Gemplus Wins HBOS EMV Debit Card Contract

Gemplus has won a contract to provide Halifax Bank of Scotland with 15 million smart cards to replace the magnetic stripe system on the bank’s debit cards. HBOS current issues approximately five million debit cards per annum. The contract call for Gemplus to supply up to 15 million smart cards over the next three years. Although all banks are required to go through the EMV migration, HBOS will be among the first UK banks to do so. As part of HBOS’ migration to EMV the bank will also be introducing PIN based customer verification. This is in conjunction with the UK PIN at POS, or “Chip & PIN,” initiative. HBOS currently has more than 25 million customers.

Details

MasterCard 3Q/03 US Volume Up 5%, Adds 3MM Accounts

MasterCard International reported this week that its U.S. gross dollar volume for the third quarter increased 4.9% over last year to $163.5 billion. Credit card volume was up 5.6% to $133.1 billion and debit card volume increased 2.4% to $30.4 billion. Purchase volume for U.S. credit and debit cards combined in the third quarter increased 8.6% to $124.7 billion, compared to one-year ago. During the third quarter MasterCard added one million credit card accounts and nearly two million debit card accounts. At the end of the third quarter MasterCard had 212.8 million credit card accounts representing 270.6 million cards. Debit card accounts stood at 45.5 million representing 51.5 million cards. During the quarter MasterCard processed 1.2 billion credit card transactions and 500 million debit card transactions in the USA. For complete details on MasterCard’s 3Q/03 results visit CardData ([www.carddata.com][1]).

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

Details

Discover Moves Beyond Cash-Back with Two New Cards

Discover has rolled-out two reward cards and promises to unleash more into the marketplace next year. The new “Gasoline Card” earns cardholders up to a 5% “Cashback Bonus” award on their gas purchases and up to 1% on their other purchases. Cardholders have the opportunity to increase their entire award, up to 10%, by exchanging their award for certificates from 25 “Cashback Bonus Partners.” The “Gasoline Card” is the first card to be launched in the new series of “Discover Platinum Cashback Bonus Plus Cards,” offering rewards up to 10%. The new “Miles Card” awards cardholders one mile for every dollar they spend. This new product allows cardholders to redeem their miles for travel on any major domestic airline with no restrictive blackout dates. In addition to redeeming miles for travel, redemption begins with as little as 2,500 miles for other reward options including hotel stays, car rentals, vacation packages, brand-name merchandise, and gift certificates as well as cash rewards.

Details

InteliData Revenues/Profits Decline, Lowers Projections

VA-based InteliData Technologies reported that revenues for the third quarter totaled $4.7 million, a decrease of $1.3 million from the year-ago quarter. Gross profit for the three-month period ended September 30th, totaled $2.8 million versus $3.6 million for the third quarter of 2002. Net loss for 3Q/03 was $567,000, versus a net loss of $1.6 million for the comparable year-ago period. InteliData says that continuing credit card industry portfolio difficulties have impacted its ability to secure new business. The Company also noted that its bill payment ASP agreement with Fidelity National Information Services has fallen short of expectations. In light of the 3Q/03 performance, the Company is now setting full-year 2003 revenue expectations to the low end of its prior range, that being $22 million. The Company’s preliminary full-year 2004 revenue guidance is expected to be between $22 – $30 million. For complete details on InteliData’s 3Q/03 results visit CardData ([www.carddata.com][1]).

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

Details

New Company Tackles Portfolio Conversion Backlog

Vitesse Worldwide, a new Colorado-based company, says it is developing software called “AutoConvert,” that will minimize the headaches experienced by the processor when a merchant portfolio is sold and manual reprogramming of merchant terminals are needed. Bank/Mortgage/Loan/Insurance Company CEO’s wanted to realize the cost savings of changing sooner. Investment Bankers that broker portfolio acquision/sale are seeing their clients change direction due to the time lines. VITESSE WORLDWIDE has built a suite of services that allow all within the value chain to see profit gain faster.

