Internet retailer Onsale, Inc. and First USA, introduced the ‘Onsale VISA’ yesterday. In addition to earning Onsale reward points with every purchase made using their ‘Onsale Platinum VISA’, cardholders will receive a $25 gift certificate following their first purchase with the card. The gift certificates are redeemable toward purchases made at ‘Onsale atCost’ or ‘Onsale atAuction’. Onsale cardholders automatically receive a $25 Onsale gift certificate every time they accrue 2,500 ‘Onsale Reward’ points. Cardholders earn one ‘Onsale Reward’ point for every dollar spent. First USA is offering online approval for the new program.Details
Coinstar Inc. and Cash Technologies Inc. , parent company of CoinBank Automated Systems Inc., Tuesday announced they have resolved litigation involving patent infringement claims and counter-claims originally filed by Coinstar on June 18, 1997.
The agreement provides for the dismissal of each party’s respective claims in the litigation and effectively ends the dispute over the patents-in-suit.
“We are pleased with the dismissal of the patent infringement lawsuit,” said Bruce Korman, CEO of Cash Technologies Inc. “This agreement allows us to concentrate our energies on our business plan, particularly the completion and upcoming deployment of our EMMA(tm) e-commerce transaction processing system.”
“We agree that this settlement is in the best interests of both companies,” said Dan Gerrity, president and COO of Coinstar Inc. “It brings closure to all the issues in dispute and eliminates the potential costs and distractions implicit in continuing the litigation. We want to stay focused on the business of growing and operating our coin processing network.”
Cash Technologies Inc.
([www.cashtechnologies.com]) develops and markets innovative e-commerce kiosks and systems, including the EMMA transaction processing software, the multifunction ATM-X automated teller machine (ATM) and the CoinBank advanced self-service coin counter. The company also provides computerized cash processing services to banks, armored carriers, rapid transit agencies and other cash-intensive businesses.
Coinstar and its subsidiaries provide consumers and retailers with value-added services that increase customer loyalty and retailer profitability. The Coinstar network currently delivers the company’s self-service coin counting product to more than 6,400 leading supermarkets in 38 states, the District of Columbia, the United Kingdom and Canada. Consumers can call 1-800/928-CASH, or visit [http://www.findcoinstar.com] for the location of the nearest Coinstar machine.
Trintech Group a leading provider of secure electronic payment solutions, Tuesday announced that Deutsche Bank, the world’s largest bank in terms of market capitalization, is deploying Trintech’s PayWare NetHost for the bank’s hosted shopping initiative, shop@db.
The Trintech solution allows Deutsche Bank, currently Germany’s largest merchant acquirer, to become one of Europe’s few bank-operated Commerce Service Providers (CSP). The shop@db(TM) project aims to provide Internet merchants around the world with secure Internet payment capabilities in hours with minimum associated costs and effort.
For the shop@db(TM) project, SAP is supplying the Sales Order Processing system, while Trintech’s PayWare NetHost provides the payment component for secure on-line transactions. Meanwhile, the storefront application for the hosted e-commerce solution is currently based on the Hosting Edition of Intershop, the German-based e-commerce solutions provider.
“In Trintech we found an ideal partner to complement our shop@db(TM) e-commerce solution,” says Frank Moerler of Deutsche Bank’s Corporate and Real Estate (CORE) Internet Team. “PayWare NetHost is a secure and robust solution that allows us to offer Internet payments authorization to merchants anywhere in the world as a shop@db(TM) component because of Trintech’s multi-currency and multi-protocol experience.”
“Trintech is delighted to be working with a world-leading financial institution such as Deutsche Bank,” says John McGuire, CEO of Trintech. “We build our products to meet the exacting requirements of financial institutions such as Deutsche Bank.”
The PayWare NetHost solution provides Deutsche Bank with a standards-compliant, scaleable and secure hosting e-commerce solution that can handle multiple merchant IDs and work on a variety of security standards, including SET(TM), developed by Visa and MasterCard. PayWare NetHost also provides Internet merchants with a solution that outsources the complex business of payment processing to expert financial institutions, thereby allowing them to concentrate on their core business of selling goods and services.
About PayWare NetHost
PayWare NetHost offers secure and flexible Internet payment services for hosting multiple merchant websites. Service providers can configure and customize PayWare NetHost to tailor their service offerings to their customers, allowing clients to outsource their entire storefronts or simply access the core payment processing functions.
