Giesecke & Devrient to Use SafeNet HSMs

Munich-based Giesecke & Devrient has selected MD-based SafeNet’s “Hardware Security Modules” for its cryptography needs including smart card production, personalization and key management. SafeNet HSM is a PCI adapter-based HSM that provides high-performance secure cryptographic processing in server systems and supports applications requiring high-performance symmetric and asymmetric cryptographic operations. By integrating the HSM’s smart card cryptographic key transfer into its security solutions, G&D can ensure the ultimate level of secrecy and integrity of keys and sensitive data for its customers. SafeNet is a global leader in information security.

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Wells Fargo Card Outstandings Rise 21% Y/Y

Wells Fargo Card Services and Wells Fargo Financial Bank reported second quarter outstandings of $11.1 billion, a 21% increase over the same period one-year ago. Second quarter volume for Wells Fargo Financial Bank soared by 86% to nearly $1 billion. Volume rose 20% for Wells Fargo Card Services to $5.8 billion. At the end of the second quarter, Wells Fargo Financial Bank had 852,995 active accounts. Wells Fargo Card Services had 3,886,210 active accounts. Wells recently reported it had 7.9 million active online customers, up 17% from prior year and 3.9 million bill payment and presentment customers, up 46% from prior year. For complete details on Wells Fargo Card Services and Wells Fargo Financial Bank second quarter results, visit CardData ([www.carddata.com][1]).

Issuer 2Q/06 2Q/05 CHANGE
WF Card Services (IA) $8.05b $7.13b +13%
WF Financial Bank (SD) $3.07b $2.05b +50%
Total $11.12b $9.18b +21%
Source: CardData (www.carddata.com)

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

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NCR Signs ATM Deals with CCB and BOC

NCR has received ATM purchase orders from
China Construction Bank and Bank of Communications. Both transactions
include second-line ATM maintenance-services contracts. China
Construction Bank purchased more than 1,000 units, including
“Personas M Series 86” and “Personas M Series 87” through-the-wall cash
dispense machines; NCR “Personas 77” for in-lobby cash dispense; “Personas M Series 74 Intelligent Deposit” solution with recycling capability, and the NCR “EasyPoint 62,” specially designed for retail and convenient locations. The Bank of Communications order includes NCR “Personas 77” and “Personas M Series 87” ATMs.

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Fair Isaac’s Q2 Net Income Drops Sharply

Fair Isaac posted second calendar quarter revenues of $207.1 million compared to $203.8 million in the prior year period. However, net income dropped sharply by 29% to $26.0 million, due to compensation and severance expenses. Strategy Machine Solutions revenues were $114.8 million, a decrease of 0.2%, due to a decline associated with marketing services and insurance solutions, offset by an increase in revenues derived from fraud solutions. Scoring Solutions revenues increased 7.4% to $43.7 million due to an increase in revenues derived from risk scoring services at the credit reporting agencies and “PreScore Service.” Professional Services revenues increased 10.6% to $36.7 million due to an increase in revenues from strategic consulting services. Analytic Software Tools revenues were $11.9 million in the quarter, a decrease of 19.8%, due to a decline in revenues generated from sales of the “Blaze Advisor” product. The Company expects revenues for the third calendar quarter to be approximately $207.0 million. For complete details on Fair Isaac’s latest results, visit CardData ([www.carddata.com][1]).

FAIR ISAAC REVENUE HISTORICAL
2Q/05: $203.8 million
3Q/05: $203.3 million
4Q/05: $202.8 million
1Q/06: $208.2 million
2Q/06: $207.1 million
Source: CardData (www.carddata.com)

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

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OTI Lands a Contactless Card Deal with Warsaw

On Track Innovations’ ASEC subsidiary has been awarded a tender by the Transport Department of the City of Warsaw to provide public transportation and street parking contactless tickets. Deliveries are already underway. Warsaw residents will be able to use these cards as electronic tickets for their bus, tramway, or metro ride using one card, as well as paying fees for on street parking. The new tender further strengthens the introduction of OTI to new markets in the emerging European countries. This is another tender win for OTI in mass transit ticketing solutions, allowing OTI to bring its significant experience and technology platform to different cities and transit operators.

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S1’s Postilion for Retail is VISA Certified

Atlanta-based S1 Corporation announced that the applications making up the “Postilion for Retail” solution have been validated as complying VISA’s CISP and PABP. CISP PABP validation is considered to be the industry standard for the data security validation of payment applications. It is designed to assist software vendors develop secure payment applications in an effort to minimize the potential for security breaches and compromised card details. S1 Corporation (incorporating Mosaic Software) delivers customer interaction software for financial and payment services and offers unique solution sets for financial institutions, retailers, and processors.

