Community West Bancshares announced Monday that its Electronic Paycheck subsidiary has filed a patent application covering a method of and system for making purchases over the Internet using an ATM card or credit card with a secure PIN. The company says it has been developing the technology for the past 15 months. Electronic Paycheck says it will unlock Internet purchases from untapped consumer segments such as teenagers because they do not have credit cards. The EP system will enable anyone to purchase a card, put money on it, and make secured Internet purchases utilizing a virtual PINPAD. The Electronic Paycheck software, which is based on Internet protocol, is currently being utilized for payments in the payroll, cruise line, network marketing, bill paying, check cashing and short-term consumer loan industries. In addition, Electronic Paycheck is now in the testing phase of a process to use its software and cards as part of a national loyalty card program, whereby customers earn reward points by patronizing participating merchants. Electronic Paycheck generates revenues based upon card issuance and ongoing transaction fees.Details
Delinquencies, chargeoffs and attrition edged up in September while annual fees, fraud and bankruptcy losses declined according to CardData ([www.carddata.com]). Nevertheless bank credit card portfolio yields continue to rise as they have all year. Among issuers offering the lowest APRs Platinum cards now average 10.45%, Standard cards 11.29%, Gold cards 11.51% and Sub-Prime cards 17.41%.
Standard APR: 18.04% Delinquencies: 4.70%
Gold APR: 17.05% Chargeoffs: 5.08%
Platinum APR: 14.63% Attrition: 8.47%
Standard Fee: $18.40 Yields: 13.98%
Gold Fee: $36.16 Fraud Losses: 0.17%
Platinum Fee: $68.45 Bankruptcy: 41.3%
For explanation of methodology see CardData (special access fee applies)
Source: CardData ([www.carddata.com])
Evolv Adaptive Technology, the providers of Skipjack Merchant Services, Monday announced the release of Skipjack SAFE (Security Against Fraudulent E-Commerce), an electronic transaction profiling technology that allows financial institutions to identify and reduce risk associated with fraudulent activity.
With Skipjack SAFE, online purchases can be scrutinized at the pre-authorization, post-authorization and pre-settlement stages of the electronic transaction process. Evolv developed Skipjack SAFE as an enhancement to Skipjack(TM) Merchant Services, their payment gateway that enables merchants to accept credit cards for the sale of goods and services in a highly secure, transactional environment.
“When a merchant decides to create an Internet presence for their establishment, being able to accept credit cards should be a minimal requirement,” said Brian D. Griffin, Evolv’s vice president of marketing and sales. “We think the data from the transactions should be viewed as a raw material, and the parties involved should ultimately benefit from those materials. We don’t just process transactions, we provide intelligence.”
Skipjack SAFE was designed to maximize return, create new revenue opportunities and minimize risk for financial institutions and acquiring organizations. Skipjack SAFE works like the security checkpoint at an airport; inspecting each and every “person” that wants to visit the gate or get on an airplane. When a new merchant is added to the system, all of that merchant’s transactions are scrutinized against a Skipjack SAFE profile. This profile can be created from scratch or can be “snapped on” to the merchant’s account based on an industry profile. When a transaction “looks” suspicious, it is forwarded to the financial institution’s risk group for further evaluation.
The outcome of that evaluation is fed back into the merchant’s SAFE profile and the profile changes over time to reflect the financial institution’s changing assessment of risk as it pertains to that merchant.
Skipjack SAFE is based on Evolv’s Adaptive Data Mining Agent technology that sets Skipjack SAFE apart from other risk assessment technologies based on Online Analytical Processing (OLAP). The significant benefit and differentiator is that of knowledge discovery. The online, real-time analysis of e-commerce transactions by Skipjack SAFE can reveal patterns in transactional behavior as they occur. It affords financial institutions and acquiring organizations with a great deal of flexibility and control without constraining their risk group to static, negative databases.
Skipjack Merchant Services was created to address the needs of merchants, merchant acquiring organizations and financial institutions wanting to take advantage of the exceptional opportunities in e-commerce. An Internet payment gateway that performs the function of a standard credit card authorization terminal in a secure, real-time environment, Skipjack enables merchants to automatically accept, authorize and settle credit card payments on their Web site. Platform and browser independent, Skipjack features real-time authorization and settlement as well as e-mail receipts for customers and fulfillment entities. The service can be private-labeled for customized use by financial institutions, acquirers and third-party processors. Skipjack supports Visa, MasterCard, American Express, Discover card, Diners Club, JCB and debit cards. Bradley Madison Co. dba Evolv Adaptive Technology, is headquartered in Cincinnati. For additional information, visit the Skipjack Web site at [http://www.skipjackic.com].
