Payment cards for Wingspan Bank.com failed to work in Bank One’s ATM network last week. The cards were rejected by ‘Cash Station’ ATMs in the Chicago area. Bank One says the problem was related to network conversions and was corrected by late Friday. Wingspan, an Internet-only bank, has about 175,000 customers. Wingspan reimburses customers for ATM fees charged by other banks. Bank One has about 4,000 ATMs nationwide.Details
NY-based Actrade International launched its ‘Electronic Trade Acceptance Draft’ program this morning. ‘E-TAD’ is an irrevocable and negotiable electronic payment obligation, issued by a buyer for a specific sum, to be paid on a definitive date through automatic debiting of a buyer’s designated bank account. ‘E-TAD’ technology enables buyers to pay for commercial transactions, ranging from ten thousand dollars to multimillion dollars, with terms up to 180 days while suppliers receive immediate payment. The company also announced this morning it has changed its name to Actrade Financial Technologies, Ltd.Details
National Data Corporation announced that Vaden C. Landers, who served as President and CEO of Bancard Consulting Group, has been named Managing Director, ISO Line of Business for NDC eCommerce, reporting to Thomas M. Dunn, Chief Operating Officer. Bancard Consulting Group, a management consulting and software development firm, provided many of the industry’s larger Independent Sales Organizations direction and management in strategic planning and business development services.
In announcing the appointment, Tom Dunn, COO, said, “There will be an increased focus on this important business. Through this arrangement, NDC eCommerce will offer a comprehensive range of services to support ISOs throughout their business lifecycle. This includes consultation for start-ups and a full range of processing and financial services such as bank sponsorship, financing working capital needs and acquisitions of ISO portfolios and companies.”
In this newly created position, Landers will have responsibility for the strategic development and support of the company’s Independent Sales Organization relationships. Before forming BCG in 1998, Landers served in executive management positions for NOVA Corporation, Financial Alliance and PMT Services.
CEO of NDC eCommerce, Paul R. Garcia, said, “I’m delighted to have an industry leader with Vaden’s extensive knowledge of and service to the ISO industry. Vaden is well known as an advocate of the Independent Sales Organization, and his appointment to this new position reflects the importance of this community to NDC eCommerce.”
As a result of this initiative, NDC eCommerce will have an office located in Nashville, Tennessee, where Landers will commence operations immediately.
Commenting on his appointment, Landers said, “It is time for a major player to emerge and establish a leadership position. We intend to do just that, and will not waiver from this directive until our goals are achieved,” Landers went on to say, “Our mission while operating under the BCG banner was to assert ourselves as an indispensable business partner for our clients; that theme and thought process will remain prominent as we move forward in this new relationship.”
National Data Corporation is a leading provider of electronic commerce solutions and health information services that add value to customers’ operations.Details
BankServ, Inc. today announced a strategic agreement with Ariba to integrate BankServ’s electronic check and global funds transfer technologies and processing services into the Ariba B2B Commerce Platform.
Trading participants using the Ariba Commerce Services Network, will be able to take advantage of BankServ’s services. Ariba CSN is Ariba’s value-added network infrastructure for delivering commerce services to companies in the B2B community.
* Financial institutions offering global settlement services will be able to take advantage of BankServ’s “bank neutral” pre-integrated services solution, allowing them to substantially decrease their time to market on Ariba CSN.
* Buyers and sellers on Ariba CSN will be able to access a variety of payment options, including BankServ’s automated clearing house (ACH) transfers and domestic and cross-border wire transfers.
* Through BankServ’s advanced financial services solutions, Internet market makers will have the ability to earn and collect transaction revenue from activity on their marketplaces. This offers a significant incentive for market makers to take advantage of these progressive global payment options.
“Online exchanges need the kind of low-cost, reliable, global funds transfer solutions for B2B commerce that BankServ’s ACH and wire transfer products provide,” said Eric Bochner, vice president, Ariba Commerce Services. “Until now, the primary online payments solutions available have been various forms of purchasing cards and credit cards, or offline, paper-based settlements. BankServ enables an automated solution that can be seamlessly integrated with a wide variety of B2B eCommerce processes.”
