More Global-Minded Facebook to Offer PayPal for Ads, ‘Credits’

Facebook will offer PayPal for buying ads and virtual goods, part of a strategy to make it easier for some international companies to pay on the top social media site. PayPal will also be an option for Facebook Credits, which is being tested in some games and applications. Facebook Credits gives users a convenient way to buy virtual goods from the Facebook Gift Shop.

Online Gambling: Ex-MasterCard Execs Bet on U.S. Regulation

Three former senior executives from MasterCard are betting that lawmakers will soon regulate legalized Internet gambling here and have set up shop to facilitate wagers as a U.S.-subsidiary for a United Kingdom payments processor. UC Group Ltd, the parent of SecureTrading, released a statement saying it is poised to provide “safe financial transactions and required consumer protections” in the United States in anticipation of federal legislation.

Online Gambling Sites Abuzz About MasterCard’s ‘Blocking’

Online poker rooms and other gambling websites were buzzing today with reports that MasterCard was blocking transactions for placing bets – a move which took some by surprise since U.S. officials last year delayed the implementation of a new Internet gambling payment ban until June 1, 2010. The gambling websites also pointed to a federal appeals court ruling on Monday as a possible impetus for the blocking. “The blocking of all deposits made by U.S. citizens linked to poker sites and online casinos will be imposed immediately as MasterCard starts to comply” with the gambling payment ban, wrote online-casinos.com today.

MasterCard Rings Up 23% Profit, But Below Forecasts

A day after its dominant rival posted higher-than-expected earnings, MasterCard came in below analysts’ estimates with a 23 percent profit increase for the fourth quarter. The No. 2 card payments network saw single-digit growth in both dollar volume and processed transactions, compared to double-digit increases in transactions reported this week from rival Visa.

Debit Card Use Helps Boost Visa Profits 33%

Visa, the world’s largest electronic payment network, beat forecasts and reported a fiscal first quarter profit jump of 33 percent, with its growth in debit card payment transactions outpacing credit cards by 72 percent. Visa’s numbers shows that consumers continue to rely more on debit cards and are holding off on reviving credit card revolving debt as the economy continues to struggle.

Visa: Avoid ‘Negative Option’ Credit Card Billing Scam

Nearly a third of U.S. consumers have fallen for “negative option” scams – paying for shipping on a “free trial” or “sample,” and then unwittingly becoming victim to recurring credit card charges, according to Visa. The deceptive marketing practice has become so pervasive that Visa has joined the Federal Trade Commission and Better Business Bureau in warning the public to be vigilant when signing up for an online offer promoting free trials or samples.

Merchants to Get $1B Left from Visa/Mastercard Settlement

Checks totaling more than $1 billion will be mailed this week to more than a half million merchants in the final payouts from Visa and Mastercard stemming from a 2003 lawsuit settlement, said the National Retail Federation. The retailers alleged that Visa and Mastercard violated federal anti-trust law by requiring merchants who accept their credit cards to also accept their signature debit cards.

Report: Consumer Benefit Uncertain in Card Fee Debate

Restricting fees that retailers have to pay banks for accepting credit cards could benefit consumers “if merchants reduced prices for goods and services,” congressional auditors concluded in a report today. But “identifying such savings would be difficult,” the report by the General Accounting Office found.