Eugene Lockhart Joins NetSpend Board

NetSpend Corporation has named Eugene Lockhart, Richard Child, and Daniel Schley to its Board. Mr. Lockhart, who will join as Chairman of the Board, is currently a Venture Partner with Oak Investment Partners. Mr. Child also brings extensive experience from MasterCard International, including his most recent position as Executive Vice President. Mr. Schley, currently the Chairman & CEO of Foundation Source, Inc., and the Co-Founder and Managing Director of Dolphin II, LLC, and has held the positions of Chairman and Chief Executive Officer of numerous financial service and software companies. NetSpend Corporation, based in Austin, Texas, is a proven leader for prepaid debit processing platforms, offering an end-to-end approach that is unique in the prepaid payments industry.

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Fair Isaac Closes London Bridge

Fair Isaac has closed its acquisition of London Bridge Software Holdings. The addition of London Bridge’s talent and technologies extends Fair Isaac’s ability to deliver analytics-driven decision strategies across the entire credit customer lifecycle. Fair Isaac Corporation is the preeminent provider of creative analytics that unlock value for people, businesses and industries. London Bridge Group has over 1,600 clients worldwide and provides a comprehensive portfolio of software and e-Commerce solutions including Customer and Enterprise Management Software, Banking Software, Credit Management Software and enterprise-wide Mortgage Lending software.

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Late Payment Fees Rise 23% Since 2001

All of the nation’s top ten bank credit card issuers, including American Express and Discover, have raised late fees during the last three years by an average of 23%. In the spring of 2001 nine of the top ten issuers charged a $29 late fee. In April 2004, five issuers charge $35 and four issuers assess a $39 late fee. The average late fee charged by the top ten issuers in April 2001 was $29.60, compared to $36.50 in April 2004. However, unlike 2001, all of the top issuers now have tiered late fee structures, which provides some relief to consumers very, very low balances. Most issuers assess their highest tier late fee if your outstanding balance is more than $1,000. Chase sets a $250 balance, and Providian a $200 balance as the trigger point for their highest late fees. In March of this year, the American Bankers Association reported that credit card delinquency, based on the number of accounts 30+ days past due, hit an all-time high of 4.43% in the last three months of 2003. There are currently 417 million VISA and MasterCard credit card accounts, compared to 368 million in the spring of 2001. (This does not include the 72 million accounts held by Discover and American Express.)

CREDIT CARD LATE PAYMENT FEES
2001 2004
1. Citibank $35.00* $39.00*
2. MBNA $29.00 $39.00*
3. Bank One $29.00 $34.00**
4. Chase $29.00 $35.00***
5. Discover $29.00 $35.00*
6. Capital One $29.00 $35.00*
7. Am Express $29.00 $35.00*
8. Bnk of Amer $29.00 $39.00*
9. HSBC/HH $29.00 $35.00*
10. Providian $29.00 $39.00****
AVG $29.60 $36.50
* for balances over $1,000; ** for balances over $1,200
*** for balances over $250; **** for balances over $200
Source: CardWatch (www.cardwatch.com)

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Investor Rebukes InterCept’s Corporate Governance

In a stinging rebuke of InterCept’s management and governance, venture capital firm Third Point Management Company is calling for the resignation of CEO John Collins and the dismissal of Directors: James Verbrugge, Arthur Weiss and Mark Hawn. In a letter to Collins, Daniel Loeb of Three Points, which owns 7.1% of InterCept, accussed the senior management and its Board of Directors of self-dealing and extensive conflicts of interest. Loeb says his investigation showed that the “good ol’ boy” set of ethics prevails at the firm at the peril of investors would want the processor on the selling block. Loeb took particular aim at a financial arrangement with Sprout Group, a venture capital affiliate owned by Credit Suisse First Boston calling it a sweetheart deal that “gave away the store.” InterCept, which recently sold its iBill division, has not reported first quarter results yet. For information on InterCept’s past performance visit CardData ([www.carddata.com][1]).

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

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OTI 1Q/04

Rosh Pina-based On Track Innovations reported revenues for the first quarter of $5.3 million, up 13% from one-year ago. Net loss for the quarter was $2.0 million versus $1.1 million last year due to restructuring and the raising of capital. The Company reported record volume growth by BP South Africa, from 100 million liters (26.5 million gallons) in 2002 to 175 million liters (46.2 million gallons) in 2003, with OTI’s petroleum payment solution, branded by BP as “FuelMaster.” OTI also reported the installation of the 200th gas station in Turkey using OTI’s petroleum payment system. In addition, the Company recently announced that it had entered into an agreement with Sasol Oil to create a large network of on-road retail convenience centers equipped with OTI’s petroleum payment solution. OTI also reported that its “EasyPark” parking payment system has reached more than 130,000 subscribers in 24 cities in Israel.

