RPM Money Orders

InnoVentry Corp., the nation’s leading provider of automated cash management services, announced that it now can issue money orders through its RPM automated financial kiosks. Money orders, which are typically used as an alternative to personal checks, can be obtained while a customer is cashing a check at an RPM, during a single session. The company also plans to accept cash bills at its kiosks, for direct purchase of money orders and other financial services, by this September. InnoVentry, founded in 1998, is backed by strategic partners that include Capital One Financial and Wells Fargo & Co.. There are currently more than 1100 RPM kiosks located in high-traffic national retail stores, including Albertson’s, Circle K, Kmart, Kroger and Wal-Mart. To date, the RPM kiosks have offered automated check cashing and ATM services. With the availability of money orders, and projects underway to introduce wire transfer and other services later this year, the kiosks will deliver a full suite of cash management services in convenient retail locations. Through the use of biometric face recognition technology, consumers can be quickly enrolled in the RPM(TM) Network during their first transaction, and can use any of the company’s machines nationwide without needing a card or PIN number.

“We are building on our solid foundation of automated check cashing customers, to offer a full range of financial solutions for the millions of working Americans who do not regularly use traditional bank accounts,” said Frank Petro, chairman and CEO. “For these consumers, we deliver one-stop financial shopping in a convenient, 24-hour retail environment. For our retail partners, we attract new customers to stores, provide a new source of revenues and, in many cases, improve their bottom line by removing the risk and costs associated with handling these services manually at a customer service counter. And for InnoVentry, money orders and other new financial products represent new sources of revenue as our network continues to expand.”

About InnoVentry

Backed by strategic partners that include Capital One Financial (NYSE:COF) and Wells Fargo & Co. (NYSE:WFC), InnoVentry Corp. ([www.innoventry.com][1]) is the creator of the RPM (TM) Network of automated financial kiosks, which allows consumers to cash checks, purchase money orders and perform other financial functions. A privately held company based in San Francisco, InnoVentry has enrolled more than 1 million customers and cashed more than $1.5 billion worth of checks.

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

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HoloCard

American Bank Note Holographics unveiled ‘HoloCard’ yesterday which will give a facelift to current payment cards. ‘HoloCard’ features a registered hologram that covers the face of an entire transaction card. The full-faced hologram is designed to improve brand recognition and can incorporate unique security features. ABNH said it can supply the full-faced hologram laminated to plastic, in lieu of the base plastic sheets typically used by card manufacturers prior to card production. This option enables card issuers to adopt the new enhancement to card design very cost-effectively.

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Chargeoffs 3/01

Bank credit card charge-offs increased 10 bps to 6.1% in March from 6.0% in February. The 6.1% level is the highest loss rate reported since May 1999. In addition, personal bankruptcies increased in the first quarter to 356,585 (compared with 310,169 in the fourth quarter of 2000), its highest quarterly total since 1994. According to Standard & Poor’s ‘Credit Card Quality Index’ has already started to see some sign of weakening performance in card-backed securities with a higher concentration of underserved credits. Losses for these trusts have increased on average about 125 bps over the past three months. For the remaining trusts tracked, those that have a greater concentration of prime obligors, losses have increased on average about 60 bps.

CREDIT CARD QUALITY INDEXES
Performance month Mar 99 Mar 00 Jan 01 Feb 01 Mar 01
Yield (%) 20.3 20.2 19.8 20.0 21.1
Charge-offs (%) 5.9 5.7 5.5 6.0 6.1
Delinquencies (%) 4.6 4.3 4.9 5.1 5.0
Payment rate (%) 17.2 17.3 16.7 14.8 16.7
Source: S&P

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NavyCash

The Navy’s new smart payment card is now in a pilot run with 170 crewmembers of the USS RENTZ. The smart MasterCard was developed by Chase Manhattan. The ‘Navy Cash MasterCard’ uses a chip to store value for purchases at sea and a magnetic strip for debit purchases and ATM account access. Sailors and Marines can use the e-purse feature to buy items at point-of-sale terminals in the on-board store, post office, morale-welfare and recreation wardrooms and other retail locations. Navy Cash also provides electronic access to personal checking and savings accounts ashore. The card is manufactured by SCI. The card is backed by the Microsoft Windows Card Operating System with personalization provided by UbiQ. The smart card is powered by Atmel’s Flash memory based secure microcontroller. The system is supported by Compaq servers, Oracle Corporation’s 8i database, eBusiness applications suite, and Internet developer Suite, and Titan line installation and wiring is providing shipboard integration, installation, and training services.

