Bank One has offered to pay $45 million plus interest to settle a shareholder lawsuit related to the handling of its First USA credit card division. Yesterday, the bank holding company, also announced it has resolved a regulatory investigation by the NASD and has agreed to pay a $1.8 million fine to settle charges related to the internal accounting problems caused by a systems changeover and its regulatory treatment. Under the proposed shareholder settlement, Bank One will pay 11 cents a share to investors who bought stock between Oct. 22 and Nov. 10, 2000. The class action lawsuit alleges that Bank One officers misled shareholders about the financial trouble in its First USA subsidiary.Details
President’s Choice Bank launched the
new President’s Choice Financial MasterCard in British Columbia, allowing
consumers in the province to be the first in Canada to be able to earn free
grocery rewards for everyday spending on their credit card.
“The President’s Choice philosophy has always been about searching the
world to bring consumers unprecedented value”, explains Geoff Wilson, Vice
President Industry and Investor Relations, Loblaw Companies Limited, “We
believe that the President’s Choice Financial MasterCard offers the best
credit card value for Canadian consumers with its unbeatable combination of
free grocery rewards, premium credit card benefits and no annual fee.”
The main feature of the President’s Choice Financial MasterCard is the
PC points loyalty program. PC points is a unique program designed
specifically for customers of President’s Choice Financial services. Customers
who use this new MasterCard can earn PC points on purchases everywhere,
redeemable for free groceries in Loblaw Companies Limited owned and franchised
stores such as Real Canadian Superstores in BC. Other great travel and
merchandise rewards will be introduced to the PC(TM) points program in the
Accepted at 19 million locations worldwide, the President’s Choice
Financial MasterCard also offers all the benefits of a premium credit card
such as purchase assurance, extended warranty for purchases on the card and
MasterCard Roadside Assistance – all for no annual fee.
“Nine of the past 11 new credit card issuers in Canada have chosen
MasterCard,” said Craig Penney, Vice President and General Manager, MasterCard
Canada. “Both the President’s Choice Financial and MasterCard brands are seen
as leaders in their respective industries in developing innovative programs
that directly benefit consumers. This relationship is a natural match which
will give Canadians more choice in the way they want to pay.”
The launch in British Columbia represents the first stage of a roll-out
of the President’s Choice Financial MasterCard across Canada. Over the next
three months, the President’s Choice Financial MasterCard will be introduced
in Alberta, the Prairies, Ontario and the Atlantic Provinces with Quebec
following in 2002.
About President’s Choice Financial services
Since the launch in February 1998, President’s Choice Financial services,
a co-venture between Loblaw Companies Limited and Canadian Imperial Bank of
Commerce, have grown at a rapid pace, offering Canadians unprecedented savings
of time and money. President’s Choice Financial services include Canada’s only
no fee daily bank account, the Interest First(TM) savings account with a
premium interest rate currently at 4.10 percent, the Unbeatable, Eatable
Mortgage(TM) which combines better rates and free groceries, a low-cost
borrowing account, a daily interest investment account RRSP, a variety of
loans, high interest GICs, plus PC(TM) points towards free groceries. There
are more than 240 President’s Choice Financial bank machines and 180
President’s Choice Financial pavilions located at Loblaw Companies Limited
stores across Canada. President’s Choice Financial core banking services are
provided by Canadian Imperial Bank of Commerce. The President’s Choice
Financial MasterCard will be provided by President’s Choice Bank, a subsidiary
of Loblaw Companies Limited.
About MasterCard International
MasterCard International has the most comprehensive portfolio of payment
brands in the world. More than 1 billion MasterCard(R), Cirrus(R) and
Maestro(R) logos are present on credit, charge and debit cards in circulation
today. An association comprised of 22,000 member financial institutions,
MasterCard serves consumers and businesses, both large and small, in 210
countries and territories. MasterCard is the leader in quality and innovation,
offering a wide range of payment solutions in the virtual and traditional
worlds. With more than 19 million acceptance locations, no card is accepted in
more places and by more merchants than the MasterCard card. In 1999, gross
dollar volume exceeded US $727 billion.
ID Data plc, The AIM-quoted manufacturer of secure transaction systems and
smart card services, announces the appointment of Bob Thomson as Sales
Director. Bob Thomson, formerly the ICL clients director of Barclay Bank
plc for five years, was also the ICL Services Director for Retail &
Financial Services (UK) in his 21 year career with ICL. His experience is
ideally suited to head the newly created marketing team at ID Data.
