A survey on lending practices shows that 14.7% of domestic banks indicate they had tightened standards on credit card loans over the past three months, however terms and conditions on credit card accounts were largely unchanged for the second consecutive survey. In the April survey, less than 10% of banks indicated that they had tightened standards on credit card loans over the past three months. The “Senior Loan Officer Opinion Survey on Bank Lending Practices” found that standards for residential mortgage loans were largely unchanged over the past three months, and the demand for these loans was stronger on net. As in April, only a modest portion of domestic banks, on net, reported tightening standards for consumer loans. Demand for consumer loans was slightly weaker, on net, over the past three months as banks reported that they lost some business to automobile finance companies. Regarding credit standards for credit cards, 11% of large banks indicated they have tightened standards while 18.8% of smaller banks said they have raised standards since April. (CF Library 5/13/02)
Athens-based Delta Singular has teamed with CardinalCommerce, Safe3w, and Worldwide Trust to provide issuer and merchant authentication software to card issuers and merchant acquirers throughout Europe. The CardinalCommerce and Safe3w products support the roll-out by banks and payment processors of technologies that authenticate online credit and debit card transactions. Their payment authentication software complies with both “Verified by Visa” and MasterCard’s “Secure Payment Application”. Delta Singular provides payment processing for more than 20 banks and 80,000 merchants. Delta’s issuing bank clients have over 2.5 million VISA and MasterCard accounts.
London-based Mosaic Software launched a new retail solution which enables retailers to support chip and PIN at the point-of-sale. “Postilion for Chip and PIN’ enables retailers to authorize transactions at the till even when the in-store systems are down. Non-financial cards can be used in bankcard authorization requests, allowing retailers to offer modern payment services such as mobile prepay top-up, staff discount and loyalty programs at the POS. Settlement cycles can be accelerated to receive acquiring bank payments earlier. The “Postilion for Chip and PIN” solution also guarantees cost-effective migration to support EMV Level I or Level II compliant chip card readers as well as secure PIN processing at the POS. eSocket.POS, an open Java-based component of the solution, is designed to operate on tills or the store servers within a network of integrated EPOS terminals. It communicates with Mosaic Software’s Postilion payment processing platform for the purposes of obtaining approval from the cardholder’s bank.
US-based Catuity has signed an agreement with Toronto-based KESM Transaction Solutions to be the exclusive provider of the loyalty application for Belgium-based Banksys terminals. The Banksys “C-ZAM/Smash” terminal is distributed in North America by BNA Smart Payment Systems, for which KESM also provides certified credit/debit applications. The Catuity loyalty application is expected to be installed along with payments on the multi-application terminal. KESM will act as the ASP, loading the Catuity loyalty application for deployment. Transactions and end of day reconciliation are performed with access to the Catuity loyalty application running on the KESM secure server. It marks the first such agreement for the Catuity application to be hosted by an Application Service Provider.
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Household’s recent restatement of net income since 1994 has produced shareholder lawsuits. The complaints allege that Household caused its stock to trade at artificially inflated levels through the issuance of false and misleading financial statements by, among other things, failing to properly amortize the Company’s co-branding agreements, and failing to record its expenses associated with its marketing initiatives. In addition, the lawsuits charge that Household improperly “re-aged” accounts, thereby concealing the Company’s actual delinquency ratios. Little Rock, AR-based Cauley Geller Bowman & Coates, Bala Cynwyd, PA-based Schiffrin & Barroway, and San Diego-based Milberg Weiss filed the suits this week. Household revised its net income, over the past eight years, downward by a total of $386 million Household said the restatement is due to changes in its accounting policies in conjunction with Mastercard/VISA co-branding and affinity credit card relationships, and a credit card marketing agreement with a third party. The revisions were made after a recent review by its new auditors, KPMG LLP. For complete details on Household’s 2Q/02 performance visit CardData ([www.carddata.com]).
Duncan-based Island Savings Credit Union has completed its conversion to Fincentric’s “i-Wealthview Banking.” The new software provides Island Savings with core banking capabilities, integrated delivery channels and real-time, online transaction processing. “i-Wealthview Banking” provides a complete front-to-back office banking solution that supports its many delivery channels such as branch, ATM, POS, IVR and Internet. Based in British Columbia, Island Savings is one of the ten largest credit unions in BC and is the largest Vancouver Island-based credit union, serving over 30,000 members and managing assets of over CN$550 million.
New York City-based Comstar Interactive launched a wireless credit card processing solution this week. “CHARGE ANYwhere” combines a compact card swipe device with a Web-based transaction database and reporting system and other features in one low-cost package. The solution also includes check authorization and two-way messaging as standard features. The “CHARGE ANYwhere” integrates a magnetic card swipe reader with the BlackBerry-class “RIM 950/850” wireless handheld which is enabled for either the Cingular Wireless Mobitex network or the Motient network. The device connects wirelessly through Comstar’s gateway to credit card processing companies. Authorizations typically take five to seven seconds, on average. Larry’s Limos, a full-service limousine operator based in Birmingham, AL, has been a Comstar beta customer using CHARGE ANYwhere for the past several months. “CHARGE ANYwhere” can be purchased for as low as $674, which includes the device, features software, user name and activation fees. Monthly service charges start as low as $19.95. There also is a 10-cents per transaction fee.
OH-based Charter One Bank has launched Centerpost’s “FYI Alerts” to provide customers with account information via mobile phones, work or home phones, pagers, PDAs, email, and fax. Customers can choose to be alerted to account activity such as recent transactions, low balances, new e-bill arrivals and more. FYI Alerts will also allow users to request a full financial summary in the form of a “mini-statement” – which can be set up to arrive daily, weekly or monthly.
VISA has contracted Corio, Inc. to provide infrastructure and application management services for its human resources system.
Certegy has extended its credit card enhancement expertise to the upgrading of its value-added checking product, which was originally launched ten years ago. Certegyâs Value-Added Checking, a full-service, complete turnkey product, includes customizable promotional materials including direct mail, on-site training, and point of sale materials.
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