McCormick & Schmick’s Restaurants have selected the Givex Corporation’s gift card solution for its 35 full service restaurants nationally. The Givex technology will be integrated with McCormick & Schmick’s existing POS system, Squirrel Systems. As a result, the restaurants will be able to conduct gift card transactions directly through their POS system without the need for additional hardware processing devices. The program will be implemented by Summer 2002.
The Department of Defense is getting serious about adding biometric technology as an added layer of security for the DoD’s new “Common Access Card.” KPMG Consulting has been awarded a contract to test and evaluate biometric technology for the CAC smart card. Over 600,000 cards have been issued to date, with distribution expected to exceed four million in the next two years. Currently, a CAC is authenticated through a PIN. However, the DoD wants KPMG to review voiceprint, fingerprint, iris pattern, or facial contours as new layers of authentication. The Smart Card Solution Team includes: SAFLINK Corporation; SPYRUS; XTec Inc.; and, Precise Biometrics.
Sub-prime processing specialist Applied Card Systems is set to open a new corporate headquarters in Glen Mills, PA. The new facility has 37 acres of landscaped grounds and an 8,000-square foot fitness center as well as a full-service cafeteria, convenience store, and dry cleaning service. Applied says it is relocating approximately 600 positions from its Wilmington center and will host a grand opening job fair next week. The new facility will provide enough space for up to 1,000 additional positions. Applied Card Systems manages over three million credit card accounts, primarily those issued by its affiliate Cross Country Bank. The company also has operating centers in Boca Raton, FL; Huntington and Beckley, WV; and Ashland, KY.
Alexandria, VA-based Pentagon Federal Credit Union has signed a Participant agreement with the NYCE Network to enable credit union members to make deposits at ATMs operated by financial institutions throughout the U.S. that participate in NYCE’s Shared Deposit Program. NYCE Corporation provides 2,200 financial institutions, retailers and independent ATM deployers with shared network services for ATMs, on-line debit POS, point-of-banking services, and emerging A2A applications. Pentagon Federal Credit Union is the third largest federally chartered credit union in the nation and boasts more than 469,000 members and nearly $4.8 billion in assets.
First Data and SunTrust Banks have finalized an agreement to form SunTrust Merchant Services, LLC, which is projected to process approximately $20 billion in annual sales volume. First Data will be responsible for management, operations, risk management and sales activities for the new alliance. SunTrust will support marketing efforts through all of its sales channels, including its 1,200 retail branch locations and treasury management groups. First Data and SunTrust will share the revenue generated from the new enterprise.
As the annual tax reporting season draws to a close, a battle has erupted among issuers and networks to capture tax payments on credit cards. This morning, First USA and United Airlines announced they will award a 5,000 air mile bonus to cardholders using the United Mileage Plus VISA to pay taxes through May 30. The bonus is in addition to the one-mile-per-dollar earned under the program. Mileage Plus has more than 40 million enrolled members and approximately 4 million United Mileage Plus VISA cardholders. One week ago, VISA USA reached an agreement with Official Payments Corporation to permit VISA cards to be used for payment of federal and state income taxes. VISA had been a holdout in the tax payments via credit card market due to its regulations which prohibit merchants from charging a fee to cardholders for acceptance. OPC has been offering its tax payment service on MasterCard, Discover, and American Express cards since 1998. OPC generally charges consumers a fee of approximately 2.5% for each transaction, since most government entities cannot legally pay a merchant or discount fee for such transactions. Following VISA’s announcement to join the program, American Express and Citibank issued press releases to encourage consumers to use their card products for tax payments. Citibank encouraged taxpayers to use its American Airlines AAdvantage Program to earn one AAdvantage mile for every dollar of income tax paid. American Express said it will award double SkyMiles when cardholders pay federal taxes, or one SkyMile when paying state taxes, on their Delta SkyMiles Credit Card, between now and April 16, 2002. Other American Express cardholders can earn points through the Membership Rewards program. Currently, OPC has agreements to collect and process credit card payments with the IRS, 21 state governments, and more than 1,200 counties and municipalities. In 2001, OPC collected and processed more than one million transactions totaling $1.2 billion in federal, state, and local government payments. According to the IRS, as of mid-March, the agency had received more than 20,000 credit card payments, up 13% from nearly 18,000 for the same period last year. OPC was formerly known as U.S. Audiotex Corp. and went public in 1999. (CF Library 10/29/99; 11/23/99)
NACHA – The Electronic Payments Association has selected Capital One Financial Corporation, Tower Federal Credit Union, and Wells Fargo & Company as winners of the 2002 ACH Quality Award in recognition of their successes in implementing quality Automated Clearing House processes.
