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Tag: credit card

  • Online fraud forecast to reach $25bn by 2020

    Online fraud forecast to reach $25bn by 2020

    Online fraud is expected to reach $25.6 billion in value by 2020, up from $107.7 billion last year, according to new research.

    This means that by the end of the decade, $4 in every $1000 of online payments will be fraudulent, says a new study from UK company Juniper Research.

    Online Payment Fraud: Key Vertical Strategies & Management 2016-2020 says the implementation of Chip and Pin services at POS (point of sale) locations in the US will most likely be a key factor driving online fraud. It argued that the greater security afforded by Chip and Pin technology will persuade fraudsters to switch their attention from the in-store environment to the CNP (card not present) space.

    Three hot areas for online fraud are identified in the report: eRetail (65 per cent of fraud by value in 2020, up from $16.6 billion); banking (27 per cent, $6.9 billion); and airline ticketing (6 per cent, $1.5 billion).

    It also claims that eRetail will be particularly susceptible to online fraud, with the value of this fraud sector growing at twice the rate of banking and seven times that of airline ticketing. The research highlights two key areas for fraud within eRetail: the buy-online, pay in-store approach, and electronic gift cards.

    It is argued that the continuing migration to online and mobile shopping, of both digital and physical goods – reaching more than $1.7 trillion last year – will provide a further incentive for fraudsters to focus attention on these channels.

    Meanwhile, the research claims that though banks can counter online banking fraud through new technologies such as 3D-Secure and device fingerprinting, these measures often only provide temporary respite as fraudsters soon find new practices.

    Similarly, while extensive efforts to deploy sophisticated fraud detection and prevention (FDP) systems have reduced fraud significantly for some major airlines, that industry has also seen fraudsters shift their focus to other perceived weak spots in the system.

    “A few larger airlines claim they have reduced eTicket sales fraud to less than 0.1 per cent,” says research author Gareth Owen. “When thwarted, however, fraudsters quickly move on to easier pickings, such as frequent flyer fraud.”

    Juniper offers a white paper, Managing the Risk of Fraud, free on its website together with further details of the research and an interactive forecast. Juniper has been analysing the digital commerce and FinTech sector for more than a decade.

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  • Access to credit card transactions needed to check taxpayers` profiles

    Access to credit card transactions needed to check taxpayers` profiles

    Regulations are required to access taxpayers credit card transactions data, particularly of individual tax payers (WP OP), without violating banking laws, Finance Minister Bambang Brodjonegoro said.

    “We need the data for WP OP profiles because we cannot access their bank accounts as the banking law prohibits that. Therefore, we want access to their credit card transactions in order to check their tax profiles,” said Bambang here on Friday.

    Bambang said that if a taxpayer reported his or her monthly income at Rp5 million but his/her expenditure through credit cards reached Rp20 million per month, the tax officials will know that he or she has made an incorrect annual tax report (SPT).

    “This means that while he/she has claimed to have a monthly income of Rp5 million through the SPT, but his/her tax liability should be corrected. We will compare his or her transactions undertaken though credit cards with his or her annual tax report and see if these match,” the minister said.

    Bambang said the plan to put in place a regulation to access credit card transaction reports was discussed long back with the Financial Service Authority (OJK). The OJK will popularize it among banks and credit card issuers.

    Indonesian central bank (BI) Deputy Governor Ronald Waas said bringing in regulations to access credit card transactions will be problematic since the law on banks does not allow access to this information.

    “We can look at the banks confidentiality regulations to see if the credit card detail or information about savings has to be kept confidential. But all laws which regulate the confidentiality of data allow access to the same if it concerns national interest, but with the approval of the OJK,” the finance minister remarked.

    The Finance Ministry has issued a regulation which requires 22 banks and credit issuer institutions to report credit card data and transactions to the Directorate General of Taxations.

    The matter was regulated vide the Finance Ministers Decree No. 39/PMP.03/2016 on the Type of Data and Information as well as the Report Procedure of Data and Information which concerns taxation. It came into effect on the day of its enactment on March 22, 2016.

  • HSBC Going Solo in China Credit Cards Gives Boost to Expansion

    HSBC Going Solo in China Credit Cards Gives Boost to Expansion

    HSBC Holdings Plc winning approval to start a credit-card business in China’s $1 trillion market offers Chief Executive Officer Stuart Gulliver added flexibility in his push into the nation’s retail banking and wealth-management industries.

    The approval from Chinese authorities came as HSBC ended a card venture with Bank of Communications Co., the bank’s Asia-Pacific head Peter Wong said in a weekend interview, paving the way for the U.K. company to join Citigroup Inc. and Bank of East Asia Ltd. as the only foreign credit-card issuers on the mainland. Wong didn’t say when HSBC won the nod from regulators, or provide any specifics on how the business will be rolled out.

    Gulliver’s Asian ambitions have been dealt a setback by crashing commodity prices, a slowing Chinese economy and a pretax loss in the fourth quarter. An independent card unit in China would improve HSBC’s access to a fast-growing market that had 449 million cards on issue as of September and allow the bank to find new clients for its retail bank.

