CO-OP Network Passes 1B Transaction Milestone

CO-OP Network reported it posted a 21% increase in transactions last year. A record 1,000,798,103 transactions were processed last year. The nation’s largest credit union EFT network was created in 1981 with 24 credit union members. Today it has more than 1,770 member credit unions connected to 19,500+ surcharge-free ATMs nationwide, and serving 20 million credit union cardholders. The network noted that the most significant segment jump in its transaction totals is an increase of more than 5 million monthly PIN debit transactions in 2004. For the year, CO-OP Network PIN debit transactions experienced an overall 34% rise, with signature debit transactions increasing 25%.

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U.S. Bank’s Acquiring Volume Up 39% in Q4

U.S. Bancorp reported that its fourth quarter debit card volume topped $5.5 billion, a 21% increase over 4Q/03. Credit card charge volume for 4Q/04 was $14.6 billion, compared to $12.9 billion one-year ago. Consumer credit card volume for the fourth quarter was $8.8 billion, an 11% increase. Corporate credit card volume for the quarter $5.9 billion, compared to $5.0 billion for 4Q/03. Merchant (acquiring) volume for 4Q/04 hit $38.2 billion, a 39% increase. For complete details on US Bancorp’s 4Q/04 performance visit CardData ([www.carddata.com][1]).

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

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Top Security Expert Joins Cyota’s Board

Amit Yoran, former US Department of Homeland Security as the National Cyber Security Division director appointed by President Bush, has joined Cyota’s board of directors. Appointed by President Bush, Mr. Yoran served as the US Department of Homeland Security as the National Cyber Security Division director. Prior to joining DHS, Yoran was the vice president for worldwide managed security services at Symantec. Cyota is the leading provider of online security and anti-fraud solutions for financial institutions.

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Jack Henry’s Profits Rise 22% in Q4

MO-based Jack Henry & Associates reported a 21% increase in revenue, and 22% increase in net income for 4Q/04, compared to one-year ago. For the quarter ended December 31, 2004, the company generated total revenue of $136.0 million compared to $112.7 million in the same quarter a year ago. Gross profit increased to $54.7 million compared to $44.7 million in the second quarter of last fiscal year. Jack Henry & Associates, Inc. provides integrated computer systems and processes ATM and debit card transactions for banks and credit unions. Jack Henry markets and supports its systems throughout the United States and has over 7,700 customers nationwide.

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TransUnion Spun Off by Marmon Group

TransUnion has been spun off from The Marmon Group of companies and has formed a new board with Penny Pritzker servings a chairman of TransUnion Corp. Since joining The Marmon Group in 1981, TransUnion has grown to become a leading global provider of information-based services, with sales of more than $1 billion. The Marmon Group is an international association of about 100 companies, primarily manufacturers, operating independently within diverse business sectors. Collective revenues exceeded $6 billion in 2004.

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NCR Projects 4Q/04 Revenues to be Up 9%

NCR says it anticipates fourth-quarter revenue to be $1.79 billion, an increase of 9% year-over-year. NCR is increasing its guidance for 2005 earnings per share to $2.30 to $2.40, on a pre-stock-split basis, from $2.15 to $2.25, including $135 million to $140 million of pension expense, which is $10 million to $15 million more than earlier expected and comparable with the pension expense included in NCR’s 2004 results. NCR Corporation is a leading global technology company helping businesses build stronger relationships with their customers.

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GE Buys Business Card Portfolio from First Data

GE Consumer Finance-Canada has purchased the small business MasterCard portfolio in Canada of First Data Loan Company Canada. Under terms of the agreement, First Data will provide card processing services for the accounts. The deal marks GE’s first entry into the Canadian market. First Data says it unloaded the portfolio to continue to focus on its core competency.

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Oberthur Lands an E-Passport Supplier Deal

Los Angeles-based Oberthur Card Systems has been selected by the U.S. GPO as a key supplier to provide the technology for the development and testing of the U.S. electronic passport. Oberthur Card Systems’ machine-readable e-passports incorporate the certified FIPS-201 Level 3 contactless chip that is compliant with new International Civil Aviation Authority (ICAO) specifications as well as Public Key Infrastructure (PKI) recommendations. The chip is used to store biometric information and is fully compatible with 20 major radio frequency smart card readers. Oberthur Card Systems is one of the world’s leading providers of card-based solutions, software and applications including SIM and multi-application smart cards and services ranging from consulting to personalization.

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NOVA and Givex Partner for Enhanced Payments

NOVA Information Systems and Givex have teamed to add enhanced functionality and distribution channels for electronic payment, gift, loyalty and check products. The relationship introduces enhanced functionality to both Givex’s and NOVA’s solution portfolios. Additionally, it opens new distribution channels for Givex, and provides NOVA with extended cross-sell and up-sell opportunities. Givex Corporation (www.givex.com) is a card management company specializing in gift card and loyalty transaction processing for a wide range of industries including retail, hospitality, grocery, shopping centers and petroleum. NOVA Information Systems, a leader in the payment processing industry, is a wholly owned subsidiary of U.S. Bancorp.

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First Data Names its Head of Mobile Solutions

First Data has named Nandita Bakhshi as managing director of Mobile Solutions, a new business unit focused on offering mobile payments and related services. Bakhshi joins First Data from U.S. financial services firm, FleetBoston, and will lead First Data Mobile Solutions, a business unit focused solely on mobile services, including mobile payments, prepaid top-up and mobile content. Her appointment confirms First Data’s commitment to driving the development of the mobile payments sector. First Data Corp. (NYSE: FDC), with corporate headquarters in Denver, Colorado (U.S.A.), helps power the global economy.

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MasterCard Releases a Study on Low Cost Carriers

MasterCard released a new report on the impact of low cost carriers on the airlines industry in Asia/Pacific. The report explains how LCCs may generate more traffic volumes and induce a faster growth in revenue paying passengers by enticing lower income travelers to travel in and around the region. MasterCard found that the point-to-point system and restricted distribution channels gives LCCs an enormous advantage over full service carriers. Furthermore, their simplified fleet structure and outsourcing of the technical functions produce significant advantages over full service carriers. LCCs operate most successfully in the common ‘open skies’ environment in Europe and the US. In Asia/Pacific, however, there is no common open skies arrangement.
If there is an Asia/Pacific open skies environment than all players will
be forced to deal with price compression more aggressively as LCCs
penetrate all or most of the medium and short-haul sectors,
significantly impacting the competitive structure in the region.

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Mileage Plus VISA Offers EQM and Double Miles

After announcing a suite of prepaid “status” cards yesterday, United Airlines and Bank One announced a new program for “Mileage Plus VISA” cardholders. Under the new program cardholders earn “Elite Qualifying Miles” and double redeemable miles for every dollar spent on united.com during 2005. “EQM” are valid toward “Mileage Plus” elite status: “Premier” (25,000 miles); “Premier Executive” (50,000 miles), and “1K” (100,000 miles). The new program applies to the “Signature VISA Card,” “Signature Gold Class VISA Card,” “Platinum Business Card” and the “Mileage Plus Debit Card.” (CF Library 1/18/05)

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