Commenting of the appointment, Peter Cox , Chief Executive of ID Data,
said “Bob’s skills in managing resources and relationships, developing
people and business planning will build on out existing position and the
healthy progress we are making. His background in banking and retail
ideally fits out business.”
Upon his appointment, Bob Thomson said “ID Data’s products and services
officer real value to customers’ businesses. I look forward to being part
of this new team and to offering products to wider international markets.”
Other members of the marketing team include Neil Drake, whose background in
journalism, market research and PR stand him in good stead for his role as
Marketing Services Executive. Anna Grainger comes to the position of Sales
and Marketing Coordinator, with extensive training, telemarketing and Sales
experience. Michele Cottis, is joining Anna as Sales and Marketing
Co-ordinator with ten years’ experience as a team leader in sales and
customers relations. The whole team have extensive contacts in, and
knowledge of, the international markets that ID Data is expanding further into.
SCM Microsystems, Inc. has announced that Motorola, has selected SCM as its
smart card interface
supplier of choice, for Motorola’s Streamaster 5000 advanced set-top box.
Streamaster is a multimedia broadband information, entertainment and
communications center that derives its content from xDSL service providers.
SCM will provide Motorola with its Smart Transporter Chip, a universal
smart card reader interface, based on SCM’s widely adopted SmartOS.
“SCM has an excellent reputation for its smart card-based solutions and
the Smart Transporter Chip is a great solution for our set-top boxes,” said
Jackie Beauchamp, general manager, Multimedia Systems Division at Motorola.
“SCM demonstrated the ability to control both design and manufacture of its
chips. Also, it was important that SCM could supply us with the large
quantities of product needed, as we predict high demand for Streamaster 5000.”
Streamaster 5000 supports a rich variety of basic and enhanced services.
These include premium digital TV, Web browsing, e-mail, online 3-D games,
personal video recording and video/music-on-demand. By incorporating SCM’s
Smart Transporter Chip, Motorola’s newest set-top box will also support smart
card-based payment transactions for items such as pay-per-view movies, music
downloads and T-commerce purchases.
“Being chosen as a supplier of choice for one of the world’s leading names
in broadband communications is the highest endorsement — not just for the
quality of our products, but for our ability to manufacture and produce units
in very high volume,” said Jason Schouw, vice president of U.S. sales for
SCM’s PC Security division. “Our smart card chips are extremely versatile and
can be used in a variety of platforms and applications. Combined with our
manufacturing capability, OEMs have a powerful argument to buy from SCM.”
SCM’s Smart Transporter Chip enables easy integration of support for all
smart cards, including ISO 7816 compliant smart cards. The Smart Transporter
Chip’s architecture is based on open standards and is upgradeable to support
new smart card protocols and functions.
About SCM Microsystems
SCM Microsystems is a leading supplier of solutions that open the
Digital World by enabling people to conveniently access digital content and
services. SCM’s advanced silicon solutions, hardware and software enable
secure exchange of electronic information for digital applications from
e-commerce to broadband content delivery by providing controlled access points
to platforms such as PCs, digital cameras and digital television set-top
boxes. Known as a premier supplier to OEM companies around the world, SCM also
serves the retail market through its Dazzle, Microtech and FAST product
brands. Global headquarters are in Fremont, Calif., with European
headquarters in Pfaffenhofen, Germany. For additional information, visit the
SCM Microsystems Website at http//www.scmmicro.com.
Motorola, Inc. is a global leader in providing integrated communications
and embedded electronic solutions. Sales in 2000 were $37.6 billion
Diebold is upgrading its proprietary ‘DECAL’ electronic customer access link, to allow customers to monitor and generate Diebold ATM service calls from any computer with an Internet browser. ‘DECALWeb’ eliminates the need for a dedicated computer to create and track service calls. ‘DECALWeb’ customers can set a priority for the service, monitor the estimated time of arrival of the service technician, review the service action and identify when the problem has been resolved. The implementation of ‘DECALWeb’ follows the recent announcement of an agreement with MDSI Mobile Data Solutions Inc. to implement a new wireless data communications system based on MDSI’s ‘Advantex-Enterprise Gateway’ wireless connectivity solution.Details
Metaca Corporation, Canada’s leading
integrator and manager of smart card solutions, today announced that it has
signed an agreement with EdgeWare Technologies Corporation, to
provide EdgeTech products, which includes a suite of advanced, open
architecture software solutions for use in retail and smart card-based
applications. Metaca is owned 85% by MDC Corporation Inc. and 15% by Symcor
“Metaca has commenced integration of EdgeWare’s applications to our
CardProgram management offering. We selected Edgeware because they offer
best-in-class applications, a standard that we build into the architecture of
all our smart-card solutions for customers”, said President and Chief
Operating Officer, Gregory McKenzie. “We are excited about this relationship
and the additional value that it will help us bring to our clients.”
