Retail Decisions Launches New Payment Gateway

NJ-based Retail Decisions has launched a new payment gateway that bridges the gap between purchasing licensed software and using a service bureau for online payment processing for card-not-present transactions. The new “ReD1” payment gateway has all the functionality of customized payment processing software, providing real-time and batch authorization, fraud prevention and settlement services for online, call center and IVR transactions for middle to large retailers. “ReD1” offers an interface to payment processors such as Paymentech, Chase Merchant Services, First Data Merchant Services and American Express. Customers also have access to “Level 2” and “Level 3” procurement card processing; “Bill Me Later” payment support; multiple currency settlement conversion; and multiprocessor support. The “ReD1” payment gateway service also uses “ebitGuard”, the company’s multi-dimensional real-time fraud prevention services to help merchants reduce customer insult rates, transaction out-sort rates and charge-backs due to fraudulent CNP payments.

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MAY CARD DEBT

Credit card outstandings for May grew at its fastest pace in three years. Net credit card lending increased £823m during May to end the month at £49.5bn, the biggest increase since May 2000. According to the Bank of England, credit card lending only increased £303m during May 2002. Total lending to individuals grew by £8.6 billion or 1.0% in May, seasonally adjusted, just lower than the rise in April. The three-month (annualized) growth rate fell to 13.2% from 13.3% (13.6%) in April. The twelve-month growth rate fell to 13.7% from 13.8% (13.9%) in April.

Secured lending outstanding grew by £6.9 billion or 1.0% in May, seasonally adjusted, £0.4 billion lower than the rise in April. The three-month (annualized) growth rate fell to 13.1% from 13.4% (13.7%) in April.

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Business Bank of Nevada Enters Merchant Services

Business Bank of Nevada is partnering with the Eliot Management Group to deliver low-cost credit card processing, check services, gift cards, and ATMs to its customers and businesses throughout Nevada. The partnership gives EMG access to the Bank’s current and future clients who will be invited to enroll for credit card processing, check verification, check guarantee, check representment, gift card and ATM services. EMG will provide customers with competitive rates and fees, credit card processing services, discounts for credit card equipment, and local on-demand service. Merchants served by EMG currently process over $1 billion annually in credit card transactions, one of the top merchant portfolios in the country.

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CashWorks and Infonox Partner

CashWorks has certified its check cashing “Central Decision Engine” on the Infonox “Active Payment Platform.” The two companies will also begin testing a multi-function financial services kiosk solution. The kiosk will utilize Infonox’s patented ActiveVerifier technology to authenticate customers and transmit the transaction data to CashWorks’ Central Decision Engine for risk analysis and approval. Additionally, Infonox’s flexible Active Payment Platform will allow CashWorks to add new products supported by Infonox to existing PayPort locations and to develop and deploy new hardware platforms to meet the unique needs of its customers.

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Wincor Nixdorf Attacks ATM Scams

ATM manufacturer Wincor Nixdorf will be offering new security devices by the end of this year to fight ATM fraud attacks such as the “Lebanese Loop” and card skimming. The “Lebanese Loop” is a sleeve of plastic or other material that is placed in the card reader, trapping the card and preventing it from being retained by the card reader. When the customer leaves the ATM, the thief, who may have seen the customer’s PIN number, then has access to the ATM card and account information. Wincor Nixdorf has developed a special holding mechanism that prevents the illegally installed device and the customer card from being removed. If the transport path is blocked the ATM is taken out of operation before the customer has a chance to enter the PIN number. ATM card skimming attacks occur when the account number on the ATM card is read via a fraudulent device called a skimmer. The skimmer is placed over the card reader so that the card can be fraudulently duplicated. Wincor Nixdorf has developed a special module that includes sensors that permanently monitor the ATM’s card slot so that if a fraudulent device is identified, the sensors immediately take the ATM out of operation. The new security devices will be available worldwide for Wincor Nixdorf “ProCashT” ATMs.

