One-fifth of banks reported this month they had tightened standards on credit card loans over the past three months, compared with 12% in January. In addition, 19% of survey respondents, on net, reduced credit limits on these loans. The findings come from the ‘May 2001 Senior Loan Officer Opinion Survey on Bank Lending Practices’ conducted by the Federal Reserve. The recent run-up, or expected future increases, in consumer delinquency rates were most often cited as a reason for changing consumer-lending policies. Among credit card-backed securities, charge-offs increased 10 bps to 6.1% in March from 6.0% in February. The 6.1% level was the highest loss rate reported since May 1999. The FRB survey also found that, on net, 10% of domestic institutions reported increased demand over the past three months for consumer loans of all types. Almost all domestic banks reported no change in standards for residential mortgage loans. Loan officers from fifty-five large domestic banks and twenty-one U.S. branches and agencies of foreign banks participated in the May survey. (CF Library 5/15/01)Details
Ameriplast Manufacturing, a leading manufacturer in the plastic card industry has relocated into its newly designed, state of the art, 67,000 square foot manufacturing facility in Fort Lauderdale, Florida. The new address is 6290 NW 27th Way, Fort Lauderdale, Florida 33309.
Ameriplast Manufacturing is a leader in the plastic card industry specializing in all types of plastic card applications such as pre-paid phone cards, ATM cards, gift cards, digital cards, laminated cards and identification cards.Details
Schlumberger has announced plans to join the MULTOS Consortium as an Alliance member. Key founder members include: Infineone Technologies; Discover; Keycorp; Dai Nippon Printing; MasterCard; Mondex; Europay; Hitachi; Fujitsu; Motorola; Giesecke & Devrient; and Telstra. Founder membership includes an implementation license and is currently set at approx. US$ 500,000; Alliance membership is US$50,000 for the first year and US$35,000 renewal; Observer membership is set at US$7,500.Details
The Federal Court of Australia yesterday ruled against Catuity and its Australian subsidiaries, Chip Application Technologies and CIT Cards (Australia) in a lawsuit filed last year by Welcome Real-time. In his judgment, Justice Heerey found that Welcome’s patent for a smart card loyalty program had been infringed by the US and Australian companies. Welcome claimed in the Court case that Catuity and its Australian subsidiaries had infringed its patent by operating the CiT Transcard system in Western Sydney from July 1997, and by offering to supply upgrades of the system since that time. Catuity says it has not reviewed the ruling yet, which is scheduled to be released in written form this morning. Catuity notes that the case involves only Australia and appears to only involve smart cards and not magnetic stripe cards. The company says the decision may be appealed and that any adverse decision will have little impact on its primary business. (CF Library 7/24/00; 8/17/00)Details
The Board of Directors of Europay International – Europe’s leading payment services provider – has elected Mr. Jean-Pierre Ledru as the new Chairman of its Board. Mr. Ledru will take up his post in June 2001, succeeding Dr. Kurt Richolt who has been Europay’s Chairman since December 1993. Mr. Ledru is Senior Executive Vice President of Caisse Nationale du CrÃ©dit Agricole. He also serves as Executive Vice Chairman of BMS, an organisation established for the development of electronic purse in France, comprising all of the main French banks as well as RATP, France Telecom and SNCF. Mr. Ledru has been associated with Europay since he became Vice-Chairman of the Europay International Board in 1992, and is also a member of the Europay International Executive Committee. He is currently Chairman and CEO of Europay France, the local Europay/MasterCard company. In addition, Mr. Ledru has been a member of the MasterCard International Board of Directors since 1991. Since December 1999, Mr. Ledru has been Chairman of Cedicam – a subsidiary of Caisse Nationale du CrÃ©dit Agricole dedicated to payment systems – having been CEO of this company for fifteen years. He was previously Deputy Chief Executive of FÃ©dÃ©ration Nationale du CrÃ©dit Agricole in France, where he played a leading role in the creation of le Groupement des Cartes Bancaires, of which he is currently Vice Chairman.
