Credit Union 24 Joins Allpoint Network

FL-based Credit Union 24 signed a multi-year deal with with the Allpoint Network and will continue to offer the CU HERE Premium network and its nearly 50,000 surcharge-free ATMs to its credit union participants. The Allpoint ATMs are part of Credit Union 24’s CU HERE Premium program, which was introduced in December 2007 and is nearly three times the size of the largest bank-controlled ATM network. Credit Union 24 will continue to offset a portion of the cost for the program for its participants who choose to utilize non-surcharging ATMs as a tool to grow their membership. Credit Union 24’s CU HERE surcharge-free programs combine to create the largest surcharge-free ATM presence in the country. Credit Union 24 is a flexible, member-owned, full-service, deposit-taking ATM and POS network with multiple processor links with hundreds of thousands of POS locations.

Consumer Card Fraud Concerns Rise Globally

A new global survey has found that identity theft and financial fraud are top global concerns for consumers. The “Unisys Security Index” declined three points to 134, representing a moderate level of overall concern about security issues worldwide. Consumer concern is highest in Asia, (specifically Hong Kong, Singapore, and Malaysia) – as well as Brazil. Germany is the only European country that registered a high concern about security issues. French consumers are least concerned worldwide, with fears at or near the lowest level of concern in all four areas included in the “Index”. Compared to August 2007, segments of the population in the U.S. and Hong Kong experienced more stress about meeting basic financial obligations, such as paying credit card bills and mortgage payments. The “Unisys Security Index” presents a social indicator that measures consumer concern in relation to four areas of security: national, financial, Internet and personal safety.

US Dataworks Q1 Revenues Drop by 30%

Houston-based US Dataworks reported revenues for the quarter ended March 31st of $1.6 million, compared with revenues of $2.3 million for the same period a year ago. The net loss for the quarter was $4.4 million, compared to a net loss of $1.3 million, for the corresponding period in the prior year. The Company says it is close to completing a major restructuring, which includes streamlining the staff. The Company is also set to release a new version of its proprietary software: “Clearingworks 3.0.” US Dataworks is a developer of payment processing solutions. For complete details on US Dataworks’ latest results visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

Pioneer Telephone to Use EPX’s PINless Debit

DE-based end-to-end payment solution provider Electronic Payment Exchange has signed a multi-year agreement with ME-based Pioneer Telephone to process its customers’ payments. In addition to traditional credit and debit card payment processing, Pioneer will begin using EPX’s PINless Debit product to process their customers’ payments who choose to pay for services using their debit cards. Merchants who are eligible to accept the PINless Debit transactions for payment recognize a significant reduction in the overall expense associated with non-face-to-face payment acceptance. EPX enables their clients to take advantage of this payment type with less expense than traditional card interchange fees.

MATCIA Z20/Z20T & MS20

Matica has announced its provision and installation of its “Z20”
printer, “Z20T” printer and MS20 card sorting to Oberthur Card Systems,
collectively valued at over EUR400,000. Oberthur is deploying the mid
range card issuance systems- capable of producing 900 cards per hour- in
Hungary, Romania, Ukraine, the Philippines and South Africa. The “Z20T”
‘all in one’ solution allows Oberthur to encode, emboss, indent, print
logos and install chips on credit cards in a single system while MS20
card sorting and mailing system takes the card from production to the
end user. Oberthur provides cards and card-based solutions to a broad
range of sectors and had 2007 revenue of over EUR730 million while
Matica is an international supplier of card personalisation and card
mailing systems in approximately 100 countries.

RiskWatch for PCI Compliance is Unveiled

RiskWatch has released “RiskWatch for PCI Compliance” software which measures compliance directly against the recently updated Payment Card Industry Data Security Standard. The software consists of a simple web-based solution which allows an organization to log in to a secure web site and create compliance surveys that can be distributed throughout an organization and provides full audit trails, validating compliance with the new standard.

