Blue Proton

Next year, ‘Blue Cards’ will be energized with a system that enables American Express to offer customized, multiple functions using open technology standards on its smart cards. Utilizing the Proton ‘Prisma DP’ product, AmEx plans to integrate into its Java Card technology-based smart cards of two components: ‘CALC’ (Card Application & Life Cycle Manager) and ‘DFM’ (Data File Manager). ‘CALC’ creates a framework for card issuers to manage multiple applications on a single card, provides the ability to download smart card applications from multiple channels such as the Internet, and offers the ability for smart card users to access multiple applications through a single PIN. ‘DFM’ allows card issuers to customize files and directories to support applications defined by the issuers themselves or by third party application developers, and allows this to occur dynamically after issuance. More than six million AmEx smart ‘Blue Cards’ have been issued in the USA. American Express recently concluded a contest in search of smart card applications for ‘Blue’. (CF Library 4/26/01; 5/24/01)

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MASTERCARD PRESIDENT

MasterCard International Thursday announced that Walter M. Macnee has been appointed President, MasterCard Canada.

He will have responsibility for building all aspects of MasterCard’s business throughout Canada, and will report to Ruth Ann Marshall, President of MasterCard North America.

Macnee joins MasterCard from TD, where he had been Senior Vice President with full product management and client service responsibility for payment cards and personal lending. In that role, he held the position of Vice Chairman of the Visa Canada Board of Directors, and served as a director of the Visa International board.

“This is a time of dramatic change in Canada’s financial services industry, and it provides a great opportunity for MasterCard to build its position in the Canadian marketplace,” Marshall said. “In his 18 years at TD Canada Trust, Walt distinguished himself as a visionary in the payment cards business. We think he is uniquely qualified to manage MasterCard to a leadership position in Canada.”

“We also want to thank Craig Penney for his interim stewardship and his contribution to business growth. We are delighted that he will continue in his business development executive role, reporting directly to Walt,” Marshall said.

“MasterCard is one of the world’s most widely recognized brands, and in less than a decade has become one of the best known in Canada,” Macnee said. “I’m looking forward to this opportunity to build the brand and take MasterCard Canada to the next level of industry leadership.”

Macnee joined Toronto Dominion Bank in 1983, after receiving an MBA from York University. He spent the earlier part of his career in corporate and investment banking, working in New York and Houston as well as Toronto. In 1997, he was appointed Senior Vice President, TD Visa, and in 2000 his role was expanded to include unsecured personal lending.

Established in 1993, MasterCard Canada is a leader in quality and innovation, offering a wide range of payment options in the virtual and traditional worlds. MasterCard Canada is involved with a variety of sponsorships, including Skate Canada, the National Hockey League (NHL), the National Hockey League Player Association (NHLPA) and the Canadian Hockey League (CHL).

MasterCard International has the most comprehensive portfolio of payment brands in the world. More than 1.7 billion MasterCard(R), Cirrus(R) and Maestro(R) logos are present on credit, charge and debit cards in circulation today. An association comprised of more than 20,000 member financial institutions, MasterCard serves consumers and businesses, both large and small, in 210 countries and territories. MasterCard’s award-winning Priceless(R) advertising campaign is now seen in 81 countries and in more than 36 languages, giving the MasterCard brand reach and scope unrivaled by any competitor in the industry. With more than 21 million acceptance locations, no card is accepted in more places and by more merchants than the MasterCard Card. In 2000, gross dollar volume for MasterCard International exceeded US$857 billion and for MasterCard Canada exceeded US$37 billion.

