Luottokunta Licenses FRAUDGUARD for its National Network

Finland’ national card payment network, Luottokunta, has licensed Card Tech Limited’s “FRAUDGUARD” fraud detection and management solution. Luottokunta services over 2 million cards and 50,000 merchant locations in a multi-institution environment; it is an industry leader in risk management. “FRAUDGUARD” will be used as a central fraud management platform, enabling Luottokunta to detect, alert and manage suspicious transactions. It will interface with Luottokunt’s technical environment through real-time and batch interfaces with front and back office systems provided by Oasis and LogicaCMG. In addition, FRAUDGUARD’s rule-based detection will incorporate scores generated by “Xtract Fraud Detector,” combining the best of both rule-based and neural network technology. This will be CTL’s first implementation of “FRAUDGUARD” since obtaining official confirmation from VISA EU that the system meets its authorization screening mandates.

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Providian Closes its Louisville Collections Center

Providian announced Monday it is closing its Louisville, Kentucky collections site with 300 employees and moving the activities into its Austin and El Paso, Texas sites. Providian Financial (http://www.providian.com) is a leading provider of credit cards to mainstream American customers throughout the U.S. By combining experience, analysis and technology, Providian seeks to build long-lasting relationships with its customers by providing products and services that meet their evolving financial needs.

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CO-OP Network Transactions Up 29%

Ontario, CA-based CO-OP Network reported Monday that its ATM transaction volume last year reached 826 million, a 29% over 2002. The network says several factors contributed to the transaction growth, including last year’s addition of nearly 400 credit union clients, 2,200 ATMs and 6.5 million cardholders. In December, CO-OP Network established a new monthly volume record when it processed more than 77 million transactions. CO-OP has nearly 1,500 credit union members, more than 18,000 surcharge-free ATMs, and 18.5 million cardholders, making it the largest credit union ATM network in the USA. CO-OP Network members have access to 800,000 ATMs worldwide. The company was founded 23 years ago.

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TSYS Profits Up 11% in the Fourth Quarter

TSYS reported that total revenues were up 13%, and that net income grew 11% during the fourth quarter. Peak-season cardholder transaction volumes increased 17.5% over 2002 and accounts on file for the year increased 11.4%. TSYS also reported that revenues from international clients increased 36.9% for the year, primarily due to conversions of new clients in Canada and Europe. TSYS also said that based on discussions with executive management after the recent merger announcement of Chase and Bank One, it expects to complete the conversion of Bank One’s card portfolio to the “TS2” platform in the second half of 2004, according to schedule. The processor also noted that the impact of certain events in 2003 will persist this year with portfolio sales by multiple clients, continued issuer consolidation, and pricing concessions for some large clients of TSYS and Vital Processing Services. TSYS said it expects revenues, before reimbursables, for the year to grow 1113% over 2003, baring no significant client losses occur through 2005. For complete details on TSYS’ fourth quarter performance visit CardData (www.carddata.com).

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Circuit City Unloads the Rest of its Card Portfolio

Circuit City Stores confirmed yesterday it will sell its $1.8 billion private-label credit card operation, including both its private-label Circuit City credit card accounts and its co-branded “Circuit City Plus VISA” credit card accounts, to Bank One. The deal completes Circuit City’s exit from the card issuing business following the sale in November of its $1.5 billion VISA and MasterCard credit card portfolio to FleetBoston for $1.3 billion. Bank One will pay par value of the receivables for the portfolio. The retailer expects to incur an after-tax loss of approximately $10 million on the deal. Circuit City will also become an agent of Bank One under a seven-year contract. Circuit City will be compensated for each new account opened and Bank One will provide special financing terms for Circuit City customers. Bank One will assume about 700 employees of Circuit City. First Annapolis Capital is acting as advisor to Circuit City.

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Gemplus Names New North American President

Gemplus International has named two new members to its Operations Committee, and announced the head the Financial Services Business Unit. Ernie Berger is joining Gemplus in the USA as the President of Gemplus North America and is based in the Philadelphia area. Remi Calvet is joining the Company VP/Corporate Communications. Justin D’Angelo has also been promoted and will head the Financial Services Business Unit as SVP. Berger has 15 years of experience in the financial services sector with American Express and First USA, where he held senior management positions. Calvet has worked for Unilever, DMC, and Philip Morris International. The former “Financial and Security Services Business Unit” has been divided into two distinct entities: the Financial Services Business Unit, comprising banking, retail, transport, and conventional cards; and the ID & Security Business Unit, comprising ID, security and smart card interface (hardware and readers). D’Angelo will head the Financial Services Business Unit and Jacques Seneca will head the ID & Security Business Unit.

