NanoPierce Technologies’ ExypnoTech subsidiary has named Ronald Krippendorf as the production manager for the high-volume production of smart inlays in the new ExypnoTech production facility located in the IGZ Rudolstadt, Germany. The company also announced that after completing a two week acceptance procedure, ExypnoTech has taken delivery of its first high-speed production line for RFID smart inlays from F&K Delvotech. RFID inlays are used to produce smart labels, smart cards and other RFID products. RFID is currently employed for tracking and identifying luggage, shipping containers, express mail, rail cars, personal access, automated toll collection, article surveillance, library books and vehicle immobilizers, to name just a few applications.Details
Humboldt Bancorp has signed a definitive agreement for the sale of its proprietary merchant processing division to iPayment Holdings for $34 million in cash. Humboldt says it expects to recognize an after-tax gain on the sale of $18 million which is expected to close by the end of August. Under terms of yesterday’s deal, Humboldt will continue to serve as the sponsoring financial institution for IPH for a period of up to eight months after closing. Humboldt intends to completely exit the Independent Sales Organization sponsorship business as its remaining ISO contracts expire over the next 18 months. The majority of the remaining ISO processing is with a single national firm that provides financial guarantees against any loss incurred by Humboldt. IPH is based in Nashville and currently provides merchant card services for approximately 60,000 businesses throughout the country. No job eliminations are expected in connection with the transaction.Details
Bioskin, City Link Mall and Wing Tai Clothing have all agreed to deploy Visible Results Group’s “GraphiCard” loyalty card technology and CRM system.
With the patented technology, users’ cards are inserted into a small POS terminal during each sales transaction and through a thermo-chromic process, the front of the card displays points accrued through the most recent purchase. A re-writeable magnetic stripe, incorporated into the back of the card, stores specific data about transactions as they occur. It also allows the back of the card to be automatically re-written every time it is presented, turning it into a self-contained database. POS information collected during transactions involving program members is downloaded to Visible Results’International DataCenter, which maintains customer databases and issues customized reports specifically for each client.
PayPal and Stamps.com have partnered to integrate Stamps.com’s new Web-based postage printing solution into PayPal’s website. The Stamps.com integration will enable PayPal users to buy and print U.S. Postal Service postage online from their PayPal account. PayPal sellers will be able to calculate the exact amount of postage required and print a shipping label pre-populated with the recipient’s information using the Web-based application.Details
eConnect has teamed with Electronic Valet to facilitate cash movement from the USA to Mexico and point to point cash movement within Mexico
from homes and walk in locations. The eConnect “eCashPad” will be deployed to tens of thousands of Mexican homes along with a computer and ISP service and will be found at self service retail walk in locations. The point to point eCashPad supported cash movement service will also enable government sanctioned home wagering gaming applications.
Government regulators are becoming increasingly concerned over the risky business practices of sub-prime credit card issuers. The sub-prime credit card market, which has never been tested in a recession, has deteriorated at such a rapid pace over the past year it has caught regulators and issuers by surprise. The sub-prime impact has been especially hard on NextCard, Providian, Metris/Direct Merchants, and a number of smaller sub-prime issuers. Last week, Capital One, which has about 40% of its portfolio in the sub-prime market, shored up its loss reserves after regulatory concerns. Yesterday, the Federal Financial Institutions Examination Council, the Office of the Comptroller of the Currency, the Board of Governors of the Federal System, the Federal Deposit Insurance Corporation, and the Office of Thrift Supervision developed account management and loss allowance guidance for credit card lending. The draft guidance would apply to all institutions under the agencies’ supervision that offer credit card programs. It describes the agencies’ expectations for prudent risk management practices for credit card activities, particularly with regard to credit line management, over-limit accounts, and workouts. The draft guidance also addresses income recognition and loss allowance practices for credit card lending. The interagency guidance is expected to take effect on August 16.Details
American Express Company yesterday reported second quarter net income for Travel Related Services of $565 million, up 9% from a year ago. However U.S. charge volume continues to be flat, as volume slipped by $100 million compared to the year ago quarter. AmEx says the decline reflects lower corporate card spending in the travel and entertainment sector, which was partially offset by higher consumer spending in the retail and everyday categories. International charge volume was up by 5% for the second quarter. While the total amount of business billed on domestic and international American Express cards, combined, increased slightly from a year ago, the discount revenue earned by the company on this spending declined slightly. The average discount rate has slipped to 2.65% compared to 2.67% one year ago. Charge-offs and delinquency moderated during the second quarter. Meanwhile, delinquency is up about 7% compared to 2Q/01 while losses were up approximately 9% from year ago levels. Card loan growth was also sluggish, up 1.3% from 2Q/01. For complete details on American Express current and past performance visit CardData ([www.carddata.com]).
American Express U.S. Card Portfolio Snapshot
2Q/02 1Q/02 4Q/01 3Q/01 2Q/01 Ann Chng
Volume $58.7b 54.3b 55.8b 54.4b $58.8b -0.2%
Loans $31.6b 31.3b 32.0b 31.3b $31.2b +1.3%
Cards 34.8m 34.8m 34.6m 34.7m 34.6m +0.6%
Delinq* 3.1% 3.4% 3.3% 3.2% 2.9% +6.9%
Losses 6.2% 6.5% 5.9% 5.6% 5.7% +8.8%
Yield** 9.8% 9.6% 9.6% 8.8% 8.6% +14.0%
* 30+ days past due; ** net interest yield
Source: CardData (www.carddata.com)
San Jose-based @pos has received another acquisition proposal, this one from Symbol Technologies, whereby Symbol will acquire all of the outstanding equity interests in @pos for an aggregate purchase price of $5.5 million. Last month, @pos.com announced the signing of an agreement for the sale of substantially all of its assets and assumption of substantially all its liabilities with HHP, f/k/a Hand Held Products, Inc. @pos says it delivered a copy of the new offer from Symbol to HHP yesterday. The proposed Symbol transaction would be effected through a customary negotiated two-step merger agreement, whereby Symbol Technologies would make a tender offer for all of the outstanding common stock of @pos which trades on the OTCBB.Details
London-based Ghana International Bank has selected SEAGULL’s LegaSuite technology to deliver a complete online banking solution. Ghana International Bank specializes in servicing the multi-currency commercial and personal banking needs of Ghanaians worldwide. Using the Web-to-host component of LegaSuite, Ghana International Bank will create a secure, end-to-end online banking solution for both commercial and in due course personal lines of business based on the bank’s back-office legacy applications. Customers will be able to execute all primary banking functions securely including account initiation, international funds transfer, standing orders, fixed deposits, statement inquiries, stopped checks, direct debits, address changes, and letters of credit via any Web browser.Details
United Airlines has signed on to the new “Verified by VISA” cardholder authentication service. Along with united.com’s BBBOnline Privacy seal, Verified by Visa will assure customers an even more secure online-shopping experience. With Verified by Visa, cardholder identity is confirmed with the use of a personalized password during the checkout process.Details
VA-based Network 1 Financial has been acquired in a stock deal by TN-based Verus Financial Management, a company founded this year by Richardson Roberts, the former chairman and CEO of PMT Services. FTVentures was the first venture capital firm in the U.S. to focus on technologies that benefit the global financial services industry. FTVentures now has more than $623 million in total capital under management and is a leading investor in information technologies.Details
Citibank has expanded its relationship with AZ-based Primary Payment Systems, majority-owned by Concord EFS, to deploy “DEPOSIT CHEK” in Citibank’s U.S. retail banking markets. The service expansion at Citibank, which has been a Primary Payment Systems client since 1997, will be completed during the second half of 2002.Details