TSYS Prepaid Names a TSYS Veteran as COO

TSYS has named Cal Holman, a 20-year veteran of payment services for issuing and acquiring banks, as COO of TSYS Prepaid. As COO, Holman’s direct oversight of TSYS Prepaid will include management responsibility for customer service, information technology, product development, operations, human resources, finance and legal. Holman has worked more than 17 years in a range of technical leadership positions with TSYS and Vital Processing Services.TSYS Prepaid is a provider of prepaid card solutions and a wholly owned subsidiary of TSYS.

Details

JET AIRWAYS & CITIBANK

MasterCard Europe posted a 14.4% gain in gross dollar volume at the point of sale for the second quarter with $83.2 billion. For the twelve months ending June 30th, European purchase dollar volume for credit and off-line debit cards hit $325 billion, compared to $270 billion for the prior year. “Maestro” card, or on-line debit, purchase dollar volume for Europe in the second quarter was $104.3 billion. At mid-year MasterCard had 118.4 million credit and off-line debit cards in Europe. “Maestro” cards in circulation in Europe grew to 257.4 million, a 1.7% increase over the same period in 2004.

Details

KeyBank to Use Axalto PayPass Cards

Axalto is supplying more than two million “MasterCard PayPass” cards to KeyBank for the first contactless debit card rollout in the U.S. Axalto contactless payment smart cards enable cardholders to simply tap their card on the reader or within one inch of a point-of-sale terminal at checkout. The KeyBank MasterCard PayPass card includes a magnetic stripe, allowing consumers to use it at any location that accepts MasterCard debit cards. Cleveland-based KeyCorp has assets of approximately $91 billion. Axalto is a provider of microprocessor cards.

Details

Low/Mid Household Card Debt Gets Analyzed

A new study has found that low- and middle-income indebted households carry average credit card debt of $8,650 and that 70% of such households use their credit cards as a safety net. The research also found that one out of three households reported using credit cards to cover basic living expenses, on average four out of the last 12 months. Households that reported a recent job loss or unemployment, and those without health insurance in the last three years, were almost twice as likely to use credit cards for basic living expenses. The new report by New York City-based Demos and Washington, DC-based Center for Responsible Lending, focused on households whose earnings fell between 50% and 120% of local median income. The study also found that nearly half of these households missed or were late with a payment in the last year, with nearly a quarter of the households reporting paying a late fee at least one or two times in the past year. Most of these households also faced interest rates of 25% or more as a result.

Details

Loudeye Incorporates Peppercoin Solution

Seattle-based Loudeye, a specialist in business-to-business digital media solutions, is incorporating the Peppercoin “Small Transaction Suite” into its product portfolio. By incorporating the Small Transaction Suite into its product portfolio, Loudeye can allow its network of digital music stores to process low-priced digital transactions more efficiently. Peppercoin will work with Chase Merchant Services to process transactions from Loudeye’s customers. Peppercoin is a provider of small payment products.

Details

NCR Lowers Guidance on its ATM Sales

NCR says that full-year revenue growth guidance for its ATM division is being lowered to 0% to 2%, due to less-than-expected growth from demand drivers, the effect of price erosion and the company’s continued focus on price discipline. NCR expects to report third-quarter revenue of approximately $1.49 billion to $1.50 billion, an increase of 3 percent from the third quarter of 2004. In addition, the company’s cost reduction actions are progressing ahead of schedule. Of the $350 million of cost reduction the company expected to achieve by the end of 2006, more than $300 million is now expected to be achieved by the end of 2005.

Details

Prepaid Card Expo Planned for February

New Hampshire-based Prepaid Media is planning its first “Prepaid Card Expo” in Orlando in mid-February, featuring Russell Simmons and Frank Abagnale as speakers. The 2006 Prepaid Card Expo is the first conference to be dedicated entirely to the rapidly expanding network branded prepaid and stored value card industry and will feature four primary tracks targeting different segments of the industry, including: Unbanked, Underserved, and Payroll; Healthcare, Consumer; and Corporate and Government. Prepaid Media provides media services to the rapidly growing network branded prepaid card industry.

Details

V12 Formed to Lead BTL Direct Marketing

Three direct marketing firms, Datagence, Media Solution Services and Spectra Products, have merged. The new V12 Group, based in New York City, uses its proprietary databases and multi-channel delivery model to provide measurable customer acquisition results for 47 of the top 50 U.S. credit card issuers. Media Solution Services and Spectra Products are the #1 and #2 largest instatement media providers. Therefore, V12 will deliver about three billion instatements annually, giving it a 70% market share. V12’s databases contain records for 228 million consumers, 116 million household and 22 million businesses all updated monthly. Paul Chachko, former CEO of Datagence, led the merger effort and will serve as CEO of V12. The new Company says it is the complete provider of below-the-line marketing services.

Details

Hypercom Forms New Sales Leadership Team

Hypercom has restructured its worldwide sales organization, dividing up the job among two executives. EVP Guilherme Blumenthal, who was responsible for Global Sales, is leaving the payment terminal maker. Instead, Emilian Elefteratos and O.B. Rawls will head sales. Elefteratos will serve as SVP, International Sales, and Rawls will serve as SVP, North American Sales. Elefteratos most recently served as President and CEO of SiVault Systems. Rawls has served five years as President of Hypercom North America. Both will report directly to William Keiper, CEO of Hypercom. Keiper was named CEO and President in August. Hypercom reported that net revenue for the second quarter was flat year-over-year at $64.0 million. (CF Library 8/9/05; 8/31/05)

Details

UBC Lands a Moneris Executive as EVP

New Jersey-based United Bank Card has hired J. Brian Merena, former SVP of Financial Institutions at Moneris Solutions, as EVP of Financial Institutions. Merena boasts an extensive background in the financial services industry with a track record of developing new business opportunities and strategic partnerships. As the Senior Vice President of Financial Institutions at Moneris Solutions, Merena focused on defining and executing the company’s sales strategies, with particular emphasis on leveraging the company’s relationships with financial institutions. United Bank Card, Inc. is a payment and transaction processor serving businesses nationwide, handling the merchant accounts for over 40,000 locations and processes in excess of 3 billion dollars annually.

Details

CHIP & PIN & FRAUD

Counterfeit and lost/stolen fraud on payment cards dropped by nearly a third in the first half of this year due to the new “Chip and PIN” system. Card fraud involving counterfeit and lost/stolen cards was GBP 89.9 million this year, compared to GBP 126.6 million for the first six months of 2004. The “Chip and PIN Program” announced yesterday that effective February 14th “Chip and PIN” cardholders must use their PIN to be sure of being able to pay at the point-of-sale. APACS says the vast majority of people are already using PIN at the POS. For debit cards, 97% of transactions, and for credit cards, 89% of transactions, are already successfully verified by PIN. To encourage the PIN stragglers, the “Chip and PIN Program” launched the “I LOVE PIN” campaign this week. It will run for four months and will include a PR campaign, online information, a customer leaflet and POS material for shop staff to use.

Details