Household HP Card

Household International, Inc.’s private label credit card unit has signed an agreement with Hewlett-Packard Company’s award-winning direct-to-consumer e-commerce subsidiary, Household will manage’s private label credit card program — referred to as “hpshopping efinance” on the Web site — to’s U.S. customer base.

“We are proud to work with on this customized financing program,” said Sandy Derickson, managing director and CEO, Household Retail Services. “ joins a number of smart, innovative e-retailers that have selected Household to manage their private label credit cards.”

“ is committed to providing its customers with a world-class online shopping experience,” said Mike Bridge, chief marketing officer, “With Household’s private label solution, we can offer our customers online credit approval, flexible payment plans and access to attractive financing promotions.”

![][1] Household offers private label credit cards and sales finance products for several other online retailers in addition to, as well as other national and regional merchants in industries such as furniture, department stores, specialty discount and apparel. Household also provides financing for dealers in motorcycles, ATVs, personal watercrafts and snowmobiles.

Launched in May 1998, is a leading e-tailer of personal digital solutions, featuring a complete selection of trusted HP home and home office products. is a key element of HP’s goal to reach U.S. customers anytime, anywhere with personalized product features, end-to-end purchase convenience and excellent customer service. is headquartered in Santa Clara, Calif., and is a wholly owned subsidiary of HP.

Founded in 1878, Household’s businesses are leading providers of consumer finance, credit cards, non-prime auto finance and credit insurance products in the United States, United Kingdom and Canada. In the United States, Household’s largest business operates under the two oldest and most widely recognized names in consumer finance — HFC and Beneficial. Household is also one of the nation’s largest issuers of private-label and general purpose credit cards, including the GM Card and the AFL-CIO’s Union Privilege card. For more information, visit the company’s website at [][2].

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Citibank 1Q/01

Citigroup’s ‘Global Cards’ business grew to over 104 million card accounts in 46 countries, generating income of $598 million in the first quarter, up 25%. The ‘North American Cards’ business produced first quarter income of $469 million, up 23%, driven by an expansion in the net interest margin of 77 basis points from the prior quarter, and receivables growth of 17% over the prior year. However, Citi’s North American delinquency and chargeoffs figures were up sharply for 1Q/01. Delinquency (90+ days) jumped from 1.54% for 4Q/00 and 1.65% for 1Q/00 to 2.00% for 1Q/01. Chargeoffs for the first quarter hit 4.84% compared to 4.22% for the prior quarter and 4.65% on year ago. First quarter volume was $51.2 billion for North American cards with EOP receivables of $100.5 billion. On an annual basis, volume was up 6% and receivables up 17%. For complete details on Citi’s 1Q/01 results visit CardData ([][1]).




PULSE EFT Association, the nation’s leading financial industry-owned electronic funds transfer network, has named five new members to its Board of Directors. Elected to serve are:

— Barry L. Boerstler, Executive Vice President Fifth Third Bank, Cincinnati, Ohio

— Raymond Halackna, Vice President Mellon Bank, N.A., Pittsburgh, Pa.

— Joanne Middendorf, Vice President Huntington National Bank, Columbus, Ohio

— Jeffrey Morrow, Executive Vice President Dollar Bank, Pittsburgh, Pa.

— Robin P. Nenninger, Executive Vice President U.S. Bank, Cincinnati, Ohio

All were former board members of the Cincinnati-based Money Station network, which merged with PULSE earlier this year. In addition to their responsibilities as board members, Boerstler and Morrow will serve on the PULSE Executive Committee.

PULSE President and CEO Stan Paur noted the depth of experience represented by the new board members. “With their knowledge of EFT networks and the needs of the financial industry, these individuals will complement and strengthen the PULSE Board,” he said. “They will be valuable resources as we continue to carry out an aggressive growth program throughout PULSE’s expanded service area.” The addition of 12 primary states served by Money Station — Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Missouri, Ohio, Pennsylvania, Tennessee, West Virginia and Wisconsin — has more than doubled PULSE’s geographic footprint. 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. PULSE is a financial industry-owned, not-for-profit shared electronic funds transfer network. Its members include more than 2,500 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 well known in recent years as a recognized resource for consumer research related to EFT services, and an effective national public policy voice on issues of importance to the financial industry. Visit PULSE online at


