Celent Communications has named Digital Insight’s “AXIS Internet Banking 4.0” as the top choice among 11 vendors evaluated for serving the online banking needs of financial institutions from de novo size to $20 billion in assets. Vendors were rated on an “A” to “C” scale. Factors considered in determining ratings included: self-service features, customer support features and financial viability. Digital Insight was the only vendor in its category to receive an “A grade.” Digital Insight(R) Corporation is the leading online banking provider for visionary financial institutions.Details
The Commons Treasury Select Committee this week released a report on the credit card industry accusing the Office of Fair Trading of being passive in regulating card issuers. The report also blasted issuers for charging excessive interest rates that are difficult to decipher and compare with competing offers. The Members of Parliament on the CTSC also censured the Department of Trade and Industry saying it showed little sense of urgency in dealing with the situation. The Committee also recommended that the Financial Services Authority be given some responsibility for regulating credit cards. In September, The OFT called the current credit card interest rates “extortionate” and launched an informal inquiry into retail credit cards following complaints from Members of Parliament. The Commons Treasury Select Committee found that the average rate of interest for retail cards is about 29%, and is relatively unchanged since 1999. The highest rate of 32.5%, was charged for the Toys ‘R’ Us credit card, issued by GE Consumer Finance.Details
First Data Corp. announced that the New York Stock Exchange (NYSE) has advised the company that it will not require First Data to obtain further shareholder approval under the NYSE’s Shareholder Approval Policy in connection with the amendment to the merger agreement entered into with Concord EFS, Inc. (NYSE: CE). No other requirements for shareholder approval apply. First Data shareholders approved the original merger agreement previously on October 28, 2003.
The transaction is subject to Concord shareholder approval.
About First Data
First Data Corp. (NYSE: FDC), with global headquarters in Denver, helps power the global economy. As a leader in electronic commerce and payment services, First Data serves approximately 3 million merchant locations, 1,400 card issuers and millions of consumers, making it easy, fast and secure for people and businesses to buy goods and services using virtually any form of payment. With 29,000 employees worldwide, the company provides credit, debit, smart card and stored-value card issuing and merchant transaction processing services; Internet commerce solutions; money transfer services; money orders; and check processing and verification services throughout the United States. First Data also offers a variety of payment services in the United Kingdom, Australia, Canada, Japan, Mexico, Spain, the Netherlands, the Middle East and Germany. Its Western Union and Orlandi Valuta money transfer networks include a total of approximately 169,000 agent locations in more than 195 countries and territories.Details
A new research report has found that the installed base of ATMs in Europe grew 6% last year to 283,590 machines, and that Germany, Spain, UK, France and Italy now account for 77% of the region’s ATMs. Also, the UK has become the fastest-growing ATM market in western Europe with nearly 41,000 machines, and as a result, the UK overtook France last year as the region’s third-largest ATM market. Germany, the region’s largest ATM market, has 50,487 machines, and second place Spain has 49,925 installations. The study by Retail Banking Research found that during 2002 there were 10.8 billion cash withdrawals at western Europe’s ATMs, an increase of 2% on 2001. Since the installed base grew faster than the number of cash withdrawals, the average usage level fell to 3,173 withdrawals. The total value of withdrawals, however, increased by 9% to EUR1,215billion in 2002. The average value of a cash withdrawal in 2002 climbed to EUR113. Italy has the lowest number of cash withdrawals per machine, but the average withdrawal value is high; Italians visit ATMs infrequently but withdraw large sums of cash at a time. RBR also found that the average ATM in Sweden is used 11,300 times per month and that the average value of a cash withdrawal is highest in Switzerland, with EUR248. Retail Banking Research has published the annual “ATMs and Cash Dispensers Europe 2003” report since 1983.Details
Banco General and First Data have teamed to form a new firm to provide card processing services to financial institutions across Latin America and the Caribbean. Processing Center, S.A. or “PROCESA” will
initially process the portfolios of 15 institutions, with plans for a rapid expansion. The company will use First Data’s “VisionPLUS” transaction processing software to provide a wide range of card processing services, including credit, prepaid, gift and corporate cards. Founded in 1955 as Panama’s first private capital bank, Banco General acquired the locally held assets of Bank of America in 1985. In 1999, Banco General acquired and merged its operations with Banco Comercial de Panama. It is one of the few Latin American banks holding “Investment Grade Ratings” from two separate international rating agencies.
