ICMA Upgrades Card Industry Training Program

The ICMA has expanded its online “Basics of the Card Industry Training Program” to include a tutorial on personalization and a Spanish translation of the original program. The new “Personalization Tutorial” provides an overview of the concepts and processes involved in card personalization. It includes an introduction to personalization, data recording technologies and the personalization process. ICMA is a non-profit association of plastic card manufacturers, personalizers and related industry participants with more than 220 members globally.

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Providian Launches a Sweeping Rewards Program

After testing reward cards for the past year, Providian has finally launched a credit card program which rewards cardholders for carrying a balance, paying on-time, and enables customers to use points to lower their interest rate. Solicitations for Providian’s new “Real Rewards VISA” also includes an endorsement and pledge by Providian’s CEO, Joe Saunders. According to CardWatch ([ www.cardwatch.com][1]), the new Providian card additionally offers a free personal online spending profile that shows the cardholder’s “FICO” score. Under the “Real Rewards” program, cardholders earn one point for each $1 in purchase volume, 10 points for every $100 in revolving balances per billing cycle, and 500 points for paying on timer for six consecutive billing cycles. To kick-off the program, Providian is offering double reward points until August 2004. The points have an estimated redemption value of one cent each. The card carries no annual fee and a prime +9.74% APR with a 13.99% floor rate. Providian began testing three new rewards cards in August 2002 including “Providian Airpoints,” “Providian Smart Rewards,” and “Providian Real Cash Rewards.” In December, Providian launched the “School Rewards VISA Platinum” offering a 1% cash reward to schools (K-12) based on charge volume. (CF Library 11/1/02; 12/5/02)

[1]: http://www.cardwatch.com

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Corillian Hires Drake for Global Marketing

Portland, OR-based Corillian has hired Chuck Drake, formerly VP/Consumer Banking Division at Bank of America, as VP/Worldwide Marketing. Most recently, he served as senior director of product marketing for the Sales Enterprise Division at Siebel Systems. Drake also held senior product and corporate marketing positions of at More.com, GlaxoWellcome plc and the Clorox Company. Corillian is a provider of enterprise software and services for the financial services industry.

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ID CARD PRINTERS

Kanematsu Corporation of Japan and its U.S. subsidiary TEAMNisca have introduced a new small footprint ID card printing system that offers alternating patch lamination. The modular system is comprised of a “PR5300 ID” card printer and a “PR5302” modular lamination unit that requires no tools to attach to the printer. The “PR5300” printer features dual sided printing, color dye-sub, optional magstripe, contact or contactless encoding, and high-speed printing. The “PR5302” laminator features dual sided lamination, optional alternating patch lamination, high-speed lamination, and the Nisca guaranteed no-curl card output. The system which weighs 50 pounds is available for a list price of $6348.

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NURIT 8320 Receives VISA PED Certification

Lipman has received “VISA PED” certification for its “NURIT 8320” secure payment terminal. The “NURIT 8320” runs on the “NOS 7” multi-application operating system, which provides application data separation and secure software downloads. As an all-in-one, multi application terminal, the “NURIT 8320” can incorporate a secure internal PIN Pad, high speed modem, quiet, fast thermal printer, magnetic card swipe, EMV Smart Card reader and a privacy shield to ensure customer confidentiality. Lipman is a leading supplier of wireless POS terminals in the USA and also manufactures fixed and handheld transaction solutions that seamlessly integrate hardware, application, and back-office software.

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OASIS 2Q/02

Toronto-based Oasis Technology posted its third consecutive profitable quarter for the period ending June 30th. The quarter was driven by strong product license growth, numerous product upgrades, and successful collaborations with existing customers to expand Oasis product implementations to meet new business requirements. In addition to earnings growth, the company recognized 7% revenue growth over the second quarter, and 45% revenue growth over the same period in 2002. Oasis serves clients in more than 70 countries around the world, including ABN AMRO, American Express, Citibank, Credicard/Redecard Brazil, Diners, Europay, Golden Card (China), MasterCard, National Processing Company and VISA International.

