Standard Chartered Bank and ICICI Bank Launch VISA Mini Cards

Starbucks Coffee Japan has selected First Data’s “ValueLink” service to assist in the development and implementation of the “Starbucks Card” program in the coffee company’s 400 Japanese stores. The agreement marks the first “ValueLink” stored value program launch in Japan. The Starbucks Japan card program mirrors Starbucks one-year old U.S. program. Starbucks Japan’s fully-integrated system will allow consumers to make purchases and reload funds on existing cards at any of the company’s locations throughout the country. Starbucks Japan will offer non-denominated cards that allow purchasers to select the yen amount they wish to load on a card. In addition, Starbucks Japan will pursue a bulk order program for its business customers who desire the cards for gift giving and incentive programs.

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MasterCard & Perseus

MasterCard has selected Perseus Development Corporation, a leader in web-based survey software and research services, as its enterprise software solution for implementing a survey research system. MasterCard has purchased corporate licenses from Perseus for 2,200 employees to use SurveySolutions Enterprise. The first uses of the software have been for market research and customer feedback. Member financial institutions will be using it in order to view pertinent results and data from market research surveys conducted to obtain customer feedback on banks’ products and services.

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ClearCommerce Engine 5.1

ClearCommerce Corporation, the leading provider of risk management and payment processing software for online retail, announced the availability of ClearCommerce Engine 5.1, which includes a first-of-its-kind automated order Review Assistant, expanded support for Visa’s Verified by Visa and MasterCard SecureCode payer authentication, and a new payment interface to Wells Fargo. Merchants will now be able to automatically verify that the name on the card matches the credit card number, a task in the past that required manual intervention to place a phone call to the card issuer. Another significant enhancement to the ClearCommerce arsenal of risk management technologies is support for the multiple card association’s payer authentication approaches, including both Verified by Visa and SecureCode from MasterCard.

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FleetBoston 4Q/02

FleetBoston reported that its credit card profits for the fourth quarter were up 28% compared to the third quarter, and up 22% compared to 4Q/01. Global credit card outstandings at year-end 2002 were $16,332,000,000, a 3.9% increase over EOY 2001. Net income (after-tax) for the fourth quarter was $86 million compared to $58 million for 3Q/02. Net income (after-tax) for 2002 was $232 million compared to $190 million for 3Q/02. On a managed basis, the credit card net charge-off ratio was 5.16% for the fourth quarter, compared to 5.25% for the third quarter, and 5.38% for the fourth quarter of 2001. The 30+ day delinquency rate was 4.12% for 4Q/02, up 29 basis points from 3Q/02 and up 7 basis points from 4Q/01. For complete details on FleetBoston’s 4Q/02 performance, plus performance from past quarters, visit CardData ([www.carddata.com][1]). (CF Library 1/16/02)

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

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Global Payments Expands into Europe with the Acquisition MUZO

VISA Asia Pacific reported that consumer spending on VISA cards peaked on December 23rd at US$579 million from 9.8 million transactions that day, a 29% increase over December 2001. Worldwide, VISA cardholders spent an average of US$4.3 billion on their debit and credit cards each day during December 2002, a 17% increase over the comparable period a year earlier. The busiest single day in the history of VISA transaction processing was on 12/23/02 when global volume reached US$5.7 billion. VisaNet logged a record processing speed of 4,704 transactions per second on that day. VISA also noted that electronic commerce transactions using VISA grew 77% on volume globally for the month of December. During the four quarters ended September 30, 2002, US$606 billion was spent in Asia Pacific using VISA cards, an increase of 35% over the previous year.

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WMATA & ERG

ERG Transit Systems, Inc., a global leader in smart card-based transit fare collection and management systems, along with Northrop Grumman Information Technology, has been selected by the Washington Metropolitan Area Transit Authority (WMATA) to install and operate a new Regional Customer Service Center for its smart card-based fare collection system, known as SmarTrip. The project involves the establishment and operation of a smart card customer service center, card management and the clearing and settling of smart card transactions across 17 transit agencies in Northern Virginia, Maryland and the Washington DC area. The new system will interface with existing installed hardware such as gates and readers. WMATA has managed the tender and evaluation process on behalf of the participating transit agencies.