Consumer Fears

A new poll, released yesterday, found that Americans who use the Internet are most fearful of Social Security and credit card numbers being stolen by criminals and believe the Internet is where their personal information is most vulnerable, followed by dishonest phone order agents. According to the survey results, 41% of the 2,951 U.S. respondents were most concerned about Social Security numbers falling into the wrong hands, followed by credit card information at 29%. These results bolster the findings of a report issued earlier this month by the Pew Internet and American Life Project, which showed that 87% of Americans surveyed were “concerned” or “very concerned” about the online theft of personal information. The results remained essentially the same across most educational and income levels, although those with a high school degree or less and those whose household income was $35,000 or lower were the least likely to trust the Internet. The poll was commissioned by Sanctum and conducted by Harris Interactive.



St. Petersburg, Florida-based Payment Systems for Credit Unions, Inc., and Ontario, California-based COOPNetwork struck an alliance to deliver ATM, point-of-sale, offline debit and credit related products and services to current member-owners and prospective credit union clients.

COOPNetwork, the nation’s largest credit union EFT network, and PSCU, the nation’s largest credit union service organization (CUSO), are using their combined scale and respective expertise to form a nationwide card processing solution and EFT network of and by credit unions.

‘We have many member-owners who could really benefit from the strong ATM and POS network coverage that COOPNetwork provides,’ states Dave Serlo, PSCU President. Serlo continues, ‘A network with over 4,800 surcharge free ATM’s across the country, with the majority of those taking deposits, is very attractive to us and to our member-owners.’

‘We have clients that would love to combine debit and credit processing in order to attain more competitive pricing and achieve operational efficiencies,’ says Robert Rose, President and CEO of COOPNetwork. ‘PSCU’s product offerings complement our suite of services, and their commitment to quality service matches ours. We believe this partnership will create opportunity, provide strong options for our clients, and will increase the value that we collectively bring to the industry.’ The immediate benefactors of this strategic alliance are COOPNetwork and PSCU’s combined 1,200+ credit union member-owners. ‘Our existing credit unions and prospective credit unions deserve the access and convenience that our alliance offers,’ states Paul Steger, Debit Services Manager for PSCU.

Unique to the PSCU and COOPNetwork alliance is the distinctive ownership structure of each company. Both are not-for-profit organizations owned and controlled by credit unions. Serlo added, ‘Where else in the card services industry do you have the potential to receive dividends and distributions from your credit, debit, and EFT transactions”

‘We are celebrating our 20th year of service,’ reflects Rose, ‘and PSCU is celebrating their 25th. Our experience and our commitment to this industry provide a firm foundation for the success of this alliance. We believe it also provides a launching pad for product development and service expansion for credit unions into the future.’

COOPNetwork (, established in 1981 and located in Ontario, CA, is currently the country’s number one credit union EFT network with over 4,800 ATMs. The Network also provides volume discounts on products and services that include debit, online banking, risk management, remote access bill payment and deposit access to over 700 credit union clients and 9 million cardholders.

PSCU, Inc. ([][1]) established in 1977 and located St. Petersburg, FL, is the nations largest credit union service organization (CUSO). PSCU provides a vast array of credit, debit, and Internet-based processing solutions to its 500+ credit unions and their 6.4 million cardholder accounts.



VISA & and VISA USA announced an integrated partnership Monday. Under the new agreement, will implement the ‘VISA Payer Authentication System’, based on the ‘3D Secure Protocol’. will be the first ticketing company to adopt the ‘3D Secure’ system. Customers (who have registered in advance through their card issuer) will be prompted for a password during the checkout process whenever they make a purchase on In a matter of seconds, the ‘3D Secure’ service verifies the card account number used in the transaction. VISA cardholders also will be eligible for special privileges and promotions through


SurePay CEO

SurePay, LP (, a major operating company of eONE Global LP ( and a provider of end-to-end payment and trust services for Internet business-to-business (B2B), business-to-consumer (B2C) and Mobile Commerce markets globally, today announced the appointment of Stephen J. Flett as Chief Executive Officer. An internationally seasoned senior executive, Mr. Flett has considerable experience as a business strategist and new payments technology leader. His management skills developing new business strategies and directing the introduction of e-commerce payment products during his 12 years at American Express will further SurePay’s business initiatives and market presence as it introduces its online B2B payment platform solution later this month.