UTM Systems Corp. (), a developer of electronic commerce payment facilitation technology, Monday announced that Luke Helms has joined its board of directors.
An industry veteran and vice chairman at Cleveland-based Key Bank, Helms will provide strategic leadership and industry insight to UTM Systems Corp. by drawing from his over 30 years of executive-level experience in the banking sector. UTM Systems Corp. is the developer of the UTM Machine, a first-of-its-kind hardware device that, when inserted into the floppy drive of any Internet-connected computer, works like an ATM to facilitate convenient and secure online transactions using a debit or credit card. The UTM Machine interfaces directly with banking institutions via the existing worldwide ATM networks and can be used with any existing e-commerce Web site. UTM Systems Corp. is currently in negotiation with several national banking institutions that will provide the UTM Machine free to customers.
“Luke Helms is among the most respected executives in the banking industry today,” said Robert Lee, president and founder of UTM Systems Corp. “His deep insight into the needs of the banking community will allow UTM Systems to better serve our bank partners, and to provide banking institutions with flexible technology that will help them grow their business in the Age of the Internet. We are honored and privileged to have Luke Helms join the UTM Systems board of directors.”
Currently responsible for commercial lending in the western U.S., as vice chairman Helms is an instrumental contributor to Key Bank strategies for expansion in the western U.S., including acquisitions and alternate delivery systems. Helms formerly served as vice chairman at San Francisco-based Bank of America where he was responsible for out-of-state banking activities in 11 western states with a combined customer base of 11 million and total deposits of $70 billion. Prior to that, Helms served Seafirst Corporation of Seattle as chairman and CEO, where he lead all bank operations and oversaw assets of over $12 billion.
Helms banking industry experience is coupled with extensive work in the Internet and technology arenas. Helms is a founding director of LibertyBay.com, an Internet service provider offering high speed and low cost Web service in 16 major U.S. markets, as well as a director at CCS Corporation, the leading independent nationwide supplier of non-bank ATMs in the U.S. He also is a past director of GetSmart.com, an originator of financial products such as home loans and credit cards; GetSmart.com was acquired by Providian Corp. in 1998.
About UTM Systems Corp.
UTM Systems Corp. (), based in Seattle, is focused on the delivery of Internet payment technology. The mission of UTM Systems Corp. is to bring the security and convenience of the ATM (automatic teller machine) experience to electronic commerce. The flagship product of UTM Systems Corp., the UTM Machine, is a hardware device that slides into any computer’s floppy drive to facilitate e-commerce payments at any existing online merchant site. The UTM Machine conveniently and securely facilitates online credit and/or debit card transactions directly with the cardholder’s financial institution via the existing worldwide ATM networks. UTM Systems Corp. can be contacted at 425/451-8585.Details
A small British public relations firm, called Marbles, is standing firm in the face of a multi-million dollar launch of a new Internet credit card for the UK, also called marbles, by Household Finance Corporation’s UK arm, HFC Bank.
“We’ve always known it’s a good name – we’ve traded successfully with this brand for more than eight years,” says Jan Stannard, joint managing director of Marbles, “so we’re not surprised that someone else has decided to use it.”
“However, it is interesting they have launched marbles as an online brand when we own the domain name, [www.marbles.co.uk]. We will not be changing our brand or Internet domain, and we do regret the confusion that will inevitably be created when consumers come to our site by mistake, through no fault of ours.
“We are surprised that, from the initial press coverage we’ve seen, they have used a visual identity for the card that is remarkably similar to our logo, which has been in continuous use for eight years.”
Marbles is one of the country’s best-performing PR agencies, known for its work in the consumer and technology sectors. The Internet is a particular strength.
Books, CDs and bidding services continue to dominate the top Internet merchant rankings according to NextCard’s ‘eCommerce Index’. The NextCard index is a monthly listing of the top 25 online merchants and the top 10 movers based on the number of online purchase transactions by approximately 100,000 ‘NextCard VISA’ customers.