Cory Gaines, vice president of strategic alliances for BankServ, noted, “Since funds transfer services processed through the ACH and the banking system can be eighty percent less expensive to suppliers than the cost of processing credit cards, all of Ariba CSN customers will enjoy substantial opportunity in this market.”
According to Dave Kvederis, president and CEO of BankServ, hundreds of U.S. merchants already use BankServ’s electronic check services to create electronic funds transfers that are processed through the nation’s ACH system. More than a dozen Internet businesses are already integrating or testing its Internet services on their websites, including PointSpeed.com, StereoLink.com and Egarden.com. “BankServ has built a significant market advantage in the brick and mortar merchant world through its experience and the development of its proprietary technologies,” he said. “Now we are bringing that experience and technology to the Internet.”
The ACH system is commonly used for direct deposit of payroll and government benefit payments and for payment of consumer bills. In 1999, more than 6.2 billion ACH payments were made in the U.S. worth more than $19 trillion, according to the National Automated Clearing House Association (NACHA).
BankServ also processes more than $1 billion a day in international and domestic wire transfers on behalf of 110 U.S. banks, thrifts and credit unions. The company’s Global Funds Exchange (GFX) system automates operational and risk control compliance, in accordance with both the U.S. Treasury Department’s Office of Foreign Asset Control (OFAC) and the Bank Secrecy Act; and numerous customer notification requirements.
Founded in 1996 by CEO Dave Kvederis, BankServ is one of the country’s leading providers of payment solutions for online businesses, retailers and financial services companies. Its electronic check conversion, ACH funds transfer and global wire transfer systems serve hundreds of U.S. businesses and financial institutions in online, point-of-sale and back-office applications. Headquartered in San Francisco, BankServ also maintains offices in Atlanta, Boise, Chicago, Dallas, Lafayette, La, Las Vegas and New York. More information about BankServ can be found online at [http://www.bankserv.com].
Metris Companies Inc., one of the fastest-growing direct marketing companies in the United States, has been recognized as one of “America’s Fastest-Growing Companies” by Fortune magazine in its September 4 issue. Metris ranks No. 41 on the top-100 list, tops among consumer credit organizations. “To be listed among America’s 100 fastest-growing companies is an exciting recognition,” said Metris Chairman and CEO Ronald N. Zebeck. “Our top-50 ranking is a testament to the outstanding efforts of our entire organization.” To make the top-100 list, companies had to have a 30 percent annual growth rate for three years in both revenue and earnings per share, with positive earnings in the latest quarter. Those companies were then ranked by growth in revenue, earnings per share (EPS) and total stock-market return over three years ending June 30, 2000. Total scores from those three categories were used to determine the final rankings. Fortune reported revenue growth at Metris as 76 percent, EPS growth as 57 percent and total return as 32 percent during the three-year period ending June 30, 2000.
Metris has experienced significant growth in both the credit card and enhancement services segments of its business. Since 1997, Metris’ bank card accounts have grown from 2.3 million to 4.1 million, while its managed receivables have increased from $3.5 billion to $7.8 billion. Metris’ enhancement services business has grown from 3.0 million relationships and $64.5 million in revenues in 1997 to approximately 5.8 million relationships as of June 30, 2000 and $123.6 million in revenues for the first six months of 2000. Overall net income climbed from $38.1 million in 1997 to $115.4 million at the end of 1999.
Metris Companies Inc. is an information-based direct marketer of consumer credit products and enhancement services. Based in St. Louis Park, Minn., Metris also has operations in Scottsdale, Ariz.; Jacksonville, Fla.; Champaign, Ill.; White Marsh, Md.; and Tulsa, Okla. Metris employs more than 4,200 people.Details
Greenland Corporation announced the sale of its automated check cashing ATM machine to Automated Cash Machines, Inc., a Nevada corporation.
