TSYS this morning acquired London-based Card Tech in an all-cash transaction. The new company will be known as TSYS Card Tech. Card Tech has been providing payment association certified solutions to the bankcard sector since 1989. More than 190 banking clients from 70 countries use CTL systems. CTL solutions include card issuance, merchant acquiring, authorization, message switching, encryption key and PIN management, e-commerce and fraud management. The firm has offices in London, Nicosia, Moscow, Kuala Lumpur and Dubai.
VISA has refused to voluntarily comply or respond to a new
package of debit card reforms proposed by Australia’s central bank. While MasterCard met the July 1st deadline, VISA did not and thus the
Reserve Bank will basically force its reforms on VISA including cutting the interchange fee in the “VISA Debit” system from 40 cents to 15 cents effective November 1st. The Reserve Bank Board will also force VISA to remove the restrictions on merchants that require them to accept “VISA Debit” cards if they accept “VISA Credit” cards, and that prohibit merchants from imposing a surcharge on “VISA Debit” transactions, effective January 1st. The Payments System Board also wants to push interchange fees in the EFTPOS system from 20 cents to 4.5 cents per transaction.
Solidus Networks’ Pay By Touch has beefed-up its “Paycheck Secure” product which enables retailers to electronically deposit all checks at once. Customers provide a photo ID, two finger scans, and a digital photo at the reatiler’s location to enroll in “Paycheck Secure.” The Company says the new version 8.0 offers significant time savings, more secure transactions and faster access to funds. Pay By Touch says more than $8 billion in checks have been cashed using “Paycheck Secure.” Salt Lake City-based Zions First National Bank recently introduced Pay By Touch biometric check-cashing in 12 locations throughout Utah and Idaho. Pay By Touch acquired BioPay earlier this year for $82 million in stock and cash. BioPay is the developer of the biometric check cashing system. To date, more than 2.5 million consumers have used the system to cash checks. (CF Library 1/17/06; 7/5/06)
Dallas-based QI Systems has launched the “QiWAVE” cashless vending system, which incorporates HID’s “iCLASS” contactless smart card technology, and is targeted for use in university and corporate campus vending, laundry, parking and photocopying applications. QiWAVE’s contactless iCLASS solution increases transaction speed and convenience for the user, reduces or eliminates cash handling, reduces machine maintenance and extends card life by eliminating mechanical contact between the card and the reader. QI Systems Inc. develops and markets innovative contact and contactless chip-based card payment and tracking solutions for a number of industries as well as national, state and local government agencies.
Fitch Ratings announced it is changing its rating methodology for U.S. credit card asset-backed securities due to consumer confidence coupled with recent regulatory and industry developments. Refinements include new USD LIBOR scenarios, and compensation for basis risk between the prime rate used to price most variable credit card lending and USD LIBOR. The firm will also place more focus on purchase rate and servicing fee levels. Although Fitch has always evaluated the seller/servicer associated with credit card ABS, the process has been formalized and will augment its credit card collateral analysis and cash flow modeling when determining credit enhancement.
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AR-based Alltel is now offering MobileVision’s “MobileCharge” solution bundled with a magnetic stripe reader and printer from Infinite Peripherals on the BlackBerry “7250” and “7130e” and the Palm “Treo”. Infinite Peripherals, founded in 1993, is a source for advanced mobile hardware solutions as well as receipt and OEM printers for the Point of Sale market. MobileVision creates innovative, productivity enhancing wireless applications that are compatible with handsets running RIM BlackBerry(TM), Palm Treo(TM), and Windows Mobile operating systems.
MA-based Pipeline Data has acquired Valadata for $5.4 million in cash and a two-year earn-out of $1.5 million. Pipeline also acquired a separate retail portfolio for $500,000. The Company recently reached an agreement with several institutional investors to purchase $37 million of convertible notes and warrants to be used to refinance short-term indebtedness and to fund acquisitions. Pipeline also recently reported gross profit for the first quarter of $2.9 million, a 121% increase. The Company provides integrated transaction processing services to more than 33,000 accounts. (CF Library 5/17/06; 6/29/06)
The return on average credit card assets has begun to decline after digesting the autumn 2005 explosion in personal bankruptcies and now facing rising delinquency and charge-offs. After dipping below 100 basis points in November the ROAA has steadily surged, peaking at 2.46% for March but slipping slightly for three consecutive months. The ROAA is determined by dividing the after-tax return by the average managed card outstandings and then annualizing. The figures do not include the impact of American Express and Discover performance. Rising interest rates, higher minimum payments and increasing energy costs appear to be pushing delinquency upward. Therefore, the ROAA is headed back to more realistic levels.
RETURN ON AVERAGE ASSETS
May 05: 1.17%
Jun 05: 1.19%
Jul 05: 1.28%
Aug 05: 1.39%
Sep 05: 1.46%
Oct 05: 1.40%
Nov 05: 0.84%
Dec 05: 0.81%
Jan 06: 1.11%
Feb 06: 1.98%
Mar 06: 2.46%
Apr 06: 2.40%
May 06: 2.37%
Source: CardData (www.carddata.com)
The Chrysler Group is offering Jeep vehicle owners a $75 gasoline card for this year’s “Camp Jeep” to be held in Elkhart Lake, WI. Owners who register before July 24 for Camp Jeep — the family-friendly event is being held for the first time ever at Road America in Elkhart Lake, Wis., August 10-12 — will receive a $75 gasoline card and during the Jeep Jubilee that Saturday night, the headliners are The Blues Brothers, starring Dan Aykroyd and Jim Belushi. amp Jeep registration is $395 per vehicle. Those who refer a friend who registers will receive a $25 discount card to be used at the Jeep Store on site.
Cleveland-based SecureState has received its “Qualified Data Security Company” accreditation. This qualification enables SecureState to perform PCI Data Security Assessments for merchants and service providers who store, process or transmit payment card data. As a Visa QDSC, SecureState’s security and certification services are at the core of their proactive and dynamic security program which exceeds industry regulatory standards. SecureState LLC, a woman-owned certified 8(a) small business, is a premier provider of innovative security solutions that address Physical, Logical and Personnel security layers.
CA-based MyECheck has launched version 2.0 of its patent pending Check 21-based Internet payment system. Merchants can now collect consumer payment information on their website in their own format, and pass the data to MyECheck for real-time fraud screen and RCC (remotely created check) image creation and clearing, with same day or next day availability of funds. MyECheck, a privately held corporation, offers a patent pending method of creating and processing remotely created checks (RCCs), providing the world’s first Internet gateway to Check 21 image processing.