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VISA to Assist a Global Philanthropic Exchange

VISA International has inked a deal to be the preferred payment brand and to provide expertise to GlobalGiving, a philanthropic exchange founded by former executives of the World Bank. Visa will become the preferred payment brand for GlobalGiving, provide resources and co-promotion of the partnership, help optimise the collection of donations and refine best practices for security and privacy of donor financial information. Over the coming year, the two organizations will also work to identify ways that payment technology can improve the efficiency of business operations and help GlobalGiving maximize the percentage of financing going to projects. GlobalGiving uses a market-based approach to enable individuals, businesses, and groups to find and support high quality, small-scale, social development projects on five continents.

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Optimal Robotics and Terra Payments to Merge

Montreal-based Optimal Robotics and Montreal-based Terra Payments announced they have agreed to merge. Under the agreement, Terra will become a wholly-owned subsidiary of Optimal and be renamed Optimal Payments. As well, Terra’s senior management team will remain in place. Mitch Garber, the President and CEO of Terra, will become President and CEO of Optimal Payments and will also be EVP of Optimal. Steve Shaper, the Chairman of Terra Payments and the former President and CEO of Telecheck, will become Chairman of Optimal Payments. Doug Lewin, the EVP of Terra Payments, will remain in that position at Optimal Payments and will become SVP of Optimal. The remaining senior management team of Terra Payments will continue to hold their respective titles in the renamed Optimal Payments. Optimal Robotics is a provider of self-checkout systems to retailers and, through Optimal Services Group, provides a broad scope of depot and field services to retail, financial services and other third-party accounts. Optimal has a strong IT infrastructure with over 800 software and hardware professionals. Terra Payments is a growing presence in the payment processing industry and provides technology and services that businesses require to accept credit card, electronic check and direct debit payments. Terra Payments processes credit card payments for non-face-to-face transactions, including mail-order/telephone-order, online gaming and other online merchants, as well as for retail point-of-sale merchants.

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MPS to Offer CommerSafe MPI to I-Merchants

Los Angeles-based Merchants Billing Services is now offering iBIZ Software’s payment authentication services based on “CommerSafe MPI” to its online merchants. iBIZ Software’s CommerSafe MPI (Merchant Plug-In) is compliant with the Verified by Visa and MasterCard SecureCode payer authentication programs of Visa and MasterCard. Like the 3-D Secure protocol, developed by Visa International and adopted by MasterCard International, CommerSafe MPI, was designed to protect Internet merchants and consumers from payment card fraud. iBIZ is a pioneer and a recognized leader in online payment card security and offers robust authentication solutions for the entire e-payments industry.

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UFJ + NIPPON SHINPAN

UFJ Bank Limited announced it will merge Nippon Shinpan with UFJ Card next year, after it purchases Nippon Shinpan and makes it a consolidated subsidiary of UFJ. The planned action will create the second largest Japanese issuer with 23 million cardholders, about three times UFJ Card’s current size. The merger is the first in the local card industry between a credit-related card company and a bank-related card company. UFJ also announced it will seek to enhance cost competitiveness through cooperation with JCB in the areas of administration and information systems. Nippon Shinpan also plans to issue credit cards under the JCB brand, in addition to VISA and MasterCard brands. JCB is the largest issuer in the country with 48 million cardholders. UFJ is in the process of buying Nippon Shinpan for Y200 billion.

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Diebold and Hypercom Target Drive-Up Pharmacies

Diebold and Hypercom have teamed to provide card payment technology to drive-up pharmacies in the US and Canada. Diebold will distribute a system that includes Hypercom’s “HFT 505” outdoor card payment terminal which conveniently mounts near the retail transaction drawer, or the pneumatic prescription delivery terminal at pharmacy drive-up locations. Last year, Delphi Display Systems, a manufacturer and designer of outdoor digital video display systems for the QSR industry, integrated Hypercom’s “HFT500” transaction technology into its “Order Confirmation System”. Delphi introduced a visual order confirmation interface complete with an easy-to-read LCD panel, an integrated PIN pad, and debit or credit card accessibility located at the order-point in the drive-thru. (CF Library 1/28/03)

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GEMPLUS HIRES

Gemplus International has named two new members to its Operations Committee, and announced the head the Financial Services Business Unit. Ernie Berger is joining Gemplus in the USA as the President of
Gemplus North America and is based in the Philadelphia area. Remi Calvet is joining the Company VP/Corporate Communications. Justin D’Angelo has also been promoted and will head the Financial Services Business Unit as SVP. Berger has 15 years of experience in the financial services sector with American Express and First USA, where he held senior management positions. Calvet has worked for Unilever, DMC, and Philip Morris International. The former “Financial and Security Services Business Unit” has been divided into two distinct entities: the Financial Services Business Unit, comprising banking, retail, transport, and conventional cards; and the ID & Security Business Unit, comprising ID, security and smart card interface (hardware and readers). D’Angelo will head the Financial Services Business Unit and Jacques Seneca
will head the ID & Security Business Unit.

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