SurePay leverages the vast experience, strength and infrastructure of founder First Data Corp. (NYSE: FDC), a global leader in electronic commerce and payment services, to develop, adopt and deliver trusted payment technologies in the B2B sector. eONE Global is jointly owned by management, First Data Corp., and iFormation Group, a partnership of the Boston Consulting Group, Inc., General Atlantic Partners, LLC and The Goldman Sachs Group, which partners with large companies to help create new online businesses.

Flett’s joining SurePay coincides with the company’s increase in momentum and marketplace traction. In addition to several pending customer relationships, SurePay earlier this month announced a strategic alliance with VeriSign, the leading provider of Internet trust services, to jointly develop and market the SurePay B2B payment solution and VeriSign’s B2C payment solution as their respective premier payment offerings. John Duncan, SurePay’s first CEO and a managing director of eONE Global, will now focus on identifying and developing emerging payment technologies at eONE Global, most immediately in the Mobile Commerce and wireless consumer payments sector. He will also remain active in business development activities to accelerate SurePay’s product and market presence globally.

“As SurePay’s new CEO, Steve’s impressive background in international finance, his management experience and his proven track record in developing online B2B payment technologies will complement SurePay’s foundation and direction and accelerate our progress in achieving our strategic objectives,” said Garen Staglin, president and CEO of eONE Global. “John Duncan’s strong business development skills established SurePay as a leader in trusted Internet payments. Now, Steve’s understanding of new technology opportunities, global payments and information systems underscore his ability to propel the company forward as a global leader in the online business payments sector. We are fortunate to have the business skills of both of these executives on the same team to assist us in achieving our goal of creating the future of online payments, today and tomorrow.”

SurePay has been recognized by industry analysts as well on its way to becoming the premier, single-source B2B payments solution provider by offering an integrated, end-to-end product — from buyer/seller verification to integrated reporting. Leveraging its strength in transaction execution and core gateway products, SurePay will seamlessly integrate its offerings with public and private exchange’s and enterprise’s product development cycle and existing technology platforms.

“SurePay provides a tremendous opportunity to move payment processes online and improve business efficiencies, and I am thrilled to be part of it,” Flett said. “Building upon SurePay’s solid foundation in the U.S., my international banking and payments experience will help as we accelerate business development efforts internationally over the next several months. In addition, we will continue to focus on executing our strategy to partner with financial institutions and third-party providers to enhance our B2B payments offering as the premier solution in the marketplace.”

SurePay is poised to take advantage of the vast growth opportunities in the B2B arena. The Boston Consulting Group estimates that B2B e-commerce in four leading countries (U.S., U.K. France and Germany) represents a market opportunity of approximately $16 billion by 2005; the relevant payments market for SurePay represents a revenue opportunity in excess of $4 billion during that period.

“eONE Global’s ability to attract Stephen Flett, a leading payments and technology executive, is a testament to the company’s strength and leadership position in the emerging payments business,” stated David Pecaut, president of iFormation Group and member of eONE Global’s Board of Directors. “Steve is highly accomplished and a creative asset to our executive team. His joining SurePay is an important milestone for the company as it moves aggressively forward, and is indicative of the quality and caliber of talented professionals who are committed to eONE’s overall strategic vision.”

Innovative Technology Leader

Flett has extensive B2B payment expertise developing and implementing innovative Internet-based payment products for major global businesses and managing governmental banking institutions. He was responsible for the development and launch of “International Payments,” American Express’ entrée into B2B e-commerce online payments.

An internationally seasoned senior executive, Flett has held a series of positions of escalating importance for the American Express Company, Ltd., where his leadership and direction of new technological business opportunities significantly increased the company’s presence in key global market areas as well as the company’s revenue base. Most recently as senior vice president and general manager for American Express’s Global Foreign Exchange Services Division, he successfully built and introduced the company’s first online transactional corporate payments service. As vice president of International Business Development, he defined and launched the company’s entrée into its strategic alliance program supporting the distribution of the American Express Cards through bank partnerships.

