The Nilson Report

THE CURRENT ISSUE: Issue 1131 | May 2018


Companies featured in this issue include:

Latin America General Purpose Cards

Merchant Processing Fees in the U.S.—2017

EMVCo’s Secure Remote Commerce

B2B Credit-as-a-Service Platform

Tokens for Account-to-Account Payments

ACH Payments in the U.S.—2017

Verifi Chargeback Management Assistance

Second 50 Largest U.S. Debit Card Issuers

Investments & Acquisitions—April 2018

Pax’s E500 Replaces ECR

Biometric Fingerprint Cards—JCB and

Latin America Market Shares of Purchase Volume 2017

Investments & Acquisitions—April 2018

U.S. Merchant Card Fees 2017

Latin America Market Shares of Purchase Transactions by Brand

Year-Over-Year Growth/Decline in Purchase Volume on Cards Issued in Latin America

Latin America General Purpose Cards 2017 vs. 2016

Second 50 Largest Debit Card Issuers in the U.S. 2017

Consumer ACH Transactions in the U.S. 2017

U.S. Merchant Card Fees 2017

Credit and debit cards issued in the United States generated $6.361 trillion in purchase volume for goods and services in 2017. Merchants paid $96.67 billion to accept those payments.

1. Visa/Mastercard Credit
Fees: $54.69 billion; Purchase volume: $2,520.17 billion
2. American Express
Fees: $16.38 billion; Purchase volume: $702.98 billion
3. Visa/Mastercard Debit
Fees: $16.04 billion; Purchase volume: $2,197.80 billion
4. PIN debit
Fees: $3.56 billion; Purchase volume: $531.02 billion

Full access to the U.S. Merchant Card Fees results is available when you subscribe to the Nilson Report.



In October 2017, EMVCo published version 1.0 of a technical framework for Secure Remote Commerce (SRC)—a method of securing EMV-compliant payment card acceptance in card-not-present (CNP) channels, while also providing cardholders with a consistent shopping experience across mobile apps, desktop browsers, or other internet-connected devices. The goal is to replicate online, as much as possible, the in-store card payment acceptance experience. 

This will include providing merchants a common integration for acceptance of all participating card brands at their checkout pages. This summer, EMVCo will publish standards to implement SRC. Biometric authentication and dynamic passcodes will be incorporated. 

Most importantly, SRC paves the way for EMV-compliant tokenization of online payments, adding much needed security to an industry that has experienced years of double-digit growth in CNP fraud. Tokens are also valuable for lifecycle management of the card account in the digital world, including for mobile wallets and when payment card details are stored by merchants. With a SRC standard, the industry can begin to scale digital payment platforms. 

Payment card networks American Express, Mastercard, and Visa also see adoption of SRC as a necessary step toward providing a secure framework to introduce payments from new channels, including the internet of things (IoT), in-home devices, virtual reality, and augmented reality.

Amex, Mastercard, and Visa are waiting for the final technical specifications for SRC to be published this summer to complete connections of their APIs for cardholder verification and issuer authentication as well as interoperability with the EMV 3-D Secure message protocol they hope merchants will embrace to protect web commerce. 

The payment networks anticipate the final standard will include a pathway toward a common payment acceptance mark or button at all merchant checkout pages as well as a common user interface to create a consistent shopping experience. 

If the card networks can agree on a common button and user interface, the current branding of their respective digital platforms could change. 

Visa plans to begin migrating to SRC more than 33 million cardholders currently connected to Visa Checkout by year-end along with 350,000 live merchants, and 1,600 financial institutions in 26 countries. 

Mastercard would do the same with the more than 90 million Masterpass-enabled accounts, 340,000 live merchants, and over 140 financial institutions in 38 countries. 

American Express calls its ecommerce tool for cardholders and merchants, Amex Express Checkout. It lets cardholders pay using their existing user ID and password. 

Brian Byrne is Director of Operations at EMVCo in San Francisco, California, (650) 454-5113,,

© Copyright 2018 The Nilson Report