September Top 5 Online Merchants
Rank Movement Merchant
1. +1 AMAZON.COM
2. -1 AOL ONLINE SERVICE
3. +2 CD NOW/MUSIC BOULEVARD
4. — EARTHLINK NETWORK
5. -2 BUY.COM
Source: NextCard eCommerce IndexDetails
PaySys International, Inc. announced Monday that Finplus has licensed the ‘VisionPLUS'(TM) card management system and the data warehouse product ‘Infosource’ to roll-out the first private-label card program in Poland. Finplus is a joint-venture between Cofinoga, one of the largest private-label card issuers in Europe, and Poland’s Bank Slaski. Finplus, which will use ‘VisionPLUS’ for its card issuing and merchant acquiring operations, will be one of the first PaySys clients to go live on ‘VisionPLUS’ in Central Europe. PaySys entered the European market one year ago.Details
Net2Phone Inc. the leading provider of Internet telephony services, and ICQ, the world’s largest online communications community and an interactive brand from America Online Monday unveiled the “ICQ Phone Card Powered by Net2Phone,” a virtual pre-paid calling card that routes calls over Net2Phone’s IP network.
The card, available at icqphone.icq.com, will initially offer telephone calls from the United States to anywhere in the world at rates up to 70% less than traditional phone cards. The companies plan to make the cards available to ICQ users in 19 additional countries in the coming months.
This announcement is the first in a series of initiatives under a four-year agreement between Net2Phone and ICQ to provide a suite of Internet telephony services to ICQ customers, including PC-to-phone, PC-to-PC, and phone-to-PC services.
ICQ Phone card users will be able to sign up for phone service online and check their account status online at [www.icqphone.com], where they can access their call history and billing detail. Users will also be able to recharge their accounts online.
Rates for the ICQ Phone card are 4.9 cents per minute for domestic calls using local access (currently available in most metro areas), and 7.9 cents per minute for domestic calls using toll free access. International rates are as low as 9 cents per minute. Users will receive 30 minutes of free domestic minutes after an initial $10.00 purchase. The ICQ Phone card will be marketed directly to ICQ users through links and banners from ICQ’s home page at [www.icq.com].
Ariel Yarnitsky, Co-GM of ICQ Israeli Operations, said: “We’re extremely pleased to offer this convenient and cost effective international phone service to ICQ registrants as the first in a series of Internet telephony offerings. ICQ and Net2Phone are poised to take instant communications between ICQ registrants to the next level. Be it phone-to-PC, PC-to-phone, or PC-to-PC, we’re going to make it cheaper, faster, and easier than ever before.”
Howie Balter, CEO of Net2Phone, said: “This new co-branded Internet phone card will help pass on convenience and cost savings to the registered users of ICQ. We are very happy to be working with the world’s largest online community of more than 42 million registrants to provide value-added and top quality service and look forward to launching our new co-branded products in the months to come.”
Created in 1996 by the Israel-based company, Mirabilis, and acquired by America Online, Inc. in June 1998, the ICQ proprietary interactive service is the world’s largest communications community with more than 42 million registrants worldwide. The ICQ service is a communications portal built around the ability to seek and communicate with your friends, family and colleagues online. ICQ’s unique, very popular, free software (available for download at [www.icq.com]) is loaded with vital and fun communications tools such as its flagship instant messaging and real-time chat features, plus Web functionality such as ICQ iT! search, and ICQ White Pages, which allow members to find like-minded members within the ICQ community. ICQ is part of the AOL Interactive Properties Group.
Net2Phone is a leading provider of voice-enhanced Internet communications services to individuals and businesses worldwide. Net2Phone enables people to place low-cost high quality calls from their computer, telephone, or fax machine to any telephone or fax machine in the world. Net2Phone develops and markets technology and services for IP voice and e-commerce solutions for the web and other IP networks. For more information about Net2Phone’s products and services, please visit [www.net2phone.com].
EntryPoint Inc., the idealab! company that recently acquired PointCast, Monday announced that Discover Financial Services has agreed to have Discover Card become the preferred credit card when users open and utilize EntryPoint’s eWallet feature.
With over 500,000 downloads during the beta release, EntryPoint has now added new features including stock alert functionality and an integrated audio player that allows simple access to MP3 files and CDs. EntryPoint is now available for consumers to download at [http://www.entrypoint.com].
After completing a short form, Discover Cardmembers can enter their Discover Card account number and personal information into eWallet, where it will remain securely stored on their personal computer and only accessible by a password. When shopping anywhere online, Cardmembers can make their selections and proceed to the check out page as normal.
At that point, they simply drag their Discover Card from their eWallet onto the merchant Web page and it automatically fills in the form. Shoppers no longer have to retype their credit card and shipping information every time they want to make a purchase.
