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Australia, Hong Kong and Thailand Join the One Million EMV Chip Card Club
Release (Singapore) - Visa Asia Pacific today announced three markets have reached one million EMV chip cards issued by its member financial institutions, highlighting the ongoing progress of migration to EMV chip cards in the region. In the December quarter of 2006, Australia, Hong Kong and Thailand joined Japan, Malaysia, South Korea and Taiwan in the one million chip card club. Jack Pan, regional head, Chip Migration for Visa International in Asia Pacific said the December 2006 quarter result represented a 46 percent year-on-year growth in EMV card deployment, consistent with the annual chip card growth over the past three years in Asia Pacific. "We have more than 63 million EMV chip cards in the Asia Pacific, representing 19 percent of Visa's card base. Combined with the 1.68 million EMV chip terminals deployed, Visa and its member financial institutions are helping to create a secure and advanced chip payment foundation," said Pan.
The Downside of Paying with Credit Cards
Apple Daily (Hong Kong) - The TJX security breach has resulted in the loss of payment card data from at least 45.7 million cardholders. Besides the risk of information theft, paying with credit cards also involves expensive service charges to merchants. According to the Nilson Report, American merchants paid a total of US$56 billion in payment card transaction fees last year, double the amount paid five years ago. Merchants in the US have raised a lawsuit accusing Visa, MasterCard and banks of setting excessive interchange rates. The European Union also regulates such fees on cross-border transactions.
Online Shopping Gets More Secure for Visa Cardholders
efytimes.com (India) - The "Verified by Visa" program offered by Visa now enables ICICI Bank to intercept an e-commerce transaction and verify the identity of the cardholder. Santanu Mukherjee, country manager, South Asia, Visa Asia Pacific, said, "'Verified by Visa' is a product specifically aimed at providing consumers with an added layer of security during online payments. We are proud to partner with two other industry leaders, enStage and ICICI Bank, in providing cardholders with this secure technology for their online transactions."
Visa’s Friendship Lanes Tour Anchored by Olympians
Aroundtherings.com, Sina.com, qq.com, 21cn.com, olympic.cn, sports.cn (China) - Michael Phelps and Katie Hoff are anchoring the "Visa Friendship Lanes Tour" of goodwill, friendship and cultural experience. The athletes visit to China, supported by Speedo and Special Olympics, represents their support of the 2007 Special Olympics World Summer Games in Shanghai and the 2008 Olympic Games in Beijing. "Visa’s Olympic marketing programs are designed to show the public the journey that our Olympic athletes and hopefuls follow. We're very proud of our long partnership we have with Michael and Katie," said Michael Lynch, senior vice president, Partnership Marketing, Visa USA.
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Mitsubishi UFJ Nicos to Issue Cards in Cooperation with Tokyo Electric Power
Nikkei Kinyu Shimbun (Japan) - Mitsubishi UFJ Nicos and Tokyo Electric Power announced that they will issue credit cards that enable users to earn points when they pay electric power, gas and other public utility bills by card. The accumulated points can be converted into other kinds of reward points, including ANA mileage points and points issued by department stores.
ICICI Megamart in Co-branded Card Deal
Business Standard (India) - ICICI Bank has launched a co-branded credit card with Megamart. The gold card will carry a multiple reward points scheme whereby customers can earn six reward points for every Rs 200 spent at any Megamart outlet.
China Banks Cut Bad Loan Ratio
Today (Singapore) - China's biggest commercial banks will cut their combined non-performing loan ratio to less than five percent next year after the restructuring of Agricultural Bank of China, the nation's top regulator said. The 16 biggest financial services companies will cut their loan-loss reserves to about US$10 billion by the end of next year, from $57.9 billion as at end December, said Liu Ming Kang, chairman of China Banking Regulatory Commission. The banks had RMB 1.17 trillion (US$229.7 billion) of bad debts at the end of last year.