MAY DEBT

Credit card outstandings rose in May by GBP 556 million to a total of GBP 55.5 billion. Year-on-year credit card outstandings (not seasonally adjusted) were up slightly more than 3%. According to the The Bank of England, the increase in total net lending to individuals in May (GBP 5.4 billion) was below the increase in April and the previous six-month average. The twelve-month growth rate slowed to 8.0%, and the three-month annualized growth rate slowed by 1.2 percentage points to 5.9%. The increase in net consumer credit in May (GBP 1.4 billion) was above that in April and above the previous six-month average. Net other loans and advances increased by GBP 0.8 billion, lower than the March increase. The annual growth rate of consumer credit rose by 0.1 percentage points to 7.0%; the three-month annualized growth rate fell by 1.7 percentage points to 6.7%.

NOTE: Chart does not include about GBP10 billion from specialist
lenders, retailers, and insurance companies. SOURCE: Bank of England

GPD/STIP TEST PLAN

GlobalPlatform has published its upgraded “Test Plan 1.0” GDP/STIP v2.3
compliance tool for smart card products, designed to speed development
and deployment testing for faster time to market. As a result of its
early-stage compliance, “GPD/STIP v2.3 Test Plan v1.0” ensures lower
implementation and testing costs for merchants’ compliance with the
GlobalPlatform “GPD/STIP v2.3” specification for data security. As a
member driven association with cross-industry representation from around
the world, GlobalPlatform smart card infrastructure development is known
as the standard for smart card infrastructure.

MicroBilt and PRBC Merge Databases

Risk management information provider MicroBilt Corporation and PRBC are teaming to help small-to-medium sized and financial institutions conduct business with an estimated 50-70 million American consumers with “thin” or no established credit histories. PRBC is a bill payment credit bureau that collects, stores, scores, and reports bill payment data in compliance with the Fair Credit Reporting Act (FCRA) and the Fair and Accurate Credit Transaction Act (FACTA). It is the first credit repository to give prospective borrowers the tools to demonstrate their creditworthiness without the need to go into debt. The two companies will merge payment data collected by MicroBilt and PRBC in PRBC’s data repository to help more consumers qualify for FICO® Expansion® scores used by lenders and financial institutions in underwriting new loans. As part of the agreement, MicroBilt will make an equity investment in PRBC.

SECURITY INDEX

A new global survey has found that identity theft and financial fraud are top global concerns for consumers. The “Unisys Security Index”
declined three points to 134, representing a moderate level of overall concern about security issues worldwide. Consumer concern is highest in Asia, (specifically Hong Kong, Singapore, and Malaysia) – as well as Brazil. Germany is the only European country that registered a high concern about security issues. French consumers are least concerned worldwide, with fears at or near the lowest level of concern in all four areas included in the “Index”. Compared to August 2007, segments of the population in the U.S. and Hong Kong experienced more stress about meeting basic financial obligations, such as paying credit card bills and mortgage payments. The “Unisys Security Index” presents a social indicator that measures consumer concern in relation to four areas of security: national, financial, Internet and personal safety.

Bank Credit Card Switching Grinds Down

While an on-going CardTrak.com survey shows that 43% of consumers want to switch cards and 19% want to cut-up all their cards this year, the number of consumers closing their credit card accounts has nose-dived. According to CardData, voluntary attrition for the month of May slipped to an all-time low of 6.80%, compared to 9.10% one-year ago and 8.88% five years ago. As credit card issuers tighten credit card approval standards, switching cards has become more difficult for consumers as new credit lines are less generous. Furthermore, as reported last week in CardFlash, direct mail credit card offers have dropped significantly this year. Additionally, a major online credit card marketing concern, creditcards.com, abandoned its planned IPO in the wake of tighter underwriting on consumer credit cards. Voluntary attrition is determined by dividing cardholder-initiated account closings by the gross number of accounts and then annualizing.

MAY ATTRITION
(Excludes Discover and AmEx)
2004: 8.88%
2005: 9.35%
2006: 8.99%
2007: 9.10%
2008: 6.80%
Source: CardData (www.carddata.com)

Comdata Names a New HR Executive

Payment platform provider Comdata has named Tracey Power as SVP of human resources. Power formerly held the position of vice president, performance management at Comdata. Prior to joining Comdata in 2006, Power served as manager for HR, training and internal communications at Affinion Group/Cendant where she was responsible for implementing human capital management strategies. She also served as assistant vice president, training manager for J.C. Bradford & Co. (now UBS), where she began her career in futures trading and marketing. Power holds a BA in political science, magna cum laude, from the University of Tennessee and a M.Ed. in human resource development from Vanderbilt University.