The Perm Printing Factory of Goznak and Belgrade, Yugoslavia-based GrafoCard have joined the International Card Manufacturers Association as “Principal Members/Card Manufacturers.”Ampflwang, Austria-based Iroplastics Gesellschaft M.B.H. has also joined the ICMA as an associate member, or supplier. Based in Princeton Junction, New Jersey, ICMA is a non-profit association of plastic card manufacturers, personalizers and related industry participants.Â With more than 230 members globally, the ICMA acts as a clearinghouse for industry issues, including the production, technology, application, security and environmental issues of plastic cards.
Certegy has dumped EDS for IBM at a cost of $10 million. The credit card processor has signed a ten-year, $150 million agreement with IBM to provide on-demand technology services for its USA operations by the end of the third quarter. IBM currently provides IT services to Certegy’s United Kingdom and Australia operations. IBM says it will improve Certegy’s IT operations by consolidating, automating and managing a large portion of its mainframe operating systems and hardware operations in the USA. Certegy will record a pre-tax provision of up to $10 million in the first quarter for early exit costs associated with severing the current EDS services agreement.
Datacard Group announced it has completed the acquisition of assets from Gilles Leroux S.A., a French manufacturer of plastic card production, control and personalization systems and leading supplier of solutions to the Global System for Mobile Communication smart card market. Datacard was awarded the right to purchase the Gilles Leroux assets in June 2002.
The first smart VISA card in Canada has been launched by RBC Royal Bank. RBC is upgrading its “Gold Avion VISA” to the English “Platinum Avion VISA” or the French “Platinum Voyages VISA”, and adding microchips to both platinum cards. It is the second nationally available smart payment card to be launched in Canada. RBC did not offer any details on chip application plans for the newly upgraded card. The current “Avion VISA” enables cardholders to earn points on their purchases and redeem them on any airline without regard to blackout periods or seat limitations. The current “Avion VISA” program also offers a 2,500 bonus points on sign-up, and every year thereafter, on renewal. The “Platinum Avion” card, currently being mailed out to cardholders to replace their “Avion Gold,” now enables cardholders to redeem their points for over 200 merchandise items, gift certificates and even cash vouchers for registered rewards. RBC also issues the “American Airlines AAdvantage VISA Gold” and “British Airways VISA Platinum.” One year ago, American Express and CIBC teamed to offer Canada’s first nationally available smart card. CIBC issues a suite of AmEx card products under the name ‘entourage’. (CF Library 1/10/02)
The Perm Printing Factory of Goznak and Belgrade, Yugoslavia-based GrafoCard have joined the International Card Manufacturers Association as “Principal Members/Card Manufacturers.” Ampflwang, Austria-based Iroplastics Gesellschaft M.B.H. has also joined the ICMA as an associate member, or supplier. Based in Princeton Junction, New Jersey, ICMA is a non-profit association of plastic card manufacturers, personalizers and related industry participants. With more than 230 members globally, the ICMA acts as a clearinghouse for industry issues, including the production, technology, application, security and environmental issues of plastic cards.
Morgan Stanley reported this morning that its credit services, or “Discover” card unit, posted first quarter earnings of $182 million, a 9% gain over the year-ago quarter. For the quarter ending February 28th, Discover’s managed credit card loans at quarter end rose 4.4% from a year ago to $51.8 billion. However, the interest rate spread contracted by 25 basis points over the same period, as a decline in the cost of funds was more than offset by a lower finance charge yield. Merchant and cardholder fees rose 4% to $547 million largely as a result of higher merchant discount fees from increased transaction volume. Charge volume rose 8% from a year ago to $26.1 billion. The net charge-off rate declined to 6.17%, 23 bps below a year ago. The Company’s continued focus on credit quality helped improve the contractual loss rate despite continued softness in the U.S. economy. The over-30-day delinquency rate improved 42 bps to 6.33%, and the over-90-day delinquency rate improved 17 bps to 2.95% from the same quarter of 2002. For complete details on Discover’s latest results visit CardData ([www.carddata.com]).
