Visa card even more rewarding – in turn, helping financial institutions add value to card programs while enabling merchants to realize increased sales.”

In keeping with best practices of security and privacy, consumers must opt-into the program to participate. They receive detailed information on how the program works and can conveniently opt-out at any time. “As consumers embrace new technology to enhance their shopping experiences, we think it’s important for Visa account holders to decide if the benefits of this program make sense for them,” said Amaro.

How it works

1. Existing shopkick app users will be automatically alerted to the availability of the new Buy & Collect program and those who are new to the app will be notified of this additional, optional program.

2. App users choose to opt in to the new program and link their Visa account on an enrollment page hosted by Visa. When cardholders choose to register their Visa credit or debit card, they agree that Visa will provide shopkick with information regarding their transactions at participating merchants in order to enable shopkick to provide kicks rewards on qualifying purchases.

Participation in the new Buy & Collect program is completely optional, and Visa card registration is not required to sign up for the regular shopkick service.

3. Shopkick app users who opt in to the Buy & Collect program will see a green payment card icon on their “nearby” screen to let them know there are additional offers at participating merchants. By tapping onto that merchant, they’ll see the buy and collect offer such as “Spend $20, get 400 kicks” at the top of the page.

4. Shopkick app users who opt in to the Buy & Collect program can make a qualifying purchase with their enrolled Visa card at participating Buy & Collect merchants.

5. After swiping their enrolled Visa card, shopkick app users receive real-time notification from shopkick that their kicks rewards are banked.

About Shopkick:

shopkick, Inc. is a Palo Alto-based startup funded by Kleiner Perkins’ iFund, Greylock Partners and Reid Hoffman, founder of LinkedIn, and investor in Facebook and Zynga. In August 2010, shopkick launched the first mobile application that hands consumers high-value rewards, offers and exclusive deals at shopkick’s national retail partners simply for walking into stores and malls. Even more rewards can be earned for scanning partner brand products at over 250,000 stores nationwide. In combination with a groundbreaking new location technology called “shopkick Signal”, the app can verify location within feet, and because the detection occurs on the phone, privacy of presence information is completely in the users’ control. Shopkick’s growing partner alliance includes American Eagle Outfitters, Best Buy, Crate and Barrel, Macy’s, Simon Property Group, The Sports Authority, Target, Toys“R”Us, west elm, The Wet Seal, Kraft Foods, Procter & Gamble, Unilever, Intel, HP and The CW. shopkick is the only 100% performance-based marketing platform in the physical retail world, with measurable foot traffic and transactions at stores. The app grew to 2.5 million users in its first 15 months. The free shopkick app is available for the iPhone and Android.

About Visa Inc.:

Visa Inc (NYSE:V) is a global payments technology company that connects consumers, businesses, financial institutions and governments in more than 200 countries and territories to fast, secure and reliable digital currency. Underpinning digital currency is one of the world’s most advanced processing networks—VisaNet—that is capable of handling more than 20,000 transaction messages a second, with fraud protection for consumers and guaranteed payment for merchants. Visa is not a bank, and does not issue cards, extend credit or set rates and fees for consumers. Visa’s innovations, however, enable its financial institution customers to offer consumers more choices: Pay now with debit, ahead of time with prepaid or later with credit products. For more information, visit www.corporate.visa.com.

The IRS announced a penalty enforcement delay for merchants. Set to begin January 2012, merchants would have been subject to penalty of 30% withholding, with deductions automatically taken from their merchant account deposits.

PDF download: Official IRS noticeIRS bulletin n-11-89 regarding backup withholding 1099k for card payments

Lighthouse Pt., FL October 20, 2011 – 3D Merchant Services, a payment processing solutions consultancy, today announced Rick Case FIAT in Davie, FL, the nations largest Fiat Dealer, chose CenPOS for their credit card processing gateway. CenPOS is an intelligent payment-processing network that streamlines the payment experience for businesses and consumers by using state-of-the-art technology to replace inefficient, outdated payment systems.
“A significant advantage is the ability to drive pin debit, which reduces risks and costs, “ said Christine Speedy, CEO of 3D Merchant Services and CenPOS agent. “Reconciliation is simplified, and merchants get all the other benefits of CenPOS, including remote access to real time data, real time alerts, remote user management, and least cost routing,” continued Christine.

In a post Durbin Amendment era, CenPOS supports all new legislative and card association initiatives, including offering discounts for certain card types. Because it’s remotely hosted, merchants do not need to download terminal updates as rules and laws change. Additionally, CenPOS dynamically routes transactions on the fly with its proprietary switching technology.

