ANZ has launched a debit card with VISA that offers unlimited transactions via the bank’s ATM network, EFTPOS, phone, Internet banking and branches. The new “ANZ Everyday VISA Debit” card carries a A$6 per month fee and offers three card designs. The new card is also offering direct salary deposit and the ability to set up automatic payments with third parties. ANZ notes that all transactions on the card will have the protection of “ANZ Falcon” and ANZ’s “Online Guarantee” which will provide greater protection on Internet purchases. ANZ has 756 branches in Australia and more than six million personal, private banking, small business, corporate, institutional, and asset finance customers worldwide. VISA is accepted at 555,000 merchant locations and 13,600 ATMs in Australia. At the end of January there were 25.4 million debit card accounts in Australia among all banks according to the Reserve Bank of Australia.Details
NJ-based On Track Innovations posted revenues for the fourth quarter of $9.3 million, a 19% jump over the same period of last year. The Company says the increase in revenues represents the rapid advancements in the contactless market around the world and in particular the U.S. market, where it delivered contactless solutions for more than ten million payment cards in 2005. The net loss for the quarter was $2.3 million. Revenues for 2005 increased by 54% to $35.7 million compared to 2004. Net loss for the year decreased by 2% to $9.1 million from the same period in 2004. During the fourth quarter, OTI signed a deal to provide smart card technology to Scheidt & Bachmann for the Massachusetts Bay Transportation Authority. The Company along with STMicroelectronics announced that their contactless solution is the first solution approved by VISA International for use in its “VISA Contactless” program in the USA. Also during the quarter, Ingenico announced it will install the “eN-Touch 1000” with contactless reading technology from On Track Innovations at all Duane Reade locations by the end of 2005. OTI’s international headquarters are located in Rosh Pina, Israel. For complete details on OTI’s fourth quarter performance, visit CardData ([www.carddata.com]). (CF Library 10/19/05; 11/14/05: 12/21/05)
The U.K. Court of Appeal last week ruled that local credit card issuers must guarantee purchases made on international transactions. According to guidelines by the Office of Fair Trading, such guarantees can cover single purchases worth between GBP 100 and GBP 30,000, even if the card is only used for a deposit. The court’s decision overturned a November 2004 High Court ruling that “Section 75” of the “Consumer Credit Act of 1974” did not apply to overseas purchases. “Section 75” covers foreign transactions including where a consumer uses a U.K. credit card to buy goods while abroad; a consumer orders goods from a foreign supplier while abroad for delivery into the U.K.; a consumer in the U.K. buys goods which are delivered to a U.K. address from overseas by telephone, mail order or over the Internet; and there is face-to-face pre-contract dealings with a foreign supplier temporarily in the U.K., or with a U.K. agent of a foreign supplier, but the contract is not completed in the U.K. Brits spent almost GBP 123 billion on domestic credit card transactions in 2004, and a further GBP 12.5 billion on overseas transactions.Details
The growth in general purpose credit cards in the USA picked up some momentum last year expanding by 5%. At the end of 2005 there were 690.2 million U.S. credit cards active on the VISA, MasterCard, American Express and Discover networks. This compares to 657.5 million in 2004. Over the past decade the number of bank credit cards has increased more than 30% from slightly more than 500 million cards, according to CardData ([www.carddata.com]). VISA reported a 8.3% gain in credit cards for 2005, ending the year with 319.8 million cards. MasterCard posted a 2% increase from 271.5 million credit cards to 277.0 million. American Express says its U.S. card base grew 7.8% to 43.0 million cards, which includes revolving cards and 30-day credit or charge cards. Discover, which does not officially publish card totals, is estimated to have 50.4 million cards in-force at year-end 2005, a slight decline over the 50.8 million in 2004. For complete details on the performance of all four major networks, visit CardData ([www.carddata.com]).