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NPC & Dollar Tree

National Processing Company, a leading provider of merchant credit and debit card processing and a wholly owned subsidiary of National Processing, Inc., announced the signing of a multi-year credit and debit card processing agreement with Dollar Tree Stores, Inc. Dollar Tree Stores, Inc. is the nation’s leading $1.00 discount variety store chain, offering a vast variety of products including housewares, seasonal goods, food, toys, party goods, personal accessories, books, candles and more.

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MC & Pizza Hut

MasterCard and Pizza Hut have teamed to offer the “Get the Gold: sweepstakes. The contest offers consumers a chance to take home the grand prize of $25,000 in gold coins or a first prize of a $10,000 “MasterCard Gift Card.” Customers will be automatically entered for a chance to win every time they use a MasterCard card to purchase a “Stuffed Crust GOLD Pizza” or any other Pizza Hut pizza between “Super Bowl Sunday,” January 26, and March 9. The winners will be selected on or about March 31st. Pizza Hut has 7,000 locations in the USA. This is one of the first promotions Pizza Hut has done with MasterCard.

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ICICI Bank Enters Canadian Market with New Banking Subsidiary

Infineon Technologies reported revenues for the quarter ending December 31st of Euro 1.52 billion, an increase of 47% year-on-year. The revenue increase was mainly driven by higher demand for memory products and semiconductors used in mobile phones. Effective November 1, 2002, Infineon merged its Wireless Solutions and Security and Chip Card ICs groups into a single group called Secure Mobile Solutions. Infineon believes that combining the operations of the two groups will enable it to better address the continuing convergence of the markets for security and mobile applications, for example in future generations of mobile phones. Revenues for Secure Mobile Solutions for the quarter were Euro 412 million, up 11% from the previous quarter and up 44% compared to the same quarter of last year. The revenues increase was mainly driven by the stronger Christmas business for mobile phones. It also included the full quarter revenues from Ericsson Microelectronics, acquired in September 2002. EBIT amounted to a loss of Euro 28 million, compared to a loss of Euro 22 million in the previous quarter but improved from a loss of Euro 60 million year-on-year. The quarterly loss was mainly due to lower sales volumes and strong pricing pressure for chip card ICs, as well as integration costs and operating losses totaling Euro 34 million for the acquired Ericsson Microelectronics business.

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3 Bureau Report w/FICO

Fair, Isaac and Company, Incorporated introduced the first consumer online product to combine credit reports from all three major U.S. credit reporting agencies with the industry-standard FICO credit score calculated from TransUnion data and Fair, Isaac’s personalized score explanation. Consumers can use the 3 Bureau Report with FICO Score to achieve several goals. They can assess their true credit potential the same way lenders do, learn the best ways they can improve that potential over time, verify the accuracy of their credit report from every major credit reporting agency, and check for credit fraud or identity theft.

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Payment and Back Office Service Provider, Netgiro, Meets VISA AIS Standards

Dublin-based Trintech Group said that London’s newest luxury hotel has implemented its “PayWare Merchant.” The new London Marriott Hotel Park, which opened in November, is the new flagship hotel of the global hospitality company. The Trintech solution has been specifically designed to offer a fast customer payment experience that can handle multiple payment types from multiple locations, including the Internet and call centers. “PayWare Merchant” provides London Marriott with a fully automated solution that can handle multiple payment types, including a seamless migration to smart cards and PIN-based cards.

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Mini Check Card

Bank of America announced yesterday it has expanded the mini card program to its “Check Card.” BofA, the largest issuer of “VISA Check Cards”, is the first financial institution to offer a mini card linked to a customer’s checking account. Initially launched to credit card customers in October, the BofA mini card is about half the size of a regular “Check Card,” and is designed to be attached to a key chain. The card can only be used with swipe terminals, not ATMs. Bank of America has more than 17 million “Check Card” holders. By the end of this year, the company says it will have issued mini cards to more than 11 million BofA customers. BofA also holds the patent for the new mini card. Following the first year, under a license from Bank of America, VISA member banks will be permitted to issue VISA-branded mini cards, for which Bank of America will receive royalty payments. (CF Library 10/2/02)

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