Private label, public dilemma
ccording to a report recently published by TowerGroup, total gift card sales for the 2008 holiday season will total approximately $88.4 billion, a drop of nearly 9 percent from 2007. This plunge is largely due to two factors: a projected 14 percent decrease in the sales of merchant sponsored – also called closed loop or private label – gift cards coupled with a 5.6 percent sales increase in bank sponsored – network branded or open loop – gift cards.
Brian Riley, Research Director, Bank Cards Practice at TowerGroup, said the rise of open loop cards, which can be used anywhere MasterCard Worldwide, Visa Inc., Discover Financial Services or American Express Co. gift card products are accepted, is a silver lining for financial institutions in an otherwise dark gift card cloud.
GS 08:11:02 – Lead Story
The payments industry is hyper competitive. Payment professionals can be territorial and ruthless when it comes to business. But our industry has a generous side, too. Many among us have already stepped up, independently creating a collective engine of charity. And additional help is needed now more than ever.
GS 08:11:02 – News
U.S. House Financial Services Committee Chairman Barney Frank, D-Mass., seeks a postponement in issuing regulations pursuant to the Unlawful Internet Gambling Enforcement Act of 2006. He believes hasty "midnight rulemaking" will hamper the new presidential administration and burden the financial services industry at a time of economic crisis.
GS 08:11:02 – News
American Express Co. won approval from Federal Reserve banking regulators to become a commercial bank. The fourth largest U.S. credit card issuer said it is taking steps to cut borrowing costs and give itself access to government funds. This move opens the door for AmEx to accept deposits and permanently access financing from the Fed.
GS 08:11:02 – Features
Prepaid en fuego in Latin America
From SellingPrepaid E-Magazine: According to a recent Prepaid Expo webinar, 70 percent of Latin Americans do not have bank accounts. Latin America has a population of 546 million, so 380 million of them are potential customers for prepaid cards. This article explains how the three a's – affordability, accessibility and availability – make this so.
GS 08:11:02 – Views
Interchange schedules are available on Visa Inc.'s and MasterCard Worldwide's Web sites. It should be easy, then, for merchants to know the costs of transactions. But instead of getting easier to grasp, interchange is growing ever more obscure. Take, for example, Visa's decision to lower petroleum interchange. Will merchants actually realize savings on these transactions?
GS 08:11:02 – Street Smarts
Maybes are the death of salespeople. But you'll make millions if you can get business owners to say yes or no. It doesn't matter whether they decide for or against you – as long as they decide. This article provides guidelines for mastering the art and science of sales and reminds you that, at some point in every deal, you have to ask for the prospect's business.
GS 08:11:02 – Education
Preparing to sell a micro deal
In the present volatile financial environment, one area of portfolio and residual sales is particularly active – micro deals. Residual transactions involving net monthly processing revenue between $1,000 and $20,000 are numerous. There are plenty of sellers, and contrary to what many people would like you to believe, plenty of buyers.
GS 08:11:02 – Education
Time management is often defined as ways people use their time and resources to achieve success. In truth, we really cannot "manage" time. Time simply exists. There is a limited amount of time available to us. We cannot slow it down, speed it up, store it or recover it. What we can manage is how we utilize time while it passes. This article provides tips on how to do just that.
GS 08:11:02 – Inspiration
For many of us, giving thanks – and eating turkey – are essential ingredients for the Thanksgiving holiday. The leftover turkey may last for several days. But will there be any leftover gratitude? Researchers have found daily gratitude has astounding effects on health and well-being. So, why not rejoice in the blessings each day brings throughout the year?