TX-based First American Payment Systems has hired Russ Goebel, formerly SVP at Retriever Payment Systems, as SVP/Sales and Marketing, and Rusty Martz, formerly Business Development Manager at Paymentech Network Services, as VP/Sales. Mr. Goebel and Mr. Martz’s responsibilities will involve growing and building the company’s sales force and increasing First American’s presence in the industry. Goebel’s objective will be leading and directing sales and marketing efforts across distribution channels for First American. Martz, who served as Business Development Manager at Paymentech Network Services also served as Vice President of Sales at Sterling Technologies. He has obtained a successful background in sales management and business development. First American Payment Systems, L.P. is a provider of full service credit card processing for roughly 75,000 merchants throughout the nation.Details
Vancouver-based LML Patent Corp. and LML Payment Systems says a federal judge has set a trial date in a patent infringement lawsuit filed by LML against four companies who provide equipment, systems and services that convert paper checks presented at the point of sale into electronic transactions. The trial is scheduled for April 17, 2006 in the United States District Court for the District of Delaware. LML filed suit against TeleCheck Services, Electronic Clearing House, Xpresschex, and Nova Information Systems.Details
Consumers continued to pay-off more credit card charges and make more on-time payments during August. Based on $400 billion in asset-backed card bonds, the monthly payment rate for August 2004 hit a record high of 17.16%, well above last August’s rate of 15.63%, and the March 2004 rate of 16.60%. The delinquency rate fell to 4.32% during August from 5.11% a year ago, and 4.74% in March. On a year-over-year basis, the delinquency rate has fallen for the last thirteen consecutive months and the lowest monthly delinquency rate reported since July 2000. Moody’s “Credit Card Credit Indexes” also reported that charge-offs fell to 6.01%, down from 6.88% a year ago. This marks the ninth consecutive month in which the charge-off rate improved after over a year of nearly uninterrupted deterioration. Yield fell to 16.68% in August from 17.33% a year ago. The yield has marginally fallen from year-ago levels for the last three consecutive months.Details
VISA Europe is openly supporting the European Commission’s “EU Action Plan 2004 – 2007” which is aimed at preventing fraud on non-cash means of payment. The “Action Plan” builds on the European Commission’s initial plan launched in February 2001. Since then VISA has taken a lead role in migrating Europe to smart cards, providing a EUR162 million investment towards bringing about its pan-European implementation. The European Commission has been a strong supporter of EMV chip migration.Details
Lafayette Services, a leading European provider for card, credit, and loyalty programs for retail and end consumers has signed a MOU with Certegy. The MOU contains the basic terms upon which Certegy intends to provide a wide range of card and loan processing services to LaSer subsidiaries throughout Europe. Under the terms of the MOU, Certegy intends to provide private label, bankcard, chip card, and consumer loan processing and support services to LaSer subsidiaries located in five countries throughout Europe, including: Creation Financial Services and Sygma Bank (United Kingdom); PrimeLine Services B.V. (Netherlands); Credifin (Portugal); Banco Sygma Hispana (Spain); and Fidexis (Belgium).Details
Hatton National Bank of Sri Lanka and ICICI Bank Canada have launched a cross-border product that will allow non-resident Sri Lankans residing in Canada to transfer funds to Sri Lanka generally within one working day. The new “Money2Lanka” service is targeted at 200,000
Sri Lankans living in Canada. ICICI Bank Limited is India’s second largest bank with an asset base of $28 billion.
