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Table of Contents

Lead Story

IRS says no merchant fees for 1099-K reporting: Who's listening?

News

Industry Update

PCI SSC seeks focus group topic

Visa outlines post-Durbin strategy

Is biggest Durbin impact loss of routing control?

FiServe CEO says Durbin good for tech spending

ACI thwarting S1-Fundtech merger

Trade Association News

Features

An interview with Kurt Strawhecker

Ken Musante
Eureka Payments LLC

Banks counseled to meet the underserved

Patti Murphy
ProScribes Inc.

Research Rundown

Mobile payments present new sales channel

Gene Distler
VeriFone Inc.

Antiquated thinking could doom mobile payments at the POS

Biff Matthews
CardWare International

The green advantage

Selling Prepaid

Prepaid in brief

Streit says Green Dot exempt from Durbin

Winning prepaid's PR battle with regulation

Views

Checks: Like the Energizer Bunny, they just keep going

Patti Murphy
ProScribes Inc.

Education

Street SmartsSM:
Why MLSs should attend tradeshows

Bill Pirtle
MPCT Publishing Co.

SAFE Data notification bill: Does it go far enough?

Nicholas Cucci
Network Merchants Inc.

Working your P-L-A-N

Dale S. Laszig
Castles Technology Co. Ltd.

Company Profile

Blueprint SMS

New Products

Cloud-based document printing hits college campuses

Heartland Campus Solutions WEPA program
Heartland Payment Systems Inc.

Stop identity theft and fraud in its tracks

IdentiFlo Management Platform
Electronic Verification Systems LLC

Inspiration

The art of venting

Miscellaneous

Can new regulatory burdens become a competitive advantage?

Departments

Forum

Resource Guide

Datebook

A Bigger Thing

The Green Sheet Online Edition

August 22, 2011  •  Issue 11:08:02

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FiServe CEO says Durbin good for tech spending

The new debit interchange cap offers opportunity to financial services companies and will spur technology sales until year's end, FiServe President and Chief Executive Officer Jeff Yabuki told investors on a conference call held to report on his company's second quarter earnings. "We believe the finalization of the Durbin rules will allow financial institutions to make decisions that could positively impact IT spends this year," he said.

Processors gain advantages

Yabuki said the newly created two-tier cap system created in the Federal Reserve's final rule complying with the Durbin Amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 offers a number of advantages for processors. The two-tier system created in the rule distinguishes between financial institutions that process more than $10 billion annually and those below that mark.

"We view this [two-tier system] as positive for our business in the near and the mid-term," Yabuki stated. He added he particularly likes the new requirement that all debit cards have two unaffiliated networks associated with them.

"The network exclusivity provisions in Durbin that require two unaffiliated networks on a debit card make real the opportunity for [FiServe's] ACCEL/Exchange PIN debit network to engage with larger issuers currently involved in exclusive network relations," he said. "We also believe the majority of these decisions will likely be made in 2011." Yabuki also predicted Durbin will push more prepaid sales. "While interchange limitations on prepaid were different than anticipated, Durbin has substantially increased financial institution interest in general purpose reloadable prepaid," he said.

"Market interest has us also optimistic about the broader prepaid opportunity consistent with our [$465 million] acquisition [of payment processor CashEdge Inc.] earlier this year."

FiServe business up

Yabuki expects the CashEdge acquisition will close by the end of the third quarter and bolster FiServ's digital payments business. He emphasized the FiServe payments business was up 5 percent from this time last year and noted that regulatory actions have slowed - from 111 last year at this time to 74 regulatory actions this year.

The regulatory focus has been on smaller institutions and resulted, on average, in a reduction of 70 percent of the total assets of the impacted institutions. "At the same time we continue to see increased voluntary acquisition this year and we expect that to continue," Yabuki said.

For additional news stories, please visit www.greensheet.com and click on "Read the Entire Story" in the center column below the latest news story excerpt. This will take you to the full text of that story, followed by all other news stories posted online.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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Spotlight Innovators:

North American Bancard | USAePay | Super G Capital LLC | Humboldt Merchant Services | Impact Paysystems | Electronic Merchant Systems