Merchant Debit Card Refunds Set to Start

NY-based Constantine Cannon, f/k/a Constantine & Partners, said yesterday that all appeals in the “VISA Check/MasterMoney Antitrust Litigation” to the Supreme Court have been denied or expired on May 31st. Therefore, the settlement of $3.383 billion in compensatory relief and an injunction valued by the court in the range of $25-$87 billion will begin distribution to U.S. merchants. Constantine Cannon says merchant advisories will follow in the coming weeks prior to the actual mailing of the claim forms to merchants concerning the process for making and paying monetary claims on the settlement fund. In December 2003, the U.S. District Court in Brooklyn, New York gave final approval of the settlement and of a plan to allocate and return monetary relief to merchants. Since then, there have been three appeals to the U.S. Court of Appeals for the Second Circuit. (CF Library 1/11/05)

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Decru and Network Appliance Unveil CardVault

California-based Decru and Network Appliance unveiled a joint solution to enable secure storage of credit card data and to support compliance with new mandatory “PCI” security standards. Requirement 3 of the PCI standards directs organizations to encrypt and make unreadable sensitive cardholder data anywhere it is stored. The CardVault solution secures stored data with a combination of AES-256 encryption, authentication, access controls, and tamper-evident logging. Decru develops storage security solutions to address a range of business needs. Network Appliance provides unified data storage solutions.

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Pepperdine University VISA Cards Launched

U.S. Bank has agreed to issue affinity cards for the Pepperdine Alumni Association. Alumni will have access to three credit card products offered through the partnership, including one that earns reward points that can be redeemed for gift certificates, merchandise and travel rewards and another that provides cash back on purchases. Based in Malibu, Calif., Pepperdine University is an independent, medium-sized university enrolling approximately 8,300 students in five colleges and schools. U.S. Bank is a subsidiary of U.S. Bancorp, the 6th largest financial holding company in the US with $198 billion in assets.

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InfiCorp to Issue PETA VISA Platinum Cards

Atlanta-based InfiCorp Holdings has teamed with the People for the Ethical Treatment of Animals to launch a suite of “PETA/VISA Platinum” cards. Every time a cardholder makes a purchase using their PETA card, a portion of that sale goes to fund educational programs designed to teach children and adults to respect and show compassion for all living beings. InfiCorp Holdings, Inc.is a specialty credit card company and marketer of client branded credit card products and services. Founded in 1980 and now up to 800,000 members and supporters internationally, PETA is dedicated to establishing and protecting the rights of all animals.

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HSBC Buys the Neiman Marcus Card Portfolio

HSBC-North America has agreed to purchase the private label credit card portfolio of Neiman Marcus for $640 million. The Neiman Marcus and Bergdorf Goodman portfolio comprises a total of approximately 3 million accounts. The purchase price includes approximately $527 million in net cash proceeds and the assumption or repayment of approximately $113 million of the Company’s securitization liabilities. In addition, the Company will receive on-going payments related to credit sales generated under the new agreement. The transaction is expected to close on July 31st.

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Cap One Trims Down Auto Lending Business

Capital One is consolidating its direct-to-consumer auto lending business by relocating its Internet auto finance operations currently based in San Diego to Plano, TX. The changes will result in the elimination of approximately 290 internal positions and the closing of the San Diego location by the end of the first quarter of 2006. However, approximately 200 new positions will be available in Plano. The move is intended to leverage the scale of the existing operations and increase efficiency. Capital One and subsidiaries collectively had 49.1 million accounts and $81.6 billion in managed loans outstanding as of March 31, 2005.

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WaMu Wants to be a Major U.S. Card Player

In a conference call yesterday Washington Mutual and Providian filled in more details on their proposed merger. The companies said their target markets are similar – middle market consumers. WaMu says its in-house credit card team has done a great job of scoping out the requirements of cross-selling credit cards to its customers and starting to build the necessary infrastructure. But, they will soon be hosting joint planning sessions with Providian to start the integration process. The WaMu credit card team was headed by Ken Kido. WaMu has 1,968 retail stores where credit cards can be sold and 9.2 million debit cards outstanding. Plus, the bank has $136 billion of retail deposits and $184 billion of total deposits to fund assets and the growth of credit cards. WaMu also has 2.1 million online customers, who could have credit cards sold to them online, and $46 billion in home equity lines which are easy targets for credit cards.

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Bank of the West Picks Princeton’s PayAnyone

Bank of the West has selected the Princeton eCom’s “PayAnyone” to provide payments processing for online retail banking. As a result, Bank of the West will increase its electronic rate, lower costs, and lower claims. Bank of the West, with $41 billion in assets, operates 480 banking locations in 16 Western and Midwestern states. Princeton eCom is a provider of electronic payment solutions with more than 1400 banks and 200 biller customers,

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TSK & OBERTHUR

The Turkish Armed Forces will soon issue multi-applicative dual interface smart cards from Oberthur Card Systems. Oberthur was chosen by OYAK Bank, which is in charge of implementing the program for the Turkish General Staff. The contract calls for the delivery of several million cards, starting with an initial roll out of two million in 2005.
The dual interface multi-applications cards will include several applications including e-purse, access control, digital signature
and healthcare. Oberthur had sales of 450.8 million Euros last year.

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PDS and Next Estate Communications Partner

Texas-based Payment Data Systems has inked a deal with Next Estate Communications to provide payment services for debit card loading and risk management. The PDS solution will provide payment origination for debit card loading that can come directly from a Next Estate Customer Service Representative or a Next Estate website. Payment Data Systems, Inc., is an integrated payments solution provider delivering comprehensive, cost-effective solutions to billers and retailers for the processing and management of electronic payments.

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Constructware Integrates Comdata’s BusinessLink

Comdata has integrated its “BusinessLink” suite of payment products with Constructware’s “Cost Management” for project management that tracks, reports and controls expenditures in less time through a project-specific credit card. Constructware will offer the Comdata-integrated corporate payment card as a standard feature to its existing clients as well as to new customers. Constructware develops practical technology solutions for the U.S. construction industry. Comdata(R) Corporation is a full-service merchant processor business-to-business issuer and processor of payment cards, primarily in the retail and transportation industries.

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HBNet to Power Pay By Touch’s iPay Service

Hypercom’s HBNet will provide high-speed transaction transport services for Pay By Touch. The use of HBNet will enhance Pay By Touch’s ability to speed the checkout process for both the dial transactions handled by its iPAY payment processing services and the IP transactions processed through its Pay By Touch biometric payment service. Pay By Touch’s “iPAY” service provides credit card, purchase card, debit, and electronic check payment processing services to more than 18,000 business customers.

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