Fiserv Lands a Microsoft Partner Award

WI-based Fiserv has been awarded the “2008 Microsoft Partner of the Year Global Independent Software Vendors Line of Business Special Recognition” award. Fiserv was recognized for superior technology and innovation in the Global ISV Line of Business. The award is given to the Global ISV partner that has demonstrated line of business application leadership excellence and recognizes the most valuable global partner in delivering Microsoft solutions to mutual customers over the past year. In coordination with Enterprise Partner of the Year Special Recognition award, it acknowledges the global partner that has demonstrated leadership in driving Microsoft-based solutions and was the most valuable line of business partner to the worldwide field. Some examples of these solutions include Fiserv’s next generation of the Voyager online banking product from Corillian, leverages Web 2.0 features, including Microsoft .NET 3.5 ASP.NET, and enables banks to offer a differentiated and improved user experience to grow their online customer base and improve customer satisfaction; the next generation corporate performance management portal, Intelligent Workplace, from IPS-Sendero provides banks with a single unified business intelligence ecosystem via a browser-based employee portal that takes advantage of Microsoft Office 2007 and SQL Server 2008 technology innovation that greatly enhances the ability of a financial institution to locate the right information and deliver it to the right employee at the right time and Fiserv Aperio, a a process-centric, multi-channel sales and service solution designed expressly for financial institutions to enable a consistent customer experience across branch, call center and web channels, as well as allowing back-office processes to be reconfigured.

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1-in-5 Americans Want to Cut-Up All Credit Cards

While Americans ran more than $2 trillion through general purpose credit cards and $1.4 trillion through general purpose debit cards in the U.S. last year, the stage is set for a major roll-back in payment card usage. In a recent online survey conducted by CardTrak, and set to be released in July to the general public, 64% of consumers said they will reduce overall credit card usage in 2008. A surprising 19% indicated they intend to cut-up all credit cards in 2008 and more than 41% said they intend to switch to a lower APR credit card. Apart from card usage, 65% of Americans said they plan to reduce restaurant spending. Travel is also on the hit list. Nearly 43% say reducing travel expenses is a major priority and 42% expect to cut-back on automobile fuel consumption. Cutting-back on cable is also on the hit list as 23% of Americans say they are reviewing their TV habits.

CONSUMER TARGETS 2008
Restaurant: 65%
Card Usage: 64%
Travel: 43%
Auto Gas: 42%
Thermostat: 35%
Source: CardTrak (www.cardtrak.com)

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MasterCard’s Tech Center Receives an Award

MO-based MasterCard Worldwide Global Technology & Operations and the St.Louis office of Weber Shandwick Worldwide are recipients of the Public Relations Society of America’s “2008 Silver Anvil Award” for their “MasterCard Project Math” program. The “Silver Anvil” recognizes outstanding achievement in strategic public relations planning and implementation. For Project Math, Weber Shandwick helped MasterCard align its local support for education with its business in which careers depend on advanced technology and financial skills. Through grants that increase resources for math educators, students may increase their math achievement and future employability.

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TU Finds Credit Card Loans and Delinquency Decline

A new analysis from a major credit bureau has found that average credit card debt and national credit card loan delinquency has for the first time experienced statistically relevant quarterly declines. National average credit card debt per credit card borrower dropped 1.25% from the previous quarter’s $1,694 total to $1,673, though the total remains 5.6% higher than the same period last year. According to TransUnion.com the highest state average card debt per credit card borrower was in Alaska at $2,378, followed by Tennessee at $2,013 and Alabama at $2,005. The lowest average credit card debt per credit card borrower was found in Iowa at $1,252, North Dakota at $1,265 and South Dakota at $1,365. TransUnion says that while the national 90-day delinquency rate is expected to drop slightly next quarter as consumers continue to take stock of their overall debt, forecasts for the remainder of the year see 90+ day delinquency to gradually edge back up to 1.20% and above, as increases in gas prices add to the overall financial burden of the consumer.

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Diebold Cited for an ATM Skimming Award

Diebold is the recipient of the 2008 Banker Technology Retail Award for Delivery Channel Security for its ATM skimming detection technology. The Banker Technology Awards, presented by The Banker magazine, recognize excellence and innovation in all areas of banking technology. The awards serve as a vital global benchmark for IT services, products and projects in the financial services industry at large. Diebold’s advanced skimming detection technology detects the presence of skimming devices to help prevent ATM fraud and the loss of millions of dollars each year for financial institutions. This feature is included in every new Diebold “Opteva” motorized card reader at no extra charge, which is a substantial benefit as the average industry cost for similar technology is between $1,200 and $1,500 per unit.

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U.S. Bank Ranks Top in Privacy Trust Again

For a third consecutive year, U.S. Bank ranked first in the nation in the “2008 Privacy Trust Study for Retail Banking” conducted by the Ponemon Institute. The Institute found the average length of a customer relationship among the five banks rated highest for privacy to be 7.68 years, or a 13% extrapolated churn rate. Among the five lowest rated banks the average relationship length was 4.6 years, or a 22% churn rate. While U.S. Bank received the highest trust score recorded since the inception of the survey in 2003, the overall industry average privacy trust scores declined slightly in 2008 compared to 2007 owing in part to significant declines among banks suffering a major data breach event.