— Supports multiple merchants in hosted or remote environments
— Easy & rapid deployment at merchant sites
— Remote manager/reporting options
— Multiple secure payment options SET/SSL
— Certified to use German national payment protocols for secure SSL based payments
— Supports multiple card types and multiple currencies
— Works with wallets and in “one click” configurations
— Data partitioning and reporting of each Internet merchant
— Easy to use browser-based administration functions
— Platform flexibility and scalability supporting NT(TM) and UNIX(R) platforms
About Deutsche Bank
Deutsche Bank is the world’s largest bank in terms of market capitalization. Besides its traditional fields of banking and financial services, it is expanding its product and value-added service offerings for corporate customers providing e-commerce related payments and service solutions. During Germany’s CeBIT fair in March 1999 Deutsche Bank first announced the integrated e-commerce shopping solution shop@db(TM). Together with system integration partners and strategic partners with logistics and fulfillment capabilities, Deutsche Bank is a first mover in offering its customers an integrative, all-in-one solution enabling the bank to engage in e-commerce.
Founded in 1987, Trintech Group (Nasdaq:TTPA)(Neuer Markt:TTP) is a leading provider of secure electronic payment solutions for card-based transactions in the physical world and over the Internet. The company offers a complete range of payment software products for credit, debit, commercial and procurement card applications, as well as being a world leader in the deployment of payment solutions for Internet commerce that are fully SSL- and SET-compliant. Trintech’s range of scalable open systems architecture solutions for UNIX(R) and Windows NTu platforms covers consumer, merchant and financial institution requirements for physical payments and the burgeoning world of electronic commerce. Trintech can be contacted at 2755 Campus Drive, San Mateo, CA 94003 (Tel: 650/227-7000). Trintech can be reached on the Web at [http://www.trintech.com].
Early third quarter survey results indicate another lackluster quarter for mid-level issuers. According to CardData (www.carddata.com), First National of Nebraska and Keycorp reported a decline in receivables during the third quarter and little, if any, growth in their account base. However SunTrust realized a slight increase in receivables and active accounts. CardData’s 3Q/99 portfolio survey collects financial data from more than 350 U.S. issuers representing over 95% of industry receivables.
ISSUER 3Q/99 RECV 2Q/99 RECV 3Q/99 ACTIVES 2Q/99 ACTIVES
Frst Natl NE $3,132,680,000 $3,140,673,000 1,566,078 1,578,887
KeyCorp $1,307,522,752 $1,322,153,812 597,465 620,212
SunTrust $1,040,531,000 $1,023,664,000 556,354 519,762
Source: CardData (www.carddata.com) 301-631-9100Details
While credit card debt has increased briskly this summer American consumers downshifted during August. According to preliminary figures released last week by the Federal Reserve, Americans added $4.3 billion to revolving credit during August. During August 1998, by comparison, American consumers tacked on $4.9 billion to revolving credit. Over the past twelve months U.S. revolving credit has grown more than $40 billion, from $548.3 billion to $588.7 billion. The annual rate of revolving debt growth is now at 8.9%, compared to 10.7% one year ago. Overall consumer credit is growing 9.6% annually. Revolving credit is mostly credit card debt. At mid-year, bank credit card debt stood at $456.5 billion, according to CardData (www.carddata.com). However the FRB figures do not net out monthly payments made on credit card balances. Monthly payment rates have been rising sharply this year which dampens the real growth in revolving credit. Overall, American consumers were $1.368 trillion in debt, exclusive of home mortgages, at the end of August.
REVOLVING CREDIT HISTORICAL
Aug99 Jul99 Jun99 May99 Apr99 Mar99 Feb99 Jan99
%GRWTH: 8.9% 12.1 13.8 4.5 5.6 -0.9 3.4 11.6
$OWED: $588.7 584.4 578.5 572.2 569.9 567.3 567.5 565.9
Source: Federal Reserve; revised figures as of 10/07/99; For complete
historical data visit www.carddata.com.
