Diebold Aligns Product Development and Service

Diebold has named Charles Ducey, former VP of Diebold’s Global Customer Service Solutions, as VP of Global Development and Service, replacing the retiring Daniel O’Brien. He will lead Diebold’s financial self- service engineering, product management and marketing, and software product management functions globally. Ducey joined the company in 1978 and has held various field and home office positions, including the position of vice president, service operations and finance for the North American Sales and Service division. Ducey also previously served as Diebold’s vice president and corporate controller.

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Mid-Size CUs Post Solid But Slower Growth

Mid-size credit union issuers posted a 9.2% increase in bank credit card outstandings for 2005, compared to a 12.5% gain for the prior year. However, the rate of growth is more than double the overall industry average of 3.5%. CardData’s fourth quarter portfolio survey shows that Mission FCU of San Diego reported a strong 17% gain in 2005 outstandings. Kinecta FCU in Manhattan Beach, California posted an 11% gain for last year. Also in California, Travis FCU of Vacaville edged up by only 1.5%. The sample group represented $426 million in outstandings with portfolios ranging from $43 million to $114 million. For the latest fourth quarter figures for the nation’s credit card issuers, visit CardData ([www.carddata.com][1]).

CREDIT UNION OUTSTANDINGS
($ millions)
Issuer (State) 4Q/05 4Q/04 CHNG
Randolph Brooks FCU (TX) $113.7 $104.2 + 9.1%
Mission FCU (CA) $ 95.4 $ 81.7 +16.8%
Kinecta FCU (CA) $ 93.8 $ 84.7 +10.7%
Travis FCU (CA) $ 80.5 $ 79.3 + 1.5%
State Dept FCU (VA) $ 42.9 $ 40.4 + 6.2%
TOTAL $426.3 $390.3 + 9.2%

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

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RAHAXI Enables CPU for EMV Compliance

Helsinki-based Rahaxi Processing has provided the EMV-compliant platform to enable Computer Program Unit to achieve EMV-certification for its terminals and payment processing software. Rahaxi Processing is a subsidiary of FreeStar Technology. Computer Program Unit specializes in cash register operations and provides hardware and software solutions for cash transactions. Rahaxi currently processes in excess of 1.3 million card payments per month for such companies as Finnair, Ikea and Stockman.

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FDC Board Adds a Former Chase Vice Chairman

First Data has named David Coulter, former Vice Chairman of Chase, to the Company’s Board of Directors. Coulter serves as Managing Director and Senior Advisor at Warburg Pincus, focusing on the firm’s financial services practice. From January 2001 to September 2005, he was Vice Chairman of JPMorgan Chase & Co. Prior to the merger with J.P. Morgan & Co. Incorporated, he was Vice Chairman of The Chase Manhattan Corporation from August 2000 to December 2000.

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ACI Retail Commerce Server Adds Java Platform

Omaha-based ACI Worldwide has introduced a Java-based platformed “Retail Commerce Server” to help merchants to manage their payment acceptance strategies. The Retail Commerce Server provides the flexibility to interface with leading point of sale systems and more than 40 authorization providers. The solution offers a full transaction application suite for credit, debit, EBT, phone and loyalty card transactions, as well as life-cycle management for refunds, checks and gift cards. Enhancements include cardholder data encryption, loss prevention measures with enhanced check authorization and payroll validation, and strengthened management tools through its improved reporting engine. ACI provides solutions for consumer and wholesale banking, retail and cross-industry systems.

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Image Payments Network Explodes in 1st Year

SVPCO, the electronic check and check image exchange business of The Clearing House Payments Company reported that the Image Payments Network produced $73 billion in total monthly dollar value and 11.7 million in total monthly items during December. In January 2005, when the Image Payments Network began operations, total monthly dollar value was $55 million and total monthly items were 18,000. Through December, institutions participating in the Image Payments Network were BofA, Comerica, EDS, Federal Reserve Bank, Fifth Third, JPMorgan Chase, KeyCorp, M&T Bank, National City, Union Bank of California, Wachovia and Wells Fargo.