Dr. Lou Montulli, CEO of Greenland Corporation stated, “On August 9, Automated Cash Machines, Inc., a distributor of the Greenland MAXCASH ABM, purchased our machines for placement into the Reno and Las Vegas, Nevada areas. The machines were installed in Ship N’ Chek locations in each of these cities. The Reno machine is located at 2303 South Virginia #4 and the Las Vegas machine is located at 6420 S. Pecos #A-2. Both machines were installed with check cashing, phone card dispensing and full ATM functionality.”
Dr. Montulli indicated that the Ship N’ Chek sites are part of a chain of financial service centers in Nevada and New Mexico that provide services including advance payday loans and money orders. The Ship N’ Chek stores are owned and operated by Mr. John Odin, Vice President of the Nevada Independent Check Cashing Association (NICCA). Mr. Odin is currently and has been vice-president of NICCA for the past four years.
Mr. Odin commented that he was very excited about the financial opportunities that this machine provides, and that the demographics of the United States and the trend in banking practices make the Greenland machine a product whose time has come. Mr. Odin further commented that he would use this machine to showcase the product in Nevada for those who are interested in purchasing the machine.
About Greenland Corporation
Greenland Corporation is a developer and manufacturer of automated payroll check-cashing machines with full ATM functionality, phone card sales, money order dispensing and payday advance services. The Company’s automated financial services machines are being developed to provide dispensing of travelers checks, wire transfers, bill paying and electronic benefit transfers in addition to cashing payroll and government checks. The company’s common stock trades on the OTC Bulletin Board under the symbol “GLCP”. Visit Greenland Corporation on the Internet atDetails
FL-based WildCard Systems has signed a five year agreement to develop, host and manage online the new ‘VISA Buxx’ teen card. WildCard Systems’ end-to-end solutions for ‘VISA Buxx’ include hosting the e-transaction processing platform, offering cardholder support services, and designing and developing the web sites for card-issuing banks. The company says it is working closely with VISA USA to provide a turnkey solution to leading national and regional banks that want to offer the ‘VISA Buxx’ prepaid card.Details
Capital One again dominated banner advertising on the Internet last week. According to Nielsen/NetRatings tracking for the week of Aug 7-13, Capital One ranked as the #1 most viewed banner ad at-home and the #4 most viewed banner ad among at-work users. The “How FAST do want your credit decision ad?” reached 7.6% of the a-home audience and 8.5% of the at-work audience. Citibank ranked #6 among at-work users with its “Big Credit Card Debts?” banner ad. Nielsen reported the average ad click rate for at-home surfers was 0.33% while at-work users responded to Internet ads with a 0.17% click rate.Details
Dovetail Systems announced the release of its flagship product:’The Dovetail Payments System’ this morning. The new product is designed for Tier 1 and Tier 2 financial institutions to handle all inter-bank payments and funds transfer types, including new standards such as CLS, S.W.I.F.T. MT103, and those emerging from global e-commerce.Details
Cardholders of the ‘First USA/United Mileage Plus VISA/MasterCard’ are set to receive a mileage bonus as a reward for their patience in regards to United Airlines recent scheduling problems. ‘Mileage Plus Premier’ members (flying 25,000+ miles per year) will receive an additional bonus for United flights between May 1 and December 31. ‘Premier’ members will receive an extra 25% bonus for flights, while ‘Premier Executive’ (flying 50,000 miles per year) and 1K members (flying 100,000 miles per year) will receive a 100% bonus. This extra bonus will be credited to accounts in January 2001. In addition, members who qualify for ‘Premier’ status in 2000 will also be eligible for these bonuses. United also announced yesterday it is waiving its $75 flight change fees in many cases.Details
National City has continued its Small Business 2000 Initiative with the debut of the Business CheckCard, the third new product out of seven to be introduced this year.
Mike Price, National City’s senior vice president of small business banking explained that the initial reaction to the Business CheckCard has been favorable.