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Canadian Tire Bank Opens for Business This Week

Canadian Tire Bank will begin operations tomorrow. The Office of the Superintendent of Financial Institutions recently approved the new bank which is a wholly-owned subsidiary of Canadian Tire Financial Services. The bank will be used to fuel growth of the “Options MasterCard” portfolio and enable CTFS to cut costs. Currently, CTFS manages more than 2.5 million “Options MasterCard” accounts. These accounts make up more than 85% of Canadian Tire’s gross credit charge receivables. Financial Services plans to add at least 600,000 new accounts by the end of 2003 and convert the remaining 230,000 qualifying retail card accounts to the “Options MasterCard.” CTC’s Financial Services business had net credit charge receivables at the end of the first quarter of $1.86 billion, a 36.7% increase over 1Q/02.

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PayPal Immediate-Payment Coming to eBay’s Buy-It-Now

eBay said Friday that it is currently experimenting in select categories with “Immediate-Payment,” a PayPal solution that removes non-paying buyer risk by automatically charging the buyer’s credit card or bank account on “Buy-It-Now” transactions. The company also said it will begin in July to limit the number of bids a user with non-paying buyer complaints can make. eBay also announced that beginning this fall, the company will increase the amount of buyer protection available. In addition to the $200 currently available on eBay, which covers almost all transactions, later this year, eBay will launch “PayPal Buyer Protection.” The new program will allow verified PayPal sellers with a proven track record on eBay, those with a minimum of 50 feedback with 98 percent positive, to offer buyers $500 in coverage with no service fee. The new plan will cover about half of all listings on eBay. Available for sellers in the United States and Canada at launch, the program will cover non-delivery of items and items that are substantially not as described.

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Cyota Signs Turkish Card Issuer

Turkiye Is Bankasi has selected Cyota to provide MasterCard “SecureCode” and “Verified by VISA” to its card base of approximately 7 million cardholders. The bank will be the first in Turkey to launch the VISA and MasterCard authentication service. Isbank will use the Turkish version of Cyota’s “SecureSuite” that is fully localized to meet the specific language and configuration requirements of the Turkish market. The service will be supported locally by Innova IT Solutions, Cyota’s partner in the Turkish market.

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LML Payment Systems Reports Lower Loss

Vancouver-based LML Payment Systems reported the revenues for the fiscal year declined 5% to $8.8 million and that its net loss for fiscal 2003 was about $3 million compared to the previous year’s loss of $5.2 million. Cost of operations was approximately $6.9 million or approximately 78% of revenue compared to approximately $8.1 million or approximately 87% of revenue for the previous year, an improvement of approximately 15%. Earnings before interest, taxes, depreciation and amortization (“EBITDA”) was a negative EBITDA of approximately ($691,000) or approximately (0.04) per share compared to a negative EBITDA of approximately ($2.1 million) or approximately ($0.11) per share for the previous year, an improvement of approximately 67%.

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Encore Merchant Services Signs an Agent

MD-based Public Health Service Federal Credit Union has become an agent of Encore Merchant Services, which is a division of MA-based Primax Payment Systems. Public Health Service Federal Credit Union will now be able to better service their members by being able to offer POS acceptance solutions to their members. Encore Merchant Services will be handling every aspect of payment card acceptance, including account application and establishment, point-of sale terminal deployment, product development, customer service, and risk management services.

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Metris Funds $125 Million Term Loan

Metris Companies announced Friday it has successfully funded the one-year, $125 million term loan agreement announced earlier this month which will help the company return to profitability. The Company used a portion of the proceeds to repay today the $100 million term loan due June 30, 2003. The completion of this funding represents a further step in the Company’s plan that is focused on liquidity and a return to profitability.

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CANADIAN TIRE BANK

Canadian Tire Bank will begin operations tomorrow. The Office of the Superintendent of Financial Institutions recently approved the new bank which is a wholly-owned subsidiary of Canadian Tire Financial Services. The bank will be used to fuel growth of the “Options MasterCard” portfolio and enable CTFS to cut costs. Currently, CTFS manages more than 2.5 million “Options MasterCard” accounts. These accounts make up more than 85% of Canadian Tire’s gross credit charge receivables. Financial Services plans to add at least 600,000 new accounts by the end of 2003 and convert the remaining 230,000 qualifying retail card accounts to the “Options MasterCard.” CTC’s Financial Services business had net credit charge receivables at the end of the first quarter of $1.86 billion, a 36.7% increase over 1Q/02.

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