NEC Develops the Most Accurate Facial Recognition Technology

NEC announced the development of a novel 3D face recognition algorithm that produces the most accurate personal identification system. The algorithm uses “Geodesic Illumination Basis” descriptors as registered data, which is calculated from 3D facial data, enabling optimal description of various pose and illumination changes. The new algorithm realizes the world’s most accurate personal identification matching rate of 96.5%, even under very severe environmental conditions that cause changes in illumination and pose. Facial recognition technology is already being used in ATM applications. Interest in facial biometrics is also growing on a global scale due to increasing security concerns and unstable social conditions.

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Paymentech Launches a Suite of E-Check Products

Dallas-based Paymentech has introduced the “eCheckSelect” product suite which offers a variety of processing options, including ACH transaction origination, consumer authentication, data validation, and check authorization services. Paymentech’s eCheckSelect suite of solutions gives merchants a single resource for every kind of payment they choose to accept. Paymentech, L.P. processes more payment transactions than any other company in North America and more than half of all Internet transactions for retailers accepting U.S. and international payments via traditional point of sale, Internet, catalog and recurring payments.

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CPI Card Group Moves Plant to Las Vegas

CPI Card Group has relocated their Los Angeles manufacturing plant to North Las Vegas in the Cheyenne Technology Corridor. The new plant operates 24 hours a day, seven days a week, and is scheduled to be fully operational by May. The facility will house over $10 million worth of state-of-the-art equipment and have the capacity to produce 900 million cards annually. CPI Card Group, a world leader in plastic card manufacturing for over 20 years, offers a single source for plastic cards-from foil cards and holograms, to translucent and smart cards-with services that include card design, manufacturing, personalization, fulfillment and mailing.

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CreditCall Offers an EMV-Based ID Application

CreditCall Communications has introduced a new application that enables customers of banks and building societies to be identified by the microchip and PIN number, instead of signature alone. The application is based on CreditCall’s EMV transaction processing software. The new system uses the new EMV cards to enable the authentication of the card holder by verifying their PIN, and is integrated with the system the
teller would normally use to enable transactions. A complete transaction need not necessarily be performed i.e. a PIN can be verified without a financial transaction being conducted, and the method is far less intrusive
and quicker than staff asking for personal information as a means of verifying the individual. Typically, the user would pass their card to the bank teller and enter their PIN on the PINpad situated on the customer’s
side of the desk position – an operation that can be completed in seconds. The bank teller gets an instant indication that the cardholder is legitimate – if not, the teller can withhold the card whilst enquiries are
made. CreditCall is a specialist cashless payment solutions provider.

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Cyota Uncovers a New Phishing Attack Strategy

Cyota’s “Anti-Fraud Command Center” has recently discovered that fraudsters conducting phishing attacks against financial institutions are now launching multiple spoofed sites simultaneously. As part of Cyota’s 24×7 Anti-Fraud Command Center services, it constantly monitors and analyzes fraudulent emails and other types of fraud. The Center currently works with some of the world’s largest banks and issuers, some of which have already experienced the multiple site trend first hand. Cyota is the leading provider of security and anti-fraud solutions for financial institutions.

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Chase Leads NACHA Originators for 2003

NACHA released its “Top 50” lists of the largest originating and receiving financial institutions of ACH payments for 2003. The financial institutions in the “Top 50” of originating institutions accounted for more than 91.6% of all inter-bank ACH payments last year. On the receiving side, the top financial institutions accounted for 54.9% of all inter-bank ACH payments in 2003. J.P. Morgan Chase led the top originators with more than one billion transactions. Bank of America led the top receivers with more than 576 million transactions last year.

