Diebold Names a New Security Executive

Diebold has named Dennis M. Moriarty vice president of the Global Security division. Previously, he was the Eastern Division vice president, where he led the sales, service and systems organizations. Prior to joining Diebold, he served in senior leadership positions with Pitney Bowes Corporation. Moriarty holds a BA in English from Iona College. Diebold, Inc. provides integrated self-service delivery systems, security and services with $2.4 billion in revenue.

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Associated Cards’ ADB Exceeds $10,000

WI-based Associated Card Services Bank reported that its average balance in the first quarter topped $10,000 for the first time. For the first quarter, Associated posted $1.258 billion in outstandings, up 31% over 1Q/04. The portfolio is largely comprised of corporate cards and home equity credit cards. Associated has issued its consumer credit cards though Citibank since early 2000. Volume for the first three months of this year hit $192 million, about 6% higher than one-year ago. The issuer added more than 13,000 accounts during the first quarter, ending at 120,847. The number of active accounts also rose sharply by more than 10,000 accounts. At the end of the first quarter Associated had more than 125,000 cardholders. In December, Associated Bank inked an agreement with MasterCard International to convert its “VISA Check Card” program to the “Debit MasterCard Card” and to participate in the “Maestro” and “Cirrus” online debit programs. For complete details on Associated’s first quarter performance, visit CardData ([www.carddata.com][1]). (CF Library 2/24/00; 12/20/04)

Associated Card Services Bank
Average Daily Balance Historical
2001: $6,639
2002: $7,021
2003: $7,813
2004: $8,797
2005: $10,411
Source: CardData (www.carddata.com)

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

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NCR to Significantly Beat the Street

OH-based NCR yesterday said it anticipates its first-quarter earnings to beat its prior guidance and the street by $0.11 per share. The ATM specialist says the increase is due to better-than-expected operating performance. NCR expects to report first-quarter revenue of approximately $1.34 billion, an increase of 4% from the first quarter of 2004, including a 2% benefit from foreign currency fluctuations. NCR will release its first quarter report on April 28th. The Company’s president and CEO resigned last month to head HP. NCR’s stock price was hammered by the news. For the fourth quarter, NCR reported that its Financial Self Service or ATM segment produced record revenue of $451 million, a 15% gain from the year-ago period. For the full year 2004, ATM revenues hit $1.3 billion, a 19% gain over 2003. For complete details on NCR’s current and past performance, visit CardData ([www.carddata.com][1]) (CF Library 1/27/05; 3/30/05)

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

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CO CU Selects Corillian Consumer Banking

Corillian Corp. announced that Boulder-based U of C Federal Credit Union has expanded its relationship by choosing to upgrade to the Corillian Consumer Banking application to maximize its online banking effectiveness. U of C Federal Credit Union serves over 75,000 members and has more than $670 million in assets. Corillian provides online banking and anti-fraud solutions to financial institutions.

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U.S. Bank Issues Three ABWA Affinity VISAs

Members of the American Business Women’s Association can support the organization by using the one of three new affinity credit cards from U.S. Bank. The program includes a card that earns reward points for gift certificates, merchandise, cash and travel rewards. ABWA brings together businesswomen of diverse occupations and provides opportunities to support each other in professional development and career advancement. U.S. Bancorp is the 6th largest financial holding company in the United States with assets of $195 billion.

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VeriFone and Paymentech Certify New Edge

Vancouver, WA-based New Edge Networks has been awarded certification for an end-to-end solution allows merchants to keep their existing POS systems that currently use dial-up telephone lines, yet make the move to broadband networks that use different high-speed transmission protocols. New Edge Networks provides managed network services for multi-location wide area networks (WANs).

