card issuer

The Federal Reserve has approved the final rule to protect customers against unfair fees imposed by credit card issuers.

"The new rules require that late payment and other penalty fees be assessed in a way that is fairer and generally less costly for consumers," said Federal Reserve Governor Elizabeth A. Duke. "Card issuers must also reevaluate recent interest rate increases and, if appropriate, reduce the rate."

Thus, the final rule, which amends Regulation Z (Truth in Lending) includes the following provisions among other things:

MasterCard has introduced a new bill payment service for its prepaid card issuers and program managers, and their cardholders. MasterCard has partnered with Aliaswire to deploy its payment platform and offer the partners a new bill payment service that integrates easily with their prepaid card program, and enables MasterCard prepaid cardholders to conveniently pay bills online or via telephone.

Gemalto has launched its World Traveler program, which includes a globally accepted dual interface EMV payment microprocessor card and complete issuance service for U.S. banks and card issuers.

Under the program US banks and card issuers will be provided with a complete end-to-end portfolio of service offerings including return on investment (ROI) and technical consulting to ensure a quick and easy introduction of this product to their top tier customers.

 This week Christopher Dodd, chairman of the Senate Banking Committee, released the letter that stated Bank of America won’t lift rates or make any changes in terms on consumer credit card accounts before the reform legislation comes into effect next year. Dodd urged other companies to follow BofA’s sample and freeze their rates.

 Yesterday it was reported that Barclays plans to purchase Citi’s credit card business in Portugal. The company didn’t provide any details on the financial terms of the agreement. The Wall Street Journal reports that Barclays is paying less than $100 million.

Thereby, Barclays will acquire about 400,000 credit card accounts with the assets totaling about EUR644 million. The Citi cards will be rebranded over time. Besides, the unit and its workforce will be integrated into Barclay’s division in Portugal that has 130 branches across the country.