CardXX Is Back in the Saddle Again

Denver-based CardXX said this week it has raised funding for the next year and has named a new management team. The firm is in the business of manufacturing smart cards, smart tags and packaging technology using its proprietary and patented encapsulation process known as the “Reaction Assisted Molded Process.” The Company currently is the only smart card manufacturer that has attained “Level 3” security clearance for the “Common Access Card” program for the US government. The company named Stephen Wapelhorst as VP and Paul Reed as Director of Business Development. This week the company opened a new plant in Englewood, Colorado and said it expects to be able to process smart card orders within 90 days. (CF Library 9/9/02)

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Sears Canada Deploys Oasis IST/Switch Software

Toronto-based Oasis Technology has successfully implemented its “IST/Switch” software for Sears Canada’s payment processing services. The enhanced processing is being used for Sears gift cards and Sears branded credit cards. “IST/Switch” is an open platform transaction processing solution that allows Sears Canada to route in-store, telephone and online card payments to third party payment processors for transaction authorization. Sears Canada operates 122 department stores and a wide range of specialty stores across the country, including 43 Sears Home stores, 143 locally owned dealer stores and 15 outlet stores. Oasis’ “IST/Switch” has been in development for more than 14 years and is currently installed at more than 180 customer sites in more than 70 countries.

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Billserv Begins Trading Today as Payment Data Systems

Billserv has changed its corporate name and trading symbol on the Nasdaq Bulletin Board. The new name is Payment Data Systems, Inc. with stock trading symbol to OTC Bulletin Board: PYDS. Both changes are effective today. PDS will also continue to own and operate its bills.com consumer bill payment portal. Payment Data Systems is an Integrated Payments Solution Provider solutions to billers and retailers for the processing and management of electronic payments via the Internet, point of sale, or payments taken by Customer Service Representatives or an IVR.

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ID Analytics & Primary Payment Systems Team

San Diego-based ID Analytics has teamed with Primary Payment Systems for PPS to resell the ID’s “Score” pattern recognition technology solution. As part of the agreement, PPS will resell the ID Score, ID Analytics’ flagship pattern recognition technology solution, to its financial institution customers, including most of the largest retail banks in the United States. The two organizations are also working together on developing joint solutions to address the rising incidence of check fraud. Despite a slow decline in check usage, it remains a growing problem for retail banks and bankcard issuers as losses become a larger percentage of deposits and payments.

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LML Loses 7-Eleven Check Contract

Vancouver-based LML Payment confirmed this morning that 7-Eleven will not be renewing a contract for check authorization and recovery services. The contract is scheduled to terminate November 30th. The Company says that in fiscal 2003, it recorded revenue of approximately $2,000,000 directly attributable to this contract. LML says that at the request of 7-Eleven, it will explore the possibility of continuing to provide services up to possibly June, 2004. LML Payment Systems is a financial payment processor providing check processing solutions including electronic check authorization, electronic check conversion and primary and secondary check collection including electronic check re-presentment to national, regional and local retailers.

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2Q/02 Bankruptcy Filings Hit New Record

Bankruptcy filings for the twelve-month period ending June 30th hit an all-time high of 1.65 million, a 10% increase over the same period in 2002. Chapter 7 filings hit 1.17 million and Chapter 13 filings approached 500,000 over the past twelve months. According to the Administrative Office of the U.S. Courts, the total number of bankruptcy filings during the second quarter were 440,257, a 9.9% increase over 2Q/02. The 2Q/03 data was a high for quarterly filings.

ANNUAL FILINGS BY BANKRUPTCY CHAPTER
(for year ending June 30th)
Year Chap. 7 Chap. 13
2003 1,165,993 472,811
2002 1,053,230 440,231
2001 972,659 403,418
2000 885,447 380,770
1999 993,414 389,004
Source: Administrative Office of the U.S. Courts

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Equitex Revenues and Profits Drop in 2Q/03

CO-based Equitex reported second quarter revenues of $4.7 million, compared to $5.8 million for the second quarter of 2002. Net loss for the quarter ended June 30, 2003 was $453,150 as compared to a net loss of $32,457 for 2Q/02. In 1Q/02, Equitex produced $4.9 million in revenues from its sub-prime credit card marketing operations. The revenues ceased after the “Net 1st MasterCard” was shut-down by the regulators. FL-based Net First National Bank was closed March 1, 2002 by the OCC with the FDIC named as receiver. (CF Library 3/11/02; 5/22/03) For complete details on Equitex’s second quarter results visit CardData (www.carddata.com).

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Register.com Selects Retail Decisions

Register.com has started to use Retail Decisions for payment processing and fraud screening for worldwide e-commerce transactions. Register.com will use ReD’s LiveProcessor payment processing solution to facilitate authorization and settlement of customer e-commerce payments. The transactions will also be validated by ReD’s ebitGuard(TM) automated fraud prevention service. Using Retail Decisions’ LiveProcessor and ebitGuard solutions will enable Register.com to offer a secure payment processing option for e-commerce payment.

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Versatile Card Technology Rolls-Out a Satin Card Finish

Downers Grove, IL-based Versatile Card Technology has perfected a new finish for laminated cards offering a smooth velvet finish and that is resistant to scratches. This smooth finish allows for the magnetic stripe to be encoded and to accept thermal print imaging, two important features in personalization that cannot be accomplished with a regular matte finish. The new finish feels somewhat like the standard matte finish cards, but the effect is even smoother. The process involves special plates and the end product is another advancement in laminated cards. VCT produces more than 1 billion cards per year.

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Saks Card Sale to Household Drives Profits Down

Saks reported a 2Q/03 net loss of $25.8 million primarily due to expenses related to the sale of the Company’s proprietary credit card accounts and receivables to Household Bank. The company says it posted a $10 million increase in SG&A expense, reflecting a $16 million reduction in credit contribution primarily related to its transaction with Household. For complete details on Saks’ second quarter results visit CardData (www.carddata.com).

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Global Axcess Launches Branded Vault Cash

FL-based Global Axcess has launched “Branded Vault Cash”, and has signed Richmond, VA-based Conosolidated Bank & Trust as its first customer. Under this Agreement, NMS will manage up to $2,000,000 of Consolidated Bank & Trust vault cash in NMS- managed ATMs. Additionally, Consolidated Bank & Trust will receive branding rights and surcharge free transactions for its cardholders on a selected number of NMS-managed ATMs in Food Lion grocery stores.

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