“The ACH is a high-quality payments system, and the ACH Quality Award showcases best practices and forward-looking business practices among ACH participants,” said Mary Ann Francis, Chair of NACHA’s ACH Quality Task Force and a Senior Vice President at National City Corporation. “The 2002 ACH Quality Awards highlight both well established ACH products, such as Direct Deposit, and new ACH applications.”
Capital One Financial Corporation, of Falls Church, Virginia, is being recognized as a corporate originator of ACH payments. In 1999, Capital One offered customers the ability to view their statements and make payments over the Internet. With more than 5 million customers signed up, electronic payments have grown to 18 percent of all payments. Capital One also offers telephone payments and monthly automatic debits, and receives electronic payments from consumer bill payment and home banking services.
As a result of its use of electronic payments, Capital One’s ACH origination volume increased by 985 percent in 2001. To support over 2 million ACH payments monthly, Capital One implemented automated notification of change processes and routing number verification. These changes have resulted in substantial cost savings through reduced administrative returns and fewer customer payment inquiries.
Tower Federal Credit Union of Laurel, Maryland is being recognized as a receiving depository financial institution for improvements to its Direct Deposit services for its members. Tower developed an automated program to review the more than 5,000 ACH payments received each day for data mismatches. This allows Tower to address any deposit problem on the day the deposit is received, eliminating delay or financial impact to the member. During the first six months, Tower prevented the delay of deposits totaling more than $28,000.
Tower also implemented a Direct Deposit allocation program that automatically disburses funds received via the ACH network according to a member’s predetermined instructions. By automatically reviewing incoming Direct Deposits for changes to company information, Tower ensures that members’ allocations are processed accurately, rather than waiting for a member to notify Tower of changes or problems.
San Francisco-based Wells Fargo, with $308 billion in assets, is being recognized as an originating depository financial institution for its Check Truncation Decision Processing, which identifies checks that are ineligible for electronic conversion and ensures correct MICR line parsing. Solving these challenges greatly reduces exception items, improves collection rates, improves processing quality, and satisfies consumer expectations for problem- free service.
Wells Fargo’s Check Truncation Decision Processing was deployed during NACHA’s Accounts Receivable Truncation pilot on behalf of an e-check customer. Item return rates were reduced from 10 percent to 1.1 percent. Wells Fargo Treasury Management has shown that a 98.9 percent check conversion success rate is possible, and has its sights set on a 99 percent-plus success rate.
The ACH Quality Award winners will receive the award and present their winning entries at NACHA’s PAYMENTS 2002 conference in Dallas, Texas on Monday, April 15, 2002. Their case studies will also be published in NACHA’s 2002 Electronic Payments Review and Buyers’ Guide.
The ACH Network serves 20,000 financial institutions, 3.5 million businesses, and 100 million individuals. The ACH Network is commonly used for Direct Deposit of payroll and government benefits such as Social Security, Direct Payment of consumer bills, business-to-business payments, federal tax payments, and, increasingly, e-checks and e-commerce payments. In 2000 there were 6.9 billion ACH payments made worth more than $20 trillion.
