Dallas-based Alliance Data Systems Corporation has signed a multi-year expansion and renewal agreement with Fortunoff,to launch a co-brand credit card program. The new co-brand credit card program will complement Fortunoff’s existing private label credit card program, providing select customer segments with an alternate card choice for making purchases. Co-brand cardholders will receive five percent back on all purchases made at any Fortunoff store, online or through the catalog, and points-based rewards for all other purchases made on the co-brand card outside the Fortunoff brand. Private label cardholders earn points for every dollar spent on the card, redeemable for dollars-off on future purchases. Alliance Data will continue to provide Fortunoff with integrated credit and marketing services, including account acquisition and activation, receivables funding, credit authorization, card issuance, statement generation, direct mail and email marketing services, electronic bill presentment services, remittance processing, marketing and customer service functions. Alliance Data is a provider of marketing, loyalty and transaction services.
NY-based National Envelope Corporation has unveiled card sleeves and mailing envelopes to help shield contactless payment cards in transit. The new “Smart Card Guard” uses a thin protective metallic barrier that is incorporated into a specially produced, easy-to-print substrate. The new product was developed late last year and tested early this year by InfoGard Laboratories. The Company said the new product was developed in response to a 2006 study by researchers at the University of Massachusetts-Amherst. The test of 20 smart cards showed encryption levels were not nearly strict enough to prevent easy interception of personal information. National Envelope manufactures approximately 50 billion envelopes a year via 21 manufacturing facilities in the U.S. and Canada. A report released last week by Packaged Facts projects that total contactless credit and debit cards in the U.S. will reach 109 million by 2011 from the current 27 million. (CF Library 5/2/07)
Uniondale, New York-based Safewww, Inc., which provides strong two-factor authentication for secure online access, payments and transactions and Cleveland, Ohio-based CardinalCommerce, a leading electronic transaction security company, have jointly developed an end-to-end authentication solution to support the new Visa 3-D Secure and MasterCard SPA secure payment initiatives.
The solution is based on a proprietary and modular architecture to allow seamless support for these and new initiatives expected from other payment networks, including Concord EFS/Star.
“Combining Safewww’s easy to deploy, strong IDshield authentication technology with Cardinal’s proprietary Payment Authentication Platform, provides financial institutions with a powerful solution to support the current secure payment initiatives as well as those to come,” commented Tim Sherwin, Co-founder and Executive Vice President of CardinalCommerce. “Our integrated system, through one common platform and one implementation, addresses the challenges facing our financial institution customers.”
“With financial institutions soon to be facing liability for fraudulent online transactions, they need to ensure that they and their customers are protected from fraud,” added Kenneth Bob, CEO of Safewww. “The joint CardinalCommerce-Safewww solution allows them do so without inconveniencing their customers or adding complexity to the process.”
The joint solution will enable issuing banks to rapidly deploy a software platform for the Verified by Visa and MasterCard SPA programs with no legacy system integration. This will provide an easy-to-use, strong two-factor authentication system to increase security and comfort to cardholders to conduct online transactions. Visa and MasterCard research has shown that consumers are likely to purchase more online with the added security provided by these new initiatives. Furthermore, these initiatives will effectively shift the liability for fraudulent transactions from the merchant to the financial institution. To address the expected $15 billion of credit card fraud predicted by 2004 (Meridien Research), financial institutions need to implement an authentication scheme strong enough to protect the bank from this liability shift, yet that is transparent to their consumers. The CardinalCommerce-Safewww solution satisfies this requirement while allowing the financial institution to leverage the investment for numerous other revenue generating authentication opportunities in the future.
About Safewww Incorporated
Founded in 1999 by Israeli Internet security entrepreneurs, Safewww, Inc. provides identity protection products and services for business and personal Internet transactions. With corporate headquarters in the U.S. and a research and development center in Israel, Safewww has established strategic alliances and received investment capital in the U.S., Israel, Spain, China, Japan and Argentina. Its target online markets include banking, B2B exchanges, digital music and video, auctions, store cards, and gaming. Utilizing patent pending third-party user authentication and content encryption technology, Safewww’s impenetrable and simple-to-use solution allows Internet transactions to achieve the utmost in security without the need to transmit confidential information over the Internet. For information, visit .
