TRM & ORCC Make the Russell 3000 Index

Portland, Oregon-based TRM Corporation and Chantilly, Virginia-based Online Resources Corp. were added to the “Russell 3000 Index” yesterday. The Russell 3000 Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization. Currently, more than $2.5 trillion in assets are benchmarked to Russell indices. TRM operates one of the largest multi-national ATM networks, with over 22,000 ATMs worldwide. Online Resources powers Internet financial services for over 700 firms nationwide, serves over three million consumer end-users and processes over $10 billion in payments annually.

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Algorithm-Driven Identity Quiz Unveiled

New Jersey-based StrikeForce Technologies has unveiled “VerifyID”, a real-time online customized algorithm-driven quiz to eliminate fraud. VerifyID helps eliminate fraud when new accounts are created. StrikeForce’s proprietary algorithms queue up a more challenging mix beyond a social security numbers and mother’s maiden names. Companies can configure the system to ask a few questions or several with varying levels of complexity. StrikeForce Technologies provides online identity assurance solution.

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StoreNext & MTXEPS Form a Partnership

StoreNext Retail Technologies and MTXEPS have formed a partnership whereby StoreNext will market the “WinEPS” electronic payment application with its “ISS45” and “ScanMaster” POS systems under a deal similar to a recent agreement between StoreNext and Pay By Touch. The strategic partnership will enable independent grocers to offer shoppers a wide range of secure electronic payment options, providing a faster and more convenient shopping experience. StoreNext Retail Technologies LLC is a supplier of retail technology to independent grocers and regional chains.

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First Successful Canadian EMV Transaction

Moneris Solutions yesterday demonstrated Canada’s first full data EMV chip transaction under VISA Canada’s “Chip Migration Program.” Moneris President and CEO Jim Baumgartner carried out the transaction today at CreArtive Custom Framing in Toronto. Moneris has been in full support of EMV chip developments in Canada since VISA Canada announced its chip migration plans in 2003.

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FDC Expands its BancorpSouth Contract

First Data has extended its relationship with BancorpSouth for credit and debit card processing as well as merchant processing services. The multi-year extension calls for FDC to continue to provide transaction processing services for BancorpSouth’s 90,000 credit card accounts and 400,000 signature-based debit cards. In addition, BancorpSouth has extended its agreement with First Data for merchant processing services for its 4,000 merchants.

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FINANCIAL STABILITY

A new report has found that credit card exposures accounted for over 30% of UK-owned banks’ charge-offs on their domestic household lending last year. This proportion has trebled since 1998, reflecting
both the sharper rise in the credit card write-off rate and the growing stock of such lending. As discussed in some banks’ recent trading statements, the scale of the increase has surprised some lenders.
However, the Bank of England “Financial Stability Report” notes that the credit card business generally remains profitable and that the effective interest rate on credit card lending is currently around 11 percentage points above the cost of banks’ funds. But, the BOE says the general rise in unsecured debt may mask a sharper increase among a minority of households. As discussed in a recent House of Commons Treasury Committee report, some households have borrowed so much that they might struggle to meet future debt repayments even in the absence of a major income shock. This credit may have been available because lenders have an incomplete picture of customer characteristics. In addition, a good payment history may well be sufficient to encourage lenders to provide new loans, even though the debt may place a heavy burden on the
household. Greater credit availability may help to explain the
quadrupling over the past ten years in the number of
insolvencies among the employed.

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Cyota Enhances ScamBlocker to Fight Fraud

Cyota has signed a deal to provide data to enhance EarthLink’s “ScamBlocker” to provide immediate protection from fraudulent financial phishing sites. ScamBlocker warns users before they access known or suspected phishing sites, and redirects them to an EarthLink-generated Web page that provides additional information about phishing and similar online scams, and what actions subscribers can take to further protect themselves. Cyota is the leading provider of online security and anti-fraud solutions for financial institutions. Over 400 million account holders are protected by Cyota’s systems.

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Experian Launches B2B Marketing Triggers

Experian has launched the first commercial triggering solution that utilizes both credit and marketing data to maximize campaign results for credit card issuers targeting the SMB market. The new “B2B Marketing Triggers” assists users in identifying changes in a business’ demographic information as well as significant changes in its credit behaviors. Experian also delivers monthly changes in a business’ attributes such as business address, phone number or contact name so that users can update their lists in a more timely manner without having to wait for the long list processing cycle.

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Triversity Introduces FraudWatch 3.0

Toronto-based Triversity has released “FraudWatch 3.0,” a loss prevention software solution that meets the requirements of the PCI standards for protecting cardholder data. FraudWatch 3.0 includes full encryption of credit/debit card information, audit trails when data is accessed, advanced password management, masking of sensitive data when displayed and restriction of information. FraudWatch is a Web-based system that can be accessed from any location via a Web browser. Triversity is an international provider of retail business solutions.

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MBNA Shareholder Lawsuit Moves Back to 03

Connecticut-based law firm Scott + Scott has expanded its MBNA shareholder lawsuit back to October 16, 2003. The complaint alleges that during the Class Period, defendants made false and misleading statements regarding the growth and direction of MBNA loan receivable assets and used false and deceptive means to present a healthy picture of growth for its loan receivable assets, to conceal several serious quarter over quarter declines. Scott + Scott specializes in complex litigation including securities fraud and represents foundations, individuals, corporations and pension funds worldwide.

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Citi Moves Sears Processing to First Data

After a 15-month evaluation process, Citigroup has decided to move the processing of its Sears consumer MasterCard and private-label accounts from TSYS to First Data. The deconversion is expected to be completed by the second quarter of 2006. The signing of the long-term processing agreement with Citi is a major victory for First Data. In October, TSYS finalized an agreement with JPMorgan Chase to service the combined card portfolios of Chase and Bank One. First Data formerly processed for Chase. In August, Bank of America decided to move its credit card processing for the FleetBoston card portfolio from First Data to TSYS. TSYS said it expects to continue supporting commercial-card accounts for Citibank and Sears as well as Citibank’s California Commerce consumer accounts, according to the terms of the existing agreements for those portfolios. (CF Library 8/19/04; 10/14/04)

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