Commenting on the appointment, Europay’s current Chairman, Dr. Kurt Richolt said, “We are fortunate to have the experience of Jean-Pierre Ledru who comes from one of the most sophisticated card payments countries in the world and has been long-involved in payments issues on an international scale. Mr. Ledru’s expertise will be invaluable as Europay takes the necessary steps to remain competitive amidst the challenges of today’s payments environment.” New CEO of Maestro International Appointed The Maestro International Board has appointed Ann Camarillo as Chief Executive Officer, replacing Francis van den Bosch. Maestro International is a global business unit based in Waterloo, Belgium, and is jointly owned by strategic partners Europay and MasterCard.
Mrs. Camarillo comes from MasterCard International where she was Senior Vice President, Customer Group, and responsible for managing MasterCard’s relationships with some of its largest global credit card issuers operating worldwide.
Mrs. Camarillo joined MasterCard in 1988 in MasterCard’s Global Operations Centre, managing international network development and expansion. She managed a staff of Member Relations executives supporting the majority of the US Member financial institutions. Mrs. Camarillo also served as a Member Relations representative for some of MasterCard’s largest and fastest-growing Member banks.
“We look forward to building on the huge success of Maestro in Europe attained by Francis van den Bosch,” said Dr. Peter Hoch, Europay’s Director and CEO. “Ann Camarillo’s vast knowledge of global account management and customer relations will help us to boost Maestro as a truly global brand,” he concluded.Details
In conjunction with MasterCard’s new ‘Secure Payment Application’ solution, the card association also introduced a solution to assist online merchants in defending against Internet hackers. MasterCard’s ‘Site Data Protection Service’ takes a proactive approach against hackers by identifying possible vulnerabilities in an acquirer’s or merchant’s online system and making recommendations. The solution addresses the security issues and the resulting concerns over Internet fraud/chargebacks, damage to brand image, consumer concerns about safety and privacy, cost of replacing stolen account numbers. MasterCard will deliver the ‘SDP’ service directly to its acquiring members, who in turn will offer the services to merchants. MasterCard members and merchants can choose from several levels of protection, ranging from site vulnerability assessments and alerts to insurance coverage for third party liability, crime losses and more. SDP is expected to be available globally to MasterCard members by the end of this year. ‘SDP’ was developed by MasterCard, Marsh, Predictive Systems, and Ubizen. (CF Library 5/17/01)Details
CompuCredit Corporation announced that it has added Peter L. Briger, Jr. and Richard R. House, Jr. to its board of directors.
Mr. Briger was with the investment banking firm, Goldman, Sachs & Company for 14 years. During his career at the firm, Mr. Briger served as a founding managing director of GSVentures, a founding managing director and co-head of the Asian Special Situations Group, and a co-head of the Whole Loan Trading Desk.
Mr. House joined CompuCredit in 1997 and currently serves as president of the company. Mr. House previously served as chief credit officer of CompuCredit.
“We are very fortunate to add the depth of experience that Peter and Rich bring to our board,” said David Hanna, chairman and chief executive officer. “Their unique perspectives will help strengthen and broaden our vision as we continue to build upon the strategic initiatives of the company.”
CompuCredit Corporation is a credit card company that uses analytical techniques, including sophisticated computer models, to identify consumers who it believes are credit-worthy and are overlooked by more traditional consumer credit providers. CompuCredit markets unsecured general purpose credit cards through direct mail, telemarketing and the Internet.Details
Western Union and ACI Worldwide have teamed up to add electronic money transfer capability to ACI’s ATM processing software. ACI will add the ‘Western Union Money Transfer’ service to its ‘BASE24’ e-payment processing software. The WU service allows a consumer to electronically send money using any participating ATM by simply swiping an ATM card and then selecting the money transfer option. The user is prompted to select a personalized code and the desired dollar amount to transfer. The ATM provides the cardholder with a receipt and confirmation number. To complete the money transfer, the sender relays the confirmation number and personalized code to the intended recipient who can retrieve the funds from any participating ATM. No bankcard is necessary to receive the funds. The ‘Western Union ATM Money Transfer’ service will offer interoperability with Western Union’s agent network of more that 33,000 agent locations across the USA. Western Union acquired the cardless ATM transaction technology to provide its money transfer services (also known as Z-Cash) through an exclusive license agreement with EDS.Details
USA Technologies, Inc. has expanded its Authorized Reseller Program to target the multi-billion dollar global vending industry. TransAct swipe card technology will soon be upgraded to its new generation e-Port cashless and interactive media technology. Under the program, USA Technologies will provide the technology and integration expertise to allow manufacturers and distributors of vending as well as office equipment and services to readily attach e-Port to any brand of vending product or office equipment.
