NYCE and Select-a-Branch Sign an ATM Deal

ATM network NYCE has signed an agreement with PA-based Select-a-Branch to offer NYCE’s
SUM selective ATM surcharging program access to select terminals in SAB’s growing network of surcharge-free ATMs.
The SUM Program allows cardholders of participating financial
institutions to make surcharge-free ATM
withdrawals at the designated terminals of other program members. The SUM Program’s unique
structure is primarily based on usage. Participating institutions also
may select the ATMs they wish to include in the program, making it a
cost-effective option that allows banks and credit unions to retain
control over their own surcharging revenue. SAB will brand transactions made at these terminals using its
proprietary technology. SUM cardholders will see transaction screens
branded with the program’s logo and messaging. SAB ATMs also feature a
19-inch monitor mounted above the terminal that will run SUM
advertisements when the program’s cardholders use the ATMs.

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INGENICO & EASYCASH

Neuilly Sur Seine-based Ingenico has inked a deal to acquire Germany’s
easycash Beteiligungen for 290 million euros. Last year easycash
generated revenue of 85.7 million euros. Revenue coming from transaction
processing represented 56% of total revenue, while revenue generated by
POS terminal services and loyalty solutions represented 29% and 15% of
total revenue, respectively. easycash has been under the ownership of
Warburg Pincus. easycash is expected to generate by year end pro forma
revenue close to 100 million euros. Ingenico generated pro-forma revenue
of 780 million euros in 2008. The implementation of final agreement is
subject to the approval of German anti trust authority,
Bundeskartellamt, and consultation of Ingenico workers’ council.

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IDENTITA PCI DSS

Identita has completed its third party PCI-DSS audit on its “Display
OTP” products and “Echosystem” Authentication Platform, both of which
now meet the PCI-DSS requirement 8.3. PCI-DSS requirement 8.3 states:
“Incorporate two-factor authentication for remote access to the network
by employees, administrators, and third parties…. Use technologies
such as remote authentication and dial-in service (RADIUS); terminal
access controller access control system (TACACS) with tokens; or VPN
(based on SSL/TLS or IPSEC) with individual certificates.” The security
assessment is mainly to determine whether or not the Identita Display
Card Authentication Platform can be considered a valid two-factor
authentication solution for the purpose of compliance with the PCIDSS
requirement 8.3. The series of checks and tests conducted to determine
the Identita Echosystem Authentication Platform implements the
recommendations set forth by the Open Authentication Group
RFC4226–”HOTP: An HMAC Based One time Password Algorithm,” determining
the Identita’s Authentication Platform is an appropriate implementation
of the algorithm and security requirements set forth by OATH.

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OPUS CARDS

Societe de Transport de Montreal has chosen Oberthur Technologies smart card solutions to supply “Opus” contactless cards for use throughout the Montreal public transport network. This will allow Oberthur Technologies to deliver e-ticketing smart cards over the next four years for use on buses, the subway and commuter trains throughout the area and Quebec City. With this, Oberthur will make available automated fare vending machines or points of sale at which the user can be recharge the smart cards. Fully compliant with the Calypso international e-ticketing standard for smart cards, providing a contact and contactless interface, the cards are made of highly durable “PET-F” plastic.

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ACS to Power Louisiana Purchase Card

Affiliated Computer Services
has been selected by the Louisiana Department of Social Services to
provide electronic benefit transfer services. Under the new six-year agreement, ACS will administer EBT for the
Supplemental Nutrition Assistance Program (SNAP), previously known as
Food Stamps; and Temporary Assistance for Needy Families (TANF).
Recipients will receive benefits on the “Louisiana Purchase Card,” which
can be used at USDA-authorized retailers and ATMs.
ACS’ EBT services for Louisiana include transaction authorization
processing, card management services, delivery and helpdesk, and
disaster services and support for the more than 300,000 households who
rely on the card. Program implementation is expected in summer 2010. ACS processes more
than half of the nation’s child support payments; manages 24 electronic
payment card programs for state and federal clients, disbursing
government payments and benefits; processes nearly 570 million Medicaid
claims each year totaling more than $50 billion in provider payments;
saves state child care programs millions of dollars; services student
loans for more than 11 million borrowers; and facilitates more than 75
million online searches for unclaimed property per year.

