Oman International Bank has launched a smart VISA debit card. It is the first bank in the sultanate to upgrade its debit card product with a chip. Oman has 2.5 million residents with $8,000 in annual purchasing power per capita. Emirates Bank Group in the UAE has already launched a full EMV smart card program.Details
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.Details
VASCO Data Security International has been named # 32 to Deloitte & Touche’s “Technology Fast 50” Program among Greater Chicagoland technology companies. VASCO secures the enterprise from the mainframe to the Internet with infrastructure solutions that enable secure e-business and e-commerce, protect sensitive information, and safeguard the identity of users.Details
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.
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
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).
Cyota and nCipher have strengthened their on-going relationship and are teaming to explore new directions and payments security. The companies have upgraded their partnership to a Strategic Alliance Partnership under the nCipher nAble Partner Program and are currently working together on new initiatives.Details
Fitch Ratings lowered its long-term credit ratings on Capital One to but affirmed the individual and short-term ratings. The ratings have also been removed from “Rating Watch Negative” where they were placed in mid-July to “Rating Outlook Negative.” The Fitch action reflects concerns with respect to fallout from the recently signed agreement between Capital One’s bank and thrift subsidiaries and its regulators to address certain supervisory matters. The ratings also reflect Fitch’s concerns about Capital One’s stated growth expectations over the next year. With regulators suggesting that the company will need to modify its enterprise risk management functions going forward, Fitch views this time as appropriate to scale back absolute growth to more modest levels, particularly with respect to subprime lending, a primary area of concern for the bank regulators. Despite the signing of an MOU, the ratings reflect comfort that Capital One will not be required to materially modify its business plan with respect to asset generation or deposit raising initiatives. Also, despite increased reserving actions, the company once again reported strong earnings during the second quarter of 2002, with return on managed assets of 1.42%, and management is anticipating a further increase in earnings for the remainder of the year. For complete details on Capital One’s 2Q/02 performance visit CardData ([www.carddata.com]).
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
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)
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)Details
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.Details