GA-based GO Software has scheduled its first annual “Security & Emerging Technologies Conference” for November which will examine card association security programs. The two-day conference will feature industry experts from American Express, Discover, Federal Bureau of Investigation, MasterCard, Visa, and IHL Consulting. Speakers will discuss issues relating to electronic payment security and emerging technologies. GO Software, Inc., is a chief provider of POS payment processing software. More than 125,000 businesses use GO Software’s solutions to process payments.Details
Asia Payment Systems is set to launch its Asia Pay Japan
credit card processing network. The network is currently able to process all Japan domestic cards and International VISA, MasterCard, AMEX, JCB and Diners Club card transactions. It is the first network to provide IP-based transaction processing for Japan credit card transactions.
In addition to the Asia Pay Japan transactions, Asia Pay has also
completed client integration (U.S. credit card transaction
processing) for two Hong Kong-based clients, CTUSA and Telecom
Innovation Limited. Asia Pay’s mission is to be a national provider of third-party credit card processing services in China.
TRM has inked a deal to acquire a broad-based ATM network from eFunds for $150 million in cash. The agreement will increase TRM’s international network from 4,616 ATMs to 21,816 ATMs, the single largest international ATM network. The eFunds ATM portfolio is comprised of approximately 2,200 full placement and 15,000 merchant owned units located in geographically diverse retail locations. As part of the deal, TRM has entered into a five year managed services agreement with eFunds which includes a new ATM processing contract at a substantial reduction from TRM’s current cost structure. The deal was funded by a syndicated loan facility underwritten and arranged by Banc of America Securities plus cash on hand. The transaction is expected to close by the end of the year.
TRM ATM NETWORK HISTORICAL
2Q/03: 3,273 ATMs
3Q/03: 3,352 ATMs
4Q/03: 3,416 ATMs
1Q/04: 3,522 ATMs
2Q/04: 4,616 ATMs
Source: CardData (www.carddata.com)
A broad coalition of nine civil rights and consumer groups have called for Citigroup to eliminate mandatory arbitration in sub-prime mortgage loans. Citigroup’s failure to stop requiring mandatory arbitration in its subprime loans knocks it out of alignment with Freddie Mac and Fannie Mae, the largest buyers of home loans in the country. Citigroup has reduced the number of abusive home loans and recently announced that it will not charge more than 3% in upfront fees. This announcement is a positive step, however it doesn’t change the fact that Citigroup has failed to end forced arbitration in its subprime mortgage loans. Many Americans sign loan contracts unaware that they contain mandatory arbitration clauses that will deny them access to justice. This has been very detrimental where it disproportionately puts homes at risk for elderly, low-income, and minority families.Details
Online advertising revenue increased 43% in the second quarter to hit a record $2.37 billion. This is the seventh consecutive quarter of increases according to data gathered by the Interactive Advertising Bureau. The latest figures are above records set during the “dot com boom.” Credit card advertising has been rebounding slowly over the past two years. After being dominated by NextCard, Providian, and Capital One during the “dot com boom,” leading online card advertisers now include Citi, Chase, Bank One, Discover, and American Express. Meanwhile, all email advertising has been declining due to pending anti-spam legislation, according to the IAB.Details
CO-based CardXX has issued a license to Innovatier to use its smart card “RAMP” technology and distribute products manufactured using the “RAMP” process. Innovatier will pay CardXX a licensing royalty of 5% of the final assembly cost for each unit produced and sold. Innovatier is expecting to sell about 400,000 units each month. The CardXX process offers advantages including the injection of a thermoset polymer, a low temperature and pressure process, and superior heat and chemical resistance. CardXX uses Reaction Assisted Molded Process (RAMP) to manufacture and license secure and intelligent Smart Cards to provide secure encapsulation of advanced electronics.Details
While the marketing industry has been hard hit by do-not-call registries, Internet SPAM laws, and TiVo, direct mail is alive and well. Draft, a marketing services agency, says consumers are wielding unprecedented control over their relationships with marketers. Draft says direct mail prevails over other channels because it is inviting, not intrusive. Also the Internet is not direct mail’s enemy. Draft says direct mail and the Web create a powerful bond with the consumer, stronger than either can do separately. Almost 33% of people surveyed said they respond to direct mail by going online. Draft noted that in today’s world, the “mail moment” (that time people take each day to go through their mail), makes a connection like no other.Details
Memphis-based American Merchant Data Service reported that its monthly merchant volume has grown six-fold over the past year. The two-year old ISO, which released audited financials last week, is now processing more than $6.0 million and 70,000 transactions per month. One year ago the firm handled about $1.0 million per month which grew to $2.3 million in December. The Company is currently in the process of adding 8,000 merchants to its portfolio following a joint venture agreement with another commercial electronic processing concern. According to AMDS financials, the firm lost $596,000 in 2003 and $29,000 in 2002. Bert Adcock is the President.
AMDS HISTORICAL MONTHLY VOLUME
Aug 03: $1.0 million
Nov 03: $1.7 million
Dec 03: $2.3 million
Aug 04: $6.3 million
Source: CardData (www.carddata.com)
Fair Isaac has signed an agreement to acquire Chicago-based Braun Consulting for a net cash value of $30 million. As part of the deal, Braun’s senior management team, including founder and CEO Steven Braun will remain with Fair Isaac. Fair Isaac plans to leverage Braun’s consulting practice to help executives who have a stake in the success of marketing efforts set the strategic context and direction for results-oriented “Precision Marketing” initiatives. Fair Isaac also expects that Braun’s technology integration experience will help ensure customers realize the greatest benefit from its “Precision Marketing” solutions. The deal is expected to close in the fourth quarter.Details
Deluxe Financial Services has introduced “Deluxe ID TheftBlock” which enhances traditional identity protection tools by adding check order screening, daily credit monitoring, access to fraud resolution assistance, and a comprehensive membership kit. Deluxe ID TheftBlock helps Deluxe fulfill its commitment to satisfying consumers and financial institutions. Deluxe ID TheftBlock enrollment is easy for consumers and requires minimal involvement from financial institutions. It offers consumers the option of mail or e-mail notifications of unusual credit activity. Deluxe ID TheftBlock will generate more revenue for financial institutions in addition to minimizing fraud, increasing security, and improving consumer satisfaction. Deluxe offers checks and similar products to enhance consumer satisfaction, strengthen check program security, increase revenue, and improve efficiency.Details
FL-based Catalina Marketing has sold its direct mail division to Valassis. The transaction supports Catalina Marketing’s strategy to focus on proprietary applications delivered at the point-of-sale while enhancing Valassis’ 1-1 direct mail business. The 1-1 direct mail business offered by both companies specializes in direct mail that is targeted based on consumer purchase behavior and lifestyle changes of consumers. Catalina Marketing combines insight into consumer behavior and consumer access, enabling marketers to execute behavior-based marketing programs. Listed as one of Fortune magazine’s “Best Companies to Work For” for seven years in a row, Valassis offers a range of marketing services to consumer packaged goods manufacturers, retailers, technology companies, and other customers. It has operations in the U.S., Europe, Mexico, and Canada.Details
VISA’s top executive this morning predicted that VISA will, for the first time, unseat American Express in small business market share during the first quarter due to signed deals in the pipeline. CEO Carl Pascarella also said that no matter what happens with VISA’s appeal to the U.S. Supreme Court, American Express always loses. Pascarella says AmEx has flawed products and competes against itself. He said VISA is competing with cash and checks, while everyone else, particularly AmEx, is competing with VISA. Pascarella said AmEx’s share in the small business market shrank from 75% in 1997 to 41% last year. VISA’s small business market share is currently 39%.Details