Nine Million U.S. Consumers Applied Online Last Year

NY-based Change Sciences Group released a report yesterday showing that more than nine million U.S. consumers applied for credit cards online during 2002. The company says that recent forecasts indicate that more than 50% of all credit cards will be obtained exclusively through an online channel in the next year. The top five credit card Web sites, based on ease of use, according to Change Sciences Group are Discover, National City, Chase, Fleet, and Bank of America. Change Sciences uses a benchmarking process which allows for the empirical comparison of Web sites across more than 30 usability metrics.

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Compete Hires Franco for Consumer Banking

Boston-based Compete has hired Stephen Franco, fomerly with U.S. Bancorp Piper Jaffray, as Managing Director, Consumer Banking and Finance. In this newly created position, Stephen will leverage his industry experience to meet ongoing demand by major banks and other consumer finance institutions for strategic services to help them better acquire, service, cross-sell and retain customers. Prior to joining Compete, Stephen was a Managing Director and Senior Research Analyst at U.S. Bancorp Piper Jaffray.

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Patterson Press Certified for Card Manufacturing

Fiserv’s Patterson Press has had its Nashville facility certified by VISA and MasterCard. To achieve certification, Patterson examined every aspect of its card manufacturing processes to ensure the highest level of security and effectiveness. A significant investment was made in equipment, technology and information to meet the requirements established by Visa and MasterCard.

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Intelli-Check Shareholder Lawsuit Dismissed

NY-based Intelli-Check had a shareholder lawsuit dismissed by the U.S District Court for the District of New Jersey. As previously disclosed, the plaintiffs, who were short-sellers of Intelli-Check stock, brought suit in October 2001, alleging violations of federal securities laws. Originally, the plaintiffs proposed a class action suit, but they amended their lawsuit in November 2001 into an individual action on behalf of the three individual plaintiffs.

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JCB & EQUANT

JCB has expanded its 10-year relationship with Equant by signing a three-year contract to build an MPLS-based IP VPN for JCB to connect 32 locations around the world. Working with JCB, Equant Professional Services consultants will design and manage the migration of JCB from its X.25 and frame relay network to an IP VPN. In addition, Equant consultants will assist in the implementation of a wireless LAN system that will allow JCB employees to access e-mail wirelessly, allowing them to be mobile at the workplace. Equant Frame Relay will still be used by JCB for extranet communications with its partners and merchants, and Equant global network management centers will continue to monitor the entire network around the clock.

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Juniper Nails a Card Deal with Best Western

Juniper Bank has inked a co-branded credit card deal with the world’s largest hotel chain. The new “Best Western MasterCard” will be marketed to “Gold Crown Club International” members. The card enables cardholders to earn one reward point for every three dollars spent at a Best Western and one reward point for every five dollars spent elsewhere. New cardholders will also earn a 1,200-point bonus upon their first use of the “Best Western MasterCard” and up to 800 points for balance transfers. Points can be redeemed for free stays and awards from other retailers. The new card has no annual fee and a 0% intro rate on balance transfers for 6 months, and a 9.9% variable on-going APR. In May, Juniper Bank launched the co-branded “Frontier Airlines MasterCard.” Juniper also issues the “AirTran A-Plus Platinum VISA” and the “Midwest Express Airlines MasterCard.” (CF Library 5/22/03)

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MC WORLDWIDE 2Q/03

MasterCard International reported that its second quarter global gross dollar volume, excluding PIN-debit, was up 4.8% to $308.1 billion. For the second consecutive quarter, Asia-Pacific experienced a decline in total volume, decreasing 9.1% to $51.3 billion. During the first quarter, MasterCard’s Asia-Pacific gross dollar volume dipped 6.8% to $54.2 billion. The decline in the Asia-Pacific region is attributable to the SARS outbreak and rising losses in countries such as South Korea and Singapore. Elsewhere, during the second quarter of this year, Europe was up 14.1% to $77.7 billion, and Canada was 13.5% to $10.3 billion. The hot Latin America region reported a 24.5% increase in 2Q/03 to $9.2 billion and the emerging South Asia / Middle East Africa region posted a 17.5% gain to $ 2.6 billion.

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Wells Takes Over as Vital CEO

Vital Processing Services, an independent joint venture company formed by VISA and TSYS, announced this morning that former Wachovia top executive Bev Wells has been named President and CEO of Vital, effective immediately. Wells spent 26 years at Wachovia, reaching the position of EVP for its Retail Division which included oversight of its credit card portfolio and acquiring business. She was named president of Wachovia Bank Card Services in 1994 and elected EVP in 1997. She succeeds Vital CEO Jonathan Palmer, who has resigned to attend to family responsibilities in Florida. Wells, who retired from Wachovia in 2002, is relocating Vital’s corporate headquarters in Tempe, AZ. Processing one out of every four electronic payment transactions in North America, Vital also processes for the top 25 acquirers in the USA. (CF Library 9/9/97; 4/26/99)

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BANK DANAMON & EURONET

Bank Danamon Indonesia has launched Euronet’s “Mobile Recharge” with all major mobile operators in Indonesia for both credit
and debit cards. Bank Danamon’s has approximately 1.25 million debit and credit cardholders. Euronet has connections with all four major Indonesian mobile operators, including Satelindo, Telkomsel, Excelcomindo and IM3, that combined represent more than 9.4 million customers. Euronet offers these services through a joint venture called Euronet Sigma Nusantara, which authorizes and processes the mobile transactions at ESN’s local data center in Jakarta. ESN performs daily settlements and reconciliation among all participants, including the banks and mobile operators. Euronet owns 80% of ESN.

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Intelli-Check Sues Tricom Card Technologies

NY-based Intelli-Check has filed a patent infringement lawsuit against Tricom Card Technologies in regard to its “ID-CHECK” technology. The suit, filed in U.S. District Court for the Eastern District of New York, maintains that Tricom infringes on Intelli-Check’s U.S. Patent No. 6,463,416 B1 for its state-of-the-art ID-CHECK technology relating to its authentication system for document identification. The Intelli-Check Complaint also maintains that Tricom induces infringement of the Intelli-Check patent on the part of Tricom’s customers. Intelli-Check seeks an unspecified amount of compensatory damages from Tricom and injunctive relief.

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UC & CYOTA 3D

UC Card has selected Cyota, and its local partner Intelligent Wave, to provide an end-to-end “Verified by Visa” Internet payment security service. To date Cyota and IWI have deployed and launched multiple commercial “3D Secure” systems in Japan for top issuers.
UC Card, as a member of Mizuho financial group, has more than 12 million cards-in-force. Cyota’s “SecureSuite,” the Company’s “3D Secure” solution, is now available to more than 320 million cardholders and 9,600 financial institutions worldwide.

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Skipjack Signs a Deal for Cardinal Centinel

Cincinnati-based Skipjack Financial Services has signed a deal to offer CardinalCommerce’s “Cardinal Centinel” payment authentication software to its online merchant clients. CardinalCommerce is the leading provider of online merchant payment authentication for securing online transactions. Cardinal Centinel is designed for acquiring banks, merchant service providers and their merchants. The software reduces the level of online fraudulent transactions and guarantees payment to online merchants who use it, while protecting the accounts of cardholders.

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