U.S. CREDIT CARD GROWTH HISTORICAL
Source: CardData (www.carddata.com)
Dallas-based Retalix reported that fourth quarter revenues reached a record $54.5 million, up 52% year-over-year. Fourth quarter GAAP net income was up 205% to a record $6.3 million. During the quarter, a fuel provider at a premier U.S. discount retailer selected the “Retalix POS” solution; Australia’s Woolworths deploys “Retalix POS” in 1,400 stores; and inked a deal with Japan’s Zen Nippon Shokuhin supermarkets. The Company projects 2006 revenues to be between $215 million and $225 million and GAAP net income between $16 million to $20 million. Retalix is a point of sale software provider for huge multi-national food retailers and most of America’s leading grocery retailers. The international headquarters are located in Ra’anana, Israel. For complete details on the Retalix fourth quarter, visit CardData ([www.carddata.com]).
Atlanta-based Global Payments has signed a deal to provide Nashville-based Advanced Payment Solutions with authorization, capture and settlement processing services, as well as BIN sponsorship. Advanced Payment Solutions is an ISO that offers payment processing services for an array of merchant businesses. Global Payments is a provider of electronic transaction processing services.Details
Naples, FL-based WhyLabs has launched an “Affiliate Fraud Prevention System” as part of its credit card fraud solutions. The Company said the solution groups the transactions initiated by every affiliate and compares them with a view similar to some essential transaction’s parameters, alerting that all these transactions were made by one person. The system indicates suspicious adverts and gives a merchant the ability to shut their accounts off at the early stage. WhyLabs says it found that about 5% of e-business utilizing the “affiliate” method of advertising deal with affiliate fraud and that 10% of merchant accounts out of this number were deactivated for exceeding chargeback limits. WhyLabs say it applies a full spectrum of 18 anti-fraud modules and more than 70 rules to detect even the most sophisticated fraudulent attempt.Details
As expected, consumer and business bankruptcy filings exploded during the fourth quarter, hitting a record 667,431 petitions. The figure was nearly 70% higher than any previous fourth quarter. The tidal wave was driven by new bankruptcy laws which took full effect in mid-October. Year-to-date consumer and business bankruptcy filings were up 30% to 2,078,415 compared to 2004. Annual consumer bankruptcy filings topped two million for the first time. According to the Administrative Office of the U.S. Courts, Americans filed 1,659,017 Chapter 7 petitions and 412,130 Chapter 13 petitions during 2005.
(Years Ended Dec 31)
Source: U.S. Courts
Acclaim Games has signed an agreement with San Jose-based PaymentOne to provide a variety of “no credit card required” payment options for its consumers. PaymentOne’s “PhoneBill” solution allow over 180 million consumers to easily have digital charges put onto to their existing broadband and landline accounts. These “no credit card required” options eliminate the need and significant hurdle for the consumer to provide sensitive private credit card information. PaymentOne has generated over $2 billion of incremental revenue for digital merchants.Details
New York-based Emigrant Bank has raised the amount of the cash back rebate for its “EmigrantDirect Platinum MasterCard” from 1.25% to 1.40%, retroactive to the inception of the card in January. The maximum benefit of the card is offered to those with an average daily balance of $10,000 in an EmigrantDirect American Dream Savings Account, about one third of a typical customer’s EmigrantDirect savings account. The rebate, for which all purchases qualify, is deposited bi-annually into the account. EmigrantDirect’s American Dream savings account has attracted more than 225,000 customers and $6 billion in deposits since its launch in Jan. 2005.Details
Unified Western Grocers, the largest retailer-owned wholesale grocery cooperative in the Western United States, is deploying the Netifice “Retail Connect” VPN service to support data communications between its member stores for credit card processing. Currently, UWG is rolling out the service to increase bandwidth and decrease connectivity costs for 140 stores and plans to add an additional 200 members following the initial implementation. Retail Connect enables stores to conduct electronic authorization and payment services with leading credit card processors.Details
Corillian and Getronics have signed a multi-year reseller and systems integration agreement to deliver comprehensive online financial services to financial institutions worldwide. Getronics will resell and implement Corillian’s Voyager platform and online banking applications as its preferred offering for financial institutions who in turn will be able to benefit greatly from the addition of the Voyager platform to Getronics’ retail banking solution that includes their Globalfs multi-channel branch software as well as comprehensive security, IP communications, and workspace management infrastructure services. Corillian is a provider of online banking, bill payment and fraud prevention solutions to the financial services industry.Details