RIVERWOODS, Ill., Jul 21, 2010 (BUSINESS WIRE) -- Discover today announced it has enhanced its rewards redemption experience to offer cardmembers greater value, choice and convenience. Through the launch of a redesigned redemption site, cardmembers will now have access to hundreds of new brand-name merchandise and more options for how to redeem Cashback Bonus(R) rewards.
"As a leader in cash rewards, we know how consumers earn their rewards is important, but how they redeem them really defines the value of the rewards experience," said Dana Traci, vice president of rewards and product management at Discover. "Our new and improved redemption experience will help Discover cardmembers get a lot more benefit from their rewards."
Discover pioneered cash rewards, and through its Cashback Bonus program, cardmembers earn 5% Cashback Bonus in specific categories that change on a regular basis throughout the year, and up to 1% Cashback Bonus on all their purchases.
Redemption options will still start as low as $20 and there are now more ways for cardmembers to redeem, including: Partner and Discover gift cards; merchandise; charity donations; direct deposit; and statement credit. And cardmembers now can choose a split-pay option on select merchandise, allowing them to pay for a portion of the price with their Cashback Bonus and put the remaining balance on their Discover or Diners Club cards.
These enhanced redemption options are consistent with Discover's tradition of continuously giving more back to its cardmembers. Discover Cardmembers already have the unique opportunity to redeem their rewards for amounts greater than face value. For instance, cardmembers have the ability to redeem $20 Cashback Bonus for a $25 Partner gift card.
Additionally, the new site will feature personalized recommendations based on shopping habits and past redemption behavior. Hundreds of brand-name merchandise will be offered and items will ship free of charge to any U.S. street address.
Discover has also enhanced the new redemption site's functionality, with improved left-hand navigation and a tailored search option using the new Quick Find feature, which will allow cardmembers to search by category or Cashback Bonus amount.
To see how Discover cardmembers use and enjoy their Cashback Bonus, please visit ItPaystoDiscover.com.
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company operates the Discover card, America's cash rewards pioneer, and offers personal and student loans, online savings accounts, certificates of deposit and money market accounts through its Discover Bank subsidiary. Its payment businesses consist of Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club International, a global payments network with acceptance in more than 185 countries and territories. For more information, visit www.discoverfinancial.com.
SOURCE: Discover Financial Services
Posted on Wednesday July 21, 2010
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by Phillip on Tuesday July 20, 2010
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Flagship Merchant Services (cardservicesales.com & flagshipmerchantservice.com) is not a credit card processor, but a sales organization that sells the credit card processing services of First Data through their “ISO Partnership Program.” The good news is that First Data is both a registered Independent Sales Organization (ISO) and PCI compliant. The bad news is that First Data has hundreds, if not thousands, of complaints all across the Internet. Flagship, too, also has several complaints and I believe many of the stem from what appears to be their sales model: Hire agents on a commission only + residual payment structure, provide very little training. and then sell sell sell. The problem is that important pieces of information get left out of the sales process by uneducated sales people and merchants get surprised by fees they didn't expect. Although you will find complaints with most merchant services companies, there are a few that stand out to me as red flags:
#1 Complaints of hidden fees
I found several complaints of merchants complaining that the fees where higher than what was quoted. I have seen First Data's quotes and merchant account application and these type of complaints are valid. First Data buries and shrouds the Mid-Qualified/Non-Qualified rate tiers, so it's not surprising that the average merchant doesn't notice them. See how rate tiers work here. Flagship seems to be doing a poor job of disclosing some of these fees in it's sales process. I would imagine that the problem stems from poor sales training and uniformed sales people.
#2 Complaints that contradict what Flagship quotes on their website
Specifically, Flagship says that they have no contracts or cancellation fees; however, I found several complaints of both contracts and cancellation fees of $75 to $150. To be fair, these may have simply been misunderstandings of the type of fees being assessed at the time of cancellation.