He said, “The newly designed product allows both the cardholder and business name to appear on the card front for sole proprietorships, partnerships, corporations, and non-profits, among other types of businesses. National City’s Business CheckCard targets small businesses with less than $5 million in annual sales, primarily focusing on businesses with less than $1 million in revenues and no more than 10 employees.”
The Business CheckCard is designed as a full function card, and will allow cardholders to use this card at more than 18 million Visa merchants worldwide, and perform transactions at ATMs worldwide – including 1,700 Nation City, 43,500 MAC and 400,000 Plus/Visa machines. The Business CheckCard also gives customers the ability to perform PIN-based, point-of-sale transactions at participating MAC merchants.”
Customers can apply for a card by: * visiting a National City Bank;
* calling Small Business Telephone banking at 888-NCB-4BIZ (622-4249);
* mailing in a brochure application.
To qualify for a Business CheckCard, customers must have a business demand deposit account as their primary funding account. Cardholders also are required to be signers on the primary funding account. Once approved, customers are elgible for Visa’s “Core Enhancements” which includes benefits like “Purchase Security.” “Extended Protection” and travel emergency assistance services.
National city’s extensive network of more than 1,200 branches, the forth largest branch network in the nation, allows small business customers to have convenient access to banking services and personal relationships with local banking experts.
National City Coporation is an $85 billion financial holding company based in Cleveland, Ohio. The company offers a full range of financial services for individuals and businesses. National City has offices in Ohio, Pennsylvania, Michigan, Indiana, Kentucky and Illinois. National City can be found on the World Wide Web at [www.national-city.com].
The student credit card market has also reached critical mass. Approximately 55% of college students now carry bank credit cards. Among high school students (under 18) nearly 7% now have co-signed credit cards. According to the American Savings Education Council 28% of these student credit card users revolve balances each month.
TOP STUDENT CREDIT CARDS (ranked by APR)
1. USAA College Start VISA or MasterCard: 13.40%; parent must be member of USAA and must co-sign; offers credit limits ranging from $500 to $1,500.
2. MBNA College VISA or MasterCards 15.99%-19.40%; interest rates vary by college; must be 18 and student at selected college. no co-signer required.
3. College Parents of America MasterCard 17.30%; parent must be a member of CPA; co-signer required; offers parental controls
4. Elan Financial Young Adult VISA or MasterCard 17.40%; must be 16 to apply with co-signer; no co-signer required if applicant is 18 and earns $12,000 per year.
5. American Express College Card 17.49%; program offers travel certificates that allow cardholder and a friend to travel for as little as $159 round-trip; offers credit limits up to $3,000, interest rates of 9.50% on purchases over $200, and 15 cents-per-minute for phone calls charged to the card; No co-signer required.
6. First Union Collegiate VISA 18.00%; credit lines from $500 to $800; no co-signer required if 18.
7. Elan Financial College VISA or MasterCard 19.40%; must be 18 and enrolled in 2 or 4 year accredited college or university; no co-signer required.
8. First USA/United College Plus VISA 19.40%; offers one United Airlines air mile for every two dollars charged in purchases; earn up to 10,000 air miles per year; receive initial 2,500 bonus miles; 5,000 bonus miles can also be earned for every 50 hours of volunteer work, for a maximum of 10,000 bonus miles during each 12-month school-year period between August 1 and July 31; no co-signer required.
9. Citibank MasterCards 19.40%; offers three student programs: Platinum Select, Driver’s Edge, and Sony Cards; Drivers Edge and Sony programs offer ability to accumulate points towards a car purchase or electronic gadgets; no co-signer required; must provided proof of student status.
10. Capital One College Student VISA 19.80%; offers $200 minimum credit line; offers 12 free issues of Entertainment Weekly or Sports Illustrated as an initial bonus; no co-signer required however phone number of college or university must be provided to verify status; also offer a co-signed card to students under 18 by invitation.
Source: CardTrak ([www.cardtrak.com])