NationsBank and US Airways also upgraded their airline carrier-based, co-branded program yesterday to ‘Platinum’. The ‘Dividend Miles Visa Platinum Card’ now offers cardholders a 20% monthly mileage dividend or 1.2 air miles for each dollar spent in purchases. The program becomes the first carrier-based airline credit card program to offer the accelerated mileage. The ‘American Express Delta SkyMiles Optima Card’ requires cardholders to revolve their balance to earn a 20% mileage bonus. US Airways and NationsBank are also offering cardholders a 5,000 mile bonus with the first use of the card, double miles on US Airways ticket purchases, and unlimited mileage earning potential. The program is also one of the few airlines programs offering air mileage that does not expire. Other exclusive benefits of the Dividend Miles Visa Platinum card include $99 companion tickets annually after members’ anniversary date, $75 off a new membership to the 26 US Airways Clubs, as well as dedicated 24-hour, 7-day customer service, a year-end account summary and $1 million travel accident insurance.Details
Diebold, Incorporated announced Monday that it’s i Series and ix Series ATMs received Mondex approval for use in global Mondex Electronic Cash Purse implementations. Mondex approval allows Diebold customers to develop and deploy Mondex functionality in their ATMs.
! “This certification process assures Diebold customers that Diebold ATMs meet our requirements,” said Gillian Chard, head of procurement and licensing at Mondex International. “As a result, ATM deployers will have the ability to use their established ATM network to provide the necessary value-load and unload transactions onto smart cards. In turn, these cards can be used for many different purposes such as stored-value purchases at the point-of-sale and person-to-person payments.”
Mondex type approval ensures that the i and ix Series ATMs adhere to the standards required for Mondex transactions. Both the i and ix Series ATMs are developed to be easily upgradable to accommodate rapidly expanding self- service systems technology and applications. As a result, ATMs that are currently installed can be upgraded to accommodate Mondex functionality.
“We’ve created our ATMs to expand as the technology expands. By providing Mondex capability, current and future customers can process transactions from Mondex card systems,” said Thomas W. Swidarski, senior director of worldwide marketing for Diebold. “Consumers are comfortable using an ATM for financial transactions. It is only natural that ATMs are a part of this new payment technology.”
While this particular certification pertains to Mondex, Diebold ATMs have the flexibility to support any smart card applications that meet the ISO- standard for integrated-circuit chip cards.
Mondex International is a subsidiary of MasterCard International. Mondex International grants licenses to franchisees to allow them to exploit the Mondex electronic cash technology in a given territory. Since its incorporation in 1996, Mondex has issued 30 licenses across six continents and is being developed by franchisees in over 50 countries. Mondex is the only electronic cash system in the world to operate with a single global technology allowing for cross-border payments. It allows up to five different currencies to be carried on the card at any one time in separate electronic pockets.
Mondex is currently being used in 23 implementations around the world including Australia, Canada, Hong Kong, Costa Rica, Philippines, UK and USA.
The following companies are shareholders (directly or indirectly) in Mondex International: MasterCard International, National Westminster Bank, Ulster Bank, Midland Bank, Scotiabank, Credit Union Central of Canada, The National Bank of Canada, Bank of Montreal, Canada Trust, Le Mouvement des caisses Desjardins, Toronto-Dominion Bank, Royal Bank of Canada, Canadian Imperial Bank of Commerce, The Hongkong and Shanghai Banking Corporation, Wells Fargo, Citibank NA, Chase Manhattan, First Chicago NBD, Australia and New Zealand Banking Group, Commonwealth Bank of Australia, National Australia Bank, Westpac Banking Corporation (Australia), ANZ Banking Group (New Zealand), Bank of New Zealand, Countrywide Banking Corporation, The National Bank of New Zealand, ASB Bank and Westpac Banking Corporation (New Zealand).
