Chip and PIN Moves from the Northampton Pilot to a National Roll-Out

The “Chip and PIN Programme” is going nationwide this month, following a successful trial this summer in Northampton. The roll-out
plans announced so far by card companies mean that an estimated one in five cardholders are expected to have “Chip and PIN” enabled cards by Christmas this year. By spring 2004 half of all UK cardholders will have chip and PIN cards and they will be asked to verify one in three transactions by the new system. By 2005, the majority of UK cardholders will enter a four digit PIN instead of signing to verify credit and debit card transactions. The roll-out involves more than 850,000 shop terminals, 122 million cards, 40,000 cash machines, and 2.7 million retail employees. “Chip and PIN” says it is the biggest change in the way Britain shops since decimalisation.

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InterCept Launches Advanced e-Statement Software

Atlanta-based InterCept has launched “eVue”, an advanced e-statement delivery process and Cherokee Bank of Canton, Georgia has become the first bank to implement the software. InterCept’s eVue software sends an e-mail to the customers of financial institutions notifying them that their statements are available. Cherokee Banking Company, based in Canton, Georgia, is a financial holding company for Cherokee Bank, a full service commercial bank established on July 26, 1999. InterCept, Inc. is a single-source provider of a broad range of technologies, products and services that work together to meet the technology and operating needs of financial institutions.

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Points International and American Airlines Contract Approved

Points International has received regulatory approval for a contract with American Airlines. The existing relationship between Points and
American Airlines includes the “AAdvantage” program’s involvement as a founding participant in “pointsxchange.” Subsequently, Points has developed a suite of marketing solutions to enhance the “AAdvantage” program, which has 45 million members. The agreement extends a number of existing short-term agreements through December 31, 2007, including those for “pointsxchange,” “pointspurchase” and “pointstransfer.”

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PayPal Sues Bank One Over i-Payments Patent

PayPal has filed a lawsuit against Bank One accusing the bank of infringing on its Internet payments processing patent issued in 1998. The lawsuit was filed U.S. District Court for Delaware. PayPal said it put Bank One on notice in February. One year ago, Bank One sued PayPal for infringing on one of its patent. Bank One holds a patent that covers a cardless Internet payment system for its customers. The Bank One action is still in the pretrial phase. PayPal asked for a jury trial in the lawsuit filed this week.

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China Southern Airlines Signs an Agreement with China Union Pay and VISA

China Southern Airlines has signed a new agreement with China Union Pay and VISA to provide its International credit card payment service to China Southern Airlines’ e-ticket customers. The airline is also offering domestic e-ticketing on its English Web site. China Southern Airlines is the first airline in China to offer Internet e-tickets. In April, the Agricultural Bank of China, China Construction Bank, China Merchants Bank, Bank of China, and the Industrial and Commercial Bank of China became the first group of financial institutions in China to provide online payment services. In September 2003, an additional 12 banks began to provide online payment services to China Southern Airlines customers.
In the first three quarters of this year, China Southern’s e-ticket sales reached RMB 1.3 Billion ($157 Million USD).

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JCB Launches Contest to Drive International Spending

JCB is launching a sweepstakes offering a total of US$1 million in cash prizes to boost international spending. Japanese cardholders who spend at least Y30,000 abroad on the JCB card over the next six months will be eligible. After the promotion period JCB will select 700 cardholders from this group and award them with Y100,000 each. Cardholders in Hong Kong must charge at least HK$2,000 abroad to be eligible to win HK$10,000. JCB has 48 million cardholders.

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Lizzie McGuire, er, er, Hilary Duff, Offers VISA Gift Cards

Lizzie McGuire, Kelly Collins, known in real life as Hilary Duff, has launched a line of “VISA Gift Cards.” The teenage actress and recording artist is targeting American teenagers for the one-time use prepaid card. The first card designed features Hilary afloat in the swimming pool. Other “Hilary” card images will be rolled out next year. The card will be marketed by Legend Credit and managed by Clarity Payment Solutions. The card is available in $25, $50, $75, and $100 denominations. It is being sold through a special “Hilary” Web site.

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MBNA and Providian to Issue eBay MasterCard

The dominant online auction marketplace, and two of the nation’s top ten bank credit card issuers, have teamed to launch a co-branded MasterCard. MBNA and Providian will both issue the new “eBay Anything Points MasterCard.” MBNA will issue the card to “super-prime” and “prime” credit, while Providian will issue the card to “prime” and “sub-prime” credit. The new card will offer cardholders points on all purchases. Each point will have an eBay currency value of $0.01. The eBay currency can be spent on virtually anything for sale on the eBay site. Cardholders must be enrolled in the “Anything Points” program to begin spending points earned from the MasterCard. Members’ points are accumulated in their PayPal accounts. The points can then be used to purchase items from any eBay seller accepting PayPal for payment. In addition, the points can be applied towards eBay selling fees. Sellers will also be able to award points to their buyers on eBay. Participating companies of the “Anything Points” program can give points as rewards for purchases, incentives for new customer sign-ups, or in exchange for points accrued in their own loyalty programs. The new credit card is the latest expansion of the “eBay Anything Points” program, launched in May. In 2001, Providian launched the co-branded “PayPal VISA” card. PayPal was acquired by eBay. (CF Library 6/18/03)

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Via One Technologies and Debisys Partner

Via One Technologies and Debisys have teamed to provide prepaid distribution companies with an electronic turnkey solution delivering all the major prepaid wireless programs including wireless handset equipment and accessories through standard credit card terminals, telephones or web terminals. The Via One Payment and Provisioning Systems platform connects the wireless distribution supply chain of telecommunications carriers, cellular equipment manufacturers, fulfillment companies, distributors, POS operators and POS. Debisys, Inc. supplies proprietary technology-based transaction processing solutions to leading telecommunication carriers, service providers and prepaid distribution companies.

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AUGUST LOSSES

Bank credit card issuers based in Singapore continue to post a 20% increase in monthly charge-offs compared to last year. However, losses in August remain well below June’s $17.5 million, a twelve year high. According to the Monetary Authority of Singapore, credit card issuers wrote-off $15.7 million in August compared to $13.1 million one-year ago. Much of the rising losses this year were due to the outbreak of SARS, which sacked the local economy. According to the MAS, bank credit card issuers lost $14.0 million in May, $15.6 million in April, $13.6 million in March, $13.7 million in February, and $12.1 million in January. The total number of cards in the country at mid-year was 3.3 million, which included 2,295,027 primary cards and 992,555 supplementary cards.

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MoneyWi$e Boot Camp is Held in Texas

Capital One and Consumer Action yesterday kicked-off their two-day “MoneyWi$e” financial literacy training program in Texas, with representatives from more than 80 local, non-profit groups in attendance from communities across the state. MoneyWi$e was created to provide consumers at all income levels with both the information and practical assistance they need to help better manage their finances. Capital One is one of the largest providers of MasterCard and Visa credit cards in the world. Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 500 index. Consumer Action and leading credit card provider Capital One announced that their joint MoneyWi$e financial literacy partnership will provide free training to more than 80 non-profit groups from communities across Texas.

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