New Paradigm

First National Bank Omaha is discarding the cookie-cutter partnerships common in co-branded credit deals in favor of a revenue-sharing model. Instead of the fee-based incentive model found with most programs, First National has developed a program to split the expenses and revenues involved in a co-branded credit card deal. This summer, First National and east coast retailer Boscov’s finalized a partnership with the new model. With the acquisition of Main Street Bancorp by Sovereign Bank, an agent bank of First National, First National became the owner and processor of the Boscov’s/First National Bank Omaha VISA Card. New co-branded cards from First National will replace previously co-branded cards after the program’s October launch. Boscov’s proprietary cardholders will also have the opportunity to switch to the new co-branded Visa Card. Customers receive the benefit of having two distinct lines of credit attached to one card. Customers earn two points toward rewards for every dollar purchased with the card at Boscov’s, and one point for every dollar purchased elsewhere.

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EMV MIGRATION

A new survey by Girobank has found that 41% of businesses in the United Kingdom are not aware of the EMV conversion deadlines in 2005. Girobank projects that 100 million cards, 750,000 POS terminals and 35,000 cash machines will need to be either upgraded or replaced. The survey was based on interviews with 200 businesses. Smart cards will be required for all physical transactions by January 2005.

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Fiserv Probe

Fiserv Credit Processing Services has inked a deal to use Experian’s “Probe” to provide Fiserv’s credit card issuers with the ability to analyze customer behavior and set strategies to better manage their portfolios. he partnership will provide Fiserv’s clients with the capability to improve collection strategies, increase product usage through targeted promotional programs, reduce bad debt write-offs by identifying high-risk accounts and enhance organizational efficiency by automating and centralizing manual processes and procedures.

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NFD Results

Experian announced the results of a detailed study that statistically proves that the National Fraud Database is highly effective in preventing identity theft. The study found that applications that matched to the NFD were at least 7 to 12 times more likely to become frauds than the rest of the applications. In one test, fraud rates on the NFD matches reached as high as 90%. One major bank card issuer discovered that had it been using the NFD this year, it would have prevented booking hundreds of fraudulent accounts with savings estimated at almost one million dollars. The NFD is a national repository of verified fraudulent credit application activity. The NFD is unique in that it contains known fraud-related data from members encompassing a variety of industries including financial services, telecommunications, automotive and retailing, and it is credit agency independent.

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Discover Opportunity

Discover Financial Services has unveiled a new program that will offer more than one million insert opportunities per month in statements to merchants who accept the Discover Card. Discover has more than four million merchant locations in the USA. The This new “Discover Merchant Statement Insert Program” will provide Discover Merchants with new advertising alternatives using unique targeting capabilities, such as industry and geographic selects. In addition to inserts, statement-messaging options that offer customized references printed directly on the statement, and exclusive placements, will also be available. New York-based direct marketing and media company Venture Direct Worldwide will be the exclusive manager for this program.

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Datacard SP35

Datacard Group debuted a new card printer this week for issuing loyalty cards, membership cards, hotel room keys, and corporate ID cards. The “SP35” printer personalizes up to 120 full-color and 500 one-color cards per hour. In addition to standard bar code capabilities, the “SP35” printer is a unique value-priced printer offering field-upgradeable magnetic stripe and integrated smart card options. It also leverages Datacard’s “Advanced Imaging Technology” to produce vivid, life-like full- or one-color photos, graphics and text across the entire surface of a card.

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PAY-WARE SMART-PIN

The U.K.’s leading home and garden improvement chain has announced plans to Implement “PayWare SmartPIN” as part of a 2003 Northampton pilot and later as the backbone of a national smart card roll-out.
Wilkinson is implementing Trintech Group’s “PayWare SmartPIN” to accept chip-based credit and debit cards with secure PIN authorization at the point of sale. The Wilkinson trial in Northampton will take place in the first half of 2003. Once the trial is completed, the national roll-out of chip cards is expected to take place in the second half of the year and Wilkinson plans to implement “PayWare SmartPIN” in the rest of its 200+ stores across the country. The system integration will be done by RBS, who are Wilkinsons EPoS partner. Trintech is supplying PIN Pad terminals capable of reading international standard EMV chip cards and allow customers to authorize a transaction using a PIN number rather than a signature. RBS will modify the back office card processing systems to ensure that these are compliant with industry requirement for handling IC chip cards.

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