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PayWare Guardian

Trintech Group introduced an umbrella payment security architecture that verifies cardholder identity and authenticates their transactions. ‘PayWare Guardian’ includes the ‘Guardian Transaction Authentication’ module and the ‘Guardian SET Authentication module. The ‘Guardian TA’ module for fraud reduction supports proxy card numbers and real-time authorization verification for issuers. ‘Guardian SA’ is a separate module which supports the industry-wide SET standard developed by VISA and MasterCard. The main feature of this solution is that it does not require merchants to change their existing transaction processing system. The solution also has built-in authentication mechanisms. A consumer’s credit card information remains private, issuing banks verify the financial transaction and provide authorization, and merchants are assured of a verifiable transaction actually related to a genuine purchase.

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Smart Cards 2000

Worldwide smart card shipments totaled 628 million units for 2000, a 45% increase over 1999. Two vendors, Gemplus and Schlumberger, continued to dominate the worldwide market with combined shipments accounting for 54% of total smart card units. If memory cards are included, the combined marketshare for Gemplus and Schlumberger would be nearly 67%, according to Gartner’s Dataquest survey. Gemplus’ acquisition of ODS during 2000 provided some extra market share, and Schulumberger’s acquisition of Bull CP8 will secure some additional market share for 2001.

Worldwide Chip Card Vendor Shipments
Year 2000 (Millions of Units)

Smart Card Memory Card Total Chip Card
Company Shipments Shipments Market Share
Gemplus (inc. ODS) 185 438 35%
Schlumberger (inc. Solaic) 152 405 32%
Giesecke & Devrient(inc. RDN) 76 112 11%
Oberthur 85 28 6%
Orga 53 31 5%
Others 77 126 11%
Total Market 628 1,140
Source: Gartner Dataquest

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Dual Interface Cards

QualTeq, Inc., a leader in secure transaction card manufacturing for almost 20 years, announced that it is the first fully-integrated, secure North American company to offer dual interface cards incorporating contact and contactless technology.

This was made possible by utilizing technology from its suppliers and patents from its partners.

“Contactless and dual interface cards represent one of the most advanced technologies in smart cards,” commented Al Vrancart, president and CEO, QualTeq. “We now have the capability to provide a multitude of different card platforms for a variety of client needs.”

QualTeq recently acquired the Muhlbauer glue tape lamination system, the Muhlbauer Smart Card Milling and Implanting System, and the Louda KIS II Inspection System. This new machinery, and the patents from its strategic partnerships, make it possible for QualTeq to combine chips, interfaces, and radio frequency identification (RFID) antennas with operating systems, in order to deliver contactless, contact and dual interface smart cards.

“Our core business will continue to be secure plastic card manufacturing, but we are now capable of providing secure IT, card-based solutions, using traditional magnetic, contact and contactless smart card technologies,” said Vrancart.

The QualTeq plant in South Plainfield, New Jersey (USA) serves many of the USA’s largest card issuers including Citibank, Discover Card, Sears, AT&T, and FDR. QualTeq serves a wide range of industries including financial, retail, transportation, automotive, travel and entertainment, healthcare, identification, loyalty, and network security.

About QualTeq

QualTeq has been a leader in secure card manufacturing for almost 20 years, producing over two billion cards since its inception. QualTeq is a single source supplier of card products and services from card design and manufacturing to personalization and card issuance–receiving recent International Card Manufacturer Associaiton (ICMA) Elan Awards for Card Design Excellence. QualTeq is also the first fully integrated secure North American company to offer dual interface cards incorporating contact and contactless technology.

For more information, visit the web site at [http://www.qualteq.com][1].

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

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FUSA COO

Bank One Corporation has named Daniel J. Frate president and chief operating officer of First USA, its credit card subsidiary. He will report to Philip G. Heasley, First USA’s chairman and chief executive officer.

“Over the last year, the people of First USA have done a great job rebuilding the company and putting it in a position to grow,” said James Dimon, chairman and chief executive officer of Bank One. “Dan Frate joins a solid management team that is more than capable of leading First USA back to industry leading performance.”