    Getting approved for its own operation in China “is a meaningful step for HSBC as it gives the bank the autonomy to run the business,” said Chen Xingyu, a Shanghai-based analyst at Phillip Securities Research. “Since the Pearl River Delta is HSBC’s focus, having its own credit-card business can help the bank expand in the region.”

    Credit-card offerings can act as a springboard for drawing customers to other parts of the business such as private banking, Chen said. HSBC is getting a license for a planned brokerage venture with Shenzhen Qianhai Financial Holdings Co.

    The Pearl River Delta, located to the north of Hong Kong and centered around the city of Guangzhou, is home to more than 40 million people. HSBC plans to add 4,000 jobs in that area as the bank shifts about $100 billion of investment to Asia in an effort to expand retail banking and wealth management. The bank will slow the pace of thathiring amid China’s economic downturn, but HSBC won’t alter its strategy, Gulliver said last month.

    Good Relations

    While the bank has ended its card venture with Bank of Communications, HSBC intends to maintain its roughly 19 percent stake in the Chinese lender, Asia-Pacific Chief Executive Officer Wong said Saturday in an interview on the sidelines of China’s annual congress of lawmakers in Beijing.

    “We still have a lot of other initiatives” with Bank of Communications, Wong said. “We have a very good relationship.”

    HSBC’s card offerings would compete with its old venture partner, which had 40 million domestic cards as of June, while Industrial & Commercial Bank of China Ltd. had 108 million, according to their 2015 interim reports.

    The London-based company has been working with Bank of Communications, China’s fifth-largest lender by assets, since 2004 on businesses including credit cards. The Chinese bank announced the establishment of the credit-card venture — with 2.5 billion yuan of capital — in an October 2009 statement to Hong Kong’s stock exchange.

    HSBC shares in Hong Kong fell 0.3 percent on Tuesday to HK$49.50 as of 1:31 p.m. local time, compared with the benchmark Hang Seng Index’s 0.8 percent loss. The bank’s stock dropped 20 percent this year.

    The number of Chinese credit cards in circulation at the end of the third quarter had nearly doubled to 449 million since 2010, central bank data show. That total is about the same as the combined populations of the U.S. and Japan. The outstanding balance on those cards was 6.7 trillion yuan, up 26 percent from a year earlier, according to the People’s Bank of China data.

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  • MasterCard expands in Myanmar

    MasterCard expands in Myanmar

    MasterCard has just launched yet another prepaid card in Myanmar, this time with Myanma Apex Bank Limited (MAB Bank).

    Its launch comes exactly three years on from the lifting of sanctions in Myanmar and affirms MasterCard’s commitment to  provide safer and easier ways for Myanmar residents to pay for their travels.

    The new prepaid card is also timely given the latest MasterCard survey on consumer purchasing priorities in travel indicates that three out of five Myanmar consumers surveyed intend to travel within the next 12 months (either as much, or more than they did in the past 12 months).

    The MAB Travel Prepaid MasterCard provides a secure way for consumers to make payment when travelling overseas for leisure, business or education, and also when shopping on e-commerce sites.
    “We know that leisure travel and shopping are on the rise among Myanmar citizens and we hope this product will help to meet their needs,” said Win Min Khine, managing director, Myanmar Apex Bank.

    MasterCard country manager, Thailand & Myanmar, Antonio Corro said: “Myanmar’s gradual opening up presents many opportunities for entrepreneurship and commerce to flourish, and their progressive participation in the global payments system that MasterCard enables not only aids the development of the local payments landscape, but also facilitates global connections.”

    Since 2012, MasterCard has launched prepaid cards together with Co-operative Bank, Kanbawza Bank, Ayeyarwady Bank and Myanmar Citizen Bank with 2C2P, the last of which was also Myanmar’s first smartphone-enabled Prepaid Card.

    At present, more than 2,000 restaurants, retail outlets and hotels in Myanmar accept payment cards.

  • Nordstrom sells bank card enterprise

    Nordstrom sells bank card enterprise

    Luxurious division retailer Nordstrom has agreed to promote its bank card portfolio to Canada’s Toronto-Dominion Financial institution.

    The deal covers Nordstrom’s branded Visa bank card and personal label bank card portfolios within the US. The financial institution may even grow to be Nordstrom’s unique shopper credit score companion.

    Toronto-Dominion Financial institution is Canada’s second-largest lender by belongings, and the deal provides it an elevated footprint within the neighbouring US shopper credit score market.

    In a press release, the 2 corporations stated the portfolio included US$2.2 billion in receivables.

    In March 2013, Toronto-Dominion Financial institution purchased the $5.7 billion receivables of Goal Corp in one other deal.

    “We discovered TD to be a robust cultural match, sharing our customer-focused strategy and offering capabilities to assist us additional improve the client expertise,” Nordstrom co-president Blake Nordstrom, stated within the assertion.

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