Diners LeCard

Diners Club is discontinuing its “Restaurant Savings Program” this month after terminating its relationship with Chicago-based Clever Ideas, Inc. Diners has been notifying cardholders it will announce a new cardholder benefit program, presumably a dining discount program, in the near future. Clever Ideas launched a charge-card-based dining savings program in 1990 under the “LeCard” name. The “LeCard” program replaced Clever’s paper-based “Dining Dollars” program launched in 1977. The “LeCard” program offers cardmembers of a major charge card 20% savings off their meals at participating establishments. Clever Ideas offers restaurant owners a cash advance based upon estimated annual card sales. The advance is repaid with each transaction from cardholders who are linked to the program through their charge card.

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3Q/02 Cards-in-Force

The top ten U.S. issuers of credit cards now have more than a 75% share of the market based on the number of cards-in-force. The fastest growing cardbase, among major issuers, is Sears National Bank which has issued nearly 30 million Gold MasterCards in-force, a 50% increase over the past twelve months. However, Target’s Retailers National Bank cardbase of “smart VISA” cards has grown more than seven fold since 3Q/01. Target’s most recent data show over 7.0 million cards-in-force. While the Discover and American Express cardbases have been flat since 3Q/01, so has Bank of America. Bank One and Citigroup have also lost some ground. Chase posted a strong 22% gain driven by its acquisition of Providian accounts. Providian has shed 6.2 million accounts since last year. Data for Citigroup and MBNA may include some Canadian cardholders. For complete details on the third quarter cardbase of hundreds of U.S. issuers visit CardData ([www.carddata.com][1]).

TOP TEN VISA/MC ISSUER CARDS-IN-FORCE
3Q/02 3Q/01 CHNG 2Q/02 SHARE
1. Citigroup: 92.6m 98.1m -5.6% 96.1m 16.05%
2. MBNA: 70.8m 66.5m +6.5% 69.4m 11.59%
3. Bank One: 53.5m 58.4m -8.4% 53.3m 8.90%
4. Cap One: 50.3m 43.4m +15.9% 50.9m 8.50%
5. Discover 50.0m 50.0m NC 50.0m 8.35%
6. Chase: 39.3m 32.1m +22.4% 38.6m 6.45%
7. AmeEx: 34.8m 34.7m +0.2% 34.8m 5.81%
8. Household: 27.7m 24.5m +13.1% 26.6m 4.44%
9. Sears NB 29.9m 19.8m +51.0% 26.6m 4.44%
10. BofA: 22.3m 22.4m -0.4% 22.4m 3.74%
TOTALS: 471.2m 449.9m +4.7% 446.3m 74.56%

Source: CardData (www.carddata.com)

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

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Scotiabank Sale

Paymentech has purchased Scotiabank’s merchant acquirer and smart card POS business according to this week’s The RAM Report ([www.ramreport.com][1]). Scotiabank indicated it will report a net gain of C$80 million, after tax, in the fourth quarter as a result of the sale. The deal involves debit and credit card payment services and smart card programs offered to merchants in 95,000 locations across Canada. Under terms of the agreement, Paymentech will provide merchants a range of solutions from point-of-sale transaction services, to payment processing and reporting. Paymentech will also administer and provide all processing and reporting for Scotiabank’s merchant smart card programs. Scotiabank will maintain its banking relationships with these merchants and continue to provide the clearing and settlement services associated with debit and credit card transactions. Scotiabank will also continue to market merchant products to its customers through a referral arrangement with Paymentech.

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

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ProCash 2350

Wincor Nixdorf unveiled the “ProCash 2350″ ATM which is designed for drive-up ATM banking. Standard equipment includes the 12.1″ sunlight-readable LCD screen and is available in a touch version or with softkeys. The new terminal is powered by a 2.0 GHz Pentium IV processor and runs on the Windows NT operating system. It is a freestanding frontload system that fits standard 42” islands. Wincor Nixdorf’s ATM solutions are sold exclusively in the USA by IBM Global Services, which markets, sells and services Wincor Nixdorf ATMs in the USA market.

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OBERTHUR SESAMES

Oberthur Card Systems has recieved two nominations for the
Sesames, the prestigious smart card awards presented each year during
Cartes in Paris, France. Oberthur’s new banking and mobile communications
solutions have been short-listed for the awards. The “IDOne” is a nominee
for “Best Banking/Finance Application Award.” “IDOne” is a
multi-application and dual interface (contact/contactless) card, which
combines both payment and identity applications. “My Personal SIM” is a
nominee for “Best GSM Application Award.” “My Personal SIM” has been
developed for the Italian mobile operator WIND. It allows WIND’s
subscribers to manage their SIM content over-the-air on their own.

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ASK CARDS

ASK S.A. rolled out a cost effective yet highly secure and powerful dual
interface microprocessor smart card dedicated to automatic fare collection
systems and ticketing applications. The “GTML2” delivers high-speed
transactions and has the power for multi-application implementations, with
an eight-bit microprocessor and 576 bytes EEPROM. It also has extensive
security features including diversified keys, PIN and
session codes, challenge/response authentication, DES-X encryption of
transactions and is fully ISO 14443 type B compliant. The card’s
high-speed contactless communications use a frequency of 13.56 MHz at a
rate of 105.9 Kilobits per second. The company also announced that the
“GTML2” card has received the EAL1+ Evaluation Certificate. Over 500,000
“GTML2” are already in operation in Lisbon for Metropolitan de
Lisbon transit system.

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