Datacard SP35

Datacard Group debuted a new card printer this week for issuing loyalty cards, membership cards, hotel room keys, and corporate ID cards. The “SP35” printer personalizes up to 120 full-color and 500 one-color cards per hour. In addition to standard bar code capabilities, the “SP35” printer is a unique value-priced printer offering field-upgradeable magnetic stripe and integrated smart card options. It also leverages Datacard’s “Advanced Imaging Technology” to produce vivid, life-like full- or one-color photos, graphics and text across the entire surface of a card.

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PAY-WARE SMART-PIN

The U.K.’s leading home and garden improvement chain has announced plans to Implement “PayWare SmartPIN” as part of a 2003 Northampton pilot and later as the backbone of a national smart card roll-out.
Wilkinson is implementing Trintech Group’s “PayWare SmartPIN” to accept chip-based credit and debit cards with secure PIN authorization at the point of sale. The Wilkinson trial in Northampton will take place in the first half of 2003. Once the trial is completed, the national roll-out of chip cards is expected to take place in the second half of the year and Wilkinson plans to implement “PayWare SmartPIN” in the rest of its 200+ stores across the country. The system integration will be done by RBS, who are Wilkinsons EPoS partner. Trintech is supplying PIN Pad terminals capable of reading international standard EMV chip cards and allow customers to authorize a transaction using a PIN number rather than a signature. RBS will modify the back office card processing systems to ensure that these are compliant with industry requirement for handling IC chip cards.

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Sharp Rebound

More evidence the economy is slowly but surely recovering: credit card debt expanded by $6.5 billion in July. One year ago, as the recession was taking hold, consumers loped off $2.2 billion from revolving credit during July. The sharp increase in July was the second highest monthly jump since November of last year. During July, consumers revolving credit was growing at an annual rate of 10.8%. Since the first of this year consumer revolving credit has grown by $29.7 billion. Bank credit card debt at mid-year was $611.4 billion according to CardData (www.carddata.com). Bank credit card outstandings at mid-year were growing at an annual rate of 7.8% while overall revolving credit was growing at an annual rate of 3.4%. According to figures released Monday afternoon by the Federal Reserve, American consumers were $1.724 trillion in debt, exclusive of home mortgages.

REVOLVING CREDIT HISTORICAL
($billions)
Jul02 Jun 02 May 02 Apr 02 Mar 02 Feb 02 Jan 02
GRWTH: 10.8% 6.5 4.1 8.0 4.8 2.2 1.8
$OWED: $722.1 715.6 712.1 708.7 705.4 705.0 702.4

Dec 01 Nov 01 Oct 01 Sep 01 Aug 01 Jul 01 Jun 01
GRWTH: -9.7% 12.7% -7.1 0.6 -2.2 -3.7 2.1
$OWED: $692.4 698.0 686.4 692.7 693.5b 698.1 700.3

Source: Federal Reserve; revised figures as of 09/08/02;
For complete historical data visit CardData (www.carddata.com).

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Mid-Year Pulse

The bank credit card industry passed the 500 million account milestone at mid-year and the percentage of active accounts versus gross accounts remained solid at 58%. Overall the industry is growing at an annual rate of 8%.

Bank Credit Card Pulse
Growth
Outstandings $611.4b +7.8%
Q Volume $359.9b +7.1%
Accounts: 500.5m +8.1%
Actives: 290.3m +8.1%
Cards: 607.6m +9.3%
Source: CardData (www.carddata.com)

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NextCard Update

NextCard confirmed Friday that federal securities regulators are investigating the company. The Internet credit card issuer also confimed that its chief executive, John Hashman, resigned last week. Federal banking regulators opened investigations into NextCard’s failure seven months ago. In May, the FDIC notified NextCard that it might take legal action against various company executives and directors. Before the collapse of the company, NextCard’s top executives cashed out stock options worth $29 million The FDIC decided in July to shut down about 800,000 NextCard credit card accounts. The OCC closed NextBank on Feb. 7th and the FDIC was appointed the receiver. The OCC said NextBank was classifying some delinquent accounts sold into a securitization trust as fraud losses, although the delinquencies were actually attributable to credit quality problems. The FDIC estimated that the cost to the Bank Insurance Fund for the failure of NextBank will run about $400 million. (CF Library 2/8/02; 2/11/02; 3/14/02; 6/10/02; 7/3/02; 7/11/02)

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DATACARD & VIGILOS

Vigilos and Datacard Group have inked a deal to resell Vigilos’ Avanta security integration software. Avanta software, which manages data from CCTV cameras, access control and intrusion systems, will be integrated with Datacard “ID Works” identity software platform. Vigilos provides enterprise-level software that enables large organizations to dramatically increase the effectiveness and efficiency of their physical security organizations. Datacard Group provides software, systems and professional services needed to build profitable card programs.

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