“EntryPoint is looking forward to working closely with Discover Card to help drive e-commerce sales in what is expected to be a record-breaking online holiday shopping season,” said Francis Costello, President of EntryPoint Inc. “Imagine going to the store and being required to fill out a long, tedious form every time you buy groceries or clothes. EntryPoint’s eWallet eliminates this process every time you shop online by automatically filling in the information for you and storing it securely on your hard drive.”
Taking up less than an inch of desktop real estate, EntryPoint provides instant access to the most commonly used Internet categories: news and information, e-commerce, resources and search. EntryPoint’s new stock alert feature allows users to customize their stock portfolios and enables them to be alerted when there are any changes as specified by the user.
For example, if users designate specific high or low stock prices, they can be alerted immediately when either of the boundaries are reached. In addition, the added functionality also enables users to have quicker and easier access to audio controls to listen to their favorite MP3 or other music and audio files.
“Our agreement with EntryPoint makes shopping online more convenient than ever for our Cardmembers,” said Colleen Zambole, Vice President of Electronic Commerce for Discover Financial Services. “EntryPoint’s eWallet not only expedites the check out process, it also makes reaching for the Discover Card as simple as getting it from your purse or wallet. And our Cardmembers can rest assured that the transaction is completely secure and will allow them to earn their Cashback Bonus(R) award wherever they shop online.”
EntryPoint’s eWallet features the Discover Card and also allows users to input and use any other credit card of choice when shopping online. The eWallet feature also allows users to store log-in information at their favorite sites.
‘EntryPoint’ to the Internet
Personalized headline news, stock quotes, sports, e-commerce and more are only one-click away via the EntryPoint client that sits unobtrusively on a user’s desktop. Customizable features include a news headlines ticker and news briefs, stock quotes, sports scores, weather, shopping, a Web search function and a finance and resources guide for commonly used Internet functions.
[www.discovercard.com] Discover(R) Card provides a selection of easy-to-use online services at [www.discovercard.com] to simplify everyday financial management for its Cardmembers. Selected features on the site include:
— Account Center – where registered Cardmembers can access current and past transaction information and sort it to their preference by date, description or amount.
— Discover Inter@ctive(SM) – allows Cardmembers to choose from a menu of free email options to regularly inform them about the status of their accounts and stay up-to-date with their payments.
— SmartCheck(SM) payment option – is a free, convenient way for Cardmembers to pay their Discover Card bills online.
— Internet ShopCenter(SM) – where Cardmembers can find exclusive online discounts and special Cashback Bonus(R) awards on thousands of products.
Discover Financial Services, a business unit of Morgan Stanley Dean Witter & Co., operates the Discover Card brands with more than 47 million Cardmembers and the Discover/Novus(R) Network. The Network is the largest independent credit card network in the United States with more than 3 million merchant and cash access locations.
About EntryPoint Inc.
Based in San Diego and Sunnyvale, Calif., EntryPoint Inc. is an idealab! company offering Internet services that reach users directly at their desktop. By leveraging PointCast’s compelling, content delivery technology, together with eWallet’s intuitive e-commerce tools, EntryPoint provides instant desktop access to the most commonly used Internet functions via a unique personalized toolbar. For more information visit us at [www.entrypoint.com].
Atlanta-based InfiLink Corp. launched a streamlined version of its Internet and interactive voice response loan application system. The ‘Lending.com’ system enables lenders, including issuers of bank credit cards, to offer around-the-clock loan application capability to customers and prospects through the lenders’ own web sites and unique toll-free phone numbers. Consumers are connected directly to a personalized ‘Loan Center’ web page, where the automated loan support system immediately processes the loan request. InfiLink’s automated system captures data from the applicant; accesses the designated credit bureau for the applicant’s credit file and score; and evaluates the applicant’s qualification status according to lender-designated criteria. Loan prospects learn the status of their applications within 60 seconds. Information about each loan application is then faxed to the lender. InfiLink says it can have a financial institutions online within 30 days with Internet and IVR capability. InfiLink Corp., a wholly owned subsidiary of InfiCorp Holdings Inc., provides loan pre-qualification and pre-approval services to more than 200 banks, credit unions, mortgage companies and consumer service groups. InfiLink was formed in mid-July following the acquisition by InfiCorp Holdings of the Internet, telephone marketing and credit application services division of NJ-based The BISYS Group, Inc.Details
M&I Data Services, a leading financial software and services provider, and American Management Systems, Inc. , Fairfax, Va., a leading worldwide provider of customer management consulting, systems integration, and retail credit and decision support systems Monday jointly announced they have signed a strategic alliance agreement. Through this alliance, the two firms are uniquely positioned to provide industry-leading retail credit management consulting and data processing services to a wide spectrum of financial services providers.
