TCS Signs Household

TCS America and Intelenet have inked a business process outsourcing deal with Household. Both firms will provide Household with 100 agents to enable collections from delinquent credit card customers. This facility will be ramped up to 2000 seats with multiple shifts over the next two years. Additional services will include customer acquisition, customer service, telemarketing, analytics and back office processing. These programs will utilize both inbound and outbound voice technology. TCS provides information technology and management consulting services to organizations in more than 50 countries including American Express, Citibank, and the Target Corporation.

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JADE-FAST

CyberNet has launched JADEFast, the fastest version of its successful counter-top POS model that accepts both magnetic stripe and smart card-based transactions. JADEFast complements the JADE counter-top product line by using a modem which is 14 times faster with its 33,600 bps, a patented RSA algorithm implementation which processes in less than a second with keys 1024 bit long (required in EMV2 transactions). The whole package is wrapped up in a tamper-resistant case which among other protections, erases the memory should the terminal be tampered with.

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PayEvent

VA-based PayEvent launched a turnkey event registration and e-payment processing service that provides event planners with credit card and online check acceptance without the need to establish a credit card merchant account. PayEvent can handle every registration and dues payment, via web, fax, phone or traditional mail or the organizers can split the responsibilities – for instance accepting mailed check payments and on-site payments directly, while outsourcing web payments to PayEvent. For online transactions, PayEvent handles the full process of payment acceptance and processing as well as refunds. All the reports are handled directly on the web and payment activity is available to the client online daily, Individuals receive instant confirmation, and the payments are deposited to the client’s account within a few days.

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LOGICA AIR MILES

Logica is providing a new call center and sales solution to the AIR MILES program. The Logica Integrated Sales System integrates the booking and selling of flights to Amadeus; the allocation and booking of ground products; the debiting of AIR MILES from customer accounts located on the
AIR MILES loyalty reward database system; a retail logic payments system providing collection of credit card transactions; and, a workflow capability to streamline AIR MILES back office fulfillment processes for ticketing, customer confirmation production, handling
special requests and dispatch of hotel/car hire/insurance documentation.

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EURONET INDICES

Euronet Worldwide has moved from the Nasdaq SmallCap Market to the Nasdaq National Market effective July 3. The trading symbol, EEFT, for Euronet’s common stock will remain the same. Euronet was also added as a member of the Russell 3000 and Russell 2000 Indexes as of June 28. With corporate headquarters in Leawood, Kansas, USA, and European headquarters in Budapest, Hungary, Euronet serves more than 200 clients in 60 countries.

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Givex Lands Restaurant Chain

McCormick & Schmick’s Restaurants have selected the Givex Corporation’s gift card solution for its 35 full service restaurants nationally. The Givex technology will be integrated with McCormick & Schmick’s existing POS system, Squirrel Systems. As a result, the restaurants will be able to conduct gift card transactions directly through their POS system without the need for additional hardware processing devices. The program will be implemented by Summer 2002.

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FDC & SAMSUNG

Seoul-based Samsung Card Co., Ltd. has signed a transaction processing software agreement with First Data. Samsung will use the VisionPLUS software offered by PaySys International,

a First Data subsidiary, for accounts receivable and transaction processing for its 5 million card accounts on file. The VisionPLUS software is a comprehensive card solution that offers new

account processing, merchant acquisition, cardholder billing and management, collections, risk management, promotions and co-branding capabilities. Samsung Card has annual credit card sales volume of $77.4 billion and total managed assets of $18.4 billion.

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Extensity 6

U.S. Bank has endorsed the Extensity 6 expense reporting application for its commercial card programs. The integration between the two products allows customers to pre-populate expense reports automatically with each transaction when using a corporate card. In addition, Extensity’s flexible applications incorporate a company’s unique set of business rules, increasing compliance with purchasing preferences and regulations.

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THALES STAMPIT

Thales e-Security’s WebSentry technology has been selected to secure Deutsche Post’s new PC franking service Deutsche Post STAMPIT. The service was introduced last year. With Deutsche Post STAMPIT, the customer manages his postal wallet from a virtual post office on the Internet and prints the electronic stamps directly from his regular laser or inkjet printer. The stamp is printed on the letter or envelope in the form of a matrix code—a two-dimensional bar code that includes data such as date posted, stamp value and elements of the recipient’s address all cryptographically secured using digital signature technology.

The four areas where Thales’ WebSentry is securing and protecting the service include the individual customer’s wallets on the Internet, using a customized version of the WebSentry Ethernet cryptographic module known as the SafeBox behind the web-server. Throughout the system, WebSentry PCI, the PCI card version of the WebSentry range, manages the cryptographic keys and ensures the integrity of all the information exchanged between the various elements of the infrastructure of the system. Finally, WebSentry PCI with the standard PKCS#11 interface verifies the digital stamp at the regional letter sorting centers.

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NextCard Sale

The FDIC confirmed yesterday it has sold the owned credit card portfolio from the former NextBank to CardWorks’ Merrick Bank. Under terms of the deal, Merrick will pay $126 million for the portfolio and the FDIC agreed to a short-term loss sharing arrangement. The deal is expected to close by the end of the third quarter. The FDIC also acknowledged Tuesday it has not been successful in unloading the $1.2 billion in securitized receivables of NextCard’s portfolio. The FDIC says it estimates that the cost to the Bank Insurance Fund for the failure of NextBank will run between $300 and $400 million. The OCC closed NextBank on Feb. 7th and the FDIC was appointed the receiver. NextCard tried to find an acquisition partner after regulators determined last year that the bank was undercapitalized. The OCC said NextBank was classifying some delinquent accounts sold into a securitization trust as fraud losses, although the delinquencies were actually attributable to credit quality problems. (CF Library 2/8/02; 2/11/02; 3/14/02; 6/10/02)

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EPX Signs Lightbridge

MA-based Lightbridge has signed an agreement with Electronic Payment Exchange to utilize EPX’s payment processing and settlement services in its prepaid and postpaid mobile business solutions. Through the agreement with EPX, Lightbridge will extend its subscriber payment options to support most forms of payment for wireless services and mobile transactions, including credit cards (Visa, Discover, American Express, MasterCard, Diners Club International), debit cards, electronic checks, mobile wallets, JCB cards and foreign currency conversions.

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Market Jitters

Cooked books continue to haunt Wall Street as the Dow average hovers at 9000 and Nasdaq hits a five year low. Since the first of this year, the CardWeb.com 100 Index has fallen 22%, but top credit card specialists MBNA, Capital One, and American Express have held up surprisingly well. Capital One is off its 52-week high by only 16%, while MBNA and AmEx are only down 18%. Sub-prime issuers continue to be pounded though. Providian lost nearly 11% yesterday, while CompuCredit slid 8%, and Metris dropped 7.5%. There is also concern that corporate dishonesty may dampen consumer sentiment which could drive down consumer spending, the key driver of economic recovery. The CardWeb.com 100 stock index, launched January 1st, tracks the stocks of 100 highly focused credit card companies, card processors, card manufacturers, and other card-related businesses. The index is available through the CardData financial surveillance service ([www.carddata.com][1]).

CARD STOCKS
Company 7/2/02 52wkHI CHNG
MBNA $32.31 $39.45 -18%
CAP ONE $56.75 $67.25 -16%
PROVIDIAN $ 4.94 $59.95 -92%
AMEX $36.83 $44.91 -18%
HOUSEHOLD $47.60 $69.49 -32%
METRIS $ 7.77 $39.10 -80%
COMPUCREDIT $ 6.57 $15.39 -57%

Source: CardData ([www.carddata.com][2])

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

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