Chase Debit

Chase reported this morning that cardholders of its cobranded “Continental Airlines MasterCard” debit card earned over a billion miles last year. Chase is the only institution offering “Continental One Pass Miles” on both signature and PIN POS debit card transactions. Chase also announced yesterday it has launched a 30-day sweepstakes to offer individuals who open a new Chase checking account, between now and March 25th, the chance to win 250,000 “OnePass Miles.” Each day Chase will give away 250,000 miles. Chase is also offering new checking customers a 10,000 mile bonus for signing up for a “Chase/Continental Airlines Debit Card.” The special promotion is only open to legal residents of CT, NJ, NY and TX. Chase said it will blanket these markets with visible print advertising, TV advertising, frequent radio spots, digital taxi tops and branch window merchandising. In February 1999, Chase Manhattan launched the first co-branded debit card program in the USA with the Continental Airlines deal. In 1998 Chase took over the Continental co-branded credit card program from Marine Midland Bank. Earlier this month, Cleveland-based KeyCorp introduced a MasterCard debit card offering Continental “OnePass” miles for off-line purchase transactions. Key plans to offer its two million “MasterMoney” debit cardholders the opportunity to upgrade to the new rewards debit card in the second quarter. (CF Library 3/20/98; 5/4/98; 2/23/99; 8/3/99; 2/7/03)

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MASTERCARD & UNICERT

Baltimore Technologies has been selected by MasterCard International to
provide the PKI for the MasterCard “SecureCode.” “UniCERT,” Baltimore’s
flagship PKI product, will allow MasterCard to issue and manage digital
certificates for its member financial institutions, providing enhanced
payment guarantees for online transactions. The MasterCard “SecureCode”
solution helps overcome two of the most pressing issues in e-commerce
today: cardholder concerns about the safety of online shopping and Internet
merchants’ need for an enhanced payment guarantee. The program provides
card issuers a way to authenticate the identity of the person completing
Internet payment transactions, significantly reducing online fraud and the
number of related chargebacks.

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Tax Miles

American Express and Bank One have launched promotions to reward consumers who charge tax payments to credit cards. Yesterday, American Express announced that “Delta SkyMiles Credit Card” users can earn double miles when paying federal income taxes now through April 15th, and one mile for every dollar spent when paying their state income taxes on the card. The AmEx “Starwood Preferred Guest Credit Card” also offers double “Starpoints” on the first $4,000 in federal income taxes paid on the card from March 15th through April 15th, and single “Starpoints” on every dollar thereafter. In addition, “Starwood Preferred Guest Card” users can earn one point for every eligible dollar spent when paying their state income taxes on the card. To-date, the District of Columbia and 22 states accept credit card payments. Last week, United Airlines and Bank One announced they are offering double miles for using the “United Mileage Plus VISA” card to pay federal and state personal income taxes from March 1 through April 30th. (CF Library 2/20/03)

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TASQ & NURIT

First Data’s TASQ Technology unit has renewed and extended its distribution agreement with Lipman Transaction Solutions to offer both wired and wireless “NURIT” products. Lipman is the leading supplier of wireless point-of-sale terminals in the United States. Lipman features both landline and wireless point-of-sale (POS) solutions under the NURIT brand name. This complete product line includes wired and wireless POS terminals, electronic cash register (ECR), ATM and kiosk solutions for the retail, restaurant, mobile commerce, direct marketing and fleet markets.

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Government Card Meeting

The Electronic Funds Transfer Association yesterday announced is has scheduled a May 6th summit meeting covering the future of electronic card technology for government applications. It will be hosted by EFTA’s EBT Industry Council, the nation’s oldest trade group for government electronic payment and service vendors. The program is aimed at government agency managers responsible for planning programs that will use debit or smart card technology to distribute government payments or services.

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SMS VBV

BOC Credit Card (International) Ltd., mobile communications specialist
CSL, and VISA International have teamed to offer the world’s first “Short
Messaging Service”-based m-commerce service using “Verified by Visa”
beginning March 1st. Based on an open m-commerce standard, the three
collaborating parties will partner with a variety of merchants to offer
such applications as phone bill payment, Broadway movie ticket purchases,
and OGC Golf City golf bay booking during the six-month pilot. More and
different types of applications will be explored and developed afterwards.
The first 3,000 successfully registered customers will be able to
participate in the pilot and will have a chance to win a new “Siemens S57”
color handset or other incentives. “Verified by Visa” has already been
adopted as a secure online payment standard by over 6,000 VISA card issuers
worldwide. The BOC Credit Card product family includes “Platinum Card,”
“Gold Card,” “Classic Card,” “Business/Corporate Card,” “Purchasing Card,”
“Co-branded Card” (over 17 co-branding corporations, organizations, and
communities), “U-point Credit Card”, “y not Credit Card,” “Intown Virtual
Credit Card” and “BOC Express Cash Card.”