About NACHA – The Electronic Payments Association
NACHA is the leading organization in developing electronic solutions to improve the payments system. NACHA represents more than 12,000 financial institutions through direct memberships and a network of regional payments associations, and 650 organizations through its industry councils. NACHA develops operating rules and business practices for the Automated Clearing House (ACH) Network and for electronic payments in the areas of Internet commerce, electronic bill and invoice presentment and payment (EBPP, EIPP), e- checks, financial electronic data interchange (EDI), international payments, and electronic benefits transfer (EBT). Visit NACHA on the Internet at .
Drexler Technology Corporation, manufacturer of multi-biometric border security and immigrant resident ID cards, has received an order from a foreign government for 220 LaserCard read/write drives and associated software, as a follow-on to the 350,000 optical memory ID cards ordered last month by the same new government customer. The $600,000 order for drives and software, for a digital governance application, was placed through a value-added reseller, Information Spectrum, Inc. ([www.informationspectrum.com]), headquartered in Annandale, Virginia. Deliveries were completed the day after the order was received, using Drexler’s finished goods inventory of read/write drives. The foreign government will utilize the 220 LaserCard read/write drives in conjunction with the 350,000 LaserCard(R) optical memory cards that were ordered last month for deliveries during Drexler’s 2003 fiscal year, which begins April 2002. That initial card order, which was announced on February 7, 2002, requires manufacture of the cards by a batch process from lengths of multicolor offset-printed polycarbonate sheet stock provided to Drexler by the customer’s security printer.
This new batch-manufacturing technique was designed to permit governments to provide, under their tight security constraints, banknote-quality printing with secret security features on short lengths of polycarbonate sheet stock for lamination and conversion by Drexler into optical memory cards. The new batch-production technique was developed under Drexler’s research and engineering programs over the past two years and is being utilized commercially for the first time under this LaserCard program.
Normally, Drexler’s optical memory cards are produced completely in-house by a continuous process using silkscreen printing and laminating of 2000-foot lengths of polycarbonate roll stock. The cards manufactured by this new batch-manufacturing method are more costly than those made by Drexler’s normal continuous-roll process, but it provides governments with the benefit of retaining more security printing control for digital governance programs.
Headquartered in Mountain View, Drexler Technology Corporation ([www.lasercard.com]) develops and manufactures optical data storage products and systems, including LaserCard(R) optical memory cards and chip-ready Smart/Optical(TM) cards — a combination of optical memory card and smart card. Drexler’s wholly owned subsidiary, LaserCard Systems Corporation, makes optical card read/write drives, develops optical card system software, and markets card-related data systems and peripherals.
MasterCard’s U.S. Region Board yesterday elected Capital One CEO Richard Fairbank as its new chairman to succeed MBNA Vice Chairman Michael Rhodes, who served as chairman since 2000. MasterCard also announced that Richard Srednicki, head of the credit card business at JPMorgan Chase, has been named as vice chairman of its U.S. Region Board. Additionally, MasterCard said that Jeffery Dye, president of GE Capital Financial, and Tom Wimsett, president and CEO of National Processing Company, were also named to its U.S. Region Board. Other continuing board members include Eula Adams, EVP of First Data; Steven Freiberg, president & CEO, North America Cards, Citigroup; Richard Hartnack, vice chairman, Union Bank of California; Alan Heuer, SVP of MasterCard International; John Klein, president & CEO, People’s Bank; Ruth Ann Marshall, president, North America, MasterCard International; Siddharth Mehta, group executive, Household International; Patrick Swanick, president & CEO, Key Electronic Services; Mark Wright, president & CEO, USAA Federal Savings Bank; and Ronald Zebeck, president & CEO, Metris Companies, Inc.
SCM Microsystems has shipped an additional 85,000 smart card readers to the U.S. Army as part of the DoD’s ‘Common Access Card’ program. This follows an initial shipment of 50,000 readers for the initiative in November 2001. SCM is supplying the U.S. Army with smart card readers through its partner, Northrop Grumman’s Information Technology. The CAC program is designed to provide more than four million active duty military personnel, selected reserve, DoD civilian employees, and eligible contractor personnel with a standard identification badge based on smart card technology. SCM is providing a variety of serial port, USB, and PCMCIA readers for the DoD program.