Flett has an impressive track record in the banking industry, most notably as Managing Director of the Bermuda Monetary Authority (Central Bank) where, reporting to the Minister of Finance, he was responsible for the supervision of Bermuda’s financial institutions and its fiscal reserves supporting the foreign value of Bermuda’s currency. He has broad mergers and acquisition experience from Reed International, plc., and he began his career developing banking and offshore insurance programs at the accounting firm Coopers and Lybrand (now PricewaterhouseCoopers).

A charter member of Mainspring’s Strategy Executive Council, Flett has an MBA degree from York University of Toronto and a B.Commerce degree with Honors from Queen’s University. He also is a Chartered Accountant with memberships in associations in Ontario and Bermuda.

About SurePay

SurePay, LP provides complete, end-to-end payment, trust and security products and services for Internet B2B, B2C and Mobile Commerce markets on a global scale. Leveraging the leadership position of its founder, First Data, in payments processing, SurePay develops and delivers trusted, secure payment solutions for businesses and consumers buying and selling on the Internet. SurePay is a central operating company within the eONE Global network of payment companies and technologies. Headquartered in Melville, NY, SurePay has access to the powerful transaction processing and distribution resources of First Data Corp. throughout the world. For more information visit [][1].

About eONE Global

As the leading source for accelerating payment innovation, eONE Global, LP ( identifies, develops, and operates emerging payment systems and related Internet and wireless technologies spanning the business, government and consumer markets. Its operating companies include SurePay, LP (, which provides end-to-end payment and security products for companies and consumers buying and selling over the Internet, as well as govONE Solutions, LP (, which enables businesses and consumers to make government payments electronically. eONE Global is owned by global e-commerce and payment services leader First Data Corp. (NYSE: FDC) and iFormation Group, a company created by The Boston Consulting Group, General Atlantic Partners, LLC and The Goldman Sachs Group.

About First Data Corp.

Atlanta-based First Data Corp. (NYSE: FDC) is a global leader in electronic commerce and payment services. Serving more than 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, 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 [][2].

About iFormation Group

iFormation Group is a company created by The Boston Consulting Group, General Atlantic Partners and Goldman Sachs to carve new ventures out of traditional companies in partnership with the Global 2000. iFormation teams with industry leaders to acquire, develop and build new Internet and technology ventures that leverage the corporate partners’ legacy assets. For more information, please visit the company’s Web site at [][3]




Visa U.S.A. has selected, an online education solutions provider, to develop and host Web-based training programs about Visa’s Cardholder Information Security Program. The Visa Business School is using Convene’s self-paced, education package as part of its extensive CISP curriculum, teaching financial institutions and e-merchants about Visa’s recent initiative to bolster the security of Internet commerce.

Visa launched the CISP as part of its Secure Commerce Program in September 2000, partnering with e-merchants to protect cardholder data online. The CISP entails a set of 12 e-Commerce security guidelines for safeguarding systems from unauthorized use of card and account information. Visa is helping e-merchants and service providers comply with the CISP guidelines, ultimately making online payments safer for consumers.

A well-educated base of e-merchants and other key stakeholders is one of the key elements for the success of CISP, and Visa engaged to augment its CISP training curricula. Visa is instructing its Member financial institutions and e-merchants via an educational video, a CISP manual, a flier outlining the 12 ‘Digital Dozen’ security guidelines as well as one-on-one training meetings. Convene’s online CISP training program supplements this Visa Business School package, offering a convenient, user-friendly means of accessing program details. The self-paced online program offers an in-depth e-security education, plus resources to help banks and e-merchants meet CISP requirements.

![][1] ‘We are pleased to bring our eLearning solutions to Visa’s Business School,’ said Dan Klein, CEO and president of ‘Through our alliance, Visa merchants from across the nation can conveniently learn how to put valuable security measures in place that can positively impact their e-businesses.’ The Visa Business School released this online training to its Member financial institutions last month. Visa Members, in turn, are packaging and offering the curriculum to e-merchant partners that accept Visa products. Visa’s Business School provides training for more than 21,000 Member financial institutions across the nation. Visa expects these Members to educate at least 20,000 of their e-merchants during the year using the new eLearning service. ‘E-Commerce won’t be built solely on technology or devices, it will be built on consumer trust,’ said John Shaughnessy, senior vice president, Risk Management, Visa U.S.A. ‘Convene’s Web-based CISP training plays a vital role in helping us heighten that trust. Complying with Visa’s critical security endeavors not only helps e-merchants protect cardholder data; it helps them safeguard their e-Commerce business and their greatest asset — their reputation.’