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TYME+PULSE

TX-based PULSE EFT Association and WI-based TYME Corporation confirmed Thursday they have signed a letter of intent to merge TYME into the PULSE network. This is the second major acquisition by PULSE this year following its purchase of OH-based Money Station in January. The PULSE-TYME combination will create an EFT system that will serve more than 3,300 banks, credit unions and savings institutions in the USA. TYME, organized in 1975, was the nation’s first shared, regional EFT system. Currently, TYME’s network includes more than 4,400 ATMs and 157,000 POS terminals. Nearly 100 million transactions are processed annually through TYME for more than 500 financial institutions. The PULSE network encompasses 76,500 ATMs and 300,000 POS merchant locations. PULSE processes 700 million transactions annually for 2,700 financial institutions. (CF Library 10/11/00)

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NextCard CreditExpert

NextCard and Experian announced that NextCard has launched NextCard CreditExpert, an Internet based credit management and credit education service provided by Experian. NextCard will offer NextCard CreditExpert to NextCard cardholders, and visitors who apply for the NextCard VISA at [www.nextcard.com][1].

“NextCard CreditExpert goes several steps beyond providing and explaining a credit score,” said Scott Lascelles, group vice president of loyalty marketing at NextCard. “It helps consumers improve, maintain and protect their credit rating by suggesting specific actions and providing a simple mechanism for actively managing their credit,” said Lascelles.

“NextCard CreditExpert was conceived and built for the Web,” said Steve Krenzer, chief operating officer of Experian’s e-commerce solutions group. “We partnered with NextCard because of its reputation for using leading edge Web technology in every aspect of its customer relationships. We are very pleased to introduce this product to the millions of consumers who visit NextCard’s site, and who have come to rely on technology that simplifies their lives.”

“It’s important for consumers to be educated about their credit,” Lascelles added. “We’re pleased to offer a leading credit management tool that helps consumers take a proactive approach.” NextCard CreditExpert demystifies credit and allows consumers to take control of their credit through three main features: Credit Manager, Credit Advice and Credit Report.

Credit Manager helps consumers:

— Understand their credit report with interactive graphs and charts, and information on the factors that positively and negatively affect credit scores

— Manage their credit with a variety of personalized financial calculators and ‘what if’ scenario analyzers that show the effect of certain credit-sensitive behaviors

— Compare their credit history to the rest of the U.S. population Credit Advice helps consumers make informed credit decisions with:

— Informative articles about real life situations that affect credit ratings

— Education about the credit score and tips to help improve their own credit scores Credit Report provides consumers with:

— Unlimited access to their personal credit report and credit history

— The ability to investigate inaccurately reported items and investigation tracking tools

— A credit monitoring service that automatically alerts them to changes in their credit report

About NextCard

NextCard, Inc. (www.nextcard.com) is considered the leading issuer of consumer credit on the Internet. Launched in 1997, the Company was the first to offer instant online credit card approval, a choice of customized credit card offers, and exceptional online customer service. NextCard is committed to providing the most robust consumer shopping experience on the Internet and has continued to innovate with its NextCard Concierge(SM) online shopping service, online bill payment services, and comprehensive rewards program.

NextCard is also one of the leading direct marketers on the Internet, operates a network of more than 90,000 online affiliates, and has exclusive card relationships with leading online brands, including Amazon.com and MyPoints.com.

NextCard has been named the No. 1 Internet credit card by Gomez. According to the 2001 Brittain Associates “Credit Cards on the Net” study, NextCard leads the online credit card market with a 26 percent share. NextCard, Inc. issues credit cards through NextBank N.A., a wholly owned subsidiary.

About Experian

Experian is an information-solutions company. It uses the power of information to help its clients target prospective customers, manage existing customer relationships and identify opportunities for profitable growth. Through multi-channel delivery of its Web-based products and services, Experian enables clients to conduct secure and profitable e-business. Experian is a subsidiary of the Great Universal Stores P.L.C. and has headquarters in Nottingham, UK, and Orange, Calif. Its 12,000 employees support clients in more than 50 countries. Annual sales are about $1.5 billion. For more information, visit the company’s Web site at [www.experian.com][2].

