EDS has inked an eight-and-half-year, $1.1 billion managed network services outsourcing agreement to integrate the communications infrastructure for recently acquired FleetBoston Financial into Bank of America’s voice and data network. Once the integration is complete, BofA’s voice and data network will connect more than 180,000 associates, nearly 5,700 retail banking centers spanning 29 states and the District of Columbia, more than 16,500 ATMs, and facilitate Internet and telephone banking. EDS assumed responsibility for the Bank of America network in early 2003 as part of a 10-year, $4.5 billion contract. Under terms of the agreement, approximately 150 former Fleet associates will transition to EDS.Details
MA-based Peppercoin has upgraded its micropayment solution to aggregate low-priced transactions across many consumers, merchants and payment providers. “Peppercoin 2.0” offers a transparent interface; the ability to support all payment models from pay-per-use to subscription services on credit and debit cards; and, reduced customer service costs. Peppercoin’s solution is comprised of a small payment gateway; an associated customer self-care module with merchant-configurable business rules; a merchant aggregation service, which enables merchant accounts to settle payments; and a consumer aggregation service, which authorizes consumer spending and bills the consumer. “Peppercoin 2.0” can be deployed internally or as a hosted service for use in pilot programs.Details
TD Bank Financial Group and HP announced an initiative in which HP will upgrade and manage TD’s national automated banking network and POS transaction infrastructure. The seven-year outsourcing agreement, valued at C$320 million, will upgrade approximately 2,400 ATMs across Canada and TD’s automated banking and POS transaction processing system, according to CardFlash International. HP also secured outsourcing deals with MCI and Standard Register.Details
The latest bi-yearly “MasterIndex of Consumer Confidence” survey has found that 11 of 13 Asia/Pacific markets had an optimistic score, compared to eight in the preceding survey conducted at the end of last year. Japan’s “MasterIndex” score fell slightly short. Korea was the only other market to show a pessimistic outlook. Vietnam took the lead from China and tops the list with the highest score. The MasterCard survey explores five variables: employment, economy, regular income, stock market and quality of life. “MasterIndex” respondents are asked about their sentiments on these five variables for the six month period ahead.Details
Metavante this morning announced it has securely delivered remote key distribution technology to financial institution clients using “Triple DES”-enabled ATMs supplied by NCR and Diebold. Remote key distribution allows Metavante to securely generate encryption keys from its automated system, then send the encryption keys directly to the financial institution’s ATM. Previously this process was manual and required multiple individuals, from Metavante and the requesting bank, to generate, deliver and install encryption keys to each individual ATM. Metavante Corporation delivers virtually all of the technology that an organization needs to offer financial services.Details
Ireland-based Research and Markets has issued a new report that found
that Chinese banks have issued over 140 million credit cards since 1985.
R&M says the number of cards issued by Chinese banks has increased by
64% each year. The total sum of transactions has increased by 76% per
year, and the number of retailers who accept the cards has grown by 51%
per year. The number of card-issuing banks has increased from the
initial four state-owned commercial banks to over 20 banks. Meanwhile,
the percentage of retail purchases using bankcards also has been on the
rise. Last year, it grew to nearly 10% of all retail sales revenue.
China launched its first credit card in 1985. The issuer was the Bank of
China and the card was called the “Great Wall Card.” The “Great Wall
Card” became a member of VISA in 1987 and began issuing the first
international credit cards in China in 1988.
WA-based Coinstar reports it has counted 129 billion pennies through its 11,000 automated self-service coin-counting machines to-date. For Sylvester Neal of Auburn, Wash., pennies are his passion, collecting more than one million before cashing in most of them at a Coinstar machine and receiving back $7,921.41. Now having started on his second collection, Neal has accumulated more than 700,000 pennies in less than three years. Coinstar Inc. owns and operates a network of 11,000 automated self-service coin-counting machines that provide consumers with a convenient means to convert loose coins into cash.Details
Sydney-based ERG Group successfully installed the fare collection system for the new Las Vegas Monorail. ERG was awarded the contract by Bombardier Transportation to implement the fare collection system in September 2002. ERG installed 50 fare gates and 38 ticket vending machines at the seven stations and hotels. The system will use the same hardware and backend software to process both contactless smart cards and magnetic tickets for single and multiple journeys, daily and weekly passes. ERG is providing fare media utilizing magnetic tickets in the initial stages of the project with smart cards added in the future. All tickets can be purchased with cash, credit card or debit card payment with change provided when cash is used. The total system is capable of expansion into multiple applications for smart cards including electronic purse for casinos, security access and customer loyalty programs. ERG estimates it will handle more than 100,000 transactions daily.Details
FL-based Bentley Commerce has launched a debit card that seamlessly processes barter exchange members’ trade purchases at the point of sale at participating merchant members worldwide, even if the buyer and seller are members of different exchanges. The new “Platinum Business Trade Card” uses a standard credit card merchant terminal. The first terminals that will process Bentley Commerce’s Card transactions are the VeriFone “Omni 3750” and “3300” card terminals. Bentley Commerce plans to support additional terminals, such as the “Nurit 8100” and “2085,” later this year. Bentley Commerce’s Global Trade Alliance has 74 participating barter exchanges that provide online trading and account management for about 15,000 member companies. In addition to online trading, the “Bentley Platinum Business Card” will enable participating merchants throughout the world, to make offline trade purchases of products and services.Details
OH-based National City reported that its second quarter credit card outstandings were flat year-on-year, and down sequentially. Charge-offs also rose 38 basis points from the prior quarter, and up 27 basis from the year-ago quarter. NCCS reported $2.40 billion in second quarter managed outstandings, compared to $2.43 billion one-year ago and $2.47 billion in 1Q/04. Managed charge-offs increased to 6.38% in the second quarter, compared to 6.11% for 2Q/03 and 6.00% for 1Q/04. In the prior quarter National City had 1,854,645 gross accounts and 1,123,106 active accounts according to CardData (www.carddata.com). For complete details on National City’s 2Q/04 performance visit CardData ([www.carddata.com]).
NATL CITY CARD LOANS
2Q/03: $2,438 million
3Q/03: $2,480 million
4Q/03: $2,586 million
1Q/04: $2,474 million
2Q/04: $2,400 million
Source: CardData (www.carddata.com)
Community Bank of Pasadena, CA has agreed to market the Fiserv “PAYCHEK PLUS!” payroll debit card to its commercial clients. Community Bank expects the addition of the PAYCHEK PLUS! paperless payroll program to its existing products and services to be a decision that ultimately helps in keeping with the bank’s mission to be a leader in the distribution of financial products. FSV Payment Systems already has delivered on-site program training to key officials and personnel at the bank’s headquarters in Pasadena. Community Bank is a regional bank, founded in 1945, that serves clients who seek the know-how, wherewithal and product span of a larger financial institution, as well as the market knowledge, customer service orientation and local focus of a community bank.Details
Vancouver-based LML Payment Systems has retained the powerhouse U.S. law firm of Kirkland & Ellis to take on four companies who allegedly infringed on its three e-check patents. Lawsuits were filed in the U.S. District Court for Delaware against Telecheck Services, Electronic Clearing House, Xpresschex and Nova Information Systems. During the past year LML awarded a non-exclusive license to Verus Financial Management, a competitor providing electronic check conversion services at the point of sale. LML Payment Systems reported first calendar quarter revenues of $2.7 million. The Company provides check processing solutions including ECC and RCK.Details