The Pathways Group, Inc. announced Tuesday that it has signed agreements to provide smart card transaction processing as well as Software and Hardware maintenance and support services to MyChoice Health Services, Inc. MyChoice is a Portland, Oregon-based company offering technological strategies for the access of alternative medicine network services in Oregon. The agreements provide for Pathways to provide smart card transaction processing and reporting in addition to software and hardware maintenance services, including help desk and technical phone support for MyChoice and its membership and provider network. The agreements are for three years.
The MyChoice system was originally developed by Pathways in 1995 pursuant to a development arrangement with Gregg Technology Ventures, LLC for use by MyChoice and was one of the first functioning smart card systems in the United States at the time. Since its initial implementation, MyChoice has continued to operate the system by supporting related health delivery programs for access to alternative medicine services.
Carey F. Daly, President and Chief Executive Officer of Pathways commented, “Pathways is pleased to extend our services to MyChoice and we hope to continue to support and collaborate with them on the significant opportunities that smart card technology promises in this industry.”
The Pathways Group, Inc., which recently celebrated its 12th anniversary, provides clients with innovative and unique solutions for securely creating, capturing and processing data and electronic transactions using custom application software and hardware systems. The company, established in 1987 by Carey Daly, has evolved into a leader in the development of custom software and hardware for electronic banking, data and transaction processing, and smart card applications. Pathways’ creation of proprietary “back office” systems allows for the capture and processing of data and transfer of funds via “ACH” protocol, the standard used in the banking industry for transfer of funds in retail, medical and institutional environments.Details
Gemplus announced Tuesday the first delivery of personalized smart cards utilizing the ‘MULTOS’ operating system for Mondex e-cash cards. Quebec’s Caisses Desjardins began distribution of Gemplus-manufactured and personalized cards for use in the recently launched Mondex electronic cash program in the Sherbrooke region of Quebec. The re-loadable smart cards allow consumers to use an ATM or a telephone to download electronic cash from their bank accounts onto the cards. The cards issued by Caisses Desjardins can be used for payments at 600 merchants that are participating in the Sherbrooke program.Details
Metris Companies Inc., one of the fastest growing direct marketing companies in the United States, has launched Home ServiceEdge a new extended service program for 10 key home appliances.
Developed and introduced by Metris Direct, Inc., a Metris subsidiary, the program will help consumers locate and arrange for repairs on their furnace, air conditioner, water heater, clothes washer, clothes dryer, oven, cooktop, refrigerator, microwave oven and dishwasher. If an appliance cannot be repaired, Home ServiceEdge will pay a specified dollar amount toward its replacement.
Customers subscribe to the program for a year, with the contract price being billed in 12 equal installments to their credit card. Additional Home ServiceEdge features include no deductible, no charge for repairman’s travel, and service 24 hours-a-day.
“Home ServiceEdge is for security-minded consumers who want peace of mind,” said Metris President and CEO Ronald N. Zebeck. “Subscribers can rest assured that if something goes wrong with one of these appliances, we’ll be there to help.”
Metris Companies is an information-based direct marketer of consumer products and fee-based services, primarily to moderate income consumers. Metris Direct has sold its products & services to more than 4 million consumers holding credit cards issued by five of the top 10 card issuers.
Based in St. Louis Park, Minn., Metris also has operations in Phoenix, Ariz.; Jacksonville, Fla.; Champaign, Ill.; Baltimore, Md.; and Tulsa, Okla. Metris employees more than 3,000 people.
Visit Metris on the Internet at [www.metriscompanies.com]
Saks Inc. announced Tuesday it has chosen Fifth Third Bank’s subsidiary, Midwest Payment Systems, to provide credit card processing and Internet-based imaging technology for its network of over 350 retail stores. Fifth Third will consolidate payment systems among the company’s divisions, which include Saks Fifth Avenue, Proffitt’s, Carson Pirie Scott, Parisian, McRae’s, Younkers and Herberger’s. Saks will also be utilizing new imaging features of Mvision, Fifth Third’s Internet-accessible payment management systems. Using this technology, retailers are able to scan receipts, handwritten notes, or other documents into the system for responding to inquiries from customers or financial institutions. Fifth Third Bank processes nearly four billion ATM and POS transactions per year for more than 60,000 retail locations and financial institutions worldwide with an aggregate annual volume of $35 billion.Details
BB&T Corporation is offering prepaid phone cards at 450 BB&T 24 automated teller machines across the Carolinas, Virginia, Maryland and Washington, D.C.