Citigroup Aims for Leaner Look
International Herald Tribune (Hong Kong), Business Times (Singapore) - Charles Prince spent his first two years as chief executive of Citigroup adding more compliance officers and improving the bank's controls after a series of messy scandals. He is now planning to eliminate or reassign more than 26,000 jobs, or about eight percent of the work force, as part of a broad effort to streamline the bank's unwieldly global operations and get its costs under control.
Former Bank Directors Urged Rejection of Buyout
International Herald Tribune (Hong Kong) - Seven former directors of Bendigo Bank urged shareholders to reject Bank of Queensland's A$2.6 billion (US$2.1 billion) takeover offer, describing the unsolicited bid as arrogant. "We have formed the opinion that the terms of the offer indicate a great arrogance by Bank of Queensland," the former directors, all shareholders of the Victorian-based bank said in a letter to the Bendigo Advertiser newspaper published Tuesday.
ICICI Bank Fined for Breach of Licence Rules in HK
The Economic Times (India) - ICICI Bank has been fined HK$40,000 by the Hong Kong Securities and Futures Commission (SFC) for dealing in securities without a licence between 15 June 2004 and 8 March 2006. The bank has been allowed to maintain its banking licence in Hong Kong. It announced on Tuesday that it would also have to reimburse the costs relating to the investigation to the SFC.
Barclays' Proposed Takeover Hit by US 'Investigation' into ABN AMRO
The Independent (UK) - Barclays' proposed £40 billion takeover of ABN Amro ran into further trouble this weekend, as it emerged that the Dutch bank could be the subject of an ongoing investigation by the US Department of Justice. Although ABN is believed to be working towards a settlement with the US authorities, it is understood Barclays is seeking reassurance that the matter will be resolved before it makes a formal bid for the bank. ABN granted Barclays a 30-day exclusivity period on 18 March, which runs out next week.
Citigroup's Revamp May Trim its Compliance Corps
The New York Times, The Associated Press (US) - Citigroup chairman and chief executive Charles Prince will release details of cost-cutting steps this week, including the consolidation of some operations and moving others to lower-cost locations. Under pressure from investors, Prince is set to release plans on Wednesday for the bank's first major overhaul since a merger forged Citigroup a decade ago. He is planning to eliminate or reassign more than 26,000 jobs, or about eight percent of the work force, as part of a broad effort to streamline the bank's unwieldy global operations and get its costs under control.
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Card Tricks
Money Magazine (Australia)- Most cards charge more than one interest rate. And a card charging 10 percent can end up costing more than one that charges 18 percent. Besides the interest rate and annual fee, credit cards come with at least another 13 possible fees and charges.
Watchdog Reins in Credit Card Benefits
Joongang Ilbo (Korea) - Concerned that the excessive benefits offered by credit card companies could drive card companies into financial hardship, Korea’s financial watchdog continues to clamp down on benefits offered to cardholders. The regulator has introduced a set of guidelines that prohibit any kind of discounts on transportation fees and has put a monetary cap on gas discounts at KRW 80 per liter.
MasterCard Plans to Launch PayPass in Hong Kong
Hong Kong Economic Times (Hong Kong) - MasterCard is planning to launch PayPass, a contactless payment method that can be installed in different devices such as mobile phones or keyrings, in Hong Kong at the end of this year at the earliest. According to Cathleen Conforti, senior vice president of Remote Payment and Presentment Service (RPPS), MasterCard is discussing the plan with different companies, including Octopus. PayPass first launched in the United States in 2005 and is now rolled out in 13 countries including Japan, Malaysia, the Philippines, South Korea, Taiwan and Thailand.
Octopus Committed to Cooperating with Global Payment Companies
Hong Kong Economic Times (Hong Kong) - According to Prudence Chan, Octopus is committed to cooperating with global payment system operators. One example is that Octopus has been working with credit card issuers to provide automatic value-added services. Chan said global payment companies might share their development plans as technology continues to advance, including chip technology and proximity technology.
Malaysians RM 394.8 Billion in the Red
New Straits Times (Malaysia) – Malaysians owed RM 394.8 billion in housing and other debts as at the end of 2006. About half of the debts are in the form of mortgages, while another 24 percent was hire-purchase financing, said Credit Management and Counselling Agency chairman Datuk L Meyyappan. He said although the outstanding balances for credit cards have been growing by double digits over the years, there is no need for alarm as they only make up about 3.3 percent of banking sector loans and five percent of household debts.