[1]: http://www.nextcard.com/
[2]: http://www.experian.com/

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April Debt

Despite a sluggish economy, consumer debt continues to grow at faster pace than last year. During April, American consumers added $9.2 billion to total revolving debt representing an annual growth rate of 16%, according to preliminary figures released yesterday afternoon by the Federal Reserve. The sharp rise in credit card debt this year has been mostly driven by the decline in non-revolvers as evident in the declining repayment rates. Since the first of this year, American consumers have piled on $34 billion in revolving credit, mostly credit card debt. Total U.S. revolving consumer credit now stands at $697.4 billion which includes about $670 billion in credit card debt. Overall, consumer credit is growing at a 10.75% rate. At the end of April, American consumers were $1.584 trillion in debt, exclusive of home mortgages.

REVOLVING CREDIT HISTORICAL
($billions)

Apr01 Mar01 Feb01 Jan01 Dec00 Nov00 Oct00
%GRWTH: 16.0% 11.9 20.8 11.6 5.0 10.9 4.7
$OWED: $697.4 688.2 681.4 670.3 663.4 660.6 654.8

Sep00 Aug00 Jul00 Jun00 May00 Apr00 Mar00
%GRWTH: 7.8% 12.6 6.7 11.2 12.7 13.5 13.8
$OWED: $649.3 645.1 638.2 634.7 628.9 622.5 615.5

Source: Federal Reserve; revised figures as of 06/07/01;
For complete historical data visit www.carddata.com.

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Bankrate CEO Moves

William P. Anderson has been named president and chief executive officer of Nationtax Online effective immediately, announced Lee Walthall, chairman of the Nationtax Board of Directors.

“Bringing someone with Bill Anderson’s credentials on board is a very positive step and one I have looked forward to making,” said Walthall. “Nationtax is no longer in a ‘proof of concept’ stage. We know our service is viable and have a VIP list of strategic partners to prove it. Recently we’ve focused on making the strategic changes required to help the company to reach its potential. Bill brings the level of management skill and expertise Nationtax needs to reach its goals, and we’re very excited about that.”

Bill Anderson has managed both small start-ups and large mature organizations, and has vast experience in finance and accounting, acquisitions, restructuring, marketing and technology. Walthall, who started Nationtax Online in 1998, has served as president and CEO of the company. He will now relinquish those titles, but continue as chairman of the Board of Directors.

Anderson has more than 25 years experience as a senior executive in finance, technology and consulting. He recently served as CEO of Bankrate, Inc., working with the company through its initial public offering. Bankrate.com is a leading personal finance online publisher with more than 100 distribution partners, including most of the leading personal finance Internet sites.

He was previously president and CEO of Block Financial Corporation, a subsidiary of H&R Block, Inc. engaged in consumer lending, software and online financial service delivery, building revenues of $110 million. He joined H&R Block in December 1991, as vice president of Corporate Development. He served as chief financial officer of the parent company until September 1995.

Prior to his tenure at H&R Block, Anderson spent 19 years at KPMG Peat Marwick, beginning as an auditor and reaching the role of partner-in-charge of the national corporate finance practice within the management consulting department. Anderson was reared in Birmingham, and is a graduate of Auburn University with a B.S. in mechanical engineering. He holds an M.B.A. from Emory University in Atlanta. He is married and has two children.

About Nationtax Online

Nationtax Online is America’s leading Web-based business tax filing network. The Nationtax Network provides a simple, quick and accurate way for businesses to prepare, file and pay sales tax, income tax withholding and other state, federal and local business taxes completely over the Web for less than $5 per transaction. Nationtax’s service requires only an Internet connection and browser to use. Founded in 1980, Nationtax is a privately held company headquartered in Birmingham, Ala. The service is now available for businesses to file taxes in Alabama, Arkansas, California, Colorado, Delaware, Florida, Hawaii, Idaho, Illinois, Kansas, Louisiana, Minnesota, Missouri, Ohio, Pennsylvania, Rhode Island, Tennessee and Vermont, and with the IRS. To view a demonstration of Nationtax’s Web-based tax filing service, visit [www.nationtax.com][1] .

