Debit Cards 2002

VISA and MasterCard-branded debit cards generated nearly half a trillion dollars in activity last year in the USA, an 18% increase over the previous year. The number of VISA and MasterCard debit cards hit 174.9 million at the end of 2002, an 11% increase over 2001. However, the growth rate is significantly less than prior years. In 2001, VISA and MasterCard debit card dollar volume was up 39% and in 2000, the growth was 30%. Since 1997, VISA and MasterCard debit card dollar volume has grown 350%. During the same period, the number of VISA and MasterCard debit cards has grown 118%.

Debit Card Track Record
1997: $110.5 billion 80.1 million
1998 $169.8 billion 100.6 million
1999: $232.0 billion 115.8 million
2000: $301.8 billion 135.9 million
2001: $420.7 billion 157.9 million
2002: $496.4 billion 174.9 million

Source:’s CardData service ([][1])



Genpass Executives

Genpass continues to build one of the most experienced management teams in the ATM/EFT/POS payment industry. As reported earlier this week, Genpass hired John Gallagher, formerly of VeriFone, as SVP of Card Services. Bipin Shah, the head of Genpass, worked with Gallagher in two previous companies including Gensar and CoreStates. Shah also recently hired Douglas Anderson, former EPS/MAC CEO; Gary Staub, former head of Mellon Network Services’ merchant business; Thomas McHugh, former technology chief of Star/MAC; and most recently William Raymond, senior manager for Bank of America’s ATM network. Shah also hired Ralph Bianco, formerly with MasterCard, as SVP of the Genpass Card Solutions division. This group joins a dozen other industry executives and managers that arrived via other top networks. As a result, Genpass has grown into the #2 network ATM driver position in two years. Genpass has four divisions: Genpass Technologies, Genpass ATM Solutions, Genpass Card Solutions, and Genpass Service Solutions. (CF Library 4/29/02; 5/22/02; 7/11/02; 11/7/02; 12/11/02; and 3/19/03)


BabyMint Brand Change

Atlanta-based college savings specialist, BabyMint, has changed its name to Vesdia Corporation. The company says the name change reflects the recent acquisition of the “NestEggz Loyalty Rewards” program from Nuvisio Corporation, as well as the addition of a entirely new client services division of the company. Known as “Vesdia Loyalty Solutions,” the new division will work with client firms in the development of private-label customer savings and investment loyalty programs in the financial services, retail, and consumer products goods industries. In January, BabyMint acquired the assets and loyalty rewards program of the NestEggz division of Nuvisio for $4.5 million cash. Last May, MBNA teamed with BabyMint to launch the “BabyMint MasterCard.” Through the “BabyMint” program, consumers receive up to a 20% rebate on purchases made through BabyMint’s network of more than 700 retailers and 127,000 grocery stores. (CF Library 5/2/02: 1/30/03)


Iron Triangle

GTCR Golder Rauner confimed yesterday it has teamed with the former president and CEO of National Processing to form Iron Triangle Payment Systems, LLC. Armed with up to $200 million of equity capital, Thomas Wimsett is looking to form a payment processing services to be based in Louisville. From 1995 through 1997, Wimsett served as President of NPC Check Services, and from 1997 to 1999 as the EVP leading all of merchant services. From 1999 until 2002, Wimsett served as the President and CEO of National Processing. In October 2002, Wimsett resigned abruptly from NPC and Jon Gorney was named CEO. GTCR Golder Rauner also owns and operates Genpass. Other GTCR investments include VeriFone, TransFirst, Transaction Network Services, Skylight Financial, and TSI Telecommunications Services. GTCR currently manages more than $4 billion in equity capital invested in companies providing transaction processing, information technology services, financial services and marketing services. (CF Library 10/1/02; 2/20/03)



WI-based The Premier Payments Resource and the EPN announced an alliance this week that offers WACHAs 400 members ACH processing and value-added ACH services. The Electronic Payments Network is the largest national private sector ACH operator, with a membership of more than 1,240 commercial banks, credit unions and savings banks. In addition to an unsurpassed service and reliability record, EPN is dedicated to making improvements in the ACH network.


Global PAYplus Milestone

NJ-based Fundtech’s “Global PAYplus” solution says it has processed average transactions per second of 394 through benchmark tests conducted using Sun Microsystems’ “Sun Fire 6800” servers. The testing also incorporated the XA industry standard for implementing two phases of a transaction involving more than one data source. This standard ensures the integrity of processing in the event of any type of failure.


New ICMA Members

The Perm Printing Factory of Goznak and Belgrade, Yugoslavia-based GrafoCard have joined the International Card Manufacturers Association as “Principal Members/Card Manufacturers.”Ampflwang, Austria-based Iroplastics Gesellschaft M.B.H. has also joined the ICMA as an associate member, or supplier. Based in Princeton Junction, New Jersey, ICMA is a non-profit association of plastic card manufacturers, personalizers and related industry participants.  With more than 230 members globally, the ICMA acts as a clearinghouse for industry issues, including the production, technology, application, security and environmental issues of plastic cards.


Certegy IT Deal

Certegy has dumped EDS for IBM at a cost of $10 million. The credit card processor has signed a ten-year, $150 million agreement with IBM to provide on-demand technology services for its USA operations by the end of the third quarter. IBM currently provides IT services to Certegy’s United Kingdom and Australia operations. IBM says it will improve Certegy’s IT operations by consolidating, automating and managing a large portion of its mainframe operating systems and hardware operations in the USA. Certegy will record a pre-tax provision of up to $10 million in the first quarter for early exit costs associated with severing the current EDS services agreement.