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GPN & HSBC to Provide Merchant Services

Global Payments has completed the formation of a joint
venture with The Hongkong and Shanghai Banking Corporation Limited to
provide payment processing services to merchants in the Asia-Pacific
region. The joint venture, Global Payments Asia-Pacific Limited, will
provide merchant acquiring services to over 45,000 merchant outlets
across ten countries and territories: Brunei, Hong Kong, India, Macau,
mainland China, Malaysia, Maldives, Singapore, Sri Lanka and Taiwan.
Under the terms of the agreement announced in September 2005, Global
Payments paid HSBC US$67.2 million in cash to acquire a 56% ownership interest in the joint venture. HSBC controls the remaining 44% and contributed its existing Asia-Pacific merchant acquiring channel in ten countries and territories to the joint venture. In addition, HSBC and Global Payments have entered into a ten-year marketing alliance in
which the bank will refer its customers, in the ten Asia-Pacific countries and territories, to the joint venture for merchant payment processing.

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Dynamic Card Solutions Hits a Client Milestone

CO-based Dynamic Card Solutions has signed its 250th customer for its instant issue VISA debit cards. Citizens Commerce National Bank opened on November 12, 1996, with a single full-service location in Versailles, Kentucky. Dynamic Solutions International, Dynamic Card Solutions is an innovative developer of instant issuance and PIN selection solutions for banks, credit unions and retailers.

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Toronto Card Scammers Settle with the FTC

Six Toronto-based individuals and their companies have settled FTC charges that they fraudulently marketed and sold credit card loss protection and healthcare discount plans to U.S. consumers. The telemarketing boiler rooms have been shut down, and have agreed to pay $200,000. The order contains a judgment of $14 million, which is suspended based on the defendants’ inability to pay. The FTC says the firms operated as “National Credit Card Security,” charging consumers $249, often without authorization. The defendants’ second scheme targeted elderly U.S. consumers with promises of large discounts on prescription drugs and medical services. The firms involved include STF Group; Start to Finish Consulting Group; Ontario Limited; Q-Prompt; Korn Land Corporation; Med Plan; Chembe Management; Thunderchild Consulting; SMAKK Consulting; GTCQ; Global Discount Healthcare Benefits; and First Med, among other variations of these names.

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Moneris Signs Freestar Bank for Card Processing

IL-based Freestar has signed a three-year agreement with Moneris for credit card processing services and will participate in Moneris’ “Referral Bank” program. Under the agreement, Moneris offers Freestar the opportunity to provide advanced point-of-sale technologies, wireless payment processing and electronic bill payment to its business customers. Moneris Solutions, Inc. (www.monerisusa.com) has a 30-year history as one of North America’s largest electronic transaction processors, delivering advanced payment card processing capabilities through point-of-sale hardware, payment processing software, e-commerce solutions and a gift and loyalty program. Freestar Bank, headquartered in Pontiac, IL, is an independently owned community bank with assets of $ 270 million.

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MasterCard Financial Literacy Campaign Gears-Up

MasterCard has chosen 11 college students currently serving as Capitol Hill interns to manage a financial literacy campaign on their respective campuses during the 2006 fall semester. The Washington workshop will teach the interns key campaign techniques like event planning and partnership development skills to increase the reach of the financial literacy information in the “Are You Credit Wise?” program. Students participating in this year’s program will be taught different tactics and techniques to reach their peers with the information and materials provided by MasterCard. All materials distributed are exclusively educational and void of any marketing information. MasterCard Worldwide advances global commerce by providing a critical economic link between financial institutions, businesses, cardholders and merchants worldwide.

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Chevy Chase Cardholders Get Some Relief

Once among the top credit card issuers in the country, Chevy Chase Bank recently agreed to pay more than $16 million to former cardholders in a class action lawsuit filed in 1999. The bank, formerly based in Maryland, was renowned for charging cardholders double digit interest rates well above the Maryland usury limit of 24% per annum, in most cases up to 28%. It was among the first card issuers in the U.S. to introduce punitive interest rates on high risk cardholders. The bank subsequently moved its card operation to Virginia to avoid the Maryland usury law. The issuer also notified cardholders in early 1996 it was switching to an arbitration requirement. The Maryland court hearing the case approved the settlement this week. First USA/Banc One (now Chase) purchased the $4.9 billion credit card operation of Chevy Chase Bank in September 1998. (CF Library 9/3/98; 3/9/01)

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