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

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NPC Promotes Sanders

National Processing Company announced Thursday the promotion of Blair Sanders to Vice President – Regional Sales.

Blair joined NPC in 1997 as a Business Analyst. In 1999, Blair was promoted to Business Manager for Regional Direct Sales. As Business Manager, Blair facilitated the development and integration of standardized business practices, measurement systems and sales focus across NPC’s 35 direct sales offices. Blair’s new responsibilities will be to manage the small to medium market accounts in the Southeast and Florida regions, which consists of ten offices and a sales force of nearly 100 professionals.

“NPC’s phenomenal success would not be possible without the dedication and leadership that individuals like Blair contribute on a daily basis,” said Christopher McNulty, senior vice president of regional sales for NPC. These individuals are what make NPC one of the premier providers of merchant processing solutions and distinguish it from the rest of the industry.”

“NPC has recently noted significant growth in our regional sales channel,” stated Mark D. Pyke, executive vice president of Merchant Services for NPC. “We are actively working to continue putting in place industry-experienced individuals with the drive to excel in this demanding sales channel. Blair is definitely one of those individuals – with four years under his belt at NPC, he has already proven to be a major contributor.”

About National Processing, Inc.

National Processing, Inc. through its wholly owned operating subsidiary, National Processing Company (NPC(R)) is a leading provider of merchant credit card processing. National Processing is 87 percent owned by National City Corporation (NYSE: NCC) ( http://www.nationalcity.com ), a Cleveland based $91 billion financial holding company. NPC supports over 500,000 merchant locations, representing nearly one out of every five Visa(R) and MasterCard(R) transactions processed nationally. NPC’s card processing solutions offer superior levels of service and performance and assist merchants in lowering their total cost of card acceptance through our world-class people, technology and service. Additional information regarding National Processing can be obtained at http://www.npc.net .

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MC Canada

MasterCard International yesterday named Walter Macnee as President of MasterCard Canada. Macnee joins MasterCard from TD, where he had been SVP with full product management and client service responsibility for payment cards and personal lending. In that role, he held the position of Vice Chairman of the VISA Canada Board of Directors, and served as a director of the VISA International board. MasterCard has 16.9 million cardholders in Canada and 600,000 acceptance locations, according the RAM Research ([www.ramresearch.com][1]).

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

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UK Maestro

Europay International – Europe’s leading payments association – this week announced that Barclaycard Merchant Services is to acquire Maestro transactions in the UK. This announcement was made at Europay’s fifth Members’ Meeting in Munich, Germany.

Maestro acceptance in the UK will take a major step forward this August, when Barclaycard Merchant Services – one of Europe’s largest acquirers and processors of card transactions – will acquire transactions for Maestro, the world’s leading debit brand.

![][1] Major retailers in the UK will start to accept Maestro within the next eighteen months as a result of this arrangement and other agreements being progressed with UK acquiring banks. With 374 million Maestro cards in circulation worldwide and over 190 million in Europe, this represents a significant move for the acceptance of Maestro across Europe.

Barclaycard Merchant Services is upgrading its systems in order to accept Maestro in appropriate outlets and will rapidly roll these out to a large part of its point of sale terminal base. The majority of these merchant locations will complete roll-out by the end of this year, with the rest by year-end 2002. Consumers travelling to the UK from abroad will now be able to shop at key retailers with their Maestro debit card. Moreover, retailers accepting Maestro will be in a position to accept an alternative to cash from foreign cardholders. This means they are likely to benefit from cardholders making higher value and impulse purchases.

Tony Slater, Commercial Director at Barclaycard Merchant Services said, “We are delighted to be partnering with Europay International to offer Maestro acceptance to our retailers. This will enable them to offer a greater choice of card acceptance to their customers and benefit from incremental sales, particularly from foreign cardholders.”