KeyCorp’s Key Equipment Finance has inked a deal to acquire the equipment leasing unit of American Express’ small business division, American Express Business Finance. American Express Business Finance (AEBF) is a leading commercial finance company, providing capital for small and middle market businesses. It has a portfolio of roughly $1.5 billion (as of September 30, 2004) and lease solutions ranging from $25,000-$75,000 for capital purchases. Key Equipment Finance (KEF) is currently the nation’s third-largest bank-based equipment financing company, with a portfolio of about $10 billion. The acquisition will make KEF a leader in the âsmall ticketâ lease segment, increasing KEF’s office network for small-ticket lease solutions to the widest geographic reach of any provider in that segment. Pending approval, the transaction is expected to be complete in the fourth quarter. Key Equipment Business, an affiliate of KeyCorp, provides business-to-business equipment financing solutions to many types of businesses. American Express Business Finance, a division of American Express, provides fast and reliable financing for business equipment via enrolled vendor partners.Details
The International Card Manufacturers Association’s “Sixth Annual Card Manufacturing Global Market Survey” found that Europe continues to be the most lucrative market as measured in dollars. Major findings revealed that globally, in 2003, approximately 11.7 billion cards were manufactured, a 9.3% growth rate. The global card marketing measure in U.S. dollars increased 27.1% to $6.1 billion. The survey found that traditional cards represent 83.8% of the units and 21.3% of the
dollars while chip cards represent 16.2% of the units and 78.7% of the
dollars on a global basis; non-secure cards represent 42.9% of the global card unit market; and that financial hologram cards represent 11.9% of the global card unit market.
Chicago-based Rewards Network reported that total operating revenue for 3Q/04 was $23.1 million, a decrease of 7.2% compared the same period last year. Sales declined 3% to $86.8 million. Net income for the quarter was $3.0 million compared to $4.4 million for 3Q/03. The Company closed the quarter with 3.7 million active members, up 12.7%. Nearly 22,000 merchants now participate in the Company’s programs including 10,611 restaurants and 11,111 hotels. Rewards Network provides loyalty and rewards programs for restaurants and hotels via its registered credit card platform. The Company recently expanded into Canada. For complete details on Rewards Network third quarter performance, visit CardData ([www.carddata.com]).
EMVCo has awarded Lipman Electronic Engineering “EMV 2000” approvals for its “NURIT” POS terminals and PIN pads. These new approvals follow the previous approvals based on the earlier
EMV ’96 specification, previously received by Lipman. In December 2000, EMVCo published the EMV 2000 (Version 4.0) specification, which builds upon the standards set forth in EMV ’96 with improved performance and other enhancements. Lipman develops, manufactures, and markets a variety of handheld, wireless and landline POS terminals, electronic cash registers, retail ATM units, PIN pads and smart card readers, as well as integrated pin and smart card solutions.
Recent private label portfolio deals point to a new trend which shows that companies with very long histories and a deep culture in the card business are finally divesting. However, the deals take much longer than the typical 30 to 90 days to complete as they involve a more complicated decision process, often taking many months just to arrive at the decision to sell. Thousand Oaks, CA-based R.K. Hammer recently completed the sale between AL-based Marvinâs Building Materials and Home Centers and NJ-based Shoppers Charge Accounts. Hammer also facilitated the sale of Sunoco private label consumer and commercial card accounts to Citigroup. Hammer says both deals involved companies that have been in business for well over 50 years and the sale process took considerably longer than the typical closing period. Hammer has closed 117 card deals to-date, generating over $367 million in pre-tax profits for clients. Over 827,000 card accounts have now been sold through the Hammer firm in the first three quarters of 2004. (CF Library 6/4/04; 10/15/04)Details
VISA International reported that dollar value of all purchases and cash withdrawals made with “VISA Commercial” payment solutions hit $200 billion for the four quarters ending June 30th. The figure was up 26% over the same period last year. VISA says it took 10 years for VISA to reach the $100 billion milestone and just three years to achieve $200 billion in annual commercial volume. VISA’s nine commercial products posted volume of $177.5 billion in 2003, an increase of 19% over the year-ago period. In the U.S., VISA reported that commercial cards produced a second quarter sales volume of $28.2 billion, a 23.9% increase year-on-year. As of June 30th, VISA had 22 million commercial cards in the USA.Details