“EdgeWare Technologies is pleased to be working with Metaca, the market
leader in smart-card technology integration, which has established many long-
term customer relationships within the financial institution, commercial and
loyalty segments,” said Ed Anderson, President of EdgeWare Technologies.
The additional capabilities, made available through this agreement, will
enhance the unique CardProgram(TM) Management solutions already being
delivered by Metaca to its customers.
Included in the EdgeTech(R) suite of products is EdgeSmart(TM), which is
designed to deliver customer services and incentives incorporated on either
stored value payment cards or co-branded loyalty smart cards. In addition, in
response to customer demand for complete end-to-end solutions, EdgeTech(R)
solutions, EdgeHost(TM) and AnalysEdge(TM), provide seamless web-enabled
architecture to facilitate host settlement, activity analysis, reporting and
communications for smart card applications.
Metaca clients, as a result of the EdgeTech(R) relationship, will also
benefit from solutions that will address needs for Customer Incentives &
Rewards, ID and Secure Access, Campuses (Institutional and Corporate), Events,
Sports Complexes, Conferences, Theme Parks, Transit, Transportation, and
Metaca Corporation is a leading global CardProgram(TM) Management Company
with a blue-chip customer portfolio, which includes financial services,
telecommunications, loyalty, retail, insurance and utility industries. Metaca
supports this customer portfolio from operations in Canada and Australia.
About EdgeWare Technologies
EdgeWare Technologies is a Canadian software and services firm that
designs, develops, markets and supports multi-application, scalable, platform
independent smart card software solutions for business, institutions and
About MDC Corporation Inc.
MDC is a publicly traded international business services organization
with operating units in Canada, the United States, United Kingdom and
Australia. MDC offers security sensitive transaction products and services in
four primary areas Personalized Transaction Products such as personal and
business cheques; Electronic Transaction Products such as credit, debit,
telephone and smart cards; Secure Ticketing Products, such as airline, transit
and event tickets; Stamps, both postal and excise. In addition, MDC is
majority owner of Maxxcom Inc., which is the largest full service marketing
communications organization based in Canada. MDC shares are traded on the
Toronto Stock Exchange under the symbol MDZ.A and on NASDAQ National Market
Systems under the symbol MDCA. Further information regarding MDC may be
obtained at the website at www.mdccorp.com.
Symcor is a leading North American customer communication and item
processing services provider, with customers in retail and corporate banking,
mutual fund, investment banking, insurance, retail, telecom and utility
industries across the country. Symcor’s services include Web development,
cheque processing, credit card and payment processing, and a full range of
customer bill and statement advisory, design and presentment capabilities.
Symcor is a joint venture established by Bank of Montreal, Royal Bank
Financial Group and TD Bank Financial Group.
Building on its reputation in the financial services sector, Entegrity has
signed partnership agreement with EuroSignCard SA to deliver access
management capabilities for e-business to financial institutions in
Luxembourg, the world’s fifth largest banking centre.
EuroSignCard is a European trust centre for digital signatures, delivering
services to secure electronic financial transactions and promote consumer
confidence in e-business. Entegrity Solutions Corporation is a leader in
application security software and services.
“It has become abundantly apparent to organisations involved in the
transfer of large funds and interaction between competing institutions,
that security infrastructure, while absolutely essential, is just the first
step in exploiting the potential of e-business and inspiring confidence,”
explains David Sweigert, managing director of EuroSignCard SA. “Security
infrastructure focuses on ‘keeping the bad guys out,’ but Entegrity
Solutions’ AssureAccess provides the technological and administrative
capabilities to open back-end applications to partners over the internet
while managing access rights, user authentication, audit logs and central
administration. Becoming a member of Entegrity’s AssurePartner Programme
means we can offer the financial services community a complete security
solution that promotes e-business in a trusted environment.”
Sweigert continued “Our customers are often dealing with millions of euros
in a single transfer. Confidence in the transaction validity, the right of
those involved to execute that business, and in the ability to audit the
path that a transaction has taken, is paramount to the ongoing business.