Retail Decisions, an
international supplier of payment card fraud prevention and value-added
transaction services, today announces the acquisition of the business and
assets of Paymentplus, Inc., a US-based card-not-present processing software
Retail Decisions is pleased to announce the acquisition of the business and
assets of Paymentplus, Inc. for a total cash consideration of
US$2.25 million (approximately (pound)1.6million). Paymentplus, which is
in Reston, Virginia, provides credit card and electronic check authorization
capability for card-not-present retailers. In its relatively short existence,
Paymentplus has developed an enterprise-class payment processing software,
LiveProcessor, a processing engine delivering live credit card and electronic
check transaction interfaces to third party transaction processors.
has over 80 installations of LiveProcessor in the US and its customers
an estimated 10 million card-not-present transactions in 23 currencies on a
The business of Paymentplus, according to its unaudited management accounts
the year ended December 31, 2001, had revenues of US$1.75 million
(approximately (pound)1.2 million), an operating loss of US$148,000
(approximately (pound)105,000) and net assets of US$282,000 (approximately
(pound)200,000). As part of the transaction, Jeff Foster, Vice President of
Marketing and Sales, and Matt Wixson, Chief Technology Officer, will be
Retail Decisions and have entered into employment agreements with a US-based
subsidiary of the company. These contracts include a base salary plus an
incentive structure based on future Paymentplus product sales and the overall
performance of the company in the US.
The acquisition of Paymentplus is expected to benefit Retail Decisions in a
number of ways. In particular:
– Paymentplus provides the Company with the ability to become an integral
of the card-not-present retailer’s financial transaction processing needs,
particularly through the provision of Retail Decisions’ fraud detection and
– The Company has been working with Paymentplus since September 2000 and its
ebitGuard platform is already integrated with Paymentplus’ LiveProcessor
software, which should enable immediate cross-selling opportunities.
– The Paymentplus team has developed extensive experience in transaction
processing and will work with Retail Decisions to develop new products and
services to build new revenue streams for the Company.
– The acquisition further extends Retail Decisions’ global reach,
in the US, where Paymentplus has an extensive client base and key
with transaction processors.
Carl Clump, Chief Executive of Retail Decisions, said today:
“We are very pleased to welcome Paymentplus into the Retail Decisions
organization. We have watched Paymentplus’ progression since its formation in
2000 and recognize the significant scope they offer to deliver Retail
Decisions’ risk management solutions to their clients. Their skills and
experience in transaction processing should further assist the group in
value to payment card transactions in general. This acquisition is a further
demonstration of Retail Decisions’ intention to strengthen its position in
North America, the world’s largest payment card market.”
About Retail Decisions
Retail Decisions (www.redplc.com) is an electronic
payment transactions services business that provides fraud prevention to the
finance, telecommunications, retail and e-commerce sectors. Using risk
management and analysis tools, Retail Decisions is able to predict and
payment card fraud; this infrastructure also provides a platform for a full
range of transaction based value-added services.
NJ-based Retail Decisions announced this morning the acquisition of the business and assets of VA-based Paymentplus, Inc., a card-not-present processing software provider. ReD is paying total cash consideration of $2.25 million for the firm. Paymentplus had annual revenues in 2001 of $1.75 million, an operating loss of $148,000, and net assets of $282,000. Paymentplus developed the enterprise-class payment processing software, ‘LiveProcessor’, a processing engine delivering live credit card and electronic check transaction interfaces to third party transaction processors. The company has more than 80 installations of ‘LiveProcessor’ in the US and its customers complete an estimated 10 million card-not-present transactions in 23 currencies on a monthly basis. As part of the transaction, Jeff Foster, VP of Marketing and Sales, and Matt Wixson, CTO, will become employees of Retail Decisions.