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MoneyGram Inks Largest Bank Affiliation

Minneapolis-based Travelers Express Company’s MoneyGram subsidiary has landed its largest bank affiliation in the USA with the signing of a deal with U.S. Bank. U.S. Bank will initially offer “MoneyGram” in 213 branches in Chicago, Los Angeles, Milwaukee and San Diego in the first phase, which will be up and running in August, with plans to offer the program in all branches in 24 states by early 2005. U.S. Bank launched two Mexican remittance programs last year. The card-based “Secure Money Transfer” product and relationship with Mexico’s L@Red de la Gente provides consumers with low cost options to send funds to more than 20,000 ATMs or 750 L@Red de la Gente locations in Mexico. L@Red de la Gente is part of the MoneyGram network. The addition of the MoneyGram network opens additional outlets in Mexico and access to 160 other countries.

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Certegy Hires MasterCard’s Thawley

Certegy has hired Philip Thawley, formerly with MasterCard, as Corporate Vice President and Chief Human Resources Officer. Mr. Thawley brings 30 years of experience in human resource management to Certegy, having held similar positions at MasterCard International and Deloitte & Touche. He will report to Certegy’s Chairman and CEO, Lee A. Kennedy. Certegy provides credit and debit processing, check risk management and check cashing services, merchant processing and e-banking services to over 6,500 financial institutions, 117,000 retailers and 100 million consumers worldwide.

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Fineco Bank to Deploy ACI Proactive Risk Manager for its 400,000 Credit Cards

Fineco Bank has licensed ACI “Proactive Risk Manager” for its more than 400,000 credit cards in-force. The software will be fully integrated with Fineco Bank’s card authorization platform for better enterprise risk management, reducing fraud-associated costs. The software compares the characteristics of each transaction with the recorded patterns of behavour and assesses the risk of each transaction using a variety of parameters and accumulated statistics. Those parameters and statistics are maintained and calculated in real time. The models will be based on Fineco Bank’s card portfolio, which will enhance the system’s fraud detection capabilities. Moreover, Fineco Bank will have the ability to update the custom model to adapt to emerging fraud patterns. Fineco Bank is now the top direct /online bank in Italy with more than 400,000 customers.

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Calnet and Payment Data Systems Integrate

San Antonio-based Payment Data Systems has signed an agreement with Calnet Business Bank that provides linkage of PDS’ bill-pay debit card network, as well as cash driven counter payments for bill-pay, into the Calnet payee (vendor/service provider) accounts. The agreement with Calnet provides linkage of Payment Data’s bill-pay debit card network, as well as cash driven counter payments for bill-pay, into the Calnet payee (vendor/service provider) accounts. alnet Business Bank was formed by a group of highly respected banking professionals and business leaders with the highest standards for personal, high-quality customer service and advanced technology. Payment Data Systems, Inc., is an Integrated Payments Solution Provider delivering comprehensive, cost-effective solutions to billers and retailers for the processing and management of electronic payments via the Internet, point of sale, or payments taken by Customer Service Representatives or an Interactive Voice Response (IVR).

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AmEx Launches the Business Savings Program

American Express has launched a new business expense savings program for smaller merchants that accept the American Express card. The new ‘Business Savings” program offers discounts from partners such as Enterprise Rent-A-Car; IBM; McAfee; Nextel; Office Depot and Welcome Wagon. For example, Office Depot offers a 3% instant rebate on purchases made in its stores or call centers, plus, up to 10% back with quarterly “Advantage Rewards” for qualifying purchases made in store, over the phone or online. Enterprise Rent-A-Car is offering up to 25% off through the AmEx program. “Business Savings” is free and open to all merchants in the American Express network. There is no enrollment process.

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Hypercom Lands a Major Order in the Baltics

Hypercom has landed an order for nearly 5,000 “ICE5500Plus” and “S9” card payment devices from MKS in the Baltic States. After acquiring the point-of-sale network of Vilniaus Bank, the leading Lithuanian bank, MKS conducted a thorough search for new card payment terminal technology to fit their exact requirements, and ultimately chose Hypercom for its EMV-certified stable technology, TermMaster® Suite and terminal choices that are loaded with desirable features and high security. MKS is the leading payment cards processing centre in Lithuania. Hypercom Corporation is a leading global provider of electronic payment solutions that add value at the point-of-sale for consumers, merchants and acquirers, and yield increased profitability for its customers.

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