Entegrity’s product range extends our ability to provide that to our
customers and becoming part of the AssurePartner Programme aligns us even
closer with Identrus, the consortium of global financial institutions, to
promote international confidence in e-business in financial services.”
About EuroSignCard S.A.
Headquartered in Luxembourg, EuroSignCard S.A. provides security technology
for electronic transactions to commercial and government organizations.
EuroSignCard’s products include Public Key Infrastructure (PKI)
architectures, smart cards, and cryptography techniques.
EuroSignCard maintains relationships with Entrust Technologies, Baltimore
Technologies, Identrus LLC, Digital Signature Trust and other top
performing security companies. EuroSignCard was formed in 1999 and recently
received a cash infusion of 1,500,000 euro in July, 2000. The firm
specializes in technology that complies with E.U. Directive 1999/93.
Telstra Corp Ltd and Coca-Cola are testing a new service called
‘Dial-a-Coke’. With the program, Telstra mobile customers can order a drink
from a vending machine and have the AU$2 billed to their phones. The
m-commerce trial is the first of several Telstra is considering, including
dial-up parking, shopping and ticket purchases. Coke is running a similar
trial in Chile.
Citibank confirmed this morning it is buying CT-based People’s United Kingdom credit card portfolio. Citibank International PLC is acquiring People’s U.K credit card operations for approximately $526 million. The portfolio has about $426 million in receivables. According to CardData ([www.carddata.com]), People’s UK portfolio has been growing about 18% annually. People’s says it wants to focus its resources on building a dominant franchise in Connecticut, expand on national lending and concentrate on the core U.S. credit card business. Last month, Abbey National agreed to sell its credit card business to MBNA Europe for slightly more than $400 million. Reportedly MBNA paid an 18% premium for the Abbey card portfolio.(CF Library 1/19/01; 3/20/01)
Citigroup, Inc. and People’s Bank announced that Citigroup,
through its subsidiary Citibank International PLC, acquired People’s United
Kingdom (U.K.) credit card operations for 368 million pounds sterling
(approximately $526 million U.S.), including 298 million pounds sterling
(approximately $426 million U.S.) in receivables, together with other assets
and liabilities associated with the business. The acquisition expands
Citigroup’s presence in the U.K. and strengthens the company’s position as a
leading bank card issuer in Europe and around the globe.
“This transaction represents a further step in our efforts to expand our
consumer business globally, broadening our presence in the important U.K.
marketplace,” said Robert B. Willumstad, Chairman and CEO, Citigroup Global
Consumer. “The People’s U.K. credit card business represents a significant
increase to our own profitable and growing business in the U.K.”
“The U.K. credit card operation is a successful and growing business, but
it had reached a point where we would need to dedicate significant additional
financial and management resources to support and grow the business properly,”
said John A. Klein, president and chief executive officer of People’s. “After
careful consideration, we decided it was in the best interest of our
shareholders to focus our resources on continuing to build a dominant
franchise in Connecticut, expand on national lending and concentrate on the
core U.S. credit card business. We are grateful to our employees in the U.K.
and look forward to working with Citigroup to ensure a smooth transition.”
Citigroup (NYSE C), the preeminent global financial services company,
provides some 120 million consumers, corporations, governments and
institutions in more than 100 countries with a broad range of financial
products and services, including consumer banking and credit, corporate and
investment banking, insurance, securities brokerage and asset management.
Major brand names under Citigroup’s trademark umbrella are Citibank,
CitiFinancial, Primerica, Salomon Smith Barney, and Travelers. Additional
information may be found at http//www.citigroup.com.
People’s Bank, www.peoples.com, is a
diversified financial services
company providing consumer, commercial, insurance and investment services.
The bank is a leader in supermarket banking, with 53 of its 146 branches
located in Super Stop & Shop stores. Through its subsidiaries, People’s
provides brokerage services, money management, equipment leasing and
insurance. In the U.S., People’s is the 16th largest issuer of Master Card and
Visa credit cards.