“This is a critical move towards completing Maestro acceptance across Europe and further highlights acquirer confidence in this excellent programme,” said John Bushby, Marketing Director at Europay International. “Barclaycard Merchant Services is one of the largest and most reputable acquirers in the world, and we are pleased to work with them to expedite Maestro acceptance in the UK,” he continued.

[1]: /graphic/mastercard/maestro.gif

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McElhatton Gets Ignited

Ignite Sales, Inc. announced yesterday that Jerry McElhatton, President of MasterCard’s Global Technology and Operations has accepted a seat on the Board of Directors joining Bob Mahoney as an outside member. Mr. McElhatton also serves on the Board of Advisors of BMC, a major software developer and Mascon Global Limited, a major Information Technology consulting and development company. He is a trustee of St. Louis University as well as a number of civic organizations.

“Financial institutions globally recognize and highly respect Jerry’s expertise in technology and operations, gained from executive management positions with Ameritrust, Bank One and First Republic (now Bank of America). He brings a welcomed dimension to our board,” stated Al Fleener, board member of Ignite Sales, Inc. and general partner of Seed Capital Partners, an early stage venture capital investor in technology in Texas.

Julie Hamrick, President of Ignite Sales, joins in welcoming Mr. McElhatton, “By contributing his technology and operations knowledge to our board, Mr. McElhatton will significantly strengthen our Company’s strategic direction. His experience is synergistic with Mr. Mahoney’s market knowledge and both are already helping us leverage large, national partnerships and alliances.” (Mr. Mahoney served as CEO of Diebold Corporation.)

Ignite’s Internet service provides real time customer financial planning then promotes appropriate bank products while measurably generating new account leads. New account applications result at unprecedented levels while minimizing costs.

About Ignite Sales, Inc.

Ignite Sales(R) is an online service provider that enables financial institutions (FI’s) to build customer loyalty and retention using interactive and personalized cross-selling methods. The company’s MoneyMatch(TM) and ProductMatch(TM) services allow FI’s to convert their web traffic to immediate revenue by matching consumers with products at the consumer’s time of need, while also predicting future consumer purchases using the powerful, back-end marketing engines. Ignite Sales was named as one of five “Leading Online Financial Planning and Advice Providers,” according to a recent report by IDC, a leading global market intelligence and advisory firm. Ignite’s clients include: Bank One, Citigroup, Frost Bank, Sovereign Bank and Wells Fargo. For more information, visit [www.ignitesales.com][1].

More about Jerry McElhatton

Jerry McElhatton is senior executive vice president for MasterCard International. He is responsible for Global Technology and Operations (GTO), ensuring MasterCard’s technology leadership and quality of operations. Mr. McElhatton also is taking the lead in company wide process change efforts, aimed at improving MasterCard’s fundamental business process, eliminating duplication, reducing costs, and redeploying resources in ways that add maximum value for key customers.

Before joining MasterCard, Jerry was president and chief executive officer of Dallas-based Payment Systems Technology & Consulting. He also served for 10 years as president and chief executive officer of First Republic Bank Services Corporation. In addition, Mr. McElhatton held executive management positions in operations and technology with Ameritrust and Bank One. Mr. McElhatton earned his bachelor’s degree in industrial management from Franklin University, and attended the Western Michigan University graduate degree program.

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

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EastPoint Sale

Marshall & Ilsley’s Metavante Corp. announced yesterday it has signed an agreement to sell its M&I EastPoint Technology subsidiary to a newly formed entity owned by a group of current M&I EastPoint clients. M&I EastPoint will be merged into the new company, EastPoint Technology LLC, which will have its headquarters in NH, from which EastPoint will continue to operate.EastPoint sells client/server-based banking software to the community and small-bank markets. Metavante offers customer relationship management, electronic banking, electronic funds transfer and card solutions, electronic presentment and payment, and other financial technology services.

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