U.S. DOJ Clears Axalto-Gemplus Merger

The U.S. Department of Justice has raised no objection to the proposed transaction between Axalto and Gemplus. The companies are now concentrating efforts to obtain the remaining approvals and conditions for the transaction. The transaction was previously unanimously approved by the Boards of Directors of both companies and the required shareholders resolutions relating to the transaction have been approved by a vast majority of the shareholders.

Details

Fortrex Authorized by VISA as QDSC & QPASC

Maryland-based Fortrex has been authorized for the third consecutive year by VISA USA as a “Qualified Data Security Company” to provide merchants, service providers, and payment gateways with PCI-DSS report on compliance assessments. To meet the high-level qualification requirements, Fortrex had to apply for qualification in the program, provide documentation of financial stability, technical capability, and industry experience, certify individual employees to perform the assessments and execute an agreement with Visa governing performance.

Details

RBC Cash Index Sinks in March

After an upturn in February, consumer confidence dropped in March, reflecting the uncertainty American consumers have about future economic conditions, according to the most recent results of the “RBC CASH Index”, which shows a score of 86.2 for March, compared to 96.1 in February. Expectations for local economies have worsened. However, opinions regarding purchases remain stable with 38 per cent of those surveyed reporting they are more confident in making a major purchase like a home or a car and 45 per cent stating they are comfortable making other household purchases and confidence in job security has remained basically stable with 41 per cent of Americans reporting they are more confident about their job security than six months ago. As a result, the RBC Jobs Index for March stands at 118.5 – virtually unchanged from 119.3 in February.

Details

A Wave of PIN Block Card Fraud Emerges

A new wave of “PIN block” card fraud has forced several issuers, including Citibank, to replace debit cards. In “PIN block” schemes, hackers break into retailer servers and steal PIN blocks that represent encrypted PIN data (which, along with card numbers, is sent to processors that execute PIN debit transactions). The thieves also steal terminal keys used to encrypt PINs. These keys are typically stored on retailers’ terminal controllers. Armed with the “PIN block” and terminal encryption key, the thieves can determine a cardholder’s PIN, then create counterfeit cards that enable them to withdraw cash at ATM machines. In a recent scam, the thieves stole (likely from a retailer) magnetic-stripe data found on the back of ATM cards, which large banks typically validate. Gartner says payment vendors need to modify their software to make the storage of PINs, PIN blocks and cards’ magnetic-stripe data impossible. Also, regulators should modify “Regulation E,” loosening the consumer notification timing requirements so that consumers can get their money bank more easily.

Details

Axalto Financial Cards Up 2% in 05

Axalto reported that revenue for 2005 in the “Financial Cards” product line increased 2% to $200.2 million. Gross profit in the “Financial Cards” product line increased to $49.1 million and gross margin rose by 3 points to 24.5%. Axalto shipped almost 5 million of its contactless payment cards to U.S. banks during the second half of 2005. Overall, the company increased its revenue to $992 million, its gross profit to $321 million, and its net income reached $59 million. Totally, Axalto shipped a record 440 million microprocessor cards during 2005, a 24% increase in volume when compared with the prior year. Volume growth was most marked in “Mobile Communication:” Axalto sold over 340 million SIM cards to mobile network operators, a 33% increase on last year’s comparable figure. Volumes in “Financial Cards” were also excellent, with 78 million microprocessor banking cards delivered. For complete details on Axalto’s 2005 and fourth quarter results visit CardData ([www.carddata.com][1]).

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

Details

Japan’s DoCoMo’s iD M-Payments Takes-Off

Japan’s Mizuho Bank has agreed to sell its 18% stake in UC Card to communications giant NTT DoCoMo for $8.4 million. The deal also calls for UC Card and Mizuho Bank to expand DoCoMo’s “iD” mobile phone payment system. Under terms of the deal, Mizuho Bank will upgrade the function of the “Mizuho Mileage Club Card,” an ATM card with credit card functions issued by Credit Saison, to enable cardholders to make credit card purchases via their mobile phones. Credit Saison also agreed to give their credit card owners the option of making payments via “iD.” Credit Saison intends to issue the new cards later this year.

Details

ADS Renews URG Card Deal Through 2012

Dallas-based Alliance Data has inked a renewal through 2012 with United Retail Group to continue to provide a comprehensive private label credit card solution for URG’s “AVENUE” stores. Alliance Data will continue providing services including account acquisition and activation; receivables funding; card authorization; private label credit card issuance; statement generation; remittance processing; customer service functions; and marketing services.

Details

Dodgers Launch the Think Blue Rewards Prog

The Dodgers have launched the “Think Blue Rewards” program for fans offering exclusive rewards that include memorabilia, VIP tickets and fantasy baseball experiences with players and management. The Dodgers are the first Major League Baseball franchise to offer their fans this reward program that gives them the opportunity to earn points by shopping both in and out of the park. Think Blue Rewards will operate much like a frequent flyer membership or other rewards program, with benefits designed specifically for a true baseball fan, but without the need for new credit approvals.

Details