Frate, 40, most recently was vice chairman and a member of U.S. Bancorp’s Operating Committee. In his 12 years there, he developed and executed credit, servicing and technology strategies for U.S. Bancorp’s payment systems business. Before that, Frate held various consumer credit, technology and service management positions with Citicorp.

“Dan’s extensive knowledge of the credit card industry and his skill as a process manager will prove invaluable in First USA’s day-to-day operations,” said Heasley. “His addition complements the strengths of our management team as we begin to grow First USA again.”

“I see tremendous opportunities for First USA,” said Frate. “I am excited to be working with the management teams at First USA and Bank One to capitalize on these opportunities and build First USA into the nation’s premier credit card organization.”

Frate earned a bachelor’s degree in economics from John Carroll University and a master’s degree in finance from the Krannert Graduate School of Management at Purdue University.

About First USA

First USA has more than 50 million cardmembers and $64 billion in receivables and is the largest issuer of Visa credit cards. About Bank One

Bank One Corporation is the nation’s fifth-largest bank holding company, with assets of more than $270 billion. Bank One offers a full range of financial services to commercial and business customers and consumers. It can be found on the Internet at [http://www.bankone.com][1].

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

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Hitachi Koki DDP70

Datacard Group introduced a high-performance duplex printer for its card delivery solutions at the CardTech/SecurTech Conference in Las Vegas. The Hitachi Koki DDP70 printer is designed for high-speed versions of the Datacard UltraForm Module and Datacard UltraForm Mailer. The high-speed UltraForm module is integrated with the Datacard 9000 Series Systems. The UltraForm Mailer offers standalone card delivery for the card production floor.

Both solutions are designed to quickly and automatically affix cards to carriers, personalize carriers with laser-quality printing and fold carriers for insertion into envelopes.

The DDP70 printer replaces the Hitachi Koki Typhoon 40, Typhoon 60 and Olympus 32 printer models. In addition to operating at higher print speeds, the printer offers 600-dpi laser-quality printing, a reliable design, longer consumable replacement cycles and a lower total cost of ownership.

“The DDP70 effectively removes card delivery as a bottleneck in inline card personalization,” said Bonnie Lervik, vice president for Datacard. “Its high-speed operation and reliable performance easily keep pace with other modules in our high-volume systems.”

The new printer makes the Datacard card delivery solutions portfolio an even better fit for service bureaus and card programs that require the highest throughput and excellent image quality on both sides of their card carriers.

“Enhancements such as this new printer demonstrate Datacard’s commitment to our customers’ success,” Lervik said. “Through product development and strategic partnering, we are continuously looking for new ways to improve the productivity and profitability of their card programs.”

The DDP70 printer is available as an in-field upgrade, and will be available as a print option for high-speed UltraForm.

About Datacard Group

Datacard Group provides financial institutions, corporations, consumer marketers, governments, schools, healthcare providers, service bureaus and other enterprises with the software, systems and professional services they need to build successful card programs. The company’s solutions portfolio includes the world’s best-selling smart card software, card issuance systems, smart card life cycle management system and a complete line of digital identity systems. Consultative services include a smart card chip security laboratory that works with the world’s leading smart card issuers. DataCard Corporation, doing business as Datacard Group, is privately held and based in Minnetonka, Minn. Datacard Group serves customers in more than 200 countries. ([www.datacard.com][1]).

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

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PULSE & Mag-Tek

PULSE EFT Association has formed an alliance with Mag-Tek Inc. to offer special discounts on the industry’s leading products for instant card issuance and customer PIN selection to PULSE member financial institutions. Under the new arrangement, Mag-Tek will offer PULSE members a discount on both its MCAT card issuing terminal and IntelliCAT System, providing banks, credit unions and thrifts a new palette of tools to complement their existing card issuing programs.

![][1] “PULSE is pleased to offer its members new and improved card issuing solutions through Mag-Tek,” said Cindy Ballard, executive vice president for PULSE.

“This arrangement with Mag-Tek underscores the PULSE Board’s policy of developing strategic alliances that benefit the network’s members,” notes Ballard. Mag-Tek’s card issuing solutions promote ATM usage and provide added service and convenience to cardholders. “Financial institutions can instantly issue personalized cards on the spot, while allowing cardholders to select a PIN that will be easy for them to remember,” said Mag-Tek vice president of sales Patrick Oven. “Existing cardholders will also enjoy the convenience of immediate card replacement at the branch level as well as the flexibility of selecting their own PIN on their existing cards,” Oven added.