The alliance’s services will enable its clients to leverage information to retain and grow customer relationships. Under the terms of the agreement, M&I Data Services will offer, on an outsourced basis, AMS’s fully automated, state-of-the-art credit management solution, CreditLine, complete with Internet capability and sophisticated decision engine. The CreditLine solution consists of AMS’s originations, servicing, and collections offerings — Automated Credit Application Processing System (ACAPS(R)) Enterprise with Credit Xpress, BureauLink(R) Enterprise, Advanced Consumer Lending System (ACLS(R)) Enterprise, and Computer-Assisted Collection System (CACS(R)) Enterprise, as well as the Strata(R)Enterprise decision engine.
This unparalleled offering combines the outsourcing expertise of M&I Data Services with AMS’s industry leadership in credit and customer value management.
“M&I Data Services is excited to enter this alliance with an organization like AMS that furthers our aim of delivering the highest-quality information and data processing services in the industry,” said Greg Schmieding, senior vice president and general manager within the Enterprise Solutions Group, M&I Data Services. “These solutions can shave months off market entry plans, while allowing current providers to speed growth and improve profitability.”
“Given the increasing competition for financial services customers, all providers regardless of size need to focus on what they do best — serving customers,” said Nicholas C. Bradick, AMS vice president and group manager, Consumer Financial Services Group. “The combination of cost-efficient data processing and effective use of information for increased customer value can make a powerful difference in the marketplace.”
Headquartered in Milwaukee, Wis., M&I Data Services is a division of Marshall & Ilsley Corporation (Nasdaq: MRIS), a $22.8 billion holding company. M&I Data Services provides leading-edge technology solutions to the financial services industry, offering consulting, software and processing solutions for financial institutions worldwide.
The company’s rapid growth is being fueled by innovative product development, strategic product acquisitions, and strong growth of its customer relationships. The company had total revenues of $509 million in 1998. For more information visit the M&I Data Services Web site at . AMS’s Consumer Financial Services practice specializes in customer management strategy and technology consulting for large institutions. The firm’s interactive Customer Value Management (iCVM) methodology enables financial services providers to enhance the value of customer relationships by linking customer management strategies with retail delivery execution across all channels.
AMS is a world-class international business and information technology consulting firm. As one of the 20 largest consulting firms worldwide, AMS provides a full range of services and solutions: eCommerce, customer value management, business re-engineering, change management, knowledge management, systems integration, and systems development and implementation. Founded in 1970, AMS is headquartered in Fairfax, Virginia, with over 8,000 employees and 57 offices worldwide. AMS had 1998 revenues of $1.06 billion, with eCommerce- related revenues representing 20%, an increase of almost 150% over 1997. Forbes magazine ranked AMS number 94 out of 400 of the best-performing big companies in the U.S. in their “Best of the Biggest.” AMS can be found on the World Wide Web at amsinc.com .Details
American Express has beefed-up its ‘Membership Rewards’ program to include two new program levels: ‘Membership Rewards Plus’ and ‘Membership Rewards Options’. ‘Membership Rewards Options’ is available today and ‘Membership Rewards Plus’ will become available later this month. Membership Rewards Plus is designed for cardholders who travel frequently and desire maximum flexibility of rewards. ‘Plus’ cardholders have all the benefits of the existing ‘Membership Rewards’ program plus two new, specially designed features ‘Your Ticket’ and ‘Your Reward’. ‘Your Ticket’ permits enrollees to obtain airline tickets to any destination in the world from any airline without blackout dates and frequent flyer seat restrictions. ‘Your Reward’ allows enrollees to use ‘Membership Rewards’ points to pay for any item charged on their AmEx card, including the card’s annual fee. The annual fee for the ‘Plus’ option is generally $75. ‘Membership Rewards Options’ is designed for cardholders who desire lower redemption levels and a lower annual fee. With an annual fee of $15, ‘Membership Rewards Options’ points earned have a different redemption value compared to the other ‘Membership Rewards’ programs. For example, a $25 gift certificate to Champs Sports would require 3,500 points for ‘Membership Rewards Options’ enrollees and 2,500 points for ‘Membership Rewards’ enrollees. The rewards program was first launched in the U.S. in June 1991 under the name ‘Membership Miles’. In 1995, retail and other non-travel rewards were added to the program, and it was re-named ‘Membership Rewards’. There are now 32 ‘Membership Rewards’ programs around the world. For more details on the new AmEx program options visit CardTrak ([www.cardtrak.com]).