The USA Technologies Authorized Reseller Program was launched less than a year ago as a result of significant, positive feedback from major office equipment manufacturers and distributors who wanted to use TransAct and incorporate it into their own office equipment products and solutions, as well as sell it independently.
TransAct is a networked self-serve system that enables micro-credit card transactions, as low as $1.00, when connected with the use of office equipment. e-Port has all the same advantages as TransAct, but includes e-business and interactive media capabilities. It is targeted at more industry uses including: vending, point of sale, gas pumps, and other equipment that offers consumers access to goods and services in high traffic areas, such as hotels, convenience stores, travel & transportation facilities and public buildings. USA Technologies recently signed a major Canadian distributor, Global Technologies, that committed to resell an initial 500 terminals. Additionally, the company has signed an Authorized Reseller Agreement with North American Interstate, a major Michigan based vending distributor, as well as an OEM agreement with Automated Merchandising Systems. The growing Pennsylvania-based technology company is in other negotiations and discussions with the top vending manufacturing and distribution companies.
“We are arming our business partners with our revolutionary e-Port, and we’re signing on major manufacturers and distributors of vending equipment who sell hundreds of millions of dollars worth of vending equipment throughout the world, every year,” said Michael Lawlor, Senior Vice President of Sales & Marketing for USA Technologies. “Our goal is to develop a network of worldwide distributors for our technology and services. We have the infrastructure in place to mass produce e-Port, and we will continue to aggressively build the foundation for mass distribution via our Authorized Reseller Program, OEM agreements, etc,” he said.
The Authorized Reseller Program is part of an overall strategy to give USA Technologies greater distribution of its technology; new marketplace opportunities; and expanded distribution channels worldwide. USA Technologies has also signed a Strategic Alliance agreement with Marconi Online Systems, a division of Marconi PLC. In 2000, Marconi Online became the exclusive provider of intelligent vending technology to the Coca-Cola Company. USA Technologies is also in negotiations with global IT and interactive media businesses who are interested in the e-Port technology, especially the next generation of e-Port technology, which will offer unique wireless capabilities. e-Port attracted huge vending industry interest at the recent NAMA vending exposition held in Las Vegas earlier this year, where industry analysts described e-Port as: “unique technology that can collect supply chain data, allow consumers to make purchases with a credit card, and to view interactive media such as news, sports and weather. It will not only improve the value vending machine manufacturers and suppliers bring to customers, but will help generate greater revenue through increased sales of vending machines.”
About USA Technologies:
USA Technologies is recognized as a leader in cashless micro transactions and interactive media technology and associated financial services. USA Technologies provided credit card activated and other cashless systems, allowing end users, ranging from consumers to business professionals, to communicate, conduct business or make ordinary commerce transactions, outside of the home or workplace. USA Technologies is an IBM (NYSE: IBM – news) Business Partner and an inaugural member of the Sprint Enabling Application Service Provider Program for e-commerce. It has also established relationships with a number of global IT, multimedia, and telecommunications companies including RadiSys Corporation, DoubleClick Inc, and Xerox Corporation. Visit the USA Technologies home page at [www.usatech.com].