About PULSE

PULSE links an estimated 60 million cardholders with more than 76,500 ATMs and 300,000 point-of-sale merchant locations throughout the United States. Its members include more than 2,900 banks, credit unions and savings and loans in a 22-state primary service area blanketing the central, south, Midwest and southwest regions of the United States. PULSE has become recognized in recent years as a resource for consumer research relating to EFT services, and an effective national public policy voice on issues of importance to the financial industry. Visit PULSE online at www.pulse-eft.com.

About Mag-Tek

Mag-Tek Inc. is the world’s leading provider of instant card issuance and customer PIN selection products for financial institutions worldwide. Mag-Tek technologies provide information and transaction security for point-of-sale (POS) and financial transactions at financial institutions, retail stores, telecommunication companies, kiosks, gaming, transit, schools, sports and recreation facilities and clubs. Millions of Mag-Tek card readers, check readers and PIN selection products are currently installed worldwide. Since 1972, Mag-Tek’s headquarters have been in Carson, Calif. with sales offices throughout the United States, Europe and Asia, and distribution in more than 40 countries. For more information, please visit the company at .

[1]: /graphic/magtek/magtek.gif

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Genpass CMO & CTO

Genpass Inc., owner and operator of the MoneyMaker and Money Belt EFT networks, on Monday announced more major additions to the executive team for its processing and ATM network enterprises.

Gary T. Staub joins Genpass as executive vice president and chief marketing officer, and Anthony F. Newshel joins as chief technology officer. Genpass president and CEO Bipin Shah, is a recognized leader in the EFT industry and one of the founders of the MAC network. Under Shah’s tenure, MAC enjoyed a period of extraordinary growth. Shah’s team formulated many of the innovative services the network offered including POS services, advanced function ATMs and smart card technology.

Shah has been reassembling this team since Genpass purchased the MoneyMaker network in July 2000.

Staub, one of the few non-MAC veterans in the group, comes to Genpass from Paymentech, a payment processing and e-commerce company, where he was group executive for business development. Before that, Staub worked for Shah in his previous company, Gensar Holdings Inc. Staub was a founding officer of Gensar, where he played a key role in acquiring new business and new companies for the Shah enterprise.

In just four years, Gensar grew from a medium sized company to the largest independent point of sale processor in the U.S.

Staub also worked at Mellon Bank where he was business manager for Mellon’s merchant processing and network services businesses. At Mellon, Staub engineered a turnaround strategy that eventually led the bank to become a gateway processor serving major financial institutions and processors across the country.

Staub’s responsibilities for Genpass include spearheading all marketing and sales efforts. Staub also brings his extensive point of sale and e-commerce experience to developing new markets and strategies for Genpass. Newshel is a talented systems architect who comes to Genpass with twenty-four years of experience in information systems. Newshel is a former chief information officer for the MAC network, where he led the development team that introduced advanced-function ATMs to the EFT marketplace.

Prior to joining Genpass, Newshel had founded and directed BileniaTech, LP, a technology consulting company focused on software development and major technology conversion projects for national EFT networks including STAR Systems and Concord EFS. As chief technology officer, Newshel is responsible for systems and development for Genpass Technologies Inc.

It is Newshel’s role to keep Genpass in the forefront of ATM and POS technologies while supporting the growth of an expanded product base. These announcements continue a hiring spree that already filled the Genpass management team with more than a dozen former MAC managers in key technology and sales positions. Genpass has strongly shown its intention to become an industry leader since its summer kick-off last year.

Genpass immediately acquired the MoneyMaker ATM network and Genpass Service Solutions – an ATM maintenance company that vertically integrates the Genpass businesses. Led by Shah and his partner, Gregory Dillett (a former CoreStates Vice Chairman with strong connections to the MAC group), the parent company then acquired the Money Belt network.

Previously, Genpass filled several other key positions with industry talent including Douglas D. Anderson, former EPS/MAC president and CEO, as president of Genpass ATM Solutions; Bonnie E. Hill, former MAC business manager, heading strategic planning; and Douglas Miraglia, former MAC sales manager as MoneyMaker sales manager.

Shah describes his reasons for gathering his former executive team into Genpass: “I have always sought out the best people in every aspect of our business. This team, individually and as a group, has a track record unmatchable in our industry. With them at the helm, we are rapidly growing our product line into an EFT program that is unequaled. At the same time, we pledge to deliver unparalleled customer service. I believe you will see the results of our work very quickly.”