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RewardsNOW Introduces Music Downloads

NH-based loyalty marketing specialist, RewardsNOW, has introduced a new service for banks or credit unions that enables their credit or debit cardholders to download music with their rewards points. Designed as a completely online, do-it-yourself rewards program, “Music RewardsNOW” offers access to a library of more than 800,000 songs, each available for a small number of rewards points. The new program was jointly designed by RewardsNOW and technology developer PF Rewards. The songs, from Real Networksâ™ database of hundreds of thousands of songs, can be downloaded in formats such as MP3 or iPod, either to computers or handheld devices. One of its early Music RewardsNOW customers is Clout Financial Services, a provider of credit cards and other financial services to the college and young professional market. The Company says the program will be further expanded with the addition of downloadable wireless phone ringtones later this year.

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Cardholders Use the Phone for Expedited Payments

A new survey shows that forgetfulness is the major reason consumers make late payments. Of those making expedited payments, 71% did so within three days of the bill’s due date, and 21% waited until the day the bill was due. Another 19% pay after the due date, but before a late fee is assessed, taking advantage of their billers’ grace periods. The study by Edgar, Dunn & Company for Fort Knox National Company, also found that 52% of consumers made expedited payments via phone, while 31% were Web-based payments. Only 8% of those making expedited payments do so by rush delivery or overnight mail, and a mere 6% use walk-up money transfer and/or wire services. The EDC study also found that most consumers are hustling to pay the ubiquitous family credit card (42%), followed by mortgages (12%), and auto loans (8%). More than 60% of survey respondents say they are most concerned about the late fee while 52% cite a black mark on their credit rating. According to CardData, the average bank credit card late is now $32.98.

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VA & DC Credit Union Leagues to Promote Fiserv EFT

Wisconsin-based Fiserv EFT has renewed a joint marketing agreement with the Virginia Credit Union League for an additional three-year term to market Fiserv EFT’s ATM and network gateway services to its membership and will be joined by The District of Columbia Credit Union League. Both leagues will promote Fiserv EFT debit card services to their members. The Virginia Credit Union League represents 5 million members and combined assets in excess of $43 billion. The District of Columbia Credit Union League represents approximately 60 credit unions and 470,000 members with a combined $5 billion in assets. Fiserv Fiserv EFT operates more than 16,500 ATMs, owns the ACCEL/Exchange Network and reported $3.4 billion in processing for 2004.

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ARC Volume Drives ACH Payments Up 20% in 2004

ACH payments rose 20% last year to 12 billion, primarily driven by the accounts receivable check conversion application (ARC), which has exploded more than 50-fold in its first three years. Americans also used the Internet to initiate more than 1 billion ACH payments valued at $350 billion during 2004. Overall, the nation’s financial institutions originated 21.6% more ACH payments than in 2003 valued at $25.5 trillion. NACHA also reports that thee number of Direct Payments in 2004 increased by 6.7% to 3.0 billion payments. Financial EDI on the ACH Network grew by 21.6% in 2004. Last year, there were 764 million EDI-formatted remittance records accompanying ACH payments. The total number of business-to-business ACH payments grew to 1.8 billion in 2004, up 8.9% over 2003.

ACH Volume (in millions)
2004 2003 % Increase
Commercial
Inter-bank 8,174 6,607 23.7
On-Us 2,884 2,485 16.0
Commercial Total 11,057 9,092 21.6
Federal Government 951 924 3.0
Total 12,009 10,017 19.9
Source: NACHA – The Electronic Payments Association

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Annual Banking in China Conference is Booked

The Asian Banker will be holding the Fifth Annual Future of Banking in China Conference 2005 to be held in Shanghai, October 26-27 2005. Almost 90% of the Chinese financial institutions are represented at the event. Sample topics to include: implementing credit risk management systems, building growth in retail banking and increasing customer retention and loyalty.

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Direct Merchants Gets Lower Min Cap Requirements

Minnetonka, Minnesota-based Metris Companies has amended its modified operating agreement with the Office of the Comptroller of the Currency, designed to reduce the minimum amount of capital required to be held by subsidiary Direct Merchants Bank from $213 million to $100 million, in order to pay down debt. Metris Companies Inc. is one of the largest bankcard issuers in the United States.

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