TopTenReviews.com Review of Flagship Merchant Services
Flagship loves to boast that they have been rated as a best pick three years in a row by Top Ten Reviews. I took a close look at their review and it is nothing more than a quote of Flagships marketing material. It is a completely bogus and slanted review and is most likely something Flagship paid to have done. The whole thing looks and sounds like a commercial. They even have an affiliate referral link to Flagship in the review (meaning TopTenReviews gets paid for sending Flagship business). If you ask me, there is zero credibility in the review.
Conclusion
Flagship and First Data may have a lot of complaints but they have also been around for several years. This industry is complex and tough to understand and any merchant services company that has been around for awhile (and relies on independent sales agents) is going to have complaints against them. Overall, most merchants will have a positive experience with Flagship. My recommendation to any merchant is to educate yourself about how rates and fees work before you start a conversation with any merchant services company. Secondly, take your time and get several quotes from different providers to compare pricing. If you can't get clear answers to your questions, then walk away.
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Posted on Friday July 16, 2010
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Visa Inc.(NYSE: V) today announced the first phase of a national marketing campaign to raise consumer awareness about the benefits of using reloadable prepaid debit cards instead of cash for purchases. The campaign is designed to reach financially underserved consumers in particular - those without a traditional banking relationship, access to a payment card or mainstream financial services, and who rely heavily on cash for everyday transactions. According to Visa estimates, there are approximately 80 million financially underserved consumers in the U.S. alone.
The campaign brings to life how Visa prepaid debit cards can enable better money management and empower consumers looking for an alternative to a cash-and-carry lifestyle. The fundamental messages of the campaign focus on core product values, including:
The multi-channel campaign integrates social media, mobile, digital, grassroots events, and radio advertising, as well as in-store demonstrations, displays, and promotions. Digital media is a central element of the campaign. Online display ads provide direct access to purchasing cards online through Visa partners, and social media enables consumers to connect as a community through the Visa Prepaid Debit Facebook page (www.Facebook.com/VisaPrepaidDebit). In-store demonstrations and local events provide an opportunity for personal interaction with consumers, where product experts explain how reloadable prepaid cards work, and help consumers apply for a card onsite.
"Core to this campaign is Visa's ability to reach consumers who may not realize they can enjoy the benefits of a Visa product, and experience a better alternative to a cash-and-carry lifestyle," said Hyung Choi, head of U.S. prepaid products, Visa Inc. "The campaign builds upon Visa's long-standing commitment to extending financial inclusion to more consumers, while at the same time driving opportunities for Visa, our partners and clients."
Research by the Mercator Advisory Group shows that the majority of consumers do not make full use of the opportunities provided by prepaid cards. "Our CustomerMonitor Survey Series conducted in 2009, documented the fact that only a very small number of the unbanked and underserved have purchased or reloaded a general purpose reloadable prepaid card in the last 12 months," said Tim Sloane, director of the Prepaid Advisory Service at Mercator. "This clearly demonstrates that the industry has a significant opportunity to more strongly communicate the benefits of prepaid cards to consumers, as compared to alternatives that include cash and alternative other financial services offerings."
For more than a decade, Visa has invested in growing the prepaid category in the U.S. and around the world. Visa's flexible platform enables a diverse set of prepaid products meeting highly specific needs supported by technology enhancements and services, prepaid processing and a global infrastructure that ensures interoperability and consistency. With a focus on migrating paper-based programs and processes to electronic forms of payment, Visa has established more than 10,000 Visa prepaid programs in 110 countries, delivering greater convenience, choice and security to consumers, businesses and governments. Access to electronic payments can help empower financially underserved individuals, providing more choice and greater control over their money and enabling their inclusion in the financial mainstream. Additionally, Visa partners with leading consumer advocates, educators and financial institutions to encourage responsible, informed use of digital currency through its financial literacy programs.