Diebold, Incorporated (pronounced DEE-bold), headquartered in Canton, Ohio, is a global leader in providing card-based transaction systems, security and service solutions to the financial, education and healthcare industries. Founded in 1859, the company develops, manufactures, sells and services automated teller machines, campus systems, smart card systems, electronic and physical security equipment, automated medication and supplies dispensing systems, integrated systems solutions, software and supplies. For more information about Diebold, Incorporated, visit the company’s web site at [www.diebold.com].
Delta Dental Plan of California, California’s largest dental health plan, has recently contracted with Imperial Technology Solutions (ITS), a division of Los Angeles-based Imperial Bank, to incorporate ITS’ software into a multifunction online electronic payment system for use by participating Delta dentists. ITS’ Receivables Payment Manager (RPM) reduces billing and collection costs by electronically verifying insurance eligibility, benefit information and patient copayment levels online, while accepting patients’ credit cards, ATM cards and check-guarantee services for automatic direct payment into a dental practice’s account.
With more than 10.6 million California enrollees and 22,000 dental offices throughout the state participating in Delta programs, the impact for Delta patients and dentists alone offers to significantly change the insurance aspects of dental-care delivery in California.Details
The Colorado State Bank Commissioner closed sub-prime VISA credit card issuer BestBank Thursday and appointed the FDIC as receiver. According to the Bank Commissioner, BestBank, based in Boulder, CO, was critically undercapitalized. The FDIC spent the weekend attempting to arrange a transaction under which the failed bankâs insured deposits will be assumed by a healthy bank and reopen for business this morning. In the interim the FDIC and VISA will continue to honor BestBank’s 500,000 VISA cards. The issuer specializes in sub-prime and secured credit cards on a nationwide basis. In the first six months of 1998, BestBank’s receivables surged 52%. Two weeks ago BestBank purchased $5 million of credit card loans from SD-based The Credit Store. The Credit Store’s principal business is the acquisition of charged-off consumer debt and the conversion into new unsecured credit card accounts. With the acquisition BestBank became a MasterCard issuer too. Columbia Capital Corp. and First Independent Computers, BestBank’s processor, said it expects the closing to have little effect on their contract despite the fact that it derives a substantial portion of its revenue from the BestBank contract. This is the first bank failure in Colorado since July 1993.Details
Attrition among Household’s U.S. bankcard and private label credit card business dampened second quarter results somewhat. Second quarter receivables declined by $167 million from the first quarter, according to figures reported to CardData Friday. Household also completed the most significant event in the history of the company June 30, the merger, with Beneficial. According to CardData, Beneficial National Bank reported 2Q receivables of $165 million; 2Q volume of $102 million; gross accounts of 292,000; active accounts of 132,000 and cards-in-force of 212,000. Household noted last week that discounting the Beneficial merger its overall delinquency and chargeoff rates declined during the second quarter.
HOUSEHOLD 2Q SNAPSHOT (inc. Beneficial)
RECEIVABLES: $17,169,077,000 $17,336,014,000
Q VOLUME : $ 8,508,233,000 $ 8,139,392,000
ACCOUNTS: 16,950,000 16,760,000
ACTIVES: 7,883,000 7,846,000
CARDS: 22,883,000 22,627,000
Source: CardWeb’s CardData, www.carddata.com
More than 40% of the nation’s bank credit card debt is owed by residents of five states and nationwide the average U.S. household owes $4,848. The statistics come from the July issue of Bankcard Barometer, published by Card Management Information Services LLC of Frederick, MD, and were released this morning. Based on EOY 97 bank credit card outstandings and the total number of households in each state: Californians owe $6,105; New Yorkers owe $5,712; Floridians owe $6,137; Texans owe $4,033 and Illinois residents owe $3,197 per household. The biggest annual growth in card debt among states with at least one million households: Iowa (+21%); South Carolina (+13%); Oregon (+12%); Washington (+12%) and New Jersey (+11%).