Details

ACCEL/Exchange Network Gets Governance Overhaul

Fiserv yesterday announced a new governance structure for its “ACCEL/Exchange” EFT network. Under plans developed by Fiserv EFT/CNS for the network, a 16-member “Network Advisory Council” will set the strategic and tactical goals for “ACCEL/Exchange.” The council will include 15 financial institution members and a single Fiserv executive. The company says this distributed governance approach combines the network ownership, scale and efficiency of Fiserv with the industry insight and knowledge of executives from a cross-section of financial institutions. Fiserv say many EFT networks were built by financial institutions that have largely sold off their network assets to third-party owners that are focused on maximizing profits frequently at the expense of investing in their network. Although a small number of networks remain institution-owned, they operate regionally and development resources and priorities can be contentious and inefficiently deployed. “ACCEL/Exchange” is currently accessible at more than 1.6 million POS devices and 53,000 ATMs.

Details

VISA Launches Know Your Check Card Month

VISA USA has designated November as “Know Your Check Card Month.” The program is designed to raise awareness of the benefits and protections offered by VISA’s off-line debit card product. Debit cards currently make up a third of VISA’s gross dollar volume in the USA. To support the effort, VISA has launched a special Web site wherein consumers can take a quiz to test their debit card knowledge. The web site also offers consumer tips. Additionally, the Web site informs consumers about VISA’s cardholder authentication service and the “Cardholder Information Security Program.” VISA has also partnered with the Call for Action consumer network to provide consumers with ID theft assistance via the Web site.

Details

Q Comm Names Interim President

UT-based Q Comm International, a provider of prepaid transaction processing and electronic POS distribution solutions, has named Terry Kramer as interim president and has promoted Marko Viitanen to Director of Information Technology. Mr. Kramer has been serving as an advisor or board member of several wireless telecommunications companies including 724 Solutions, FiberTower, and Sonim Technologies. Mr. Viitanen worked as a software engineer and quality assurance engineer for NextPage. Q Comm International provides proprietary prepaid transaction processing and information management systems that facilitate electronic recharge or distribution of prepaid products from service providers or their distributors to retail points of sale.

Details

Pearle Vision Test Drives Fifth Third POS Check Service

Pearle Vision is currently piloting the Fifth Third “POS Check Service” and intends to roll it out to their full chain next year. The Fifth Third POS Check Service routes check transactions directly to the participating financial institution for real-time authorization and settlement. For checks drawn on non-participating financial institutions, the transactions are routed to a third-party authorizer to provide real-time authorizations. Third party checks are then settled via an ACH debit to the consumer’s account.

Details

Ventus Networks Provides ATM Communications to Cardtronics

CT-based Ventus Networks has signed a contract to provide ATM communications services to Cardtronics and its nationwide network of more than 12,500 machines. Ventus Networks is a full-service end-to-end global communications provider that offers complete custom networks. Headquartered in Houston, Texas, Cardtronics is the nation’s largest independent owner/operator of ATMs with a network of over 12,500 locations operating in every major U.S. market.

Details

KeyCorp Signs Four Banks to its SFA ATM Network

Cleveland-based KeyCorp has signed contracts with four additional banks in the states of Oregon and Washington to provide their respective customers with surcharge-free or surcharge-reduced access to Key’s ATM network. Through their partnerships with Key, customers of these institutions will be able to perform banking transactions using Key’s network of 373 ATMs in Oregon and Washington with no additional fees. Customers of Coastal Community Bank and Pacifica Bank also have access to Key’s entire network of 716 ATMs in ARCO am/pm retail locations along the West Coast.

Details

OpeN/2 Certified for Diebold’s Opteva ATMs

Certification testing has been completed to enable S2’s “OpeN/2” payment solution to drive Diebold’s “Opteva” advanced-function ATMs using “Agilis 91x” software. This agile, multi-vendor software solution enables ATM deployers to move to a single Windows-based application and protect their existing investments in states and screens while incrementally upgrading ATM delivery channels. Diebold’s Opteva family of advanced-function ATMs and cash dispensers provide a complete range of exclusive benefits to financial institutions, as well as enhanced security features, increased availability, improved usability and an enhanced maintenance interface. Diebold is a global leader in providing integrated self- service delivery systems, security and services.

Details