The NACHA TOP 5 Originators
Rank Company Debits Credits Total Change
1 J.P. Morgan Chase 553,258,768 459,851,399 1,013,110,167 18.1%
2 Bank One 566,620,670 192,929,077 759,549,747 11.5%
3 Wells Fargo 310,559,037 278,178,474 588,737,511 15.0%
4 Wachovia 190,361,816 216,884,271 407,246,087 -5.4%
5 Bank of America 145,883,669 252,606,723 398,490,392 15.0%

The NACHA TOP 5 Receivers
Rank Company Debits Credits Total Change
1 Bank of America 277,297,046 299,502,672 576,799,718 13.6%
2 Wells Fargo 188,395,094 185,711,678 374,106,772 13.2%
3 Wachovia 133,214,160 154,896,969 288,111,129 13.9%
4 Bank One 96,341,598 115,111,896 211,453,494 6.7%
5 Washington Mutual 96,394,447 98,830,156 195,224,603 23.6%

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InterCept Sells IPS in Two Pieces for $54 Million

Atlanta-based InterCept identified the interested parties in the purchase of its merchant services division, which together will produce a $54 million sale price, about $16 million more than the previously announced deal. Yesterday, Pay By Touch paid $30.5 million for all of InterCept Payment Solutions except the iBill segment, and Penthouse’s Media Billing subsidiary paid $23.5 million for all of the outstanding member interests of iBill. Last month, Intercept announced it had signed a LOI to sell IPS for $37.4 million to a group that includes CEO John Perry and a third party provider of merchant payment services for both traditional and Web-based merchants. However, last week InterCept confirmed it had received another offer for some or all of its merchant services division. The Pay By Touch agreement includes $12.0 million cash; a $15.5 million note due in 180 days that is guaranteed by three Pay By Touch stockholders (the note will be discounted by $3.0 million to $9.5 million if Pay By Touch makes a $3.0 million prepayment in 60 days); a one year $2.5 million note that is convertible into Pay By Touch preferred stock currently valued at $2.5 million at InterCept’s option; and shares of Pay By Touch preferred stock currently valued at $500,000. The Penthouse/Media Billing deal includes $0.7 million in cash, a $0.8 million short-term note, and assumption of a $22.0 million working capital deficit. InterCept will provide further details as well as release its fourth quarter earnings report on Thursday. (CF Library 2/11/04; 3/17/04)

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Nearly 100 Acquisition/Agent Deals Inked in 2003

Nearly 100 banks and credit unions sold their credit card portfolios and signed agent partnerships last year. Atlanta-based InfiCorp led the charge, purchasing the largest bank portfolio and the top two credit union portfolios of the year. InfiCorp purchased the $23 million Principal Bank portfolio, the $33 million portfolio of Choice One Credit Union, and the $31 million portfolio of Financial Partners Credit Union. Peterborough, NH-based Brookwood Capital says that for the full year 2003 nearly $600 million in portfolios were sold into agent programs, with InfiCorp, Elan Services, MBNA and TNB Card Services being the most frequent buyers. The 40 bank deals completed last year averaged $4.5 million in size, while the 59 credit union deals averaged $6.9 million. Overall, the average size among the 99 deals was $5.9 million. Brookwood says that difficulty in committing marketing resources for card programs, pressure to introduce expensive reward programs, intense rate competition, and concern over the high levels of credit and fraud risk, drove smaller institutions to unload their card programs and seek a strategic partnership with a larger credit card issuer.

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Advanced Secure Memory Card Specification Coming

The MultiMediaCard Association announced that Gemplus, Hitachi, Hyperstone, Infineon Technologies Flash, Lexar Media, Nokia, Power Digital Card, Renesas, Samsung, SanDisk, Sanyo, Silicon Motion and ST Microelectronics have teamed to form a working group to spearhead the adoption of the next generation “Secure MultiMediaCard” specification as the basis for “OMA DRM Ver. 2.0”-compliant removable secure storage media and mobile commerce application platforms on mobile devices. The MultiMediaCard Association has long been at the forefront of secure removable media standards, with previous versions of SecureMMC specifications addressing content protection and mobile transactions. The new specification Ver. 2.0 defines an extension to the existing MultiMediaCard standard protocols to create a communication interface for the incorporation of smart card technology in MultiMediaCards.

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