Triversity Introduces FraudWatch 3.0

Toronto-based Triversity has released “FraudWatch 3.0,” a loss prevention software solution that meets the requirements of the PCI standards for protecting cardholder data. FraudWatch 3.0 includes full encryption of credit/debit card information, audit trails when data is accessed, advanced password management, masking of sensitive data when displayed and restriction of information. FraudWatch is a Web-based system that can be accessed from any location via a Web browser. Triversity is an international provider of retail business solutions.

Details

MBNA Shareholder Lawsuit Moves Back to 03

Connecticut-based law firm Scott + Scott has expanded its MBNA shareholder lawsuit back to October 16, 2003. The complaint alleges that during the Class Period, defendants made false and misleading statements regarding the growth and direction of MBNA loan receivable assets and used false and deceptive means to present a healthy picture of growth for its loan receivable assets, to conceal several serious quarter over quarter declines. Scott + Scott specializes in complex litigation including securities fraud and represents foundations, individuals, corporations and pension funds worldwide.

Details

Citi Moves Sears Processing to First Data

After a 15-month evaluation process, Citigroup has decided to move the processing of its Sears consumer MasterCard and private-label accounts from TSYS to First Data. The deconversion is expected to be completed by the second quarter of 2006. The signing of the long-term processing agreement with Citi is a major victory for First Data. In October, TSYS finalized an agreement with JPMorgan Chase to service the combined card portfolios of Chase and Bank One. First Data formerly processed for Chase. In August, Bank of America decided to move its credit card processing for the FleetBoston card portfolio from First Data to TSYS. TSYS said it expects to continue supporting commercial-card accounts for Citibank and Sears as well as Citibank’s California Commerce consumer accounts, according to the terms of the existing agreements for those portfolios. (CF Library 8/19/04; 10/14/04)

Details

TNB Adds 3 More Processing CU Clients

Dallas-based TNB Card Services has gained the credit card processing business of three more credit unions. The new processing clients are WySouth Federal Credit Union of Wyandotte, MI; Dowell Federal Credit Union of Tulsa, OK; and Shell Federal Credit Union of Deer Park, TX. In March, TNB won the credit card processing business of three West Coast credit unions. The clients included United Health Services CU of Spokane, WA, GaPac Employees FCU of Bellingham, WA and Horizon CU of Fresno, CA. TNB provides full-service credit and debit card processing, serving more than 450 financial institutions and managing more than 1.6 million cards. (CF Library 3/7/05)

Details

BofA Prowls for More Prime Portfolios

Bank of America’s CEO indicated it may consider more credit card acquisitions and possibly an acquisition of an entire company. However, Kenneth Lewis said the Company has no desire to enter the subprime credit card arena. When pressed about a possible acquisition of MBNA, Lewis refused to confirm or deny an interest in the Company. BofA, the second largest U.S. bank, is the fourth largest bank credit card issuer. Bank of America’s credit card loans grew 7.8% in the first quarter ending with $57.9 billion. The issuer opened 1.3 million new credit card accounts during the quarter as pre-tax card income hit $750 million. (CF Library 4/18/05)

Details

Financial Emails Post a Strong Response

First quarter email communications campaigns for financial service firms ranked as the #2 highest performing category. Bigfoot Interactive says total emails attempted, minus all failures, for financial services firms in Q1 was 96.8%. Online account service messaging such as bill payment/presentment and balance transfers continue as primary drivers of high success rates. In fact, service messaging had an average click-through rate of 22.8% (up 3.1% versus Q1 04 and 9.2% from Q4 04). Multi-card offers and year-end statements round out the quarter’s top campaigns

Details

Acacia Licenses Sterling Jewelers and Too

Acacia Research has entered into non-exclusive licenses covering a patent that applies to credit card fraud protection technology with Sterling Jewelers, Limited Too and Justice stores. The technology relates to a computerized system for protecting retailers and consumers engaged in card related transactions. The system includes an electronic card reader and the generation and use of a transaction number, which specifically identifies each transaction processed within the system. eliminating the need to print detailed information on the customer’s receipt. The Acacia Technologies group develops, acquires, and licenses patented technologies.

Details

Metavante Acquires TREEV for $19.5MM

Metavante has acquired Virginia-based TREEV, a provider of software solutions and consulting services to the financial industry, for $19.5 million. TREEV delivers browser-based document and report management software and has enabled over 1,500 financial institutions to revamp paper-intensive operations into more efficient electronic and automated processes. Metavante Corporation provides banking and payment technologies to financial services firms and businesses worldwide.

Details

Avg Ticket Up 5% for Credit; +4% for Debit

While debit card volume and issuance has grown dramatically over the past decade, the average purchase transaction has increased a modest 4% over the past three years, compared to a 5% increase for bank credit cards during the same period. During the first quarter the average V/MC debit card purchase transaction was $40.16 compared to $38.67 for 1Q/02. According to CardData ([www.carddata.com][1]), the average 1Q/05 V/MC bank credit card purchase transaction was $85.62 compared to $81.51 for 1Q/02. The modest growth in average debit tickets is most likely linked to the strong growth in under $10 transactions such as QSR and parking. Between 2002 and 2005, debit card dollar purchase volume increased 80% and transactions rose 73%. During the same period bank credit card dollar purchase volume increased 31% and transactions grew 24%.

PURCHASE TICKET Q1 HISTORICAL
(VISA/MasterCard only)

Credit Debit
2002: $81.50 $38.67
2003: $83.25 $39.17
2004: $85.36 $39.47
2005: $85.62 $40.16
Source: CardData (www.carddata.com)

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

Details

MBNA 401k Savings Plan Draws a Lawsuit

Wolf Haldenstein Adler Freeman and Herz has filed a class action lawsuit against MBNA’s 401k savings plan for allegedly including artificially-inflated MBNA stock in the plan. The complaint alleges that during the class period, defendants breached their fiduciary duties owed to plan participants and beneficiaries, failed to act in the interests of plan participants and beneficiaries and with reasonable care, skill, or diligence in offering MBNA Stock as an investment option. Wolf Haldenstein has extensive experience in the prosecution of ERISA and securities class actions and derivative litigation in state and federal trial and appellate courts across the country.

Details

MicroBilt to Sell myFICO.com to Lenders

Georgia-based MicroBilt has inked a deal to resell Fair Isaac’s consumer products, including “myFICO,” to U.S. lenders for use in marketing, acquisition and customer retention programs. MicroBilt will offer its Protection Packages as group programs to credit unions, banks, financial intermediaries and dealers to complement the products and services afforded to their customers and members. MicroBilt, a division of Bristol Investments, Ltd., provides credit bureau data access and retrieval, providing credit, collection and data sources. Fair Issac provides consumers with FICO scores, the standard measure of credit risk.

Details