Ceridian announced that Gary Krow, EVP of Ceridian and President of Comdata has been terminated for violations of Ceridian’s “Code of Conduct.” Krow allegedly had unauthorized meetings with and disclosure of confidential information to Pershing Square Capital and other third parties. Information about the misconduct came to the attention of the Board through documents and testimony provided in legal proceedings commenced by Pershing Square. Jim Burns, EVP and President of Ceridian has been appointed Interim President of Comdata, effective immediately. Robert Skiba, Executive Vice President and General Manager, Comdata Stored Value Solutions and Brett Rodewald, Executive Vice President and General Manager, Transportation Services Division, will now report directly to Mr. Burns.Details
Coinstar and First Data announced an agreement between “Money Network Financial” and Coinstar E-Payment Services, to offer the “Money Network Pay Card” through select Coinstar kiosks. To obtain the “Money Network Pay Card” at Coinstar kiosks, consumers select and load funds onto a “STAR”-branded “Pay Card” which is activated and instantly available for use at more than 2 million PIN-secured debit retail locations and ATM machines coast to coast. The single-load “STAR” card can be upgraded to a reloadable personalized VISA-branded prepaid card by calling “Money Network.” In addition, the “Money Network Pay Card” products include features that provide ACH bank transfers, as well as convenient paper “Money Network Checks.” The Money Network Checks offer a unique option that permits cardholders to withdraw up to 100% of their pay to the exact penny without any fees.Details
The New York City Taxi and Limousine Commission has authorized the installation of “Credit Card Acceptance Capability” payment systems in taxi cabs. Each taxicab that is required to be equipped with the taxicab technology system must be capable of accepting all major credit cards and debit cards which are accepted by such taxicab technology system as payment for fares. This specification shall be implemented as agreed upon between the Taxi and Limousine Commission and the authorized contractor(s) on a date certain to be set by the Commission.Details
First Data Utilities announced that Direct Energy has implemented the newest version of “Peace 8 Customer Information System” to manage its electricity and gas customers. “Peace 8” incorporates hundreds of new features and enhancements and reflects a particular focus on process improvement to lower utility customer cost-to-serve. Direct Energy delivered $7.6 billion USD of energy and energy-related services to residential and commercial customers in 2006. Direct Energy is one of North America’s largest energy and energy-related services providers with over 5 million residential and commercial customer relationships and is a subsidiary of Centrica plc. First Data Utilities develops utility billing software and provides outsourced utility billing and payment transaction services.Details
MasterCard has given Altair Financial Services International the award for the “Best Newcomer 2006/7” for the prepaid market. The “Best Usage/Expansion Program 2006/7” was presented to PrePay Technologies for its “360money Mirror Quidity Card.” The “Best Multi-Channel Marketing Program” was won by Newcastle Building Society, which works with a number of partners specializing in a range of markets for prepaid cards, including shopping centers, travel, sport, lifestyle magazines and employee reward schemes. The “Best Cardholder Service” award was bestowed upon Advanced Payment Solutions for its “CashPlus Gold Card,” which launched in the retail sector last year. MasterCard this week released a new report that predicts spending on prepaid payment cards in Europe will reach $164 billion within three years.Details
T-Base Communications and First Data Resources will collaborate to provide specialized statement services to First Data’s clients to give blind or partially sighted customers full access to their private financial statements in the format of their choice, including Braille and large print. First Data expects to make the service available in the third quarter of 2007. Issuers and billers who do not process their portfolio with First Data will also be able to use the service. First Data is a provider of electronic commerce and payment solutions for business worldwide. T-Base Communications specializes in Braille, large print, e-Text, audio and website accessibility.Details
Citi has completed the acquisition of substantially all of the subsidiaries of Grupo Cuscatlan. Under the terms of their agreement announced on December 13th Citi acquired Grupo Cuscatlan’s banking operations, some of its insurance operations, and other financial activities for $1.51 billion in cash and Citigroup stock. Grupo Cuscatlan serves more than 45,000 corporate banking customers and 1.2 million consumer banking customers through a distribution network of 202 branches and 263 ATM’s throughout the region. Mauricio Samayoa will remain CEO of Grupo Cuscatlan.Details
The PELORUS Group will host “M-Payments & M-Banking: The Rise of Mobile Financial Services” June 27th and 28th at Caesars Atlantic City. Among the issues to be addressed: what is the potential for m-payments and m-banking to erode the traditional payment and credit card systems; when, why and how quickly will m-payments and m-banking catch on in the U.S.; how do these mobile financial services fit in with other mobile commerce offerings;what opportunities and threats do mobile payments and banking create for carriers, retailers, the financial industry, and companies that currently employ traditional payment systems and what are the key regulatory, standards, fraud prevention, and security issues.Details
ActiveCore has signed a Letter of Intent to integrate “CyBux” and “ePocket”
with ATMs. This will allow customers to move money from accounts to
stored value cards or digital coins and vice versa by using a common ATM.
Thus, digital coins can be disbursed, as cash, through a cash machine.
an integration of online payment systems used by most major banks and
credit unions across Canada. ePocket was originally designed as electronic
cash for secure purchases over the internet. With this new development,
access to these accounts can be executed from any ATM
without the need for a computer, PDA, or a cell phone.
OR-based Corillian reported that revenues for the first quarter were $16.5 million, compared to $14.3 million for the first quarter of 2006. Net loss for the first quarter of 2007 was $1.1 million, compared to net loss of $971,000 for the first quarter of 2006. On February 13th, Corillian entered into a merger agreement pursuant to which CheckFree will acquire all of the outstanding shares of Corillian’s common stock for $5.15 per share in cash. Corillian’s shareholders approved the merger on April 30th. Corillian serves over 35 million online banking end users. For complete details on Corillian’s first quarter performance visit CardData ([www.carddata.com]).
Despite the overall downturn in the sub-prime market, SD-based First Premier Bank continues to churn-out a solid performance. During the first quarter the issuer reported it added more than 100,000 cards to its portfolio. Outstandings rose 10% to $760,897,788, compared to 1Q/06. First quarter volume was up 8% to $319,939,641. First Premier’s account based increased from 4,003,282 in the fourth quarter to 4,142,265 for 1Q/07. According to FitchRatings, charge-offs for sub-prime portfolios decreased to 8.73% in March from 9.53% in February. The monthly payment rate decreased 69 bps to 9.89% from 10.58% in February. However, gross yield for sub-prime portfolios decreased 239 bps to 24.15% in March from 26.54% in February.
FIRST PREMIER ACCOUNT HISTORICAL
Source: CardData (www.carddata.com)
CA-based VideoKall says it has been working in stealth mode for some time with strategic partners on a video payphone-based EFT service called “VideoKall” for personal use and for migrant workers who have no bank accounts. The “VideoKall” service will provide public video payphones in shopping malls in several states where Mexican, Filipino and Indian migrant workers are frequent visitors. The service allows both sender and recipient to see each other on a video payphone before and during the money transfer. Workers in the U.S. will purchase smart cards to the value of the remittance they wish to send abroad, and then SMS text message their relatives abroad to let them know the mall location plus the phone number of the video payphone and the date and time they will call. The incentive for both parties to visit a mall, at a predetermined time to make the transfer.Details