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Wells Announces Plans to Adjust Overdraft Fees

Wells Fargo has jumped on the overdraft change bandwagon by altering
some of its practices. The bank will eliminate overdraft fees for
customers when they overdraw their accounts by $5 or less and will
charge no more than four overdraft fees per day. In addition, Wells
Fargo and Wachovia customers will be able to opt out of overdraft
coverage. Wells Fargo noted it also offers ways to link savings, lines
of credit or credit card accounts to a customer’s checking account when
there are not enough funds to cover a transaction. Yesterday, Chase
announced it will eliminate overdrafts for debit cards unless the
customer opts in to overdraft services; modifying the posting order to
recognize debit-card transactions and ATM withdrawals as they occur;
eliminating overdraft fees if a customer’s account is $5 or less
overdrawn and reducing the maximum number of overdraft fees per day to
three from six. (CF Library 9/23/09)

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Less than 10% of Teens Pay-Off Credit Card Debt

A new survey find that 62% of young adults surveyed (ages 14-19) report saving their money to pay for all or part of college or higher education programs, compared to just 40% of adults surveyed (ages 20-59) who saved for higher education during their adolescent years. Also, about 19% of adults surveyed were responsible for paying off their entire credit card balances on their own when they were teens, compared to 7% of young adults surveyed today. The survey released by TD AMERITRADE finds 36% of adults surveyed recalled that they were responsible for all expenses associated with a car or motorcycle when they were teens, compared to 9% of young adults surveyed today.
Nearly 26% of adults surveyed recalled that someone else was responsible for all clothing-related expenses when they were teens, compared to 39% of young adults surveyed today.

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ACT & INSIDE

INSIDE Contactless announced that Didier Serra, GM/EVP of sales for North America, has been reelected by the members of Advanced Card Technologies Canada to serve a second term on the organization’s board of directors. A founding member of INSIDE Contactless, Didier has held several executive positions at INSIDE Contactless, and is currently heading all sales initiatives for North America. With ACT, Serra will work with the other board members to help govern this stakeholder association, which is internationally recognized as a reliable source of information on secure payment, secure identity management and advanced card technologies and applications, and is the authority on the Canadian marketplace.

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CC ABS Performance Metrics Deteriorate in August

Performance metrics for U.S. credit card issuers deteriorated in
August, however it may only be a seasonal inflexion. The latest figures
for credit card-backed securities shows delinquency nudged up six basis
points and charge-offs jumped 97 basis points from July. According to
Moody’s “Credit Card Index” for U.S. ABS, the overall delinquency rate
increased to 5.79% in August from 5.73% in July, and compared to the
March peak of 6.40%. Charge-offs increased to 11.49% in August from
10.52% in July. The charge-off rate was a record-high 10.76% in June.
The Moody’s index also shows payment rates dipped to below 17% in
August. Additionally, the index yield surged ahead to 20.48% in August,
a 66 basis points improvement over the prior month, and its highest
level since December of 2007. Much of the improvement in yield Moody’s
attributes to issuer discounting. The effect could further push up
yields by as much another 100 basis points by early next year. Moody’s
continues to call for a recovery in the credit card sector to begin once
charge-offs peak in mid-2010 at between 12% and 13%. Macroeconomic
indicators will strongly influence the actual figure, in particular the
unemployment rate, which Moody’s expects to peak in the 10%-10.5% range,
also in mid-2010.

U.S. ABS 2009 CREDIT CARD INDEX
DELINQUENCY CHARGE-OFFS
Jan: 5.94% 7.74%
Feb: 6.14% 8.82%
Mar: 6.40% 9.30%
Apr: 6.34% 9.97%
May: 5.97% 10.62%
Jun: 5.81% 10.76%
Jul: 5.73% 10.52%
Aug: 5.79% 11.49%
Source: Moody’s

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Billing Revolution and Authorize.Net Team

Mobile payment provider Billing Revolution has partnered with
Authorize.Net’s to enable its 250,000 merchants to sell goods and services on a mobile phone.
Billing
Revolution manages the entire mobile purchase experience: rendering the
mobile purchase pages, collecting credit card data, integrating with the
Authorize.Net Payment Gateway, and providing a complete CRM solution for
mobile merchants. Now all of Authorize.Net merchants can safely and confidently use
Billing Revolution to begin processing their mobile commerce
transactions as the Seattle-based mobile commerce provider met the rigid
requirements of Authorize.Net’s performance and security standards.
CyberSource’s Authorize.Net provides services to Internet merchants who encompass a wide variety of business
industries: information, communication, government, sports, religion,
education, gourmet foods and many others. In 2006 CyberSource processed
approximately 1.1 billion transactions, representing $65 billion of
e-commerce.

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GEMALTO PLANT

Gemalto digital security is set to open its personalization center in
Indonesia before the end of the year, offering end-to-end, local support
to financial institutions for EMV migration. Gemalto will additionally
provide the banks inventory management and express card personalization
with same day shipment. Its global infrastructure will provide local
banks with a one-stop shop for their EMV migration program. The Gemalto
facility will develop applications for mobile contactless payment and
online banking and faster, more cost-effective ways of delivering its
world-renowned smart payment solutions and services. With over 20 years’
Indonesian presence, Gemalto has been integral to the country’s
financial industry.

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