About is a premier online learning service provider for corporations and academic institutions seeking the best in online training and education. Since the early 1990’s, Convene has been a pioneer in the online education industry including the development of a comprehensive eLearning platform for the first and most successful online university in the world. Today, from our San Francisco, California headquarters, Convene continues to improve the instructor-led model of teaching by enhancing online collaboration and facilitation with our Izio(TM) course management platform. With Izio’s highly intuitive user interface,’s Collaborative Web-Based Training (CWBT) solutions blend the best of instructor-led and online learning, enabling learners to quickly master complex information from anywhere at anytime.’s offerings include collaborative and self-paced eTeaching and eLearning tools, customized course development services, learning portal development, 24/7 technical support and client training. For more information about, log onto or send an e-mail to

About Visa U.S.A.

Visa is the world’s leading payment brand and largest payment system, enabling banks to provide their consumer and merchant customers with the best way to pay and be paid. More than 14,000 U.S. financial institutions rely on Visa’s processing system, VisaNet, to facilitate over $765 billion in annual transaction volume — including more than half of all Internet payments — with virtually 100 percent reliability. U.S. consumers carry more than 345 million Visa-branded smart, credit, commercial, stored value and check cards, accepted at approximately 21 million locations worldwide. Visa has long led the industry in developing payment security standards, and has been named the most trusted payment brand online. Visa’s people, partnerships, brand and payment technology are helping to create universal commerce — the ability to safely conduct transactions anytime, anywhere and by any device. Please visit [][2] for additional information.

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TSYS 1Q/01

TSYS reported this morning that net income for the first quarter of 2001 increased 6.6% to $22.0 million. Excluding revenues attributable to the Citigroup Universal Card Services’ consumer card portfolio for the first quarter, pro forma revenues for the increased 14.0% compared to last year. With the conversion of The Royal Bank of Scotland Group plc and Allied Irish Banks, TSYS expects the growth rate in earnings in the third and fourth quarters of 2001 to be in excess of 30%. TSYS had 199.2 million accounts on file at the end of 1Q/01.


2Q/01 Outlook

The record number of first quarter personal bankruptcies and the increasing amount of credit card debt falling seriously past due has heightened concern over the ability of consumers to manage their overall debt burdens. Personal bankruptcy filings totaled 356,585 in the first quarter, the highest quarterly total since 1994, when filings were first reported on a monthly basis. While a rush of pre-reform filers drove a portion of the bankruptcy tally, the rise in other consumer credit figures over the first two months of this year has compounded credit anxiety. Personal bankruptcy filings grew 22% on a year-over-year comparison and 18% from fourth quarter 2000. Given the current economic outlook and the accelerated pace of filings, Fitch revised its 2001 forecast to a 10% increase over 2000 results. Fitch also said yesterday that its ‘Credit Card Chargeoff Index’ increased 30 bps to 5.55% during the February collection period, snapping the 32-month string of year-over-year comparison improvements. Fitch’s delinquency index, which tracks receivables greater than 60 days past due, rose 13 bps to 3.50% in the latest period, its highest level since March 1998 and nearly 10% above the prior year’s level.


Falcon Quick Track

HNC Financial Solutions released a specialized version of the ‘Falcon’ bank card fraud detection system developed specifically for international card issuers. ‘Falcon Quick Track’ offers fraud detection abilities of ‘Falcon’ at a significantly reduced implementation time, allowing mid-sized international customers to benefit from reduced fraud losses much more quickly. The international version offers mid-sized European card issuers, who often conduct card processing independently, an accelerated access to the significant fraud loss reductions made possible by Falcon. ‘Falcon’ is a neural network-based predictive software system that examines transaction, cardholder, and merchant data to detect a wide range of payment card fraud. Payment card fraud has been escalating throughout the world, especially Europe. Last year, card fraud grew across the European Union by 50%, with fraudulent transactions reaching an estimated $553 million.