VeriFone TDES & PED

VeriFone has received VISA “TDES” and “PED” accreditation for its “Omni 3750,” “Omni 3600,” “Omni 7000MPD”, and “SC 5000 PINpad”. . Additionally, the devices have all received EMVCo Type Approval Terminal Level 1, based on EMV 4.0 specifications for global smart card acceptance. VeriFone also has applications that have received EMVCo Type Approval Terminal Level 2, based on EMV 4.0.


Maestro 1Q/03

While MasterCard does not release info on its domestic “Maestro” program, the network’s online, PIN-based global debit brand mark now appears on 466 million cards worldwide, a 10% increase over one year ago. Europe continues to be the largest cardholder base for “Maestro,” with 226.4 million cards, an almost 7% increase over year ago figures. There was a 41.7% increase in the number of merchant terminals accepting “Maestro” in Europe in the first quarter. With over 144.1 million “Maestro” cards, Asia/Pacific was the second largest “Maestro” region for the first quarter, as the number of cards in the region rose 14.4% over first quarter 2002. With 34.1 million “Maestro” cards in circulation within Latin America, the growth for first quarter of 2003 was close to 21% over the same period in 2002, and the number of merchant terminals in the region increased close to 22%. In South Asia, Middle East/Africa, “Maestro” acceptance grew 40.3% in merchant terminals in 1Q/03 compared to 1Q/02. There were close to 16.1 million “Maestro” cards in circulation in the region during the first three months of this year. Worldwide, “Maestro” is now accepted for purchases at more than 7.8 million merchant terminals in 93 countries and territories, and at 892,800 “MasterCard/Maestro/Cirrus” ATMs.


ACH Costs

For the third consecutive year the number of checks processed by the Federal Reserve has decreased as the number of ACH transactions increases. Furthermore, the cost to the Fed to process a check remained at 4.5 cents per item in 2002, whereas its cost to process an ACH payment decreased to 1.3 cents per item. In its annual report to Congress, the Federal Reserve System reported that it processed 16.59 billion checks in 2002, a 1.9% decline from 2001. By contrast, the Fed’s commercial ACH volume increased by 12.1% last year to 4.99 billion items. Since 1995, the unit cost for an ACH transaction has decreased from 3.5 cents to 1.3 cents, while the unit cost for a check has increased from 3.6 cents to 4.5 cents.



Seoul-based CyberNet has launched a trade-in program, developed in cooperation with VISA, that enables VISA members worldwide, to migrate to EMV at a cost of about US$200. The “Replace-to-EMV” program applies to CyberNet’s “JADEBreakthrough” EMV terminal, that was announced In January, and which is powered by a 32 bit processor, the CyberSoft operating system, and supported by a JAVA development toolkit. VISA members who acquire “JADEBreakthrough units” wil receive a credit for each non-EMV terminal that the member retrieves from its retailers and sends back to CyberNet. The acceptance device program is part of the “VISA Smart Breakthrough” global initiative designed to support EMV migration. CyberNet began in 1998 in Korea as CyberNet Information System. Today, the company has regional offices in the USA, Australia, UK, Russia, Poland and Brazil.


Velosant e-P3

MasterCard and Velosant have teamed to integrate the MasterCard “Corporate Purchasing Card” into the Velosant’s “BillingZone” electronic invoice presentment and payment services as part of the “MasterCard e-P3” program. Velosant is the newly created enterprise payments company launched by eONE Global and First Data last week. The combined solution of MasterCard and Velosant, announced this morning, will electronically close the loop of the entire purchase-to-pay cycle, representing a significant cost savings for businesses by automating processes while ensuring that “Level 3” data is passed from suppliers to buyers in each transaction. MasterCard says its “e-P3” program, which was introduced in April, helps commercial card issuers to differentiate themselves from their competitors, while providing an effective tool for increasing the volume and transaction level of their business customers’ purchasing card programs. (CF Library 4/7/03; 6/6/03)



RBC Royal Bank has signed an agreement to sell most of its affinity credit card portfolio to MBNA Canada Bank. The portfolio consists of less than one percent of RBC’s credit card account receivables. The cards are mostly with college and university alumni associations, cause-related groups, sports groups and special interest groups. The deal will close by the end of June. RBC says it will retain certain other affinity partnerships and the associated receivables. MBNA Canada has more than 500 affinity credit card programs in Canada. Meanwhile, Edmonton-based Canadian Western Bank, has signed an agreement with MBNA Canada Bank to offer “Think Western” MasterCards to both its business and personal clients.



Geneva-based STMicroelectronics released the “M41ST87” which combines a “Tamper Detect” circuit with “RAM Clear” into a supervisor to provide the ultimate device for secure applications such as credit card POS terminals. The “Tamper Detect” circuit has two independent inputs, and each can be configured for several different connection schemes to provide much flexibility to the user. Upon detecting a tamper event, user options include clearing the internal 128 bytes of RAM, sending an interrupt to the system microprocessor and outputting a signal to clear external RAM. These functions will prevent an intruder from accessing sensitive data contained in either RAM as well as allowing the system processor to be informed of the security breach.



The Capital Bank of Haiti has signed an agreement to deploy Euronet Worldwide’s Internet Banking solution. Capital Bank plans to make this service available to its more than 60,000 customers. Internet Banking gives the customers 24/7 access to bank accounts online, featuring account details, history, check inquiries as well as the ability to request a stop payment.


BPS Acquisition

National Processing Company is acquiring Bridgeview Payment Solutions, Inc. for $32.3 million in cash. BPS processes for 28,000 merchants, generating approximately $1.0 billion in credit card sales volume last year. BPS currently signs 1,500 new merchant accounts per month through a network of ISOs and agents. BPS is owned by Bridgeview Bank and Trust Company, a community bank owned by Bridgeview Bancorp. NPC estimates that the transaction will generate approximately $20 million in annual revenue and will have minimal impact to its earnings for the remainder of 2003.


April Slowdown

After posting a strong March, the pace of consumer revolving credit growth has slowed. During April, Americans added $1.4 billion in revolving credit, mostly credit cards, compared to $2.6 billion one year ago. According to preliminary figures released Friday afternoon by the Federal Reserve, revolving consumer credit stood at $722.6 billion, at the end of April, compared to $705.0 billion one year ago. Bank credit card debt (excluding store and gas credit cards) at the end of the first quarter was $645.6 billion, or roughly 89% of total revolving credit, according to CardData ([][1]). This compares to $660.9 billion at the end of 2002. According to the latest government figures, American consumers were $1.755 trillion in debt, exclusive of home mortgages during April.

Apr 03 Mar 03 Feb 03 Jan 03 Dec 02 Nov 02 Oct 02
GRWTH: 2.3% 4.4 5.9 5.2 -6.7 -1.4 1.6
$OWED: $722.6b 721.2 718.6 715.5 712.4 716.8 717.9

Sep 02 Aug 02 Jul 02 Jun 02 May 02 Apr 02 Mar 02
GRWTH: 3.0% 6.2 6.0 4.1 8.0 4.8 2.2
$OWED: $721.3b 719.5 715.6 712.1 708.7 705.4 705.0

Source: Federal Reserve; revised figures as of 06/06/03; For complete historical data visit CardData ([][2]).