Catuity and Maritz Ink Licensing Deal

Catuity has signed a three-year licensing agreement for Maritz to operate the Catuity loyalty software through Maritz Loyalty Marketing. Under the agreement, Maritz will have the ability to license and install Catuity’s software application as a real-time redemption management system that can help to optimize valued customer relationships by providing real-time recognition and rewards at all points of interaction. Catuity, Inc. is a leading provider of application software that allows merchants, transaction processors and payment card issuers to establish and administer customer incentive and loyalty programs integrated to the payment system at the point of sale.

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HSBC STRATEGY SCIENCE

HSBC Bank plc has signed as the first client to implement Fair Isaac’s new “Strategy Science for Fraud Referral.” Fair Isaac says the new strategy development solution will provide HSBC with unprecedented fraud control for its credit card portfolio while increasing approved transactions and improving cardholder experience. Until now, strategies used to decide when to refer a transaction at the point of sale for further cardholder verification or investigation have been developed on a largely judgmental basis or with the aid of ad-hoc data analysis. Transactions that have been flagged incorrectly for further investigation result in higher operational costs, inconvenienced customers, and lost opportunities for
legitimate sales. “Strategy Science for Fraud Referral” is the company’s third fraud management solution that complements its “Falcon” fraud
detection software, joining “Fraud Predictor with Merchant Profiles” and Fair Isaac “Fraud Consulting” services.

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May Charge-Offs Resume Climb

While credit card delinquency edged down slightly in May, charge-offs continued to climb as consumer bankruptcies grew 10% from year-ago levels. Among $380 billion of credit card-backed securitizations, the average delinquency rate (30+ days past due) for May was 5.20% in May, compared to 5.25% last month and 4.86% one year ago. The data are from Moody’s Investors Service which tracks a portion of the total credit card ABS among domestic credit card issuers. Bank credit card debt (excluding store and gas credit cards) at the end of the first quarter was $645.6 billion. Moody’s also reported that charge-offs for May hit 7.05%, compared to 7.00% last month and 6.46% one year ago.

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NOW PREPAY

Vancouver-based VendTek Systems reports that Ontario-based Pioneer Petroleums has launched its “Now Prepay” terminals into service at 65 “Snack Express” stores. Pioneer plans to add 10 more sites immediately and gradually increase the total number of sites during the months to come. The license for the “Now Prepay e-Fresh” software enables Pioneer Petroleums and their customers to connect their POS terminals with “Now Prepay’s e-Fresh” server. This enables POS terminals to provide the re-sale of prepaid long distance and wireless services through the electronic network.

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SCM Microsystems Achieves FINREAD Compliance

SCM Microsystems announced that its “STR-FINREAD” smart card readers have achieved “FINREAD” compliance. A FINREAD compliant card reader is a universal PC peripheral device that can reliably secure smart card initiated transactions on the Internet in a non-trusted environment, such as a home PC. The FINREAD standard also guarantees interoperability between different smart card issuing entities and across multiple reader manufacturers. The Trusted FINREAD Initiative was initiated in November 2001 with the objective of implementing and testing a trusted environment based on FINREAD-compliant smart card readers.

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MIST MASCOT

Dublin-based CardBASE Technologies has signed a cooperative
marketing agreement with NBS Card Technology, a subsidiary of MIST Inc., to
jointly promote and market CardBASE’s “MASCOT,” multi application smart
card management product and NBS Card Technology’s card personalization
systems as a total solution. “MASCOT” is an integrated solution aimed at
the customized bulk issuance and lifecycle management of smart cards in a
single or multi application environment. The NBS “Advantage Series” is the
low to mid-volume tabletop card personalization system for low to
mid-volume customers. The NBS “Horizon” series is a high-volume,
high-speed, custom card personalization system that offers various options
and flexibility due to the modular CPEs.

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Fingerhut Direct Partners with CoreCard Software

Fingerhut Direct has selected CoreCard’s “CoreISSUE Private-Label” credit management and payment processing system and “CoreCOLLECT”, a credit management tool, to manage the Fingerhut credit portfolio. As part of the evaluation process, CoreCard successfully completed a five million account scalability testing that was overseen by an independent consultancy and conducted at a HP test lab. CoreISSUE Private Label is an issuing system for private label card products with language and currency localization capabilities.

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GEMPLUS HR HEAD

Gemplus has named Philippe Duranton as Group Human Resources EVP. Duranton previously served as Human Resources EVP at Canal+ and Co-Managing Director, General Affairs, for the Television and Film Division of Vivendi Universal from 1998 to 2002. Prior to joining Canal+, Duranton spent nine years at Thales where he held numerous Human Resource management positions across the company’s divisions.
Duranton succeeds Didier Lachaud who was responsible for Human Resources management at Gemplus from 1997 to 2003.

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Gemplus Names Movie Exec to Head HR

Gemplus has named Philippe Duranton, formerly with Vivendi Universal, as Group Human Resources EVP. His new responsibilities include Gemplus’ Human Resources teams and the company’s personnel development programmes worldwide. Duranton spent nine years at Thales where he held numerous Human Resource management positions across the company’s divisions. Gemplus is the world’s number one provider of smart card solutions.

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BANINTER & SCOTIABANK

Scotiabank has signed a deal to acquire a portion of the dissolved Banco Intercontinental’s credit card portfolio. Scotibank is also acquiring up to 35 branches and hiring up to 460 employees of the Dominican Republic’s Baninter. With the completion of this agreement, Scotiabank will be the 5th largest private bank in the Dominican Republic in terms of branches. Full details of the agreement were not disclosed, but the transaction is to include the purchase of real estate of approximately US$25 million plus an option to purchase financial assets.

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EFG and the FTC Battle it Out in Court

TX-based credit card processor EFG Card Services was barred yesterday from processing transactions through the ACH Network for numerous fraudulent telemarketers and to halt the alleged deceptive marketing of their own advance-fee debit cards. The FTC obtained the temporary restraining order on July 8th, which also set up a temporary monitor over the defendants to review their business practices. In its complaint, the FTC alleged that EFG assisted and facilitated at least four client telemarketers engaged in deceptively selling advance-fee credit cards, and a fifth client engaged in deceptively selling a lottery scam. The FTC complaint also alleges that in April 2000, the defendants engaged in the marketing and sale of their own advance-fee stored-value debit cards ­ first the “First Freedom Financial” card and then the “AmeriOne” card. According to the FTC, the defendants charged consumers a one-time advance fee of between $80 to $100, as well as a $9.95 monthly service fee for these card. In May of this year, the FTC alleges, the defendants began marketing a new advance-fee card product, known as the “United USA Card,” making many of the same misrepresentations used in previous advance-fee stored-value debit cards. The FTC noted that EFG allegedly misrepresented the cards as credit cards, and that the “AmeriOne” card was affiliated with MasterCard.

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CATUITY & MARITZ

Catuity has signed a three-year licensing agreement with Maritz to operate the Catuity software through Maritz Loyalty Marketing. Missouri-based Maritz Loyalty Marketing offers a full-service mix of loyalty marketing capabilities including program strategy, program management, customer communications, rewards and fulfillment, creative execution and loyalty analytics through their proprietary VAULT platform. Catuity provides application software that allows merchants, transaction processors and payment card issuers to establish and administer customer incentive and loyalty programs integrated to the payment system at the point of sale. The patented Catuity system can be utilized via mag stripe, smart card, RFID or contactless tokens and to date, Catuity’s applet has been included on millions of chip-based credit cards.

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