Online Credit Card Service Grows 28% Y/Y

A new study has found that the number of consumers who regularly service their credit card accounts online grew by 28% for the 12-month period ending with the first quarter 2005 compared to the same period in 2004. These consumers are heavy online spenders, accounting for 21% of the online population but fully 43% of all online spending. They also earn more than the average Internet user; 64% report household incomes greater than $50,000 while 57% of non e-servicers have household incomes greater than $50,000. The research by VA-based comScore Networks also found that customers who e-service their accounts are more satisfied with the issuer than those who manage their accounts more traditionally. More than 70% of credit card owners who recently logged into their accounts expressed satisfaction with their issuer’s Web site. Also, 64% of credit card e-service customers are likely to recommend their issuer’s Web site to a friend.

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Lipman Receives $3MM Orders from Germany

Lipman Electronic Engineering has received orders for Lipman’s “Dione
Secura” PIN Pads and “Xpress” card readers totaling $3 million from
retailers in Germany. The “SecuraPIN” Entry Device is based on Lipman’s
“SecuraCell” Transaction Technology Platform, a unified technology
platform certified as complying with the highest security standards,
including ZKA and PCI-PED among others. The “Secura” features both a
magnetic card reader and an EMV chip card reader, a backlit keyboard and
LCD display, and a physical privacy shield to ensure transaction security.
The “Xpress” is a patented card reading device featuring Lipman’s Swipe &
Park design, which is capable of reading both a magnetic stripe and EMV
chip in a single movement. Lipman is a leading worldwide provider of
electronic payment systems.

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SCM’s e20 Reader Wins Design Award

SCM Microsystems has received the 2006 iF product design award for its e20
mobile smart card reader from renowned design group iF Industrie Forum
Design e.V. The pocket-sized reader is a reliable authentification device
for all applications where secure identification is required, for example
credit card transactions via the Internet (one-time password) or secure
network access (challenge response). This year’s iF jury evaluated 2,000
products from 37 countries in twelve categories. SCM’s e20 reader
competed against 265 products in the “computer” category. Evaluation
criteria included design quality, degree of innovation, environmental
friendliness and ergonomics.

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RSA & CYOTA

RSA Security has inked a deal to acquire privately-held Cyota for
approximately $145 million. Cyota’s online fraud services currently
protect more than 430 million accounts, including seven of the top 10
banks in the U.S. and four of the top five in the U.K. The transaction
involves up to $136 million in cash for all of the outstanding stock of
Cyota, $5.5 million in cash to fund a three-year retention pool and at
least $3.5 million for the assumption of all outstanding Cyota stock
options. RSA Security believes that the acquisition will enable the
Company to establish itself as a strategic hub for the consumer
marketplace, providing the ability to authenticate and protect all
aspects of online banking and e-commerce: end-users, merchants and
transactions. Cyota created the first anti-phishing solution in Dec.
2003. The transaction is expected to close within 30 days. RSA Security
was advised on the acquisition by America’s Growth Capital.

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OAG Assists Cardholders to Maximize Miles

Chicago-based OAG has released a book on optimizing travel rewards programs including tips on how to use credit cards to earn miles and points. Mileage Pro is a first-time collaboration between the world’s two foremost experts on travel rewards programs, Randy Petersen and Tim Winship. Petersen publishes InsideFlyer magazine as well as several travel-related Web sites including WebFlyer.com and FlyerTalk.com. Winship is the publisher of FrequentFlier.com and is a contributing editor for OAG’s Frequent Flyer magazine and SmarterTravel.com. OAG is a global content management company specializing in travel and transport.

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Aconite Acquires Smart Commerce

Aconite has acquired NY-based Smart Commerce, a smart card
solutions provider focused on the Canadian and American markets.
The Company says the deal will accelerate plans to actively develop new
business in North and South America. Mansour Karimzadeh, President of
SCI, will head up the Aconite Americas business as SVP. Aconite recently
signed a deal with First Data. The partnership governs the integration
of Aconite’s “EMV Script Processor” into FDC’s “VisionPLUS” one-source
global solution for all credit cards, lending and processing activities
with initial implementation at First Data’s EMEA processing center in
Basildon.

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M&S Money Finds Small Tickets on the Rise

A new study shows how attitudes to using credit cards have changed over
the years, with 30% now using plastic regularly to
buy everyday low-cost items. More than one in ten are so comfortable
with cards that they use plastic for transactions as low as GPB3. Another
16% say that they keep track of their spending better when they use credit
cards. Today, four in five Britons regularly choose a credit or
debit card over any other means of payment for their shopping. The
research marks the 20th anniversary of Marks & Spencer Money.

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Giorgio Armani Signs Off on a Fraud Patent

Giorgio Armani Corporation has inked a green mail agreement with Acacia Research for patented technology involving a computerized system for protecting retailers and consumers engaged in credit card, check card, and debit transactions. The patented technology generally relates to a computerized system for protecting retailers and consumers engaged in credit card, check card and debit transactions. The system includes an electronic card reader and the generation and use of a transaction number, which specifically identifies each transaction processed within the system. As a result, the retailer does not necessarily have to print detailed information concerning the cardholder’s identity or account number on the customer’s receipt. The Acacia Technologies group develops, acquires, and licenses patented technologies.

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RBC CASH Index Points Upward in December

Consumer confidence is up for the third consecutive month, according to the December results of the RBC “CASH Index,” which now stands at 85.5 compared to 66.8 for October. More good news for retailers is that 40% of respondents report that they are more comfortable making household purchases, an increase from the 35 per cent who reported similar purchasing confidence in October 2005. However, despite the consistency of current consumer confidence, Americans’ current financial situations continue to be a source of worry. Compared to September 2005 – when nearly three in ten rated their current financial situation as strong – currently only 25 per cent rate their financial situation as such. As well, 29 per cent rate the strength of their current local economy as weak, compared to only one quarter reporting a weak rating in October 2005. RBC’s Consumer Attitudes and Spending by Household Index is a monthly national survey of consumer attitudes on the current and future state of local economies, personal financial situations, savings, and confidence to make large investments.

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NCR to Take Pay By Touch Service Global

San Francisco-based Pay By Touch and Atlanta-based NCR have teamed to take biometric-enabled POS transactions worldwide. Under the deal, retailers using NCR’s “Advanced Checkout Solution” POS software and the “WinEPS” solution from MTXEPS, can implement the Pay By Touch service. The first joint implementation is being rolled out in select grocery stores throughout the Midwest. In addition, the NCR “FastLane” self-checkout solution is currently “Pay By Touch Ready” and integration with other NCR solutions is underway. Pay By Touch will also leverage an NCR self-service kiosk solution to streamline and enhance the Pay By Touch consumer enrollment process. Earlier this week, Pay By Touch inked a deal to acquire rival VA-based BioPay for $82 million in stock and cash. (CF Library 12/7/05)

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UK’s Aconite Acquires USA’s Smart Commerce

U.K.-based Aconite has acquired NY-based Smart Commerce, a smart card solutions provider focused on the Canadian and American markets. The Company says the deal will accelerate plans to actively develop new business in North and South America. Mansour Karimzadeh, President of SCI, will head up the Aconite Americas business as SVP. Aconite recently signed a deal with First Data. The partnership governs the integration of Aconite’s “EMV Script Processor” into FDC’s “VisionPLUS” one-source global solution for all credit cards, lending and processing activities with initial implementation at First Data’s EMEA processing center in Basildon.

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