About CardinalCommerce Corporation
CardinalCommerce Corporation is a leading provider of a technology-neutral authentication platform for securing electronic and wireless commerce, thus ensuring that individuals, businesses and government agencies can process electronic transactions and access confidential information safely, securely and privately. The first application of Cardinal’s proprietary technology, the Cardinal Payment Authentication Platform, provides consumers, merchants, credit/debit card issuers, and processors the ability to conduct fully authenticated Internet-based e-commerce, while protecting the transactions from fraud. For more information, visit [www.cardinalcommerce.com].
New Retail Merchants Ring In Holiday Season With Paymentech
Paymentech has added major retail merchant customer in the weeks preceding the holiday season. The nation’s third largest bankcard processor signed and implemented traditional storefront merchants as well as national cataloguers.
Paymentech is acquiring and settling piont-of-sale (POS) transactions for Fortunoff, headquartered in Uniondale, NY, and Duty Free Shoppers (DFS), based in San Francisco. These customers represent over $500 million in anticipated annual retail credit card volume to Paymentech. The combined new business also adds 100 merchant locations to Paymentech. The combined new business also adds 100 merchant locations to Paymentech’s Network Services POS system, which provides authorization and electronic draft capture services.
Paymentech is also implementing payment processing for such catalog retailers as the Direct Sales Division of Nordstrom, and the catalog unit of a major toy retailer. Paymentech’s direct response unit, located in Salem, NH, is the largest processor of non-face-to-face credit card transactions, offering customized services to direct marketers and electronic retailers.
“Fortunoff switched to Paymentech’s processing for its technological superiority,” said Leonard Tabs, chief financial officer for the value-oriented retailer. With a 75-year commitment to the New York City and New Jersey area, Fortunoff also sought a payment processor with strong local customer service. Paymentech maintains a major sales and client relations office in Manhattan.
“Paymentech has provided an extensive frame relay environment for Duty Free Shoppers, networking locations as far away as Guam for on-line credit card processing,” said Tao Fung, manager for worldwide store systems at DFS. “The delivery of consolidated merchant reporting will provide cost savings and reduce operational hassles related to reconcilement.”
Duty Free Shoppers operates many locations in the western United States, Hawaii, and U.S.- held territories in the Pacific.
Fortunof offers fine jewelry, watches, silver, domestics, tabletop and home furnishings at seven locations throughout the New York metropolitan area. The family owned and operated retailer presents quality, service and large inventory selection at fair, everyday low prices.
Paymentech, inc. founded in 1985, provides full-service electronic payment solutions in merchant acquiring, third-party transaction processing and commercial card payment and information programs. The company processed 1.9 billion total transactions and approximately $49.3 billion in sales volume in fiscal year 1998. Paymentech is the third largest processor of bankcard transactions in the United States and a leading issuer of commercial cards.
Paymentech Completes Acquisition of Mellon Bank’s Merchant Processing Business
Paymentech, Inc. announced Monday that it has completed the previously announced acquisition of the merchant processing business of Mellon Bank Corporation. The transaction satisfied all necessary regulatory approvals.
Mellon Bank and Paymentech also entered into an exclusive marketing and referral agreement under which the parties will market Paymentech’s processing services to Mellon Bank’s merchant customers. As previously announced, this acquisition adds approximately 46,000 merchants with $5.3 billion in annual bankcard sales volume to Paymentech. The portfolio consists of processing business from retailers, cable television and cellular telephone providers, government agencies, independent sales organizations, and agent banks.
Paymentech, Inc., founded in 1985, provides full-service electronic payment solutions for direct merchant clients as well as third-party transaction processing. Paymentech also offers complete commercial card payment and information programs to businesses and other entities. Paymentech is the third largest processor of bankcard transactions in the United States and a leading issuer of commercial cards.
A broad-based financial services company with a bank at its core, Mellon Bank Corporation ranks among the nation’s largest bank holding companies in market capitalization. With approximately $2 trillion in assets under management or administration, including approximately $350 billion under management, Mellon provides a full range of banking, investment and trust products and services to individuals and small, midsize and large businesses and institutions. Its mutual fund companies, The Dreyfus Corporation and Founders Asset Management, place Mellon as the leading bank manager of mutual funds. Headquartered in Pittsburgh, Mellon’s principal subsidiary is Mellon Bank, N.A. Press releases and information about Mellon Bank Corporation are available at on the Internet.