Comdata’s Stored Value Systems subsidiary has launched an electronic gift card program for the 122-store Hannaford Supermarket chain, located primarily in the northeastern USA. Fully-customized for each retailer, SVS cash and gift card applications streamline back-office procedures by offering automated inventory control that replenishes cash card stocks at each store location. Gift cards can be purchased in any denomination in the store or via the company’s Web site, www.hannaford.com. Comdata Corporation(R) (www.comdata.com) is redefining the movement of money and information through technology for businesses, their customers and employees. Stored Value Systems is one of the world’s leading providers of electronic gift certificate and card-based transaction programs.Details
Nashville-based payment processor, Verus Financial Management, headed by Richardson Roberts, has made its fifth acquisition with the purchase of the assets of FL-based Global eTelecom. Verus now provides payment services to over 58,000 merchant locations in the United States and this is the fifth acquisition made by Verus since its inception in 2002. Global eTelecom is a national payment processor that provides a leading electronic check conversion engine to merchants, banks and independent sales organizations. By partnering with the payment processing industry’s leading Independent Sales Organizations, Global eTelecom provides a significant value added product for its partners and merchants. Verus Financial Management Inc. is a leading consolidator of successful payment processors into a “best practices” payment services company.Details
NC-based LendingTree has completed its acquisition of the “GetSmart” brand from Providian and will now offer the “GetSmart” platform to the more than 200 lenders who participate on the LendingTree exchange, as well as maintaining the relationships with 100 lenders who currently participate on the “GetSmart” network. The two brands will complement each other, as they offer distinct value propositions to both lenders and consumers who are interested in leveraging the Internet for online loan options and alternatives. The LendingTree Exchange is made up of more than 200 banks, lenders, and brokers (Lenders) and has facilitated nearly $68 billion in closed loans since inception. More than 10 million consumers have accessed the LendingTree Exchange through the Company’s site at http://www.lendingtree.com and through online and offline partners.Details
The cash flow problems at Samsung Card may require a capital infusion of more than US$800 million, drawing in its parent company, Samsung Electronics, for the rescue. The news comes on the heels of the announcement this week that the country’s largest credit card issuer, LG Card, has decided to put itself up for sale. Korea Development Bank has indicated it may bid on LG Card by the December 30th deadline.
The Financial Supervisory Service reported last week that overall credit card delinquency increased during October to 11.74%, compared to 6.6% at the end of 2002. Woori Card reported the highest delinquency, at nearly 31%, and announced it will merge its banking business with its credit card subsidiary in March. The FSS says that Woori Card’s default rate jumped from 26.42% in September to 30.76% for October. LG Card had a 11.40% delinquency rate, Lotte Card had a 9.75% rate, and Hyundai reported 9.19% for October.Details
Redwood City, CA-based Merchant e-Solutions has acquired Transcom Payment Services. The Company also announced it has secured $7 million in a financing round led by 3i US. Transcom has a merchant portfolio comprising more than 4,300 merchant accounts and over $1 billion in annualized credit card sales. Transcom was founded in 1999 and is headquartered in Columbus, GA with operations in Minneapolis, MN. 3i US, an international venture capital company with more than $26 billion in investments, says Merchant e-Solution addresses a “real pain point” in the industry, and it is thrilled to back a senior management team with a proven technology and business model. Trident Capital is the first and major investor in Merchant e-Solutions. The company’s Board of Directors includes Sharif Bayyari, CEO and president of Merchant e-Solutions, Jim Aviles, senior manager at Merchant e-Solutions, Don Dixon, senior partner of Trident Capital, Woody Marshall, of Trident Capital, as well as Hatim Tyabji, ex-chairman, president and CEO of Verifone, Jim Jones, former senior executive of Bank of America, and Tom Dailey, formerly of Discover Business Services. Merchant e-Solutions now processes for over 45,000 merchants, and 100 banks and partners. In addition, Merchant e-Solutions provides web-based technology to over 200,000 merchants.Details
InfoSpace’s Authorize.Net has been independently validated as compliant with the VISA “Cardholder Information Security Program.” CISP establishes a set of twelve industry-wide requirements designed to protect sensitive information from being compromised. These requirements, which also include numerous sub-requirements, are directed at all businesses that store, process, or transmit cardholder information. Authorize.Net provides secure, reliable, IP-based payment gateway solutions that enable merchants to authorize, settle and manage electronic transactions via Web sites, at brick-and-mortar stores, and on wireless devices. The Visa U.S.A. Cardholder Information Security Program defines a standard of due care and enforcement for protecting sensitive information.Details
CIBC has become the first major Canadian issuer to launch a “Verified by Visa” program. The deployment of the cardholder authentication service comes via TSYS’ “CardGuard” and Cyota’s “SecureSuite.” Cyota has localized the service for Canadians to include bilingual support for CIBC’s English- and French-speaking customers. Cyota “SecureSuite” is a modular platform that seamlessly integrates multiple payment security applications, including “Verified by Visa,” MasterCard’s “SecureCode” and more. TSYS implemented Cyota’s “SecureSuite” platform in 2001, and the companies have since delivered the services to multiple issuers worldwide. Cyota currently powers more than 80% of the cards eligible for the service in the USA. TSYS services more than half of all VISA accounts in Canada.Details