SC 5000

VeriFone yesterday introduced a new terminal featuring a programmable PIN pad aimed at reducing card skimming at the point of sale. The new “SC 5000” supports both smart card and PIN-based transactions and adheres to “3DES” encryption standards transactions. The “SC 5000” features an integrated smart card reader with support for 0, 2 or 4 SAM slots to enable support for a broad range of smart card-based loyalty and electronic purse schemes. It also offers an optional built-in magnetic-stripe card reader. The device is ergonomically designed to fit in the palm of the hand. The SC 5000 is also PED-compliant and offers a range of security protections including tamper-detection circuitry.

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VISA USA 2Q/02

Debit card activity continues to drive VISA USA’s growth as debit card volume soared by nearly 29% in the first six months of this year. During the second quarter, the number of VISA debit cards issued rose about 14%, from 108.7 million at the end of 2Q/01 to 122.6 million this year. Overall, VISA’s U.S. gross dollar volume for the second quarter grew 11.2% to $248.4 billion. For 2Q/02, purchase volume was up 7.6% while cash volume was up 24.5%. For the first six months of this year, VISA’s gross dollar volume was up 10.4%, from $427.9 billion for 2Q/01, to $472.2 billion for 2Q/02. VISA’s U.S. credit card portfolio grew 4.8% during the second quarter from 249.1 million cards to 261.0 million cards. However credit card volume for the first half of this year inched up by 1.1%, from $287.9 billion for the first six months of 2001, to $291.3 billion for the first half of this year. For complete details on VISA’s 2Q/02 statistics as well as prior quarterly performance visit CardData ([www.carddata.com][1]).

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

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Ceridian Exec

Ceridian announced this morning that Tony Holcombe, president of Ceridian’s U.S. human resources solutions business, has resigned to lead a privately-held company in Tennessee engaged in the gift card business for small merchants. Holcombe was employed by Ceridian for 5 years spending the first two years leading its Comdata subsidiary. Through its Comdata subsidiary, Ceridian is a major payment processor and issuer of credit cards, debit cards and stored value cards, primarily for the trucking and retail industries in North America. The company is also one of the top human resources outsourcing companies in each of its markets.

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CARD FRAUD PARTNERSHIP

TrustMarque International and Canada-based Protexis have signed a partnership agreement to provide advanced fraud protection services. The partnership will enable an effective payment processing option for Protexis software licensing customers and their end users. TrustMarque offers a portfolio of secure Internet transaction applications and services including multi currency payment processing and credit/debit card risk assessment. Protexis is a provider of digital software licensing solutions including the Protexis “nTitles” software license transaction system which offers state-of-the-art tools to manage license compliance.

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Catuity Patent

Catuity has been issued an Australian patent for applications and programs operating between in-store POS devices, mobile devices, personal computers, kiosks, host systems and/or the Internet using a single card or other consumer device. Earlier this year Catuity received notice of acceptance for its first patent in the US, and that patent is expected to also be granted in Australia and other markets.

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HSB & SIGMA TEAM

Malmö-based Sigma Kommun & Landsting and HSB Card & Card Systems of The Netherlands have inked a co-operation and distribution agreement for smart-card solutions in the health care and public sector.
The first project of the partnership is a smart medical card system for the Swedish market. HSB specializes in card management and biometric application software for trusted identification solutions. Sigma develops and markets information systems for the healthcare sector in municipalities, county councils and for private healthcare providers. The main Sigma products are “Patient 2000,” “Omsorg 2000,” and “E-recept” IT systems as well as intranet and Internet Systems.

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CCB ATM DEAL

China Construction Bank has signed a US$12 million ATM deal with Diebold. Under terms of the agreement, Diebold will provide both cash dispensers and ATMs to CCB branches in more than
20 provinces. This order is the second this year to be granted by CCB to Diebold. The first was valued at approximately US$15 million and was announced in July. CCB operates more than 13,000 branches throughout Greater China.

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Bankruptcy & Charge-offs

The percentage of credit card charge-offs involved in personal bankruptcy filings has begun to float downward after filings hit a peak in the second quarter. In July, the percentage of charge-off dollars connected to bankruptcies dipped to 48.9% compared to a peak of 49.7% in May. One year ago the percentage stood at 46.20% and in July, 1995 the average was 31.3%, according to CardData ([www.carddata.com][1]). MasterCard reported $1.1 billion of the $4.6 billion in second quarter U.S. charge-offs were bankruptcy related. The dramatic rise in filings over the past year has been linked to recession and impending federal legislation to overhaul the bankruptcy code. Bankruptcy filings for the twelve months ending June 30th hit an all-time record of 1.5 million. One year ago, annual filings totaled 1,386,606. Bankruptcy filings first broke one million during the 12-month period ending June 30, 1996. According to Administrative Office of the U.S. Courts there were 1,466,105 personal bankruptcy filings over the past twelve months, an 8.5% increase over the previous year. On a quarterly basis, total bankruptcy filings were only up slightly, from 400,394 for 2Q/01 to 400,686 for the second quarter of 2002. (CF Library 8/15/02)

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

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Facial Recognition Patent

MA-based Viisage Technology has received a patent for systems and methods that employ facial recognition to create, maintain and use databases that store data records of individuals. In particular, systems and methods are disclosed that employ facial recognition to control the production of identification cards that include an image of a person’s face and demographic data in order to prevent the issuance of fraudulent identification cards.

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CTL & VISA DEAL

London-based Card Tech Limited has been selected by VISA International to provide a processing solution for VISA prepaid cards. Under an exclusive agreement, VISA will promote CTL’s processing solution for the prepaid card program to its members in the CEMEA region. Members can configure the system to issue all types of prepaid cards aimed at different market segments. VISA and CTL have predefined five popular types or prepaid cards: “Teen,” “Gift,” “Travel,” “Payroll,” and “Money Transfer.” The agreement does not cover the licensing of CTL’s software. Members who are interested in licensing CTL software must negotiate directly with CTL. Card Tech Limited provides card management solutions to more than 150 banks in 60 countries.

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