:: May 2010 | Newsletter n°63 ::

ESTA Annual Business Conference

13 thru 15 June 2010, Porto, Portugal

Registration still open!

We are very pleased to present this years’ conference “The Cash Cycle of the New Decade” as a high level event to all our members. The Conference venue in itself is very inspiring and the Business Conference program is designed to offer all participants substantial value.

The working sessions will see three main themes debated: The cash cycle of the new decade, EU upcoming legislation impacting on the CIT industry and Security issues.

The Minister of Internal Affairs of Portugal, Dr. R. Pereira, will honour the conference with a welcome note to the delegates on Monday 14th June. Thereafter, top level speakers from the ECB, National Central Banks, EU Commission, National authorities together with ESTA Members will deliver speaches on the above selected subjects. To get the full list of distinguished speakers, please read the confirmed conference program.

Conference registration is still open and we look forward to your decision to reinforce our event by attending!

Hotel registration is also still possible on a best efforts basis (no guarantee for availability at discounted rates which was open until 15 April). All conference and registration material is available from the updated ESTA conference page.

Porto Palacio Congress Hotel & Spa

Do you consider bringing clients to Porto? ESTA members have the unique opportunity to invite their clients to the conference (subject to ESTA’s approval).

The ESTA Board of Directors and the conference speakers are pleased to welcome you to the beautiful city of Porto!

Conference Coordinator: ESTA Secretariat
Tel. +32-2-230.23.63 - Fax +32-2-230.65.11 - www.esta-cash.eu - contact@esta-cash.eu


Cross Border CIT: state of play

The draft CIT cross border regulation is in its final stage and will be formally communicated in June 2010. It will then have to be approved by the Council and the European Parliament with the possible introduction of compromised amendments

The initial Commission drafted document has been substantially amended and the final document is likely to satisfy our industry’s legitimate requirements to provide appropriate security for the CIT crews and guarantee a level playing field for the CIT companies.

Legal tender of the Euro

The EU Commission had adopted a recommendation on the scope and effects of legal tender of euro banknotes and coins. We welcome this initiative and congratulate the Commission for ensuring that consumers are granted the choice of the payment instrument.

The recommendation lays down ten guiding principles:
  1. The concept of legal tender should rely on three main elements: a mandatory acceptance of banknotes and coins, for their full face value, with a power to discharge debts.
  2. The acceptance of payments in cash should be the rule: a refusal is only possible if grounded on reasons related to the 'good faith' principle (for example, if the retailer should not have enough change).
  3. Similarly, the acceptance of high denomination banknotes should also be the rule.
  4. No surcharges should be imposed on payments in cash.
  5. Member States should refrain from adopting new rounding rules to the nearest five cent.
  6. Member States should take all appropriate measures to prevent euro collector coins from being used as means of payments.
  7. Stained banknotes should be brought back to the National Central Banks as they might be the product of a theft.
  8. Total destruction of banknotes and coins by individuals in small quantities should not be prohibited.
  9. Mutilation of banknotes and coins for artistic purposes should be tolerated.
  10. The competence to destroy fit euro coins should not belong to national authorities in isolation anymore.
More information is available at

Cash in circulation – update from ECB

The European Central Bank’s latest data shows that cash continues to grow:
The number of euro banknotes in circulation at the end of Q4 stood at a total amount of 13643 millions, with a value of €806 billion, an increase of 7,1% and 4,8%. Viewed between Q2 and Q3 the number of euro banknotes in circulation had known a slight decrease of 0,09% whereas the value stayed more or less unchanged at 0,3% with a value of €767 billion.

In Q3 the total number of Euro coins in circulation grew to 86252 million, while their value rose to €21023 million, an increase of 1,6% and 1,7% respectively since Q2 2009. The total increase of numbers of Euro coins in circulation between Q3 and the last quarter of 2009 grew with 1,3% and their value rose to €21316 million, an equal increase of 1,3%.

The trend shows a general increase in numbers during 2009 with the largest growth between Q3 and Q4 with regard to Euro banknotes.

These are the graphs:
(4 graphs)
Chart 1:
Low denomination banknotes in circulation
(in quantities, millions)
Chart 2:
High denomination banknotes in circulation
(in quantities, millions)
Chart 3:
Low denomination coins in circulation
(in quantities, millions)
Chart 4:
High denomination coins in circulation
(in quantities, millions)

Potentially unfair commercial practices in the retail financial sector

The European Commission has issued a consultation document on the study on tying and other potentially unfair commercial practices in the retail financial service sector.
The data presented in the study concludes that cross-selling practices, of which tying represents about one third, and conditional sales practices are widespread in the EU27!

Cards fraud

Incidents of credit card fraud and identity theft in the UK are increasing at an alarming rate, according to a survey conducted by Infosecurity Europe. Forty-four per cent of the 1,000 Londoners questioned in the survey said they had been the victim of bankor credit card frauds. while 42 per cent reported falling prey to identity theft. Claire Sellick, event director for Infosecurity Europe, said in a statement: “The incidence of bank card fraud and ID theft is very high, and perhaps not surprising, given how ingenious criminals have become.”
Infosecurity revealed that on average, victims lost £1,488 to the criminals, with 37 per cent of victims claiming that they had not been reimbursed by their bank. Around 60 per cent of the people blamed retailers for making them more vulnerable to credit card fraud and identity theft. Only 12 per cent placed responsibility for their losses with thebanks.
A team from the University of Cambridge’s Computer Laboratory said criminals were able to use stolen cards to make purchases even though they did not have the card’s pin, by inserting a “wedge” between the cards and the payment terminal!

The Cambridge research also warned that the apparent use of pins in fraudulent transactions could lead victims having their claims for refunds turned down!

Mobile payments

Mobile payments uncertain future Consumers worry that m-payments will give network operators and IT firms new opportunities to study their commercial behaviour and to create targeted ads. A potentially huge glitch in m-payments is the fact that stolen mobile phones could be used to make payments without the bank or the retailer noticing!
Euractiv, 31 january 2010

SEPA and direct debit rules

BEUC, the European consumers association, has expressed its concerns regarding SEPA Direct Debit, underlining that SEPA’s creditor mandate flow (CMF) is massively open to fraud!

For more information please visit www.beuc.org

Cash future in Europe

A new study "The Future of Cash and Payments”, by Retail Banking Research (RBR) has found that cash remains the predominant retail payment method in Europe.

The report analyses the historic and current use of different retail payment methods (both cash and cashless) in 28 European countries, and for comparison purposes in Australia and the USA. The study looks at the economics and especially the business case for cash substitution, and evaluates the major drivers that currently affect and will change the cost and usage of different payment methods. It forecasts how the use of cash and cashless payments will change up to 2014.
RBR, 4 February 2010

For more information please visit www.rbrlondon.com/futureofcash

ESTA contact

• For general inquires regarding administration, documents, conference: contact@esta-cash.eu
• For specific questions to the Secretary General: francis.ravez@esta-cash.eu
ESTA - European Security Transport Association
Rond Point Schuman 6 - B5, Brussels, 1040, Belgium
Tel: +32(0)2 234 78 20
www.esta-cash.eu, contact@esta-cash.eu