Bank credit card charge-off rates took a significant drop in June, decreasing more than 70 basis points. Standard & Poor’s ‘Credit Card Quality Index’