The campaign brings to life how Visa prepaid debit cards can enable better money management and empower consumers looking for an alternative to a cash-and-carry lifestyle. The fundamental messages of the campaign focus on core product values, including:
- Control - enabling consumers to manage their spending on their terms
- Convenience - the ability to make purchases online, at retailers - even to pay bills
- Security - safer than cash and registered cards are replaceable if lost or stolen
- Access - easy, timely access to their money through direct deposit
The multi-channel campaign integrates social media, mobile, digital, grassroots events, and radio advertising, as well as in-store demonstrations, displays, and promotions. Digital media is a central element of the campaign. Online display ads provide direct access to purchasing cards online through Visa partners, and social media enables consumers to connect as a community through the Visa Prepaid Debit Facebook page (www.Facebook.com/VisaPrepaidDebit). In-store demonstrations and local events provide an opportunity for personal interaction with consumers, where product experts explain how reloadable prepaid cards work, and help consumers apply for a card onsite.
"Core to this campaign is Visa's ability to reach consumers who may not realize they can enjoy the benefits of a Visa product, and experience a better alternative to a cash-and-carry lifestyle," said Hyung Choi, head of U.S. prepaid products, Visa Inc. "The campaign builds upon Visa's long-standing commitment to extending financial inclusion to more consumers, while at the same time driving opportunities for Visa, our partners and clients."
Research by the Mercator Advisory Group shows that the majority of consumers do not make full use of the opportunities provided by prepaid cards. "Our CustomerMonitor Survey Series conducted in 2009, documented the fact that only a very small number of the unbanked and underserved have purchased or reloaded a general purpose reloadable prepaid card in the last 12 months," said Tim Sloane, director of the Prepaid Advisory Service at Mercator. "This clearly demonstrates that the industry has a significant opportunity to more strongly communicate the benefits of prepaid cards to consumers, as compared to alternatives that include cash and alternative other financial services offerings."
For more than a decade, Visa has invested in growing the prepaid category in the U.S. and around the world. Visa's flexible platform enables a diverse set of prepaid products meeting highly specific needs supported by technology enhancements and services, prepaid processing and a global infrastructure that ensures interoperability and consistency. With a focus on migrating paper-based programs and processes to electronic forms of payment, Visa has established more than 10,000 Visa prepaid programs in 110 countries, delivering greater convenience, choice and security to consumers, businesses and governments. Access to electronic payments can help empower financially underserved individuals, providing more choice and greater control over their money and enabling their inclusion in the financial mainstream. Additionally, Visa partners with leading consumer advocates, educators and financial institutions to encourage responsible, informed use of digital currency through its financial literacy programs.
Posted on Wednesday July 14, 2010
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Today, PaymentsSource reported that online bill payment continues to grow faster than all other consumer payment methods. Visa has recognized this trend for many years and has actively worked with billers across many industries, including utilities, to expand and facilitate card acceptance to benefit utilities and cardholders alike.
Our work is paying off, as thousands of utilities around the U.S. currently accept Visa for bill payment, and Chartwell reported that card acceptance by utilities increased significantly during the past decade (Chartwell report).
Just recently, the Sacramento Municipal Utility District (SMUD) renewed its acceptance agreement with Visa, allowing their customers to continue paying bills using a Visa card. Another example is DTE Energy, a Detroit-based utility company that says it has reduced costs and strengthened customer relationships through card acceptance (see a DTE Energy bill payment case study here).
These successes are partly the result of a targeted campaign by Visa to expand card acceptance at utility companies. Among the steps we’ve taken include: establishing a custom incentive fee structure for utility payments; addressing consumer convenience fee barriers; demonstrating how utility operation expenses can be curbed through acceptance; and providing specialized support services to participating utilities.
We’ve also conducted extensive research to understand consumers bill payment preferences. According to a Visa survey, 75 percent of respondents said they opt for Visa bill payments due to convenience, followed by speed, security and expense management (Visa Bill Payment Survey, June 2009). Not to mention the desire to save paper and protect the environment.
