EyeCashNetworks, formerly known as eConnect and the distributor of “BankEyesOnly” cash pads, acknowledged yesterday that the company was grossly mismanaged prior to the appointment of new senior officers and it is hopeful it can eliminate its liabilities. This settlement is consistent with the company’s policy to deal fairly with the existing creditors while giving the company a chance to get it’s business plan off the ground and to move forward. The company was grossly mismanaged prior to the appointment of Chris Jensen and Gilbert Serrano as head officers and it has been an uphill battle to turn the corner. However, EyeCashNetworks is working vigorously to eliminate all of their liabilities. If the company can continue on its current path of working with its creditors while simultaneously opening up new doors with its technology, management is very hopeful that it can make the company profitable.Details
A new survey has found that 70% of consumers believe debit cards are a better option for college students than credit cards. The research also found that seven out of ten Americans believe it is a bad idea for credit cards to be in the hands of college students. The survey of 1,200 Americans was conducted by the non-profit InCharge Institute of America which publishes the YOUNG MONEY magazine.Details
The CO-OP Network is now making “Verified by VISA” available to its 1,300 credit union members. Verified by VISA should help allay concerns about Internet fraud. Verified by VISA, which uses a series of identification measures to authenticate legitimate online purchases, allows cardholders to register their information through a link on a participating credit union’s Web site. When shopping at participating Verified by VISA Internet merchants, the cardholder’s registration information can be compared to the credit union file on that cardholder, which is held at eFunds.Details
Schlumberger’s “Easyflow” contactless smart cards will be used for London’s new transport ticketing and payment program, “Oyster.”
Annual and monthly season ticket holders are already using the “Oyster” service to travel across the U.K.’s capital city. “Oyster” cards are now available to annual and monthly “Travelcard” and “Annual Bus Pass” holders via the Internet. The rollout will be extended later to include 7-Day tickets and a pay-as-you-go facility, “Pre Pay.” “Oyster” is ultimately expected to handle five million daily transactions. The TranSys consortium, led by EDS and Cubic Transportation Systems, developed the “Oyster” system.
NH-based Brookwood Capital has hired Christopher O’Leary, a 15-year specialist of credit card agent relationships, to its senior management team. BROOKWOOD CAPITAL offers brokerage and advisory services to credit card issuers nationwide, specializing in establishing card relationships between bank and credit union credit card issuers and best-in-class issuing partners.Details
The plan by VISA EspaÃ±a financial entities to modify the current structure for representatives has been accepted by the VISA International EU board. The new structure means that Spanish entities will now be represented by three different Group Members: “ServiRed,” “EURO 6000” and “Sistema 4B.” For its 30 year history in Spain, VISA International has had two Member Groups: “Visa EspaÃ±a” and “Sistema 4B” around which the rest of the Spanish financial entities were grouped. “ServiRed” manages 27.3 million cards, 444,342 POS terminals and a total of 25,126 ATMs. “ServiRed” cardÂs business volume reached 70.747 billion euro of which 29.426 billion were purchases. “Euro 6000” is a Public Limited Company which manages the payment means networks and products jointly promoted by its 35 partners who have issued 13.1 million cards under different international brands. It also has 12,650 cash dispensers and 242,000 POS terminals, that during 2002 made 589 million transactions with a total business volume of 40,136 million euros.Details
Portland, OR-based TRM Corporation reported net income for the second quarter of $1.15 million compared to a net loss of $404,000 for the same period in 2002. Second quarter net sales grew to $20.22 million, an increase of 14.3% over 2Q/02, primarily due to unit expansion and higher pricing throughout the Company’s ATM network. ATM operations produced net sales of $8.76 million during the second quarter, an increase of 60.0% as compared to the same period in the prior year. At the end of June, the Company’s ATM network consisted of 3,273 revenue-generating machines deployed throughout the U.K. and USA, which represents an increase of 594 ATM machines when compared to the same date in 2002. For complete details on TRM’s second quarter performance visit CardData ([www.carddata.com]).
A new study has found that only 4% of U.K. consumers are not yet at ease with remembering and using a four digit PIN. The research, conducted for VISA by TNS, suggests that people in the U.K. will have no problem adopting new chip and PIN payment technology when it is rolled out nationally later this year. The introduction of chip and PIN is already underway in Northampton where 600 retailers are live with chip and PIN. More than 181,500 chip and PIN cards have been issued by participating banks. The research also found that 29% of U.K. consumers have no problem remembering a range of different four digit PINs for most purposes in everyday life. The study found that, on average, U.K. consumers have three personal identification numbers committed to memory for day to day use, such as withdrawing cash from ATMs, setting a burglar alarm or a security code on a mobile phone.Details
Fitch Ratings has launched a new Web-based information product for credit card ABS investors called “The Credit Card ABS Issuance Trust Updates”. The Credit Card ABS Issuance Trust Updates,’ is a new web-based information product for credit card ABS investors. Fitch designed these comprehensive reports to provide investors with timely and innovative research on credit card issuance trusts updated monthly.Details
Toronto-based 724 Solutions reported second quarter revenue of $3.0 million, compared to $3.5 million in the previous quarter and $5.0 million for the same period last year. The net loss for the second quarter was $6.8 million, compared to $13.1 million in the second quarter
of 2002. In the second quarter, the company announced the launch of its “X-treme Mobile Data Applications,” initially centered on collections management, fraud protection, banking and credit card management. The Company says these actionable alerts-based applications will provide mobile network operators an immediate opportunity for revenue through the expansion of their relationship with their enterprise clients. 724 Solutions and our mobile operator partners were selected for several pilots of these applications, which are currently underway.
The U.K.’s Lloyds TSB is buying the “Goldfish Credit Card,” personal loan business, and associated business assets of Goldfish Bank Ltd for a 14% premium or $126 million. Lloyds currently owns 70% of Goldfish Bank, while Centrica owns the rest. The “Goldfish Credit Card” was originally developed as a loyalty program for Centrica’s energy supply business. Goldfish cardholders will continue to be able to redeem their loyalty points against British Gas bills following the takeover by Lloyds. At the end of the second quarter, the Goldfish credit card portfolio had 1.18 million cardholders, and the bank had 11,000 personal loan accounts, plus 17,000 retail savings accounts. During the first six months of this year, Goldfish Bank had an operating loss of $33.5 million.Details
Bank credit card issuers in Singapore reported the highest monthly level of charge-offs in twelve years. During June card issuers lost $17.5 million, bringing total charge-offs for the first half of this year to $86.5 million. The rising losses were driven in the second quarter by the outbreak of SARS. The government recently reported that Singapore’s economy contracted by 11.8% in the second quarter, the worst-ever. According to the Monetary Authority of Singapore, bank credit card issuers lost $14.0 million in May, $15.6 million in April, $13.6 million in March, $13.7 million in February, and $12.1 million in January. Card volume for the first six months of this year has fluctuated between $2.4 billion and $2.5 billion. The total number of cards in the country at mid-year was 3.3 million, which included 2,295,027 primary cards and 992,555 supplementary cards.Details