EMUE & VISA

Visa and EMUE Technologies have launched the “PIN Card” pilot to
focus on combating CNP fraud. In doing so, the new solution implements
fraud prevention techniques through a conventional credit or debit card
product using credit chip technology in generating one-time-only codes
displayed on an integrated eight-digit alpha-numeric screen. This
ensures a secure solution to authenticate online transactions without
the need for a separate device, allowing cardholders to validate
transactions with the input of the standard PIN and then the
one-time-only code.

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CONTACTLESS IGNORANCE

Despite having cost millions in development and marketing, contactless
payment solutions are not being met with warm reception by the majority
of consumers. According to the latest market research report
conducted by Auriemma Consulting Group, consumers need
additional encouragement to acquire a new card with only 3% of the
population being familiar with contactless technology and 23% of
consumers not showing comfort with contactless cards due to the risk of
identity theft. Additional findings show consumers were 7 times more
likely to want a contactless card after having read the product
description while 63% of consumers more likely to use it because of its
“cool new technology” and 67% more likely to use it because of its “ease
of use.” These findings were compiled by ACG Research through data
generated from a survey of 508 credit card users in 1Q/08.

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TransCard Names a New CTO

Prepaid card solution provider TransCard has hired David Samples, previously with Instruction Management, as its new CTO. He will manage the strategic technology focus of the company, while specifically working to enhance customer experience. Samples was COO of Instruction Management, a full-service physical education and martial arts training company. He also served as Director of Systems Architecture at U.S. Xpress Enterprises where he was responsible for the creation and management of new technologies deployed to both front- and back-end applications, including implementing several third-party optimization systems, which reduced fuel costs and overall unpaid mileage. Samples has a BS in Business Administration and Management Information Systems from Tennessee Technological University. TransCard offers electronic funds-transfer services, including direct-to-card payroll technology; electronic fuel and transaction processing; and healthcare and gift card products and services and processes nearly $1.2 billion dollars in electronic transactions per year.

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AUB PLATINUM CARD

Ahli United Bank has launched two “Platinum” credit cards taregeted at the Bank’s “Premium” and “Private” banking customers.
The new top-end VISA and MasterCard offer access to over 500 VIP lounges worldwide and a complimentary travel concierge service. As an introductory offer, AUB is giving free business class return
tickets to anywhere in the GCC to the first 100 cardholders who receive
the new card. “AUB Platinum” cardholders will pay an interest rate of 1% on all purchases made in the first 3 months. Customers who transfer their outstanding balances from other credit cards onto the new cards will have to pay no interest on the amount transferred for 60 days.
The card will also provide “Premium” customers with priority service at AUB Seef and Manama branches.

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Wells Fargo Card Charge-Offs Near 7%

Wells Fargo reported that credit card charge-offs on average balances jumped to 6.95% in the second quarter, compared to 5.89% in the first quarter. However, EOP credit card loans increased about 25% year-on-year to $19.429 billion, compared to $18.677 billion in the prior quarter and $15.567 billion for 2Q/07. However, the yield on average credit card balances dipped to 11.81% in 2Q/08 from 14.46% one-year ago. Wells also reported that online banking had 10.6 million active online consumers during the second quarter, up 14% from the prior year, and that 67% of all consumer checking accounts are now online. Additionally, there were 5.2 million online money movement customers, up 17% from the prior year, and 1.1 million active online small business customers, up 20% from 2Q/07. For complete details on Wells Fargo’s latest performance visit CardData ([www.carddata.com][1]).

WELLS FARGO CARD LOANS
2Q/07: $15.6 billion
3Q/08: $17.1 billion
4Q/08: $18.8 billion
1Q/08: $18.7 billion
2Q/08: $19.4 billion
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

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XIRING 1H/08

XIRING remote transaction security solutions has announced +58% revenue
growth for 1H/08, having posted a turnover of EUR12.9 million, and has
confirmed its annual turnover forecast of EUR28.5 million, a 20%
increase. Furthermore, 2Q/08 turnover was up 42% Y/Y at EUR7.5 million
thanks in part to the sale of Xi-Sign authentication solutions for
e-banking and e-commerce for EUR 6 million, a 107% increase compared to
1H/07, and the performance of SESAM-Vitale professional healthcare
solutions having generated revenue of EUR5.7 million for 1H/08, a 46%
increase from the same period of the year prior. XIRING develops
security software embedded in smart card readers for strong
authentication and digital signature for 5 million users through remote
card authentication solutions for a 2007 revenue of EUR 23.8 million.

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MasterCard Worldwide Names a Chief HRO

MasterCard has named Stephanie Voquer as Chief Human Resources Officer. Voquer was Group Head of Human Resources for MasterCard Europe, based in Brussels, where she was responsible for talent management and acquisition throughout Europe. A native of Canada, Voquer is a Bachelor of Arts Honors Graduate, summa cum laude, of McMaster University. She completed additional studies at the University of Caen in France, the University of Valencia in Spain, the International Business Management Institute in affiliation with American Graduate School of International Management, and the IBM International Personnel Institute, in collaboration with Georgetown University.

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PARX FRANCE

On Track Innovations has acquired 100% of the share capital
of ID Parking electronic parking solutions for an aggregate purchase
price of EUR750,000 in accordance with OTI’s strategy of focusing on
generating high-margin, recurring revenues. Moreover, the acquisition is
in accordance with OTI’s global efforts to market its “EasyPark”
in-vehicle electronic parking meter to the French electronic parking
payment market. ID Parking will operate under the name of “PARX France”
for approximately 40 municipalities across the country and was acquired
for a combination of EUR250,000 and EUR500,000 in OTI shares. OTI
designs, develops and markets secure contactless microprocessor-based
smart card technology in a variety of markets.

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Vendor Safe Offers PCI DSS Assistance

TX-based Vendor Safe Technologies has introduced “PCI Managed Security Suite”, to aid restaurants and other merchants to comply with the credit card industry’s PCI DSS requirements for preventing credit card fraud The Vendor Safe PCI Managed Security Suite addresses the three critical exposure areas of PCI compliance which include network security, including firewall configuration, remote access, port limitation, public and private network segregation, and encryption of card holder data; data access, including external file transfer, wireless and access elements, and local and remote monitoring; and policies & procedures, including security policies, firewall setup and incident management.

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Credit Card Fair Fee Act Goes to Mark-Up

Today is the big day for the “Credit Card Fair Fee Act of 2008” as the House Judiciary Committee meets to consider a mark up of “H.R. 5546.” Industry leaders and merchant associations have come out to forcefully oppose or endorse government interference in their private business dealings. MasterCard says that in addition to criticism from the DOJ and the FTC, others including the Pentagon FCU, the Black Chamber of Commerce and Southern Christian Leadership Conference have publicly opposed this legislation because they believe it will harm their constituents. Nordstrom also expressed opposition to the legislation. Meanwhile, the National Retail Federation says the legislation will require Visa and MasterCard to negotiate over a hidden credit card fee that costs the average family more than $400 a year. The NRF says Visa and MasterCard effectively force merchants to pass the fees on to consumers by requiring them to be included in the advertised price of items and making cash discounts “H.R. 5546,” is sponsored by Chairman John Conyers and committee member Representative Chris Cannon, R-Utah.

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