Cyota & HBOS

HBOS Card Services has selected Cyota to provide “MasterCard SecureCode” and “Verified by Visa” security services to its five million cardholders. HBOS is the first issuer in the UK to announce a commercial service of this kind. HBOS Card Services will host its service at Cyota’s local facility in London. Currently six of the world’s top ten issuers are already initiating “3D Secure” programs, five of which have selected Cyota as their provider. Cyota services multiple clients in North America, Europe and Asia-Pacific with systems currently available to over 300 million cardholders.

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TERMINAL DEAL

Sydney-based Keycorp has secured an order for more than 1,000 “K26”
terminals and peripherals from Global Payments. Global Payments will offer
the “Retail @dvantage K26” and the “Travel and Entertainment @dvantage K26”
developed jointly by Keycorp and Global Payments for small and mid-sized
merchants in the general retail, travel and entertainment
industries. Global will be able to offer its clients express processing
ability by providing increased memory, client-specific logo and graphic
download ability, secure backlit PINpad, and a built-in high speed thermal
printer.

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PAYMENT PRO

Ontario-basedICINITI Corporation has released “Credit Card Payment Pro” for “ACCPAC Advantage Series.” “Credit Card Payment Pro” integrates credit card payments from order entry through to accounts receivable. Payments are separated into categories for American Express, VISA, MasterCard, and Diners Club. Key features include: automatic attachment of tracking code; runs on Website or local area network; employs industry-standard payment methods; automatically lists invoices, captures funds, posts payments and handles
returns; and provides a full transaction history.

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MasterCard e-P3

MasterCard this morning launched the first electronic payment and information management service fully integrated with the its “Corporate Purchasing Card” product. The new “e-P3” service, which runs on the Xign platform, automatically links electronic purchase orders, invoices, receipt of goods, and other transaction documents with purchasing card transactions. “e-P3” enables “Level III” data to be exchanged electronically between buyers and suppliers with every single transaction by leveraging the MasterCard “Global Data Repository.” Online reporting of transaction data is available through MasterCard “Smart Data OnLine.” For suppliers, enrollment in MasterCard “e-P3” can be completed over the Internet with any Web browser. The first “e-P3” adopters include Memorial Sloan-Kettering Cancer Center with its “JPMorgan Chase MasterCard Corporate Purchasing Card” and Pantellos with its “Citibank MasterCard Corporate Purchasing Card” programs.

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CARD RESCUE

The Financial Supervisory Service says major companies and banks have agreed to raise approximately $3.6 billion to fend off potential bankruptcy in their credit card subsidiaries. Also, government-run Korea Asset Management plans to buy between $4 billion and $5 billion worth of bad credit card loans. The Korean credit card industry has been hit hard by an economic crisis as well as an accounting scandal at SK Global. SK allegedly inflated its 2002 earnings by $1.2 billion. The FSS reported that card payments, 30+ days overdue, increased 23% to $6.3 billion in January from $5.1 billion in December. Credit card issuers lost a total of $207 million in 2002. In January, credit card losses topped $326 million. The Ministry of Finance and Economy, the Financial Supervisory Service, and the Bank of Korea said it will also require credit card companies to reduce operating expenses and boost capital. Some card issuers have indicated they will reduce grace periods from 40 days to 25 days, and drop zero percent interest rate offers. Kookmin Credit Card announced a 20% reduction in its workforce. Korean Exchange Bank Credit Services also plans to cut 20% of its workforce. Samsung Card and Hyundai Card said they will gradually reduce their number of employees.

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MONEYGRAM CONTRACT

Banco del Ahorro Nacional y Servicios Financieros has agreed to provide MoneyGram Payment Systems money transfer service at 1,000 locations throughout that country. The network is comprised of the Bansefi-Bonos del Ahorro Nacional branches as well as diverse organizations of cajas (small savings associations), cooperatives and financial institutions. The L@Red de la Gente is a strategic alliance that offers all types of financial services including money transfer to people without access to a commercial bank account. MoneyGram’s “CAMBIO PLUS” service, which allows customers in the U.S. to send money at a low cost to Mexico in ten minutes, will be available at those locations. With the addition of Bansefi and the L@Red de la Gente network, MoneyGram agents in Mexico will total about 5,800.

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ReliaCard

U.S. Bank has issued its third VISA stored value card tied to state government agencies. The “Minnesota ReliaCard VISA” follows on the heels of similar programs in Colorado and Washington. The State of Minnesota is using the VISA stored value card to disburse child support payments. With the “ReliaCard VISA” the state collects court ordered payments and electronically loads the payment on to the card for the receiving parent. Minnesota currently issues more than 180,000 checks each month, collecting and distributing about $46 million in child support payments. While the card free of charge there is a $1.50 fee for ATM transactions. In Colorado, U.S. Bank offers the “Family Support Registry VISA” in conjunction with the State of Colorado’s child support payments program. The Colorado program was launched as a pilot in 2001. (CF Library 2/11/03)

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