The rise in unemployment coupled with the new personal bankruptcy regulations will likely produce a surge in bankruptcy filings. The 1996 bankruptcy bill, passed during a robust economy, produced a sharp rise in personal filings. Standard & Poor’s predicts that this time around credit card portfolio losses will rise to 6.1% from last year’s average of 5.5%. If the current growth recession turns into a real recession, the outlook is worse. Even a mild near-term recession could send the loss rate up to 6.8%. However, S&P notes that the spread of credit card rates above costs is over 5%. Another 60 bps of losses is essentially built into the pricing, and even the extra 130 bps that could occur in a recession would maintain a reasonable profit margin. S&P says debt service costs are nearly back to the peak of 14.4% of after-tax income reached in 1986 because higher levels of debt are offsetting lower interest rates. The bankruptcy reform legislation will go into effect six months after a presidential signature, according to CardTrak ([www.cardtrak.com]).
VeriFone, a division of Hewlett-Packard Company, and worldwide leader in
electronic payment solutions, announced that e-Smart Direct Services Inc., is
the first network processor in Canada to install VeriFone Omni 3300
e-Smart began installing the Omni 3300 in merchant locations throughout Canada
earlier this month to support debit and credit e-payment applications. The
company also intends to support value-added applications, including chip-based
loyalty and couponing, in the next quarter.
e-Smart, one of the 89 members of Canada’s Interac Direct Payment debit
network, provides point of sale (POS) services for all types of Canadian
retailers and commercial activities. The company joined VeriFone’s growing
global Developer Forum and used VeriFone’s Verix Developer Toolkit to
payment application for VeriFone’s Verix platform.
e-Smart elected to use VeriFone SC 550 smart card readers, which meet Canadian
standards for PIN-entry, to support smart card, debit and other PIN-based
transactions. In addition, e-Smart has also purchased VeriFone’s VeriTalk Lite
terminal management software to support the rapid and economical deployment of
applications in a multi-application environment. VeriTalk Lite is a download
engine for small- to medium-sized processors that enables fast deployment of
new payment, payment-related and value-added applications by supporting
simultaneous application downloads, thereby lowering the cost per download
“Being a smaller, more nimble organization allows us to quickly evolve our
offering to meet the changing needs of Canadian merchants, and to embrace
virtually any new technology or standard that comes along. With our new
VeriFone solution, we can add applications for our merchants very quickly, and
can be assured that the solution is Interac-compliant and backed by VeriFone’s
reputation for quality and reliability,” said Mischa Weisz, president and CEO
of e-Smart Direct Services Inc. “We plan to help Canadian merchants by
exploiting every possible feature of the Omni 3300, especially its ability to
support multiple applications that can add significant value to a merchant’s
point of sale.”
VeriFone’s Omni 3300 terminal is designed to handle the performance demands of
e-payment. The Omni 3300 with VeriFone’s Verix operating platform, features
true application separation at both the hardware and software level. The Omni
3300 features a triple-track magnetic-stripe reader, a 32-bit processor with a
14.4K modem, 3 MB of memory and a 12.5 lines-per-second integrated printer.
“VeriFone is thrilled that our Verix-based family of payment terminals is
introduced to the Canadian marketplace by e-Smart,” said Bud Waller, vice
president and general manager of North American sales and marketing at
VeriFone. “We’ve seen strong growth in our Developer Forum around the globe,
indicating that our Omni 3300 family of terminals, featuring the open
architecture of the Verix operating environment, is gaining momentum as the
platform of choice for developers looking to provide processors and merchants
worldwide with applications that maximize the value of their point of sale.”
About e-Smart Direct Services
e-Smart Direct Services Inc. is a leader in fully integrated processing
services for Retailers, Financial Institutions and Independent Service
Operators. As a Direct Member of the Interac(R) Association, e-Smart Direct
Services processes debit and credit transactions originating from Automated
Teller Machines (ATM) and Point of Sale (POS) devices. e-Smart’s wholesale
processing rates as well as it’s ability to design, program and implement
custom retail applications such as “convenience fees” (surcharging) and
programs that have attracted retailers throughout Canada to this alternative
VeriFone (http//www.verifone.hp.com), a division of Hewlett-Packard
the leading global provider of secure electronic payment solutions for
financial institutions, merchants and consumers. The division has shipped more
than nine million electronic-payment systems, which are used in more than 100
Hewlett-Packard Company — a leading global provider of computing and imaging
solutions and services — is focused on making technology and its benefits
accessible to individuals and businesses through simple appliances, useful
e-services and an Internet infrastructure that’s always on.
HP has 88,500 employees worldwide and had total revenue from continuing
operations of $48.8 billion in its 2000 fiscal year. Information about HP and
its products can be found on the World Wide Web at http//www.hp.com.