The CenPOS automotive industry solution includes a retail point of sale virtual terminal, ecommerce API, mobile payment app, web pay page, Electronic Bill Presentment and Payment, and electronic invoicing. Seven years of transaction data, with signed customer receipts, is dynamically searchable to maximize business insights and minimize disruption during internal changes. Furthermore, it does not require the user to change their financial services providers. Integrated check and ACH services are also available.

About 3D Merchant Services
3D Merchant Services is engaged in growing CenPOS direct business relationships with ISO’s, banks, resellers and merchants. www.3Dmerchant.com. Sales@3dmerchant.com

About CenPOS

http://www.cenpos.com/

“Creating efficiencies through payment innovation”
CenPOS is an intelligent payment-processing network that streamlines the payment experience for businesses and consumers by using state-of-the-art technology to replace inefficient, outdated payment systems. CenPOS provides solutions to a range of organizations including but not limited to retail, card not present merchants, automotive dealers, professional services and academic institutions; special programs are also available for non-profits. Global Sales Contact: Christine Speedy Call (954) 942-0483, or toll free: (877) 630-7960.
About the Rick Case Automotive Group:
The Rick Case Automotive Group, founded in 1962 will be celebrating its 50th anniversary next year. Located in South Florida since 1986, it is owned and operated by the wife and husband team of Rita and Rick Case, recent winners of the Ernst & Young Entrepreneur Of The Year Award. With 15 dealerships in Florida, Georgia and Ohio, The Rick Case Automotive Group offers Acura, Audi, Hyundai, Kia, Mazda, Mitsubishi, FIAT and Honda Cars & Cycles to customers, including the World’s Largest Honda and Hyundai dealerships in Broward County, Florida. With locations on I-75 at Griffin Road and on 441 at Sunrise Blvd., Rick Case Automotive Group’s corporate offices are located at 875 North State Road 7 in Ft. Lauderdale, Florida. For more information, please call (954) 377-7410 or visit www.rickcase.com.

CenPOS, a fast-growing payment processing technology provider, announced it is now certified with Vantiv and can offer Vantiv payment processing tools to its customers.

Miami, FL (PRWEB) October 25, 2011

CenPOS, a fast-growing payment processing technology provider, announced it is now certified with Vantiv and can offer Vantiv payment processing tools to its customers. CenPOS is an intelligent payment processing network that streamlines the payment experience for businesses and consumers by using state-of-the-art technology to reduce risk and replace inefficient, outdated payment systems. The CenPOS intelligent payment network dynamically routes transactions to assure the least risk exposure and least cost for the merchant.

The certification to Vantiv will provide a rich transactional set that will keep CenPOS ahead of the various requirements mandated by the card association and legislative reforms. Authorization reversals and partial authorizations for debit and prepaid are fully supported.

“Vantiv certification validates CenPOS technology and processes and allows us to focus on delivering to our clients a fully scalable and customized payment processing network that handles all transaction types and processes payments quickly, accurately, and securely,” said Jorge Fernandez, CenPOS President & Founder. “CenPOS provides a robust payment network that helps businesses minimize the risks and costs associated with accepting payments,” added Fernandez.

About CenPOS

http://www.cenpos.com

“Creating efficiencies through payment innovation”

Founded in 2009, Miami-based CenPOS is a payment technology provider. CenPOS is committed to providing its customers and partners with innovative solutions for today’s rapidly evolving consumer payment choices.

CenPOS is an intelligent payment-processing network that streamlines the payment experience for businesses and consumers by using state-of-the-art technology to replace inefficient, outdated payment systems. The network reflects the core values that drive the experienced and innovative CenPOS team: Simplicity, Scalability, Security and a holistic approach to payment processing strategies.

CenPOS provides solutions to a range of organizations including but not limited to retail, card not present merchants, automotive dealers, professional services and academic institutions; special programs are also available for non-profits. CenPOS sales: Christine Speedy direct (954)942-0483, HQ  (305) 630-7960, or toll free: (877) 630-7960.

About Vantiv, LLC
Vantiv, LLC is one of the largest providers of payment strategies and technology solutions for financial institutions and businesses worldwide. Formed in 1971 and most recently known as Fifth Third Processing Solutions, LLC, the Company builds strategic partnerships with its customers, helping them become more efficient, more secure and more successful. Headquartered in Cincinnati, Ohio, Vantiv, LLC is a joint venture between Advent International and Fifth Third Bank, a subsidiary of Fifth Third Bancorp (FITB). For more information, visit http://www.vantiv.com