The InComm prepaid phone card offers callers a lower per-minute rate than most collect, credit card or hotel long-distance calls.
“Offering convenient, economical phone cards at our ATMs is one more way for BB&T to provide outstanding service through our ATM network,” said BB&T ATM Manager Mark Piper.
“Our prepaid phone cards are ideal for those hectic situations when you need to make long-distance telephone calls on the go, such as vacations, business trips or emergencies. They also make great gifts and they’re perfect for providing a telephone allowance for high school and college students.”
To use the card, callers dial a toll-free number, a personal ID number shown on the card and the number they’re calling. An automated message guides them through the call and tells them how many minutes they have left to use.
Local, long-distance and international calls may be made from any type of touch-tone phone. The cards are available for as little as $3 for 10 minutes. A 30-minute card is $6; a 60-minute card costs $11; and a 120-minute card is $19.
The price of the phone card is automatically deducted from the ATM user’s checking or savings account.
BB&T plans to offer prepaid phone cards at an additional 200 ATMs by the end of the year.
InComm(R) is a division of Atlanta-based U.S. South Communications Inc.
Winston-Salem-based BB&T Corporation, with $41.5 billion in assets, operates 619 banking offices in the Carolinas, Virginia, Maryland, Washington, D.C., Georgia, West Virginia and Kentucky.
Business Week magazine this year rated BB&T Corporation as the second highest performing S&P 500 bank holding company in the nation.
BB&T and its subsidiaries offer full-service commercial and retail banking and additional financial services such as insurance, investments, retail brokerage, leasing and trust. More information is available at the bank’s web site, [http://www.BBandT.com] .
Total System Services reported Tuesday that revenues for the first nine months of this year were $390.1 million, an increase of 35.8%, compared with revenues of $287.2 million for the first nine months of 1998. Accounts on file at Sept. 30, were approximately 199.3 million, an increase of 93.3% from Sept. 30, 1998. The conversion of the Sears 64.5 million account portfolio, as well as the 5.4 million retail card accounts for Nordstrom National Credit Bank, accounted for the strong increase. TSYS expects its 2000 net income to exceed its 1999 projected net income by at least 13-15%, versus the current consensus estimate of a six percent increase in 2000 over 1999 net income. For complete 3Q/99 data on TSYS visit CardData ([www.carddata.com]).
David E. Fountain has been elected chief financial officer by the board of directors of National Processing, Inc., a leading provider of merchant credit card processing and corporate outsourcing solutions.
“David Fountain has played an instrumental role in the strategic events that have refocused our company over the past twelve months,” said Tom A. Wimsett, president and chief executive officer. “David’s solid financial management experience coupled with his extensive industry experience will provide the needed financial leadership as we continue to focus on maximizing shareholder value in our core business units.”
Fountain, 39, previously served as senior vice president and chief accounting officer prior to being named interim chief financial officer of the company this past July. He began his career with the company in 1996. Prior to joining NPC, Fountain held key financial management roles with Associates First Capital Corporation and MBNA Corporation, both in Dallas, Texas and with Total System Services, Inc. in Columbus, Georgia. Fountain, who is a CPA, received his undergraduate degree in finance from Stephen F. Austin University and his MBA in corporate finance from the University of Dallas.
In related actions, National Processing Company has elected Mark D. Pyke as executive vice president of NPC’s Merchant Services Division.
Pyke, 39, previously served as senior vice president of NPC’s Merchant Services Division. He began his career with National Processing in 1996 and has held a variety of managerial positions in the Merchant Services Division. “Mark Pyke has one of the brightest minds in the industry,” stated Wimsett. “He is constantly focused on improving the value of our service offering and his financial acumen is outstanding.” Prior to joining NPC, Pyke spent four years with NaBANCO, a merchant credit card processing subsidiary of First Data Corporation. Previously, he was with Metropolitan Life Insurance Company (Corporate Investments) and General Electric Capital Corporation (Commercial Financing). Pyke graduated from Northeastern University with a Bachelor of Science degree in finance and accounting, and he graduated from the University of Michigan with an MBA in finance and international business.
National Processing Company is a leading provider of merchant credit card processing services and corporate outsourcing solutions. Approximately one out of every six MasterCard and Visa transactions is processed by NPC. Approximately 88 percent of the company is owned by National City Corporation (NYSE: NCC).Details