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EBPP Report

St. Louis-based Murphy & Company has released an executive report on EBPP that covers standards, compliance, procedure, and technology issues; and examines security, privacy, marketing, and customer expectations. The contents of the Executive Report define EBPP and how it works; reviews EBPP standards, compliance, procedure, and technology issues; and examines security, privacy, marketing, and customer expectations. It is written for executives and managers who want to begin the process of moving from being “aware” of EBPP to making informed business decisions.

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FINGERPRINT & TI

Gothenburg-based Fingerprint Cards AB is joining the Texas Instruments
digital signal processing third party network. Fingerprint Cards’ “DAD
Algorithm” is one of the most compact (8Kb) fingerprint algorithms on the
biometric technology market. It supports two types of compact, low-cost
fingerprint sensor technology developed by Fingerprint for a range of
product markets including mobile electronic devices. The Fingerprint “DAD
Algorithm,” is available on both TI’s “TMS320C5000” and “TMS320C6000” DSPs.
Through TI’s third party network the two companies will be in a position to
offer coordinated support to benefit mutual customers in the implementation
of embedded fingerprint authentication.

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FCNB Liquidation

It appears that sub-prime specialist OR-based First Consumers National Bank will liquidate its credit card portfolio by the end of April as the bank has been unable to find any buyers. Under OCC-approved plans, FCNB must sell or liquidate its portfolio by April 30, 2003. Yesterday, Fitch Ratings downgraded all First Consumers Credit Card Master Note Trusts. On February 18th, FCNB notified the trustee, Bank of New York, that as per the direction of the OCC, it sought to be replaced with a successor servicer or resign as servicer under the “Pooling and Servicing Agreement and Transfer and Servicing Agreement.” BONY will assume servicing responsibilities over the interim or until a successor servicer is appointed. Fitch says it believes the OCC will require FCNB to take other actions in weeks to come in preparation for the bankcard portfolio liquidation, including ceasing originations and eventually closing down the ‘open-to-buy’ on outstanding accounts.

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KAZAKHSTAN PRIME-ONLINE

London-based Card Tech Limited has signed a licensing agreement with The
National Bank of Kazakhstan’s subsidiary processing center. NBK will use
Card Tech’s “PRIME” and “ONLINE” products. Under terms of the agreement,
NBK will use “PRIME-ONLINE” solution to process up to two million cards,
initially for ten banks. Card volumes are expected to grow to approximately
six million. NBK is Kazakhstan’s central bank. Kazakhstan is one of the
fastest growing card markets in the CIS.

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Card Stocks

Most credit card stocks were hammered yesterday as the overall market fell, with Capital One and MBNA down more than 3%. Since the first of this year, the stocks of card issuers have fallen more than 12%, while the stocks of card processors are off 14.5%, and card-related manufacturers’ stocks have declined more than 16%, according to CardData’s daily stock index. Meanwhile, Zacks issued sell recommendations this morning on Concord, EDS, and NCR. Zacks told investors it might be best to hold off on a position in Concord until analysts begin to bump up its earnings estimates. Zacks issued a strong sell on NCR saying that estimates for 2003 have been moving lower throughout 2002. Zacks says EDS has taken a cautious view of the marketplace for 2003, given the weakness in technology spending and the general economy. EDS sees full-year earnings of between $1.80 and $2, which was below what an average of analysts was expecting.

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Citi ConocoPhillips

Citibank’s Citi Commerce Solutions division has inked a multi-year agreement with ConocoPhillips to provide a full-service private label credit card program for the Conoco, Phillips 66 and Union 76 gasoline credit cards. The ConocoPhillips gas card program currently has 7.2 million cardholders, according to CardData ([www.carddata.com][1]). Citibank currently issues the “Conoco MasterCard” and “Phillips 66 MasterCard.” ConocoPhillips says its decision to switch its private label cards to an outside card issuer was based on business synergies created by its merger last August. Citi says it will take over the private label cards on July 1st. ConocoPhillips is the third largest integrated energy company in the USA and has 17,000 service stations.

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

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