Dillard’s department store chain has selected Concord EFS to provide payment processing in more than 300 Dillard’s stores nationwide. The long-term agreement calls for Concord to acquire, authorize, and settle payments made with MasterCard or Visa credit and debit cards or PIN-secured debit cards, such as those from Concord’s STAR network.Details
Thales e-Security, ACI Worldwide, Diebold, and VeriFone, this week announced the publication of a draft security specification proposing the first global interoperable method for triple DES session key management. Both VISA and MasterCard are actively encouraging the full implementation of an end-to-end 3DES compliant solution, from the point of card acceptance to the issuer host. 3DES is a state-of-the-art key encryption algorithm that raises the level of fraud protection for PIN-based debit transactions initiated at ATMs and POS terminals. While standards currently exist for 3DES master key management and 3DES DUKPT (Derived Unique Key Per Transaction), there is a lack of standards for session key management. Without standards, each vendor is required to develop proprietary implementations, placing an added interoperability burden on the systems that must transport session keys.Details
eFunds Corporation announced it has purchased CA-based Evergreen Teller Services for $9.4 million. Evergreen manages an ATM network and provides sales and service for more than 1,600 ATMs, mostly located in California and the northwest United States. eFunds plans to consolidate the Evergreen ATM network into its Access Cash business over the coming months and plans to continue to look for acquisition candidates. eFunds anticipates that the consummation of the transaction will contribute incremental revenues of approximately $7 million during the balance of the year. After the close of the Evergreen transaction, eFunds will manage approximately 14,300 ATMs in all 50 states and Canada.Details
Household International this morning announced they have entered into an agreement to operate retailer Saks’ private label credit card business. Under the $1.4 billion transaction, Household will purchase the majority of the existing private label credit card accounts owned by Sak’s wholly owned credit card bank, as well as the outstanding balances associated with those accounts. The purchase price consideration will include the assumption of the Company’s securitization liabilities (estimated at $1.1 billion at closing), the purchase of owned accounts receivable, and an undisclosed premium. The Company expects to receive net cash proceeds at closing in excess of $300 million. Household will own the majority of new accounts and balances generated during the term of the alliance, which initially will be ten years. Saks will continue to provide all key customer service functions including new account opening, transaction authorization, billing adjustments, and customer inquiries. Saks will receive ongoing program compensation from Household. Saks currently employs approximately 550 associates in the administration of its private label credit card programs and anticipates eliminating fewer than ten positions. Saks said it will use the proceeds from the initial transaction primarily to repurchase common stock and to reduce debt.Details
Hypercom reported second quarter operating income of $3.3 million compared to 2Q/01’s operating loss of $2.1 million. The company also announced this morning that President and CEO Christopher Alexander has been elected Chairman of the Board to succeed George Wallner, the company’s founder and chief strategist. Net revenues for second quarter of $75.1 million were unchanged from the prior year and slightly under previous guidance. The revenue shortfall was primarily due to a timing issue in product delivery, and further, a currency translation charge due to the devaluation of the Brazilian real and Argentine peso. Net income for the second quarter was $380,000 compared to last year’s net loss of $5.8 million. By business unit, the core point-of-sale and network systems business achieved an operating profit of $5.5 million for the first six months of 2002, versus a prior year operating loss of $6.3 million for the same period. During the quarter, the company began shipping its new “ICE 5500Plus” and “ICE 5700Plus” terminals that incorporate Hypercom’s new “SureLoad” clamshell printing technology. For complete details on Hypercom’s 2Q/02 results visit CardData ([www.carddata.com]).
eFunds Corporation reported this morning that net income for the second quarter was $3.9 million compared to $7.7 million one year ago. Revenues for the second quarter were $133.0 million, essentially flat as compared with revenues of $132.8 million reported in 2Q/01. Results for the second quarter included $10.4 million in restructuring and other pre-tax charges. eFunds said revenue declines from data and software sales over the prior year period were offset by growth in its ATM management and electronic payments businesses. Revenues from electronic payments increased 3% to $47.3 million from $45.7 million in the second quarter of 2001. Revenue growth was driven by higher EBT case counts and renewals of certain government contracts at improved rates. Electronic payments reported operating income rose to $14.1 million in the second quarter compared to operating income of $11.5 million in the second quarter of 2001. The ATM management services segment reported revenues of $27.5 million, as compared to $18.3 million reported in the second quarter of 2001. The growth in this segment was due primarily to acquisitions, as well as increased branding and equipment sales revenue. For complete details on eFunds’ 2Q/02 results visit CardData ([www.carddata.com]).
The wrangling between Sen. Charles Schumer and Rep. Henry Hyde over abortion-related language in the bankruptcy reform legislation officially ended last night as committee conferees signed off on the package. The House could vote on the legislation today, and the Senate could follow next week. It could become effective as early as next March, if President Bush signs the law, as he has previously indicated. The abortion provision prevents protestors, who bar others from abortion services through the use of intimidation or interference, the ability to discharge debts arising from those actions. During the first three months of this year, 379,012 bankruptcy petitions were filed, the highest number of cases ever filed in any first calendar quarter. The total filings also broke the bankruptcy filing record for any 12-month period. The reform legislation, the most comprehensive in 25 years, will add a needs-based provision to the bankruptcy law, forcing some petitioners into a Chapter 13 repayment program instead of a Chapter 7 liquidation program. (CF Library 5/20/02)Details
Hitachi, Matsushita Electric Industrial Co, Ingentix GmbH & Co. KG/Ltd., SanDisk Corporation and Toshiba announced the creation of the “Mobile Commerce Extension Standard” for flash memory cards. Adding these security capabilities will enable flash memory cards to be used in electronic payment and the purchase of entertainment content such as music and video. Flash memory cards are mainly used to capture and store digital photos, digital video, data and audio. The new 5C standard outlines how the security features can be implemented in flash memory cards. The new standard will be promoted and licensed in the open market so that card standard organizations, card manufacturers and device vendors can use it for the implementation of their products. It is expected that complete standard specifications and licensing documents will be available to the public by October, 2002.Details
Fort Knox National Company has announced the upcoming release of its new “TruePay” electronic payment program. The TruePay program combines FKNC’s telephone and Internet payment technologies into a multi-channel, unified solution for bill payment. TruePay also provides consumer-direct payment options, allowing customers to expedite next day payments by phone or Internet.Details
Montreal-based BCE Emergis reported second quarter revenue of $141.9 million compared to $132.0 million for the first quarter and to $158.7 million in the second quarter of 2001. The net loss for the quarter, including restructuring and other charges, was $95.8 million, compared to a net loss of $90.6 million for the same quarter one year ago. The company also announced that CFO, Nelson Gentiletti, will be leaving the company by the end of August. J.P. Mazzanti, currently Vice President and Controller, has been appointed interim CFO. Subsequent to quarter end, Emergis announced the expansion of its relationship with VISA, extending the contract signed last year with VISA U.S.A. through the signing of a new agreement with VISA International to support the worldwide development and hosting of Visa Commerce.Details
Atlanta-based Global Payments announced a plan for Paul Garcia, currently President and CEO, to assume the additional role of Chairman of the Board of Directors succeeding Robert Yellowlees, and also announced that Garry Betty, president and CEO of EarthLink, has been elected to serve on the Company’s Board of Directors. Global Payments Inc. is a leading provider of electronic transaction processing services to merchants, ISOs, financial institutions, government agencies and multi-national corporations located throughout the United States, Canada, the United Kingdom and Europe.Details