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allEtronic Introduces Digital Receipts

allEtronic has released its”Digital Receipts” paperless receipt service. During the enrollment process, consumers are asked to provide basic registration information, plus link a credit or debit card to their account. By linking any number of cards to their account, a consumer is able to receive digital receipts from participating retailers whenever they use any one of the registered cards to pay. For security purposes, and to ensure privacy and guarantee security, the allEtronic system only requires the first 6 and last 4 digits of a card number. If a consumer doesn’t register a card, they can provide their phone number to the cashier for digital receipt delivery. A customer would then swipe their credit or debit card like they normally do and their digital receipts automatically appear in their free allEtronic account.

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Heartland Names a New Chief Security Officer

Published security expert Kris Herrin has been appointed Chief Security Officer with Heartland Payment Systems payment processing. In his new role, Herrin will oversee risk management and compliance of Heartland’s IT security strategy and protection of consumer and merchant data. In doing so, he will lead the company’s IT security strategy, will be responsible for maintaining compliance with PCI regulations, security best practices and Heartland’s own internal policies. Herrin’s qualifications include his Certified Information Systems Security Professional (CISSP) certification and over 10 years’ of international security leadership experience. His advanced education consists of a bachelor’s and master’s degrees in computer science from the University of Texas at Dallas. Prior to Kris’ having joined Heartland, he was a CSO with Intervoice, Inc. having seceded from his role as a professor at the University of Dallas Graduate School of Management. Heartland Payment Systems, Inc. provides its credit/debit/prepaid card processing, payroll, check management and payments solutions to over 250,000 businesses nationwide.

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TIP2PAY

Payment processor Equens and supermarket chain Albert Heijn have joined to begin a pilot with fingertip payments. The “Tip2Pay” six-month test is the first of its kind in the Netherlands. “Tip2Pay” enables consumers to pay quickly and securely by placing their fingertip on the reader at the checkout. After they have provided proof of identification and a debit card, a scan will be made of the unique parts of their fingertip. Their name and address details, bank account number and –
if required – their customer loyalty card will be registered in accordance with Netherlands privacy laws. Equens will process all fingertip payments. Albert Heijn and Equens will be conducting the pilot in consultation with IT-Werke, a company that specializes in integrating biometric technology in retail and consumer applications. The IT-Werke system has already been successfully tested at the German supermarket chain Edeka, which now offers fingertip payment services at 120 of its stores. Albert Heijn is the largest supermarket chain in the Netherlands, with over 750 stores. Equens handles an annual volume of 7.3 billion payments and 2.1 billion POS and ATM transactions.

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GPN and HSBC Create HSBC Merchant Services

Atlanta-based Global Payments and U.K.-based HSBC Bank are creating a joint venture to provide payment processing services to merchants globally under the name HSBC Merchant Services. HSBC Bank estimates that its merchant acquiring business has a 15% market share by providing payment card processing services across 135,000 merchant outlets in the U.K. In 2007 HSBC’s merchant acquiring business in the U.K. generated revenue of about $229 million. Under terms of the deal GPN will pay HSBC $439 million in cash to acquire a 51% majority ownership in the joint venture. HSBC will control the remaining 49% and will contribute its existing merchant acquiring business in the U.K. Kingdom to the joint venture. In addition, the bank has agreed to a ten-year marketing alliance in which HSBC will refer customers to the joint venture for payment processing services in the U.K.. The deal is expected to be completed within two months.

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Monthly Payment Rates Move to the 18% Level

Monthly payment rates, the amount that cardholders pay on their credit card debt, took another turn south in April. After topping 20% in 2006, the MPR dropped 30 basis points between March and April. Among managed credit card outstandings, the MPR declined to 18.03% in April, compared to 18.33% in the prior month and 18.04% one-year ago. According to CardData ([www.carddata.com][1]), the yield also increased in April to 13.89% from 13.68% in March, but was down 110 bps, compared to year-ago levels. According to Moody’s the payment rate index among credit card-backed securities fell to 17.49% in April. For the second month in a row, the average yield index on ABS credit cards also dropped from its year-earlier rate. The April card ABS yield was 18.14%, down from 18.63% a year ago. (CF Library 6/10/08)

U.S. PORTFOLIO METRICS
YIELD MPR
Apr 07: 14.99% 18.04%
May 07: 14.87% 19.01%
Jun 07: 14.93% 18.40%
Jul 07: 14.77% 18.30%
Aug 07: 14.80% 18.99%
Sep 07: 14.71% 18.86%
Oct 07: 14.82% 19.21%
Nov 07: 14.80% 18.89%
Dec 07: 14.63% 18.41%
Jan 08: 13.53% 18.11%
Feb 08: 13.33% 19.10%
Mar 08: 13.68% 18.33%
Apr 08: 13.89% 18.03%
Source: CardData (www.carddata.com)

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

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