Our work is paying off, as thousands of utilities around the U.S. currently accept Visa for bill payment, and Chartwell reported that card acceptance by utilities increased significantly during the past decade (Chartwell report).
Just recently, the Sacramento Municipal Utility District (SMUD) renewed its acceptance agreement with Visa, allowing their customers to continue paying bills using a Visa card. Another example is DTE Energy, a Detroit-based utility company that says it has reduced costs and strengthened customer relationships through card acceptance (see a DTE Energy bill payment case study here).
These successes are partly the result of a targeted campaign by Visa to expand card acceptance at utility companies. Among the steps we’ve taken include: establishing a custom incentive fee structure for utility payments; addressing consumer convenience fee barriers; demonstrating how utility operation expenses can be curbed through acceptance; and providing specialized support services to participating utilities.
We’ve also conducted extensive research to understand consumers bill payment preferences. According to a Visa survey, 75 percent of respondents said they opt for Visa bill payments due to convenience, followed by speed, security and expense management (Visa Bill Payment Survey, June 2009). Not to mention the desire to save paper and protect the environment.
Posted on Wednesday July 14, 2010
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Visa Inc. (NYSE: V) today announced global industry best practices for tokenization to provide guidance to merchants, vendors, service providers and acquirers and promote safer merchant payment environments. Based on Visa's experience working with the industry and also insights from data compromise investigations, the tokenization best practices are the latest in a series of guidance to help merchants reduce or eliminate sensitive card data from payment systems and simplify data security and compliance efforts.
Tokenization is the process through which a credit or debit card's 16-digit primary account number (PAN) is replaced by proxy numbers. Merchants and processors that use tokens in accordance with best practices are able to limit PAN storage, significantly reducing the risk that sensitive cardholder data may be stolen by data thieves. Visa has provided a type of single-use token for many years; transaction IDs are provided in place of card numbers for every transaction processed by VisaNet, so merchants may utilize it for settlement and other ancillary processes with the support of their processors. The best practices also address multi-use tokens, which can be used for more complicated purposes such as fraud management, recurring or subscription payments, and merchant loyalty programs.
"Where properly implemented, tokenization may help simplify a merchant's payment card environment," said Eduardo Perez, Head of Global Payment System Security, Visa Inc. "However, we know from working with the industry and from forensics investigations, that there are some common implementation pitfalls that have contributed to data compromises. For example, entities have failed to monitor for malfunctions, anomalies and suspicious activity, allowing an intruder to manipulate the tokenization system undetected. As more merchants look at tokenization solutions, these best practices will provide guidance on how to implement those solutions effectively and highlight areas for particular vigilance," he added.
The best practices are part of Visa's broader effort to provide guidance and recommendations to help merchants and the industry better manage security and compliance. By reducing the amount of vulnerable information that needs to be protected, merchants can simplify their payment systems and improve payment security. In October 2009, Visa published the Visa Best Practices for Data Field Encryption for protecting cardholder information and limiting the clear-text availability of cardholder data and sensitive authentication data. As part of these best practices, Visa recommended that entities consider using tokens (such as a transaction ID or a surrogate value) to replace the PAN for use in payment-related business purposes other than payment acceptance. Feedback from the industry about the encryption best practices highlighted a demand for more detailed guidance on tokenization. Visa has also provided best practices for PAN storage and truncation, including the use of tokens in lieu of full card numbers. Visa's Best Practices for Tokenization, Data Field Encryption, and PAN Storage and Truncation may be found online at www.visa.com/cisp.
"Tokenization is one more element in a merchant's anti-fraud and PCI compliance toolkit. Particularly valuable for card-not-present and recurring payment applications, tokenization also retains the merchant's ability to perform marketing and fraud analytics while getting card number data off the merchant's systems and easing some of their Payment Card Industry Data Security Standards obligations," said George Peabody, Director, Emerging Technologies at Mercator Advisory Group.