DISCOVER CARD PORTFOLIO SNAPSHOT
1Q/02* 2Q/02* 3Q/02* 4Q/02* 1Q/03 Y/Y CHNG
Receivables: $49.6b $49.4b $49.7b $51.1b $51.8b +4.4%
Volume: $24.1b $23.5b $24.3b $25.3b $26.1b +8.3%
Accounts: 46.0m 46.2m 46.2m 46.5m 46.5m +1.1%
Actives: 23.8m 23.4m 22.8m 22.6m 22.3m -6.3%
Chargeoffs: 6.40% 6.30% 6.27% 5.96% 6.17% -3.6%
Delinquency: 6.75% 5.63% 5.72% 5.96% 6.33% -6.2%
Yield: 12.63% 12.64% 12.71% 12.45% 11.78% -6.7%
1Q/02 ended 2/28/02; 2Q/02 ended 5/31/02; 3Q/02 ended 8/31/02; 4Q/02 ended 11/30/02; 1Q/02 ended 2/28/03. Source: CardData ([www.carddata.com])
Edgar, Dunn & Company has hired international cards and payments industry expert Nicholas L.A. Kennett as a director of EDC’s financial services practice in its London office. For the past seven years, Mr. Kennett has served in key managerial roles at the Commonwealth Bank of Australia, including Executive General Manager Retail Customer Services and General Manager, Cards & Financing Products. Mr. Kennett has served on key payments industry boards, including as a director of the MasterCard International Asia-Pacific Board and Maestro International/Debit Advisory Board; as a member of MasterCard International Operations Committee; as chairman of Bankcard Association of Australia; and as chairman of VISA Executive Committee of Australia.
Nicholas L.A. Kennett, international cards and payments industry expert, has joined as a director of EDC’s financial services practice in its London office. Mr. Kennett will play a leading role in EDC’s continued global expansion, with a special focus on Europe and Asia Pacific, providing financial services institutions with payments related consulting services.
US-based Capital One says its UK operations became profitable for the
first time last year. At the end of 2002, the U.K. Bank had 2.8 million
accounts and $3.9 billion in credit card, revolving loan, and installment
loan assets.The UK Bank has been operating independently in France since
2000. Cap One’s total international business had $5.3 billion of managed
credit card receivables. Besides the UK, the issuer also has operations and
activities in Canada, South Africa and France. Capital One’s global
subsidiaries collectively had 47.4 million accounts, and $59.7 billion in
managed loans outstanding as of December 31, 2002.
Global Payments reported yesterday that revenue grew 8% to $124.6 million in the quarter ending February 28th, compared to $115.3 million in the year-ago quarter. Net income grew 18% to $12.1 million, compared to $10.3 million in the prior year. GPN says the revenue results were driven by its ISO and direct sales channels. GPN also says it continues to achieve improvements in operating income margin due to its acquisition integration efforts and cost reduction programs. The processor reaffirmed its fiscal 2003 annual revenue guidance of $495 million to $514 million. For complete details on GPN’s latest results visit CardData ([www.carddata.com]).
Aconite and XIRING have teamed to develop a solution to use the
cryptographic capabilities of an EMV smart card
to provide a strong authentication of the cardholder. The integrated
authentication solution comprises the “Xi-Sign,” a
pocket-sized, smart card reader from XIRING and the back office host system
software, “EMV Authenticator,” from
Aconite. “EMV Authenticator” carries out the authentication process through
to the end service for which the cardholder requires access (e.g. online
banking). The solution is compatible with the “3D-Secure” payment
architecture as it provides for a
strong payer authentication both for “Verified by Visa” or for “MasterCard
Metavante Corporation announced the availability of the new Triple Data Encryption Standard for its Electronic Funds Transfer and Card solution clients. Metavante has certified Triple DES processing on NCR, Diebold, and Fijitsu brand ATMs in advance of an April 1, 2003, MasterCard mandate.