KUBRA & PYDS Form a Major Processing Partnership

KUBRA Data Transfer has selected TX-based Payment Data Systems to become its preferred electronic credit/debit card payment processor of choice by signing a multi-year referral and incentive warrant agreement. KUBRA is a chief provider of enterprise information solutions that processes hundreds of millions of dollars in consumer payments per year. The partnership will provide a referral agreement and incentive warrants for three years to both companies. Other terms of the agreement will enable KUBRA to earn warrants if they achieve yearly or quarterly revenue markers of $45 million annual gross revenue or $11,250,000 quarterly gross revenue. Incentive warrants provided to KUBRA, in effect, will create significantly more capital for Payment Data Solutions. Payment Data Solutions is an Integrated Payments Solutions Provider that delivers comprehensive, cost-effective solutions to billers and retailers.

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CARDS JUL04

Consumer purchase volume on credit cards tapered off during July to an annual growth rate of 7%, compared to a 16% year-on-year spurt in June. Balances also slowed to a 12% annual growth rate during July, compared to 14% in the previous month. During July, Australians charged A$12.2 billion in purchases on credit cards compared to A$11.4 billion one-year ago. At the end of July, consumers owed A$27.7 billion on credit cards versus A$24.6 billion for July 2003. The ratio of credit card balances to card credit limits was flat compared to one-year ago, according to data released by the Reserve Bank of Australia. One-year ago, consumers had total credit lines of A$65.7 billion. Card credit limits reached A$74.2 billion at the end of July.

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Jack Henry Acquires a Biometrics Firm

MO-based Jack Henry & Associates has acquired CA-based Verinex Technologies, a developer and integrator of biometric security solutions. Biometrics uses physical characteristics such as fingerprints, faces, voices, and signatures to verify identity. Biodentify(R) is Vernine’s fingerprint authentication solution, which confirms individuals’ identity based on their unique physical characteristics, making it impossible to forge, copy, or share biometirc-based authentication credentials. Biometrics omits user names and passwords as well as related costs and issues with administration and management. Jack Henry & Associates, Inc. and Verinex are committed to provide exceptional products and quality service. Jack Henry & Associates, Inc. is a provider of integrated computer systems and processes ATM and debit card transactions for banks and credit unions.

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Authorize.Net Gets a New President

MA-based Lightbridge has appointed Roy Banks, formerly of PowerQuest, as president of the company’s Authorize.Net business unit. Authorize.Net offers payment gateway services designed for merchants to handle credit card or electronic check transactions from a website, retail store, mail or telephone order, call center, or mobile device. Robert Donahue, president and CEO of Lightbridge, claims that Roy has been an important member of Authorize.Net. He has helped the company increase revenues from $8 million to $28 million in the last 4 years. Lightbridge is a leading transaction processing company used by businesses worldwide.

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Citibank Joins the MoneyPass ATM Network

Genpass, manager of the “MoneyPass” EFT network, announced that Citibank has agreed to participate in the surcharge-free ATM network. The addition of Citibank will bring the total number of “MoneyPass” cardholders to more than 5 million. “MoneyPass” has 8,000 ATMs in all 50 states. Two weeks ago Zions Bank agreed to participate in the network, adding 500,000 cardholders. Genpass Technologies drives approximately 31,000 ATMs and processes over 360 million transactions annually. (CF Library 9/24/04)

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Train Network Deploys Picopass Cards for Single Use

SMRT Corporation Ltd and SBS Transit Ltd has taken delivery of INSIDE Contactless’ “Picopass” cards for single-trip use in Singapore’s train network. INSIDE Contactless has worked closely with the Land Transport Authority over the past two years to introduce a cost effective solution for the Singapore transport system including the introduction of “M210-2G” multi-standard proximity coupler for use in the new MRT Circle Line as well as many new non-transit applications in access control, campus and payment-related projects. Like the “M210-2G” coupler, the “Picopass” cards have also been adapted for use in the current transport infrastructure, providing a cost effective alternative supply of cards to SMRT and SBS Transit. “PicoPass” is compliant with both ISO 14443B and 15693 standards, enabling the chip to operate at higher communication speed at proximity distance and extended communication range where required. The “Picopass” also comes with read & write functions, a secure credit and debit counter, and memory sizes that can be used to store multi-applications and large amounts of data such as high quality ID photos, data records and biometric templates. LTA is the first in the world to adopt both Type B and “Felica(TM)”cards in the Transport System, paving the way for Type B standards to be used in Singapore for a portfolio of applications and services.