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ROYAL SUNDARAM VISA

Maharashtra-based Royal Sundaram Alliance Insurance Company and Citibank have launched a credit card that offers free medical insurance, special hospital benefits, pharmacy discounts, plus a rewards program. The rewards program for the new “Royal Sundaram Citibank VISA” offers (per Rs. 125) five points of insurance premiums billed to the card account, three points for hospital, pharmacy and utility bill payments made with the card and one point for all other spending. Each “Rewards Point” is worth Re 1 and is redeemable against either Royal
Sundaram insurance premium or Citibank’s reward program. Royal Sundaram has one million customers. VISA has more than 33 million cards in India.

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Contactless EMV Smart Card Pilot Underway

MasterCard’s first deployment of an EMV chip-based contactless card is gaining more traction. This week, Axalto announced it is upgrading its “MagIC 6100” terminal to contactless. The “TaiwanMoney MasterCard” will be tested in Taiwan, according to today’s issue of CardFlash International. The Axalto terminals are being updated with an external reader and with software developed by Paysys Communications of Malaysia. The Axalto contactless solution was certified last October by Mondex Taiwan, a subsidiary of MasterCard. The “TaiwanMoney MasterCard” will be used for a transportation system serving millions of residents in seven cities in southern Taiwan and will be issued by a number of banks. In October, the Kaohsiung City Government Transportation Project launched a pilot of more than 2,000 cards. It is the first card to combine transportation, shopping and e-purse with a contactless option. (CFI Library 3/15/05; 10/21/05)

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BofA Ranks at the Top of ID Fraud PDR

An annual survey has scored Bank of America as the best performer for consumer-facing online identity fraud prevention, detection and resolution (PDR) capabilities. Javelin Strategy & Research used a combination of online review and direct mystery-shopper research to score banks on a 100-point scale that included 28 consumer-facing capabilities that banks could implement. Citibank was ranked #2, E*Trade #3, Washington Mutual #4 and Wells Fargo Bank #5. Javelin says it found that 96% of the banks surveyed offer zero liability policies to account holders but none allow users to limit or prohibit international or online transactions. The research firm also noted that most banks have yet to implement stronger authentication as well as customer-driven alerts regarding changes to personal information, balance transfers and unusual account activity.

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Multi-Modal ID Solutions Leader is Created

MA-based Viisage Technology and MN-based Identix Incorporated have agreed to merge to establish the most comprehensive single platform for multi-modal finger, face, skin and imaging identity solutions. The combined company is projected to produce $220 million in revenue this year and at least $40 million in EBITDA. The merger is an all stock transaction. The headquarters of the combined company will be in Stamford, Connecticut. Robert LaPenta, Viisage’s Chairman, will become Chairman and CEO of the combined company. The transaction is expected to close in the second quarter.

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ASK Launches a New Contactless USB Reader

Sophia-Antipolis-based ASK has launched the “RDR 400” series of contactless USB readers for
logical/physical access control, identity, banking and PC-based
applications. The RF interface means that “RDR 400” readers support all
current ISO dual interface/contactless cards and contactless tickets.
RDR 400 has passed successfully e-passport Interfest interoperability
tests taking place in November in Singapore. These tests involved 124
different passports complying with ISO14443 type A or B standards from
28 countries to be tested on 40 readers. ASK is a supplier of
contactless cards, tickets, RFID tags and readers.

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J&B Software Names a New President

Philadelphia-based J&B Software, a provider of transaction and payment system solutions, has promoted Robert Bartlett to president and COO, succeeding Bala Balasubramanian who will remain as the company’s chairman and CEO. Bartlett served as executive vice president and chief financial officer of JB since 2004 and was appointed chief operating officer of JB’s subsidiary, Convergent Payment Processing Services, Inc., in 2005. He will continue to serve as interim CFO in addition to his duties as president and COO of JB and COO of Convergent. JB Software provides electronic transaction processing and management systems.

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