Zions & Community Banks

After teaming with Concord EFS, the Zions Bank Correspondent Banking division is now gunning for community banks to offer comprehensive electronic merchant card processing, ATM access and driving, and credit card issuance. STAR, the nation’s leading PIN-secured debit network, will provide clients ATM access via STAR and a comprehensive merchant services program for community banks. Zions also provides a credit card featuring the local bank’s name on it allowing community banks to share the revenue with the credit card company.

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Concur Acquisition

WA-based Concur Technologies, a corporate expense management solutions provider, has agreed to acquire privately held Captura. The deal involves an exchange of stock giving Captura a 16.6% ownership of the combined company, plus approximately $2 million in cash. The deal is valued at between approximately $12.5 and 14.9 million. Captura’s 70 customers include Hewlett-Packard, General Motors, Ford Motor Company, Booz-Allen Hamilton, and Ericsson. Concur Technologies also announced that second quarter revenues of $10.8 million were up 13% from $9.5 million for the same quarter of 2001. The net loss for the quarter was $2.4 million compared to a net loss of $7.8 million for 2Q/01. Concur said it expects total revenues to be between $12.4 and $12.9 million for the current quarter. For complete details on Concur’s 2Q/02 results visit CardData ([www.carddata.com][1]).

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

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Lillian Vernon MasterCard

Sub-prime specialist, Metris Companies/Direct Merchants Bank, has signed a five-year, co-branded credit card agreement with Lillian Vernon. The new Lillian Vernon MasterCard will be launched in October. The card will feature a loyalty program that will allow cardholders to earn rewards on Lillian Vernon and other purchases made with their card. The rewards will be redeemable for Lillian Vernon gift certificates and other special Lillian Vernon-related cardholder benefits and promotions. Lillian Vernon is a 51-year-old catalog and online retailer that markets gift, housewares, gardening, Christmas, and children’s products. The Company is one of the largest specialty catalogs in the USA. In Janaury, Metris and Cendant Corporation signed a co-branded credit card agreement to issue the “Elite Rewards MasterCard.” The no-annual-fee “Elite Rewards” card was launched in April. (CF Library 1/30/02)

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Oberthur 2Q/02

Paris-based Oberthur Card systems reported second quarter revenues of US$118.5 million, a slight increase over 2Q/01. During 2Q/02, Oberthur partnered with Discover Financial Services on the manufacturing of the Discover “2GO Card.” The Discover 2GO Card, the first card of its kind in the credit card industry, has a unique, compact shape and is housed in a protective case that easily attaches to a key-chain, belt or money clip. Oberthur generated US$30.0 million in revenues in the Americas, a 21% decline from 2Q/01. However, card revenues in Asia/Pacific rose 54% to US$4.6 million, compared to US$3.0 million one year ago. Card sales in Europe, Middle East, and Africa rose 9% over the past year to US$84.4 million. During the second quarter Oberthur delivered 9 million smart cards worldwide. Oberthur has been reducing expenses this year, cutting its work force from 3,433 to 3,136 as of mid-year 2002. For complete details on Oberthur’s 2Q/02 results visit CardData ([www.carddata.com][1]).

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

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MegaRewards MasterCard

OH-based Charter One Financial has unleashed the “MegaRewards Business” program for its business debit cardholders. The card enhancement eables users of Charter One’s “SmartBusiness” or “Smart Business OneCard” to earn points toward free merchandise and travel benefits for every signature or non-PIN purchase they make. Under the “MegaRewards Business” program, Charter One small business checking customers will earn one point for every dollar they spend on a non-PIN MasterCard debit card transaction. Business customers can earn up to 10,000 points per month and a maximum of 100,000 per year. Points are valid for three years. Points can be redeemed for merchandise and travel on any airline. There is a $25 membership fee for the program annually that will be automatically deducted from each member’s checking account. The fee includes all enrolled cards on the same checking account. The annual fee is automatically waived for business customers who are active users of Charter One’s online bill payment program. In December 2000, the company was among the first in the nation to introduce a similar program for consumers.

