Morning Brief 12.31.19: Fraud predicted to spike with online returns
The information you need to start your day, from PaymentsSource and around the web:
UPS expects 1.9 million returns of holiday e-commerce merchandise on Jan. 2, 2020 — dubbed National Returns Day — up 26% over last year, according to a press release.
Fraud technology companies are warning that fraud rates will spike with the uptick in package returns. Fraud associated with online purchases with one- or two-day shipping is three times higher than fraud on online purchases with standard shipping, according to a statement from fraud prevention company Forter.
Gaps in retailers’ payment and tracking systems expose items sent via premium shipping — plus those purchased online for pickup in store — to more fraudulent claims of theft and loss, Forter said.
Australia-based fintech Groupee is targeting young adults with a payments app enabling group members to chip in for purchases made with Visa contactless cards and mobile devices, according to a press release.
The service leverages an instant-issued Groupee prepaid Visa debit card stored in participants’ smartphones that can be used for in-store or online purchases. Though only purchases made with a Visa account are eligible for splitting costs, users may add funds to their virtual app from any Visa, Mastercard or American Express issued by any Australian bank.
Groupee charges 1.95% for each bankcard reload and AUS 12.5 cents (US 9 cents) for each transaction.
Crypto travel tool
Payments processor i2c has teamed with cryptocurrency platform provider Wirex to develop a global travel payments card supporting traditional payments and cryptocurrencies for the Asia Pacific region. The hybrid card will support more than 150 currencies, according to a press release.
Wirex — which already offers a Visa card that supports both crypto and traditional currencies — is adding the new card via i2C to simplify the complexities of transacting in different currencies for Asians traveling with the region.
Customers may fund their i2C account with credit or debit cards or crypto payments and may earn up to 1.5% in crypto rewards on in-store purchases.
From the web
Indonesia plans fixed fees for e-wallet transactions: sources
REUTERS | Monday December 30, 2019
Indonesia plans to impose fixed fees on some e-wallet transactions, five people familiar with the matter said, in a move that could choke a key revenue stream and raise costs for payment startups backed by the likes of Alibaba’s Ant Financial.
City launches new online water payment system Jan. 2
FOX NEWS | Mon December 30, 2019
The City of San Angelo announced Friday the launch of Invoice Cloud - "a new, improved bill pay service with a user-friendly portal and enhanced features to safely view and pay bills online." The system will officially launch tentatively at 8 a.m. Thursday, Jan. 2.
MDR waiver to hit fintechs, payments companies' business model
BUSINESS STANDARD | Tue December 31, 2019
Raising strong concerns over the government’s move to scrap merchant discount rate (MDR) charges on the transactions done via UPI and RuPay payment systems, the Payments Council of India (PCI) has said the move will have a catastrophic effect on payments companies and make their business model unviable.
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