Visa's tokenization best practices provides guidance on areas in which poor execution has been a problem in the past, including proper generation of tokens and the management of historical data. The best practices highlight four key components of effective tokenization:
Perez also noted that other sensitive authentication data such as full contents of the magnetic strip, CVV2, PIN and PIN block should never be stored after the authorization for any reason. "Tokenization is intended as a complement to, rather than a replacement for, the Payment Card Industry Data Security Standard," he said. "While tokenization and encryption solutions can streamline a merchant's environment, strong security layers are required to protect against data compromise."
Tokenization is the process through which a credit or debit card's 16-digit primary account number (PAN) is replaced by proxy numbers. Merchants and processors that use tokens in accordance with best practices are able to limit PAN storage, significantly reducing the risk that sensitive cardholder data may be stolen by data thieves. Visa has provided a type of single-use token for many years; transaction IDs are provided in place of card numbers for every transaction processed by VisaNet, so merchants may utilize it for settlement and other ancillary processes with the support of their processors. The best practices also address multi-use tokens, which can be used for more complicated purposes such as fraud management, recurring or subscription payments, and merchant loyalty programs.
"Where properly implemented, tokenization may help simplify a merchant's payment card environment," said Eduardo Perez, Head of Global Payment System Security, Visa Inc. "However, we know from working with the industry and from forensics investigations, that there are some common implementation pitfalls that have contributed to data compromises. For example, entities have failed to monitor for malfunctions, anomalies and suspicious activity, allowing an intruder to manipulate the tokenization system undetected. As more merchants look at tokenization solutions, these best practices will provide guidance on how to implement those solutions effectively and highlight areas for particular vigilance," he added.
The best practices are part of Visa's broader effort to provide guidance and recommendations to help merchants and the industry better manage security and compliance. By reducing the amount of vulnerable information that needs to be protected, merchants can simplify their payment systems and improve payment security. In October 2009, Visa published the Visa Best Practices for Data Field Encryption for protecting cardholder information and limiting the clear-text availability of cardholder data and sensitive authentication data. As part of these best practices, Visa recommended that entities consider using tokens (such as a transaction ID or a surrogate value) to replace the PAN for use in payment-related business purposes other than payment acceptance. Feedback from the industry about the encryption best practices highlighted a demand for more detailed guidance on tokenization. Visa has also provided best practices for PAN storage and truncation, including the use of tokens in lieu of full card numbers. Visa's Best Practices for Tokenization, Data Field Encryption, and PAN Storage and Truncation may be found online at www.visa.com/cisp.
"Tokenization is one more element in a merchant's anti-fraud and PCI compliance toolkit. Particularly valuable for card-not-present and recurring payment applications, tokenization also retains the merchant's ability to perform marketing and fraud analytics while getting card number data off the merchant's systems and easing some of their Payment Card Industry Data Security Standards obligations," said George Peabody, Director, Emerging Technologies at Mercator Advisory Group.
Visa's tokenization best practices provides guidance on areas in which poor execution has been a problem in the past, including proper generation of tokens and the management of historical data. The best practices highlight four key components of effective tokenization:
- Token generation - defines the process for how a token is generated.
- Token mapping - defines the process for associating a token to its original PAN value.
- Card data vault - defines the central repository of cardholder data that is used by the token mapping process.
- Cryptographic key management - defines the process for how cryptographic keys are managed and used to protect cardholder and account data.
Perez also noted that other sensitive authentication data such as full contents of the magnetic strip, CVV2, PIN and PIN block should never be stored after the authorization for any reason. "Tokenization is intended as a complement to, rather than a replacement for, the Payment Card Industry Data Security Standard," he said. "While tokenization and encryption solutions can streamline a merchant's environment, strong security layers are required to protect against data compromise."
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