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APAC 2Q/02

IL-based APAC Customer Services reported second quarter net earnings of $3.4 million and revenue of $94 million. Revenue declined since 2Q/01 related to weakness in the telecommunication sector and a reduction in services to certain lower margin clients. APAC Customer Services is a top provider of customer interaction solutions to the credit card industry. The company employs about 14,000 people and maintains 39 customer interaction centers across the nation. For complete details on APAC’s 2Q/02 results visit CardData ([www.carddata.com][1]).

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

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Coinstar Promotion

Coinstar will launch a special promotion between Aug 25 and Sept 21 in nearly 10,000 supermarkets and 250 store chains across the U.S. offering customers a chance to win groceries for a year and a Nissan Pathfinder. The sweepstakes will receive nationwide exposure via in-store advertising, a national full-page freestanding insert on August 25, and Coinstar radio ads in New York, Philadelphia, San Francisco, Boston, Washington D.C., Chicago, Dallas, Houston and Sacramento.

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CardMeter Launched

Centrodyne and U.S. Wireless Data have unveiled the new Centrodyne “CardMeter” taximeter which features a traditional Centrodyne “Silent 620” taximeter fitted with U.S. Wireless Data’s “Synapse Enabler,” which comprises special hardware and software to enable real-time authorization of credit cards. The Centrodyne CardMeter taximeters are available for all U.S. metropolitan areas and are currently in use in Dallas, Texas. U.S. Wireless Data is an established source of wireless transaction processing for the U.S. taximeter market.

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ATB & MONERIS

Edmonton-based ATB Financial has selected Moneris Solutions to be the new service provider for its merchant services. Last year, ATB Financial processed over $1 billion through merchant
services. ATB Financial’s new Merchant Payment Solutions, to be implemented over the next six months. ATB serves 240 communities through a network of 146 branches, 130 agencies, and 224 automated banking machines and electronic banking services.

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Arizona Banks to EPN

Arizona Federal Credit Union, Capitol Bancorp with 16 member banks, Grand Canyon Federal Credit Union and Honeywell Aerospace Federal Credit Union announced yesterday they will use EPN’s private-sector network to process its ACH transactions starting in September. Consumers use the ACH to receive Direct Deposit of payroll, Social Security and other government benefits. The ACH also processes Direct Payments of taxes, utilities and other recurring bills.

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OBERTHUR 2Q/02

Paris-based Oberthur Card systems reported second quarter revenues of US$118.5 million, a slight increase over 2Q/01. During 2Q/02, Oberthur partnered with Discover Financial Services on the manufacturing of the Discover “2GO Card.” The Discover 2GO Card,
the first card of its kind in the credit card industry, has a unique, compact shape and is housed in a protective case that easily attaches to a key-chain, belt or money clip. Oberthur generated US$30.0 million in revenues in the Americas, a 21% decline
from 2Q/01. However, card revenues in Asia/Pacific rose 54% to US$4.6 million, compared to US$3.0 million one year ago. Card sales in Europe, Middle East, and Africa rose 9% over the past year to US$84.4 million. During the second quarter Oberthur delivere
d 9 million smart cards worldwide. Oberthur has been reducing expenses this year, cutting its work force from 3,433 to 3,136 as of mid-year 2002.

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Card Bonds

U.S. credit card asset-backed securities market should reach roughly $70 billion in 2002, up from $66 billion in 2001. Standard & Poor’s says issuance was down slightly in the first half but 60% of the total credit card refinancings will occur in the second half of this year. Bank One tops the refinancing list for transactions expected to mature in 2002 at close to $8 billion, followed by MBNA at $5.5 billion, and Citibank at $4.8 billion. Although Standard & Poor’s Credit Card Quality Index loss rates have trended upward since the end of the third quarter of 2001, losses have started to stabilize and, on average, portfolio yield, payment rates, and excess spread remain healthy. Currently, average bankcard losses are 6.6% and may go up as high as 7.2%.

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