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AmSouth Launches the Spectrum Payroll Card

AmSouth and WildCard Systems have teamed up to launch the “Spectrum VISA Payroll Card”. Prepaid payroll cards provide an alternative to paper paychecks and have the safety and security of a Visa card. The cards carry an Interlink brand and provide cardholders with a variety of options to pay for purchases at millions of Visa merchants, receive cash-back at many Interlink locations, and withdraw cash at 700,000 Visa ATMs. The “Spectrum card” features numerous benefits including operational cost savings, productivity and safety enhancements, as well as fewer distractions and interruptions for managers and supervisors who are currently distributing paychecks. Employees can enjoy immediate funds and the convenience of not making numerous trips to the bank to cash or deposit paychecks. AmSouth is a regional bank holding company operating in the southeastern U.S. WildCard Systems specializes in turnkey host based prepaid cards and custom stored-value products.

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FSV Launches the Out-of-the-Box FLEXGIFT Program

Fiserv and FSV Payment Systems have rolled-out the second product in a suite of out-of-the box stored-value solutions. The new “FLEXGIFT” card carries the VISA brand and can be used for POS or ATM transactions. “FLEXGIFT” is a a gift or employee-incentive program. The product comes complete with instructions for use, creative marketing ideas and a variety of packaging options. Fiserv earlier this year launched “PAYCHEK PLUS! PDQ,” a stored-value payroll solution that enables financial institutions to fully implement a payroll debit program in one week.

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Card Micropayments Poised for Explosive Growth

Carding small ticket purchases is gaining appeal as a new survey discovered that 17% of Americans would use a payment card for a transaction of less than $5, while an estimated 6.5 million consumers would use their credit, debit or charge card for transactions of less than $1 if they could. The study found that more than 14 million Americans have purchased digital content for less than $2 in the past year, compared to four million one year ago. The survey, conducted by Ipsos-Insight and Peppercoin, a micropayments concern, also found that 10% of those purchasing items for less than $2 online in the past year did so from five or more Web sites, a percentage that has more than doubled since October 2003. Meanwhile, Peppercoin announced an alliance with Reino Parking Systems and SunTrust Merchant Services to enable consumers to pay for parking with their credit, debit and charge cards.

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Chase Relaunches the Co-Branded Circuit City VISA

Chase has introduced the “Circuit City Rewards VISA” card after acquiring the co-branded program from Circuit City on May 25th. The new card program offers five reward points on all Circuit City purchases and a one reward point on all other purchases. Rewards are redeemable for store certificates starting at $5 in exchange for 500 points. Customers who do not qualify for a “Circuit City Rewards VISA” card may qualify for a Circuit City private-label card, which offers the same rewards program. Chase says Circuit City stores will continue to accept existing Circuit City cards and “Circuit City Plus VISA” cards. However, eligible consumers can choose to upgrade their existing Circuit City cards to the new card. In May, Richmond, VA-based Circuit City sold its $1.8 billion private-label credit card operation, including both its private-label Circuit City credit card accounts and its co-branded “Circuit City Plus VISA” credit card accounts, to Bank One, now part of Chase. Circuit City also became an agent of Chase/Bank One under a seven-year contract. (CF Library 1/21/04l 5/27/04)

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Household International is Re-Branded HSBC

This week, HSBC is extending its HSBC brand across the majority of its U.S. and Canadian businesses, including Household International. The rebranding means all those businesses previously operating under the Household name will be called HSBC. HSBC’s consumer lending business will retain the HFC and Beneficial brands, now accompanied by the Group’s endorsement signature, “Member HSBC Group.” HSBC has 60 million consumer and business customers in North America. In the USA, HSBC posted second quarter net income of $395 million. HSBC, which issues the General Motors MasterCard, the Union Privilege cards, and the Orchard Bank sub-prime MasterCard, has experienced a 6% increase in bank credit card outstandings, from $19 billion one-year ago to $20.2 billion in the 2Q/04. Household also holds $17.5 billion in private label credit card outstandings. For complete details on HSBC’s quarterly performance, visit CardData ([www.www.carddata.com][1]).(CF Library 8/16/04)

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

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Moneytree to Introduce a FSV PIN Debit Card

FSV Payment Systems and check cashing chain, Moneytree, will introduce the “CashSolutions” prepaid PIN debit next week in Spokane, Washington. Moneytree customers will be offered the CashSolutions card at no cost. The card operates as a prepaid PIN debit card as well as a customer identification card. Eric Miller, CEO for FSV, explains that cardholders pay nothing to obtain the card or to deposit funds on it whenever they cash a check at Moneytree. The CashSolutions card will enable Moneytree to gain business and help their customers monitor their spending. In addition, cardholders will also be able to upgrade their PIN card to a prepaid Visa® debit card at Moneytree locations for a one-time activation fee. FSV Payment Systems offers payroll debit card solutions to employers and financial institutions through an agreement with Fiserv Inc.

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