THE TOP FIVE STATES IN BANK CARD OUTSTANDINGS
STATE EOY 97 EOY 96 CHANGE
California $63.5 billion $57.9 billion +10%
New York $37.7 billion $34.5 billion +9%
Florida $31.3 billion $28.6 billion +9%
Texas $24.2 billion $22.6 billion +7%
Illinois $22.7 billion $21.0 billion +8%
Source: Bankcard Barometer, July Issue, 301-695-4897
The recent explosion of POS debit cards, especially VISA and MasterCard branded off-line debit cards, is creating a bookkeeping nightmare for some consumers and product confusion for others. The findings come from recent studies conducted by BAIGlobal which found many cardholders struggling to keep track of cash flow and balances in their accounts. As a result, cardholders are trying to track their funds in a variety of creative ways, including “back-of-the-envelope” ledger systems and daily calls to issuersâ 800-number customer service lines. The study also uncovered consumer confusion where issuers had converted private label ATM cards to branded debit cards using the VISA or MasterCard logo. BAIGlobal says the VISA and MasterCard brand are synonymous with credit cards, and cardholders have an adjustment to make when they see these brands now on debit cards. In some cases the company found cardholders who thought they had a hybrid credit/debit card. The study concludes that despite problems within the debit card marketplace there is significant opportunity for growth. BAIGlobal says while debit cards penetrated nearly two of three households, cards are linked to only one third of all the householdâs financial accounts, meaning debit cards have the potential to be linked to other accounts. The firm estimates most consumers have 2.7 financial relationships on average.Details
VISA announced Friday it will co-sponsor a seminar on Internet commerce security at its world headquarters in Foster City, CA. The half-day seminar on September 17, 1998 will cover over 200 specific control measures which can protect Internet merchant systems. The seminar is based on the research report ‘Best Practices in Internet Commerce Security’, a white paper to be published by CommerceNet and Baseline Software this week. The report examines the controls employed by merchants, hosting firms, Internet Service Providers, third party security service providers, and Internet payment systems. The event is open to all organizations.Details
Programmer’s Paradise, Inc. announced last week that it’s wholly owned German subsidiary, International Software Partners, GmbH , has formed a strategic alliance with GZS, the largest German credit card processor. Under terms of the alliance, ISP*D will be a preferred supplier of the Internet/Intranet front-end platform of GZS’s Corporate Automated Purchasing System (CAPS), a purchasing card back-office electronic solution for corporates. eCAPS, as the front-end platform will be called, is a subset of ISP*D’s Electronic Commerce Ordering System, (e COS) which was introduced this past March.Details
The Smart Card Industryâs Associationâs Standards and Specifications Committee recently served as a forum for advancing the use of smart cards across a range of applications and multiple environments. The Committee showcased such progress at its last meeting by hosting three smart card consortiums Open Card Forum, PC/SC and the new Open Card Consortium. Representatives of Open Card Forum and PC/SC reported that their groups are adapting their respective systems so they will work compatibly. The Open Card Forum, with its application programmers perspective, is adapting its design and interface to work with the PC/SC structure. The PC/SC, for its part, is adapting its interfaces to those of the Forumâs application orientation. Open CardConsortium, formed during CardTech/SecurTech â98 in Washington, D.C., will extend and promote Open Card Forum specifications and harmonize its work with the PC/SC. Founding members include IBM, Netscape, Sun, SCM, Bull, Schlumberger and Visa.Details
Executive TeleCard, Ltd. and Connectsoft Communications Corporation, announced last week that they have signed an Asset Purchase Agreement under which Executive TeleCard will acquire substantially all of the operating assets of Connectsoft for the assumption of $4,500,000 of liabilities, consisting primarily of capitalized lease obligations and the agreement, subject to valuation targets and performance formulae, wherein AUGI may receive up to a 7.5% ownership interest in the new subsidiary of Executive TeleCard, which has been formed to acquire the operating assets, or like value in cash or Executive TeleCard stock, at the option of Executive TeleCard.Details
First Data Financial Services, BA Merchant Services, Inc. and USA Processing formed a gaming funds transfer joint venture Friday. The joint venture, which has yet to be named, will provide a full range of electronic funds transfer and other services to more than 1,200 gaming properties nationwide. Services offered through the joint venture will include credit card, debit card, ATM, Western Union Money Transfer services, and TeleCheck check cashing services.Details