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TSG Press
Mar 2016

TSG in Yahoo! Finance - The Real Reason Why Some Stores Still Don't Take Chip Credit Cards

The deadline for retailers to change to the chip-enabled payment systems was last October when U.S. credit card companies, including Visa and MasterCard, announced new liability rules. This meant that businesses had to switch over to the new technology or take responsibility for any costs incurred in the event of fraudulent transactions.

Chip cards use EMV technology (which stands for Europay, Mastercard, Visa), and are more secure than traditional swipe cards because they create a unique transaction code that cannot be used again. Cards with only a magnetic stripe use the same transaction code over and over, which makes it easier to skim information.

Despite the now passed deadline, The Srawhecker Group (TSG) released a survey in February estimating that only 37% of merchant locations were EMV ready.

“It appeared that some merchants delayed EMV migration completely until the holiday season ended to prevent friction and confusion at the checkout line,” said Jared Drieling of TSG.

Source

TSG Press
Mar 2016

TSG in CNBC - Retail Businesses Face Big New Hack Liability

When asked if Wendy's new point-of-sale technology includes EMV card readers, company spokesman Bob Bertini said most stores have yet to install the readers. That would put Wendy's more than a year behind the credit card industry's deadline for full compliance with the new rules.

The burger chain is not alone. Consulting firm The Strawhecker Group, which focuses on payments, found that of 90 companies representing about 4 million merchants, nearly 40 percent of respondents had fallen behind in their EMV reader implementation plan. "A lot of key stakeholders in the EMV migration were not prepared," said Jared Drieling, Strawhecker's business intelligence manager.

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TSG Press
Mar 2016

The Strawhecker Group Promotes Andrew Nuss to Director of Marketing

Omaha-based payments consultancy, The Strawhecker Group (TSG), is pleased to announce the promotion of Andrew Nuss to Director of Marketing.

Andrew has made significant contributions to TSG’s growth since joining in 2009, through his guidance of day-to-day marketing and communications tasks. Nuss has helped create global awareness for TSG by highlighting the synergies of the firm’s expertise and unparalleled data. As a leading consulting firm in the Payments Industry, Nuss has helped grow its client base to hundreds clients, including many Fortune 500 companies.

Nuss is also Editor of TSG’s weekly newsletter, NewsFilter, which is distributed to over 35,000 recipients inside and outside of the Payments Industry. Quickly approaching its five hundredth edition, TSG’s NewsFilter is considered by many industry executives to be the preeminent source of weekly news throughout the space.

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TSG Press
Feb 2016

Survey Estimates 37% of U.S. Card-Accepting Merchants Are EMV-Ready

TSG released survey results that estimate 37 percent of U.S. merchant locations are EMV-ready four months after the October 1st, 2015 liability shift.

TSG's previous survey of payment processors and other payment providers completed last September estimated that over 40 percent would be EMV ready by this time, showing a slower pace of implementation than expected before the shift.

By June 2016, it is estimated that consumers will be able to use their EMV credit and debit cards at 50 percent of U.S. merchant locations. EMV-readiness is not expected to reach a threshold of least 90 percent of merchant locations until 2017 - more than 15 months after the shift.

See the infographic.

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TSG Analysis
Feb 2016

Now Available - The State of Global Investments and Funding in FinTech and Payment Startups

The FinTech and Payments sector is currently seeing a boom in investment along with strong M&A activity. To help understand this ever-evolving space, TSG has put together a 102-page study, which provides an in-depth look at the payments financing landscape as well as the investors and companies fueling the payments startup ecosystem.

The eReport also identifies the top 157 funded private payments companies and maps them back to 12 payments categories where they operate.

Check it out.

TSG Analysis
Feb 2016

Now Available - TSG's Directory of U.S. Merchant Acquirers

TSG's directory provides profiles on 250 ISO/Acquirers that include the country's top tier acquirers, along with supplemental ISOs and technology-centered acquirer's.

Company profiles provide factual insights that include (as available) processor relationships, merchant vertical specializations, dollar volume statistics, transaction counts, active merchant outlet counts, key management names and titles, corporate structures, sponsor banks, partnerships and more.

Check it out.

TSG Press
Jan 2016

TSG in Digital Transactions - In a Bid to Build on Strengths, TSYS Clinches a $2.35 Billion Deal To Buy TransFirst

TSYS has been interested in TransFirst for the past two years, Jared Drieling, business intelligence manager at payments consultancy The Strawhecker Group, tells Digital Transactions News. “It definitely makes sense for a couple of reasons,” Drieling says. “Clearly, TransFirst is a little more focused on small and mid-size businesses, where TSYS has a little more focus on larger retailers. As we’ve seen with other merchant acquirers, the more profitable segments are in the small and mid-size sector.”

The other factor is that the TransFirst acquisition is an opportunity for TSYS to broaden its products and services, Drieling says. “TSYS has been somewhat conservative on the technology front, especially along the omnichannel front,” he says. Other processors have already begun to tackle how to offer payments services when the lines between physical and digital payments are blurring, he says. “TransFirst really brings together other areas, such as integrated payments and omnichannel services.”

Like the recently announced Global Payments Inc. deal to buy Heartland Payments Inc., the TSYS-TransFirst deal is about building on top of what each company already has developed, Drieling says.

http://www.digitaltransactions.net/news/story/In-a-Bid-to-Build-on-Stren...

TSG Analysis
Jan 2016

TSG Payments Index: Performance of Public Payments Companies

TSG has released a new data to illustrate the performance of public payments companies. The 'TSG Payments Index' (TSGPX) is calculated on a value weighted basis using market capitalization and is compared to the S&P 500 which is also calculated using the same methodology. A $100 investment in the TSGPX in Q1 2011 would now be valued at $294, as compared to $154 if invested in the S&P 500.

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TSG Analysis
Jan 2016

TSG TED - Payments Metrics with Mike Strawhecker

This month, Mike Strawhecker, Principal of TSG, has put together a video discussing Big Data using TSG's data warehouse of over 3.3M card-accepting merchants.

The video covers:
• Total Gross Processing Revenue by Merchant Account Size
• Volume Attrition & Growth
• Annual Net Revenue per Merchant by Volume Net Attrition
• Net Revenue & Attrition by Tier and Merchant Group

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TSG Analysis
Dec 2015

2015 Payments Industry Predictions Review

No one can predict the future, but those with the right knowledge and experience can make some great educated guesses. It's the time of year when payment industry experts turn to predicting what will happen next. However, often, the majority of us forget last year's predictions as we focus on the upcoming year.

With that said, The Strawhecker Group (TSG) took a look back at 2015 to review the accuracy of nearly 20 different sets of payments predictions.

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