Bank of America introduced of a new service that enables consumers to order foreign currency and foreign currency ‘Travelers Cheques’ over the Web using credit cards as payment. The service is similar to one introduced in Oct 1999 by Chase called ‘Currency-to-Go’. Customers for the BofA service can purchase up to US$5,000 in foreign currency or foreign currency Travelers Cheques. Orders of up to US$1,000 can be delivered via UPS to the customer’s home or business within two to three business days. Orders of more than US$1,000 must be picked up at any Bank of America full service location. BofA customers may also deposit foreign currency into their checking or savings accounts when they have currency they want to sell back or exchange for U.S. cash. Chase Manhattan offers 75 different foreign currencies and ‘Travelers Cheques’ online with no fees or commissions for next-day delivery. FedEx overnight home delivery is free for orders of $500 or more, with a $10 shipping charge for orders below that amount. (CF Library 10/7/99)Details
PrivaSys has introduced its PIN-driven card technology. PrivaSys’ proprietary card provides an input device and a display within the dimensions of a conventional credit card.
Protected by a portfolio of patents, three of which are issued, PrivaSys’ proprietary technology authenticates cardholders for financial transactions (in person or online). PrivaSys technology requires no change to merchant or acquirers systems, making it instantly compatible with over 21 million merchants worldwide.
The PrivaSys suite of solutions quickly integrates with existing issuer systems providing an immediate security benefit through cards that are activated by keying in the cardholder’s PIN on an ATM style keypad, embedded on the card. Enhanced security features allow issuers to select a card that automatically generates a surrogate number for financial and/or authentication transactions.
PrivaSys’ first generation solutions are SecurSys and VariSys. SecurSys safeguards a cardholder’s information for single account cards such as credit (private label or bank issued), debit, or identity/security cards. VariSys consolidates multiple types of accounts (such as debit, personal and corporate credit, money market account) onto one card. Both SecurSys and VariSys cards can display either a surrogate account number or a conventional account number on the magnetic stripe and on the LCD.
“Real world and online fraud for financial transactions represent an escalating issuer concern worldwide,” said Joan Ziegler, CEO and co-founder of PrivaSys. “By introducing PrivaSys’ solutions at CardTech/SecurTech, the leading card show, PrivaSys has a great opportunity to reach the leaders in the card technology field.”
To learn more about the PrivaSys technology, stop by booth 1558 or visit the PrivaSys Web site at [http://www.privasys.com] . To schedule a private technology demonstration, please contact David Patterson, executive vice president of business development and co-founder, at 415-495-4098.
PrivaSys’ patented payments infrastructure brings a new level of security, interactivity and convenience to credit and debit card transactions. PrivaSys proprietary card technology provides a user input device and display embedded within the dimensions of a conventional credit card. Protected by a portfolio of patents, three of which are issued, PrivaSys licenses its technology to financial institutions and security card manufacturers. PrivaSys’ technology is designed to scale from the smallest government installation to the largest credit card issuer. PrivaSys is a privately held company, founded in May 1999 with headquarters in San Francisco and product development in Orlando, Florida. For more information, please contact PrivaSys or visit [http://www.privasys.com].
Concord EFS, Inc. announced that it has filed a registration statement with the Securities and Exchange Commission for the proposed public offering of 24,373,218 shares of the company’s common stock, including an over-allotment option. The shares to be offered include 19,194,103 held by the former owners of Star Systems, Inc., which was acquired by Concord on February 1, 2001, plus an additional 2,000,000 being sold by Concord. In addition, the underwriters have an option to purchase up to 3,179,115 additional shares of common stock from Concord to cover over-allotments. Concord intends to use the net proceeds from the offering for working capital and general corporate purposes. Concord will not receive any of the proceeds from the sale of common stock by the selling stockholders.
The offering will be managed by Salomon Smith Barney, Goldman, Sachs & Co., William Blair & Company, Banc of America Securities LLC, Bear Stearns & Co. Inc., Merrill Lynch & Co. and Morgan Keegan and Company, Inc.
Concord is a leading, vertically-integrated electronic transaction processor, providing transaction authorization, data capture, settlement and funds transfer services to financial institutions, supermarkets, petroleum retailers, convenience stores, and other independent retailers. Concord’s primary activities include Payment Services, providing credit, debit, check authorization, and electronic benefits transfer (EBT) processing services to selected retail segments; and Network Services, providing gateway processing, ATM driving, online and signature debit card processing, and network access to the financial services industry under the Cash Station(R), MAC(R), and STAR(SM) brands. Concord also provides electronic payment and payroll services to trucking companies, truck stops and other businesses.Details