Los Angeles-based No Borders has concluded agreements with Bridgepointe Partners and Miller Investments for the offer and sale of up to $2,500,000 in aggregate principal amount of two-year convertible debentures. The parties have closed on the first two debentures for a total of $500,000. No Borders has the right to “put” to Bridgepointe up to three additional debentures each in the principal amount of $250,000 subject to No Borders having first achieved specific financial and operational deliverables and milestones. No Borders is in the business of providing a debit and stored value card platform for products and services tailored to residents of developing countries and to immigrants who send money back home on a regular basis.
JCB has joined VISA and MasterCard to align “PIN Entry Device” security requirements and approval procedures. “PED” manufacturers submitting devices for security testing will be able to rely on a single set of standards, helping ensure cardholder security and providing faster time-to-market for financial institutions. MasterCard and VISA previously agreed to support common standards which were fully put into effect October 2004. JCB’s merchant network includes 12.4 million merchants. JCB cards are now issued in 19 countries and territories, with 55.14 million cardholders.
The after-tax return on average credit card assets has been slowly rebounding this year as delinquency and charge-offs have moderated. The rebound has also been assisted by issuers’ ability to reset interest rates quickly in response to short-term interest rate hikes. According to CardData ([www.carddata.com]), the ROAA peaked at 1.94% in October 2002 and slipped to 1.17% in July of this year. For August the figure rebounded to 1.39%, about the same level as February of 2005.
Return on Average Assets Historical
Aug 04: 1.45%
Sep 04: 1.54%
Dec 04: 1.48%
Jan 05: 1.41%
Mar 05: 1.24%
May 05: 1.17%
Aug 05: 1.39%
Source: CardData (www.carddata.com)
JCB celebrates its 8th anniversary of the opening of its
representative office in the Philippines with the “P1 Million JCB Credit
Reload “, offering a grand prize of one million pesos and many other
cash credit prizes under the slogan “enriching your life”. Additionally,
in order to capture a significant share of the remaining untapped
cardholder base in the Philippines, JCB is offering innovative products
such as “myDream JCB”, launched in 2003 by Bankard, with a uniquely low
annual fee of P800, compared to the usual P1,200, and a finance charge
rate of 2.5% compared to the usual range of 3.25%-3.5%. JCB has had a presence in the Philippines in the acquiring business since
1982 and in card issuing since 1996.
VISA USA has agreed to extend its relationship with processor CardSystems Solutions until January 31st. VISA granted the extension for the sole purpose of helping to facilitate CyberSource’s planned acquisition of CardSystems’ assets. VISA said the extension is contingent upon several security requirements. In July, VISA and American Express announced plans to pull the plug on their relationship with CardSystems Solutions by October 31st. In June, CardSystems publicly acknowledged that as many as 40 million credit card accounts may have been affected by an internal security breach. The breach reportedly took place following the installation of new data mining software which enabled a rogue computer program to extract files. CardSystems Solutions processes payment transactions for more than 119,000 customer locations and handles about $15 billion in annual volume. (CF Library 6/20/05; 7/20/05; 9/1/05; 9/23/05)
London-based Tesco Metro store has converted 60% of its checkout positions to self-checkout by installing 12 NCR “FastLane” units. This will give Tesco added flexibility to efficiently serve customers at all hours. Tesco is the leading supermarket retailer in the UK and is leading Europe in the implementation of self-checkout technology. The company currently has self-checkout in 137 stores and intends to extend this to 220 by the end of the year. NCR is a global technology company provider for ATMs, retail systems, data warehouses and IT services.
Portland, OR-based ATM specialist TRM Corporation has completed a private placement for $40.4 million that will close October 5th. The 2,778,375 shares of common stock at $14.54 per share are available to both new and existing shareholders. TRM Corporation is a consumer services company that provides convenience ATM and photocopying services in high-traffic consumer environments with over 35,000 retailers in the US.
Louisville-based Stored Value Systems and its Salt Lake City-based minority marketing partner, Gift Card Solutions, also announced an agreement to provide gift card services for Panda Express restaurants, the nation’s largest Chinese quick-service restaurant chain, with nearly 750 locations in 36 states. The gift cards are available to guests in any amount between $10 and $100. They can be used for food or beverages, and for individual meals as well as catering orders for groups. Stored Value Systems is a provider of electronic gift cards and other card-based transaction programs. Gift Card Solutions provides electronic-based gift products and services.
New Jersey-based ATM specialist NexTranGroup has opened regional offices in the Philadelphia and Washington, DC metropolitan areas and plans to open three more offices in Los Angeles, Honolulu and the Pacific Northwest. The new offices, in Blue Bell, Pa. and Annandale, Virginia will allow the company to work more closely and effectively with its existing product distributors. NexTran Industries is a full-service manufacturer and distributor of ATMs and cash dispensing machines.
A new poll shows that three out of five U.S. consumers believe that the unique image of their finger would be the most difficult form of identification to forge or steal. The research by Los Angeles-based Kelton Research Group for BioPay also found that 48% of those surveyed blame long check-out lines on people who wait until the last minute to find their credit or debit card. Another 20% believe check writing is burdensome to the shopping transaction as well. Additionally, Americans believe that finger images are a more secure form of identity than passports, credit cards, photo IDs, birth certificates and signatures combined (51% to 36%).
In its second check donation of 2005, the card-driven “Target Take Charge of Education” program has awarded more than $14.7 million to schools nationwide. Since the program began in 1997, Target has donated more than $154 million to schools. With the Take Charge of Education program, families, teachers and members of the community can designate any eligible K – 12 school throughout the country to receive an amount equal to 1 percent of their “REDcard”, “Target Visa” and “Target Card” purchases made at Target and Target.com. Target also donates 0.5 percent of all Target Visa purchases made everywhere Visa credit cards are accepted. Currently, more than 107,000 schools and 9 million Target guests are enrolled in the program. Target serves guests at 1,351 stores in 47 states and gives back more than $2 million a week to its local communities through grants and special programs.
Louisville-based Stored Value Systems and its Salt Lake City-based minority marketing partner Gift Card Solutions announced an agreement to provide the first-ever gift card program for Schlotzsky’s, an international franchise restaurant chain with approximately 400 locations in 36 states and six foreign countries. The electronic gift card program allows Schlotzsky’s to provide its customers with an easy-to-administer program at the cash register or online at its website in denominations from $5 to $500. Stored Value Systems is a provider of electronic gift cards and other card-based transaction programs. Gift Card Solutions provides electronic-based gift products and services.