About GTCR Golder Rauner, LLC, Genpass Inc., LLC, and MoneyMaker(SM)

GTCR Golder Rauner, LLC, is a leading private equity investment firm that owns and operates Genpass Inc. Founded in 1980, GTCR pioneered the investment strategy of identifying and partnering with exceptional executives to acquire companies in fragmented and growing industries.

GTCR currently manages more than $4 billion in equity capital invested in a broad range of companies and industries, including transaction processing, information technology services, financial services and marketing services. Genpass Inc. has corporate offices in Pennsylvania, Dallas, Memphis and California and owns the MoneyMaker(SM) and Money Belt EFT networks. These networks provide technology-based, processing and servicing solutions for financial institutions, independent sales organizations, and corporate customers.

MoneyMaker is now the second largest ATM driver in the U.S. with over 20,000 ATMs in all 50 states. MoneyMaker is one of the largest transaction processors in the U.S., processing over 270 million transactions annually with gateways to every major card issuer and regional network in the nation.

Genpass also operates Genpass Service Solutions, the largest independent ATM servicing company in the U.S., and Genpass ATM Solutions, which aids customers in formulating strategies for ATM deployments. The Genpass companies serve more than 1000 financial services customers.

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CMS CEO

Chase Merchant Services, L.L.C., a joint venture between Chase Merchant Ventures, Inc., a subsidiary of The Chase Manhattan Bank and First Data Merchant Services Corporation, has named Phillip M. Miller president and chief executive officer, effective immediately. In his new role as president and CEO, Miller will oversee the strategic direction of Chase Merchant Services, the nation’s largest merchant acquirer.

Miller, who has over 20 years of experience in global marketing, strategic planning and product development, will ensure the company’s continued market leadership by collaborating with merchants requiring the latest innovative payment and e-commerce solutions and helping them grow their business.

Most recently, Mr. Miller served as senior vice president of Global Marketing for the Consumer Finance Division of GE Capital, the world’s largest consumer finance company.

“With Phillip’s track record and enormous drive for results, we are confident that Chase Merchant Services will continue to execute a successful growth strategy,” said Pamela Patsley, president of First Data Merchant Services.

“We are delighted to have Phillip join as president and CEO of Chase Merchant Services,” stated Richard Srednicki, executive vice president of The Chase Manhattan Bank. “Phillip’s history and experience are ideally matched to complement Chase Merchant Services’ goals, making him an essential asset to the company as we continue to pursue our growth agenda in this dynamic and competitive marketplace.”

“The electronic payment products offered by Chase Merchant Services lead the industry,” said Mr. Miller. “CMS leverages its resources to serve clients ranging from small and local businesses to major domestic and international merchants, presenting them with the widest range of reliable payment services available. This coupled with CMS’ passion for customer service and relationship management are factors that contributed to making this career move.”

About Chase Merchant Services

Chase Merchant Services, L.L.C., is the nation’s largest merchant credit card acquirer and a provider of Internet-based solutions. The company can be reached on the Web at [www.chasemerchantservices.com][1]. Chase Merchant Services processes over 2.5 billion transactions a year and more than $175 billion in annual credit and debit card sales volume at the point of sale and over the Internet. Chase Merchant Services is a joint venture between First Data Merchant Services, a subsidiary of First Data Corp., the leading bankcard transaction processor, and Chase Merchant Ventures, Inc., a subsidiary of The Chase Manhattan Bank, the fifth largest credit card issuer in the United States. The Chase Manhattan Bank is a subsidiary of J.P. Morgan Chase & Co. ([www.jpmorganchase.com][2]), a premier global financial services firm with assets in excess of $714 billion and operations in over 60 countries.

About First Data

First Data Corp., with global headquarters in Denver, powers the global economy. Serving nearly 2.5 million merchant locations, more than 1,400 card issuers and millions of consumers. First Data makes it easier, faster and more secure for people and businesses to buy goods and services, using virtually any form of payment: credit, debit, smart card, stored-value card or check at the point-of-sale, over the Internet or by money transfer. For more information, please visit the company’s Web site at [www.firstdata.com][3].

[1]: http://www.chasemerchantservices.com/
[2]: http://www.jpmorganchase.com/
[3]: http://www.firstdata.com/

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