Citing that the payments and merchant-acquiring businesses are core to their strategies, JPMorgan Chase and First Data announced they have agreed to end the Chase Paymentech Solutions joint venture by the end of this year. Afterwards, JPMorgan Chase and First Data will operate separate payment businesses. JPMorgan Chase will provide global payment solutions for allocated merchants by retaining 51% of the JV’s assets, including most of its employees and the JV’s Canadian and European operations. The bank will name its payments and merchant acquiring business Chase Paymentech and retain the JV’s Dallas headquarters. First Data will continue to provide transaction processing and data commerce solutions for allocated merchants through its current technology platforms. First Data will assume management of the full-service ISO and Agent Bank unit of the JV and will integrate 49% of the JV’s assets and a portion of the JV employees into its existing merchant acquiring business. Chase Paymentech Solutions processed approximately 19.7 billion payment transactions, with more than $719 billion in annual bank card and debit volume.Details
American Express has announced the “2008 Membership Rewards Program” partner lineup, including new additions. Among the news additions is the Wynn Las Vegas resort, Air Tahiti Nui, West Elm, Legal Sea Food, Forth Wall Restaurants, U.S. Golf Association Mandarin Oriental Hotel Group and The Peninsula Hotels. The additional 140 partners span various sectors allowing for AmEx point redemption in a wide selection of reward categories, including organizations such as Airlines, Car Rentals, Railway, Charities, Dining, Entertainment, Financial Services, Hotels, Merchandise, Retail, Sports and Adventure.Details
On Track Innovations reports revenues of $9.3 million for 1Q/08, down 10% since the year ago quarter, and a gross margin of 32%, compared to 39% in corresponding period the year prior. These figures are reflective of management’s initiatives to reduce operating expenses to establish subsequent profitability in the near future. Additional data show OTI’s on GAAP operating expenses were down 24% from 4Q/07 to $7.3 million. OTI secure contactless microprocessor-based smart card technology is available in a range of industries, including petroleum payment systems, homeland security solutions, electronic passports and IDs, payments, mass transit ticketing, parking, loyalty programs and secure campuses. For more details on OTI’s latest performance visit CardData ([www.carddata.com]).
OK-based First Financial Network has inked a deal to market and manage the sale of approximately 12,000 active and inactive credit card accounts totaling $12 million from failed AR-based ANB Financial. At the direction of the FDIC, FFN will initiate a targeted marketing campaign aimed at procuring qualified purchasers in order to obtain maximum value on the portfolio. FFN will utilize its online “Loan Trading Platform” to image account documentation in the portfolio and provide qualified investors with immediate access to due diligence information and the opportunity to place bids. Investor due diligence is scheduled to begin on May 29th with a bid date of June 25th.Details
Chicago-based financial services solution provider Capital Markets Technologies has acquired EFT facilitator Payzone. Payzone was established primarily as an ACH payments facilitator, allowing international payments to be distributed to their ultimate destination automatically rather than by manual processing at the receiving bank. Due to Homeland Security requirements which now require that all international payments into the USA are routed and filtered through New York before travelling on the US branch banks, Payzone’s technology is set to see an increase in its usage.Details
Having acquired a 50% stake in the European processing network, First
Data payment services has teamed with EUFISERV’s 15 European shareholder
banks with the intention of expanding its European Interbank presence.
The Brussels-based EUFISERV provides inter-bank POS/ATM switching, which
First Data intends to further develop for SEPA framework compliance.
Additionally, First Data will acclimate the organization’s network to
its own, positioning EUFISERV to provide end users with access to over
74,000 ATMs, 1.5 million POS merchants for the acceptance of more than
165 million card accounts in Europe, and, to reflect its new ownership,
will be changing the network’s name.
First Hawaiian Bank has introduced its “Priority+ CashPoints” point accelerator program, allowing account holders to earn Priority Reward “CashPoints” up to 5x faster. Redeemable for travel awards on any airline, gift cards, cash rebates, and various other retail goods, First Hawaiian Bank offers “CashPoints” benefits through its partnership with over 130 local businesses throughout Hawaii to reward up to 5 CashPoints for every $1 spent in purchases. First Hawaiian Bank has assets of $12.75 billion and 58 branches throughout Hawaii, three on Guam and two on Saipan.Details
Barclays Bank has partnered with the PGP Corporation enterprise data
protection to provide a safeguard solution to sensitive information in
over 50 countries with the “PGP Encryption Platform.” Barclays will be
deploying the manageable platform, designed to accommodate growth in
encryption technologies, across the retail and commercial banking
organisation sectors for the protection of consumer information and will
be working with PGP to extend key management solutions. Barclays Bank
has over 300 years of banking history, has operations in over 50
countries and employs 135,000 people whom serve 30 million customers and
American Express Incentive Services has named Russell Yergensen, previously with American Express’ prepaid division, as CFO. Yergensen will lead AEIS’ strategic planning, finance, pricing and legal management teams as the company pursues revenue growth and implements innovative programs to deliver custom enhancements and operating efficiencies. Yergensen joined the AEIS executive team in March 2008 after serving as vice president of strategic planning and business analysis for American Express’ Travelers Cheque and Prepaid Services group. Prior to that role, Yergensen was the director of business planning and financial analysis for American Express. He joined American Express after serving as a certified public accountant with Ernst & Young. AEIS, a joint venture between American Express Travel Related Services Company Inc. and Maritz Inc., provides business-to-business reward solutions including stored-value cards, American Express Gift Cheques and a Web-based reward management tool.Details
Electronics retailer Crutchfield is offering eBillme for online shoppers to pay securely with cash. When shoppers choose the option at checkout, their order is confirmed with an eBill sent to their e-mail address. Consumers simply pay the eBill through their online checking or savings account. Because shoppers pay directly from their online bank account, they don’t release any financial information online. eBillme’s “Buyer Protection” program takes security a step further. Provided at no cost to shoppers and retailers, the Buyer Protection features have the same or a better level of protection than premium credit cards. Protection features include a return guarantee, price guarantee, in-transit protection, and fraud protection. eBillme allows retailers to access the over 84 million Americans who use online banking.Details
MasterCard has named Rob Reeg as President of its St. Louis-based MasterCard Global Technology and Operations, a position Reeg has held on an interim basis since January. Reeg succeeds Roy Dunbar, who concluded his employment with MasterCard in January CEO to join a company outside the payments industry. Before joining MasterCard, Reeg held IT and business leadership positions at Sprint, Cleveland Pneumatic, Totco and Conoco. In addition, he holds several board memberships including the Unitech Systems Customer Advisory Board, the Washington University Professional Degree Programs Academic Advisory Board, the University of Missouri-St. Louis Leadership Council and the United Way-St. Louis Technology Committee. He has been recognized with the Northwestern Oklahoma State University Outstanding Business/Professional Graduate Award.Details
The Center for Economic and Entrepreneurial Literacy has released the results a survey that indicates a large percentage of Americans are in the dark regarding the answers to basic questions about borrowing and interest rates. Nearly 70% of respondents did not identify the “FICO score” as the most important factor in obtaining a home loan; 69% of respondents do not know that you have to pay both the interest on your entire balance as well as a late fee when making a late credit card payment, and 97% of respondents cannot identify the percentage that service fees typically take out of a $20 ATM withdrawal. Over 90% either didn’t know how much the fee would be or thought it was less than it really is. In order to highlight this problem, CEEL is issuing a public service announcement that will be distributed to over 1000 local television channels across the country. The PSA features three children discussing what their loan options would be when purchasing a doll house. The ad illustrates how confusing getting a mortgage can be especially for those who haven’t been educated on the subject matter.Details