Banks Scrap Fees on Inter-bank Enquiries
Hong Kong Commercial Daily, Ta Kung Pao, Macao Daily News, China Daily Hong Kong Edition (Hong Kong) - Cardholders in Mainland China will no longer have to pay inter-bank enquiry fees at ATMs from April, according to the China Banking Association. Its member banks, including most of China's commercial banks, have agreed to the change and will adjust their operating systems accordingly, said Liu Zhangjun, the association's deputy director.
Central Bank Keeps Policy for Modest Singapore Dollar Appreciation
Straits Times (Singapore) - Healthy prospects for the Singapore economy have prompted the Government to give a nod to further strengthening of the local currency. The Monetary Authority of Singapore said yesterday that it will keep its policy for a modest and gradual appreciation of the Singapore dollar against a trade-weighted basket of currencies. This, despite a number of external economic risks that have emerged recently.
China to Allow More Offshore Investments
Financial Times (Hong Kong) - China will allow domestic investors to buy more overseas financial assets "very soon", the country’s top banking official said Monday, in a move aimed at reducing the country’s ballooning foreign exchange reserves and relieving pressure on its currency to appreciate. "There is a great need for us to expand the scope of prudent investments overseas," said Liu Mingkang, chairman of the China Banking Regulatory Commission.
In Japan, Prices Keep Rates on Hold
International Herald Tribune (Hong Kong, The Straits Times (Singapore) - The Bank of Japan held its benchmark interest rate steady at 0.5 percent at the end of a two-day policy meeting Tuesday amid recent price declines and concerns about the US economy.
Three Chinese Found in Switzerland Using Fake Credits Cards Made in Hong Kong
Ta Kung Pao, Hong Kong Daily News, The Sun, Sing Tao Daily, Oriental Daily News, Ming Pao Daily News (Hong Kong) - Three Chinese people have been detained by police after being found using fake credit cards to purchase luxury items and settle their hotel bills in Switzerland. The Swiss police said the fake cards were made in Hong Kong, but the magnetic stripes on the cards belong to genuine cards stolen in Australia and New Zealand. The case involved an amount of about US$82,000.
ChinaUnionPay Plans Mobile Payment Trial
CardLine Asia Pacific (US) - China UnionPay plans to launch a mobile payment trial in Shanghai in the second half of the year. The trial will involve 1,000 mobile-payment handsets and several hundred point-of-sale terminals. China UnionPay didn't disclose the technology that the organization plans for the trial but observers believe it will involve handsets supporting Near Field Communication.
Money Transfer from Mobile Phones
Bugün, Star, Takvim, Yeni ªafak, Zaman, Vatan (Turkey) - MasterCard Worldwide and World GSM Union have announced that they will work together to implement a pilot application of a program aimed at making person-to-person international money transfers easier.
Better Pricing Could Boost Issuer Revenue from Purchasing Cards
CardLine (US) - Use of purchasing cards for larger business-to-business transactions will help boost revenue for purchasing card issuers over the next few years. Aite researchers interviewed representatives of 16 of the top 20 purchasing card issuers in the United States, as well as representatives of a purchasing card processor and of Visa USA and MasterCard Worldwide.
Card Debt Sales Down
CardLine (US) - Sales of charged-off credit card accounts slowed last week with only US$20.2 million in portfolios listed on the public portion of various debt-sale websites compared to $98.7 million the prior week. More deals are likely throughout this month as credit card issuers continue cleaning out charged-off portfolios in anticipation of possible economic problems later this year. Prices for charged-off credit card loans sold directly by issuers remain in the 11 cents to 14 cents range.
American Express Drops "My Life, My Card" Campaign
CardLine (US) - American Express is replacing its "My life, my card" advertising campaign, which launched in 2004, with one that focuses more on how consumers can use an American Express card for travel. The American Express website features links to information about booking flights, "traveling stress-free" and "living travel dreams". American Express says the campaign "will feature high-profile card members and additional benefits throughout the year."
Ecount Introduces Health Care Incentives on Prepaid Cards
CardLine (US) - Ecount, a Citi company that offers customized prepaid programs for corporations, has launched a suite of prepaid health care incentives to help insurers, employers and health insurance plan managers encourage healthy living and reduce overall health care costs. Ecount Health Care Incentives are one-time or recurring cash rewards delivered onto Visa or MasterCard prepaid cards. A dozen companies are offering or are about to implement Ecount's Health Care Incentives program.
First Data Completes Acquisition of Instant Cash Services
Business Wire (US) - First Data has announced that it has completed its acquisition of the Instant Cash Services business, which includes the Instant Cash Network, from Wells Fargo Bank. Wells Fargo will continue to participate in the Instant Cash Network, the Instant Cash Network participants will continue to enjoy deposit-sharing and surcharge-free access to ATMs at Wells Fargo branch locations, and Wells Fargo has agreed to recommend First Data's processing services to its Global Correspondent Banking Group customers.
MasterCard Picks Executive and Board for Foundation
CardLine Europe (UK) - MasterCard has named Deanna Rosenswig, a former executive with the Bank of Montreal, as president and CEO of The MasterCard Foundation, which is based in Toronto. Rosenswig is a former member of the Board of Directors of Women’s World Banking and Calmeadow, two leading microfinance organizations.
India Post to Install ATMs in Post Offices
CardLine Asia Pacific (US) - Indian postal service India Post plans to install ATMs in post offices across the country. India Post expects that introducing ATMs will ease the complaints of savings account holders about inadequate services. India Post has 154,000 post offices and 140 million account holders. Annual deposits with India Post's savings bank division stood at Rs 1 trillion (US$23.2 billion) as of end March 2005.
Chinese Banks Move to Cut the Fees for Balance Inquiries
CardLine Asia Pacific (US) - China Banking Association has announced a resolution that calls on banks to stop charging fees for balance inquiries made at member banks' ATMs. The group has more than 70 members, including some of the country's largest financial institutions. The fee cut could especially help ATMs users with lower incomes, the association said in a statement.
Banks Hit By Big Rise in Insider Fraud
Financial Times (UK) - The number of bank insider fraud cases has climbed sharply as criminals seek to exploit the industry's booming profits and high rates of employee turnover, say law-enforcement officials. Steve Wilmott, head of the economic crime department at City of London police, said 35 percent of his unit's work now involved "some insider element", compared with about 10 percent eight or nine years ago. The banks' high profits could be cushioning them against fraud and militating against investment in crime prevention. "The banks have got a really big problem, because their recruiting policies and practices are not weeding people out," he said.
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China Hits Out as US Launches Trade Cases
Financial Times (Hong Kong) - China yesterday reacted harshly to a US decision to take it to the World Trade Organization over piracy and copyright protection, saying it would "seriously damage" bilateral cooperation and harm business ties.
Thailand on High Alert after Bomb Explodes outside Shopping Centre in Bangkok
Today (Singapore), International Herald Tribune (Hong Kong) - A nationwide security alert was issued across Thailand after a bomb exploded outside a Bangkok shopping centre that was also hit in a wave of New Year's Eve attacks, officials said yesterday. The device blew up at a telephone booth in front of the Major Cineplex Ratchayothin shopping centre on the northern outskirts of the city late on Monday.
Bringing Gel on the Plane? You'll Soon Have to Bag it
Straits Times (Singapore) - All passengers flying out of Changi and Seletar airports will face restrictions on the amount of liquids, gels and aerosols that can be carried onto aircraft from 8 May. Following the imposition of similar rules in about 40 countries worldwide, travellers leaving Singapore will have to ensure that items like toothpaste and hair gel are stored in containers with a maximum capacity of 100 ml each. The twice-yearly review upholds a stance adopted in April 2004 and comes as the economy clocked surprisingly robust growth for the first quarter of the year.
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