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Table of Contents

Lead Story

Leasing 2.0 – An old tradition gets a new look

News

Industry Update

AmEx to appeal court ruling on merchant steering

Massive hack siphons nearly $1 billion from banks worldwide

EMV, interchange concern ATM deployers

Costco, JetBlue disengaged with AmEx

Trade Association News

Features

Mobile poised for online growth

Use newsletters for customer retention

Views

Remote capture is for more than just checks

Patti Murphy
ProScribes Inc.

Paradigm shift on portfolio ownership

Alex Nouri
EFT Direct

Education

Street SmartsSM:
Keep calm and process on

Tom Waters and Ben Abel
Bank Associates Merchant Services

ISO third-party integrations and data sharing

Adam Atlas
Attorney at Law

How do you decide which terminals belong in your toolbox?

Jeff Fortney
Clearent LLC

Company Profile

ISO Advance

Premier Payment Systems Inc.

New Products

Seamless, scalable in-store mobile payments

PD40
Zebra Technologies Corp.

Cloud-based, interactive payments for food service

iPAD POS
Aptito LLC

Inspiration

Workplace Oscar party

Departments

GS 10 Years Ago

Readers Speak

Resource Guide

Datebook

A Bigger Thing

The Green Sheet Online Edition

March 09, 2015  •  Issue 15:03:01

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March 14, 2005 • Issue 05:03:01
GS 10 Years Ago

Back in March 2005, our industry was discussing many issues that remain familiar to us today, including the expanding role of prepaid cards from gifts to more traditional financial tools, how data breaches spur legislators into action and how much pricing affects merchant attrition.

Multipurpose stored value

"Prepaid cards: Not just for gifts anymore" stated that the nature of prepaid cards, also called stored-value cards (SVCs) was expanding to give consumers a wider range of options beyond making purchases at their favorite stores. "Consumers use prepaid cards because of the convenience and cost savings they provide. SVCs make it easier for people to manage their funds, pay bills, make purchases and to transfer money … they are also beginning to bring features typically associated with traditional bank accounts to 'unbanked' and 'underbanked' consumers.

Bring in the FTC

A major data breach at consumer data broker ChoicePoint Inc. raised the call for a Senate Judiciary Committee hearing on whether the Federal Trade Commission should provide more oversight of companies that store sensitive data. Thieves created business licenses for what appeared to be legitimate companies in order to breach ChoicePoint's security system. The crooks then accessed records, which contained consumers' names, addresses, Social Security numbers and credit reports. The criminals operated undetected for more than a year and used the stolen data to steal the identities of at least 750 people.

Is it about price?

In "Pricing and attrition in merchant acquiring," Marc Abbey and David Woynerowski stated that pricing drives 25 to 30 percent of attrition from merchants with annual processing volumes in the $100,000 to $1 million range and drives more than 90 percent of attrition among merchants with volumes of $20 million or more. "For merchants in the mid-market and higher, pricing is the overwhelming reason for attrition. However, that is not to imply that an acquirer's investment in personalized service for larger merchants through relationship management is foolhardy," the authors wrote.

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:

USAePay | Impact Paysystems | Electronic Merchant Systems | Inovio