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Mosaik MasterCard Links up with Canada’s epost

Bank of Montreal is now offering its 3 million “Mosaik MasterCard” cardholders the option of receiving and paying their monthly statements online through Canada’s epost. BMO joins a list of more than 65 Mailers sending mail through the epost service, including national retailers such as Canadian Tire, Hbc, Sears and Future Shop. Additional Mailers also available through epost include: TELUS; Hydro-QuŽbec; ENMAX; Union Gas; City of Ottawa; City of Toronto; City of Winnipeg, and City of Richmond. More than 330,000 Canadians have registered for their free epost mailbox to-date.

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Retailer Card Fees May Change Australian Consumer Behavior

Citibank released a survey this morning in Australia that shows 80% of consumers would go to another retailer if a store imposed a surcharge. The research bolsters an earlier study released by AC Nielsen for VISA, which found that 39% of credit card holders would prefer to pay by cash if a fee for credit cards is assessed. The “Citibank Credit Monitor” research, released today, also found that more than 30% of credit card holders would stop using their cards if the surcharge practice becomes common. The Citibank study, which involved 300 non-Citibank customers in Melbourne and Sydney, also found that 75% of Australians would switch to cash instead of a credit card, and that 45% would confine their credit cards to major purchases. The VISA/AC Nielsen study for VISA, released in February, found retailers in Australia will lose nearly 30% of the business if they charge a fee for credit or debit card payments. Effective January 1st of this year, merchants in Australia have the right to charge a fee to customers for using a credit and debit card under new rules adopted by Reserve Bank of Australia.

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Fiserv Nails a Deal to Buy the EDS Credit Union Industry Group

Less than one month after negotiations began, Fiserv announced Friday it has inked a definitive agreement under which it will acquire the EDS Credit Union Industry Group for $218 million in cash. The Credit Union Industry Group specializes in core processing and provides a variety of other products and services, including debit card and transaction processing, electronic banking and lending, and online bill payment and presentment services. The business supports about 1,000 credit unions and generates approximately $115 million in annualized processing and services revenues. CUIG employs 450 people. EDS said the sale of CUIG is part of its effort, announced last year, to divest certain non-core, non-strategic assets. Scott Butler, President of CUIG, will continue as President of the unit as part of Fiserv. Fiserv says that if the transaction is approved and completed, it would expect to provide core processing services for about 34% of the credit union segment within the financial services data processing market. In December, Fiserv acquired EDS’ consumer network services business, which provided ATM and transaction processing services, for about $320 million in cash. (CF Library 6/18/03)

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BofA Card Profits Up 77% Over 2Q/02

Bank of America’s pre-tax second quarter credit card profit soared 77% over the year-ago period, and year-to-date is up more than 52% over 2002. BofA says the higher profits were driven by a 9% increase in purchase volume and a 14% increase in outstandings. For 2Q/03 BofA reported pre-tax credit card income of $291 million, compared to $281 million in the prior quarter, and $164 million one year ago. Card outstandings at the end of the second quarter were $30.8 billion, compared to $27.1 billion for 2Q/02. Net managed charge-offs, as a percentage of average managed receivables, was 5.74% for the second quarter, compared to 5.25% for 1Q/03, and 5.59% one year ago. BofA says the increase reflects the growth and seasoning of the portfolio, as well as the impact of the economy. However, delinquency declined in the second quarter. The managed 30+ days delinquency rate was 3.99% for the second quarter, compared to 4.18% in the prior quarter, and 3.78% for 2Q/02. The managed 90+ days delinquency rate was 1.80% for 2Q/03, compared to 1.91% in the first quarter, and 1.76% one year ago. BofA also noted this morning that debit card purchase volume was up 19% for the quarter. For complete details on BofA’s second quarter performance visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

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Eye-D-Signature Launches Facial Recognition Software

Eye-D-Signature has launched facial recognition software for use in the fight against credit card fraud both on the Internet and retail level. Biometric technology, which recognizes an individual’s unique facial features, offers a much higher level of security, as it checks for the presence of an authorized user rather than just checking for a valid ID. Also, using this technology eliminates the need for lost or stolen cards, which reduces fraudulent activity. Eye-D-Signature’s “Certificate for Fraud Detection” is available at 600 e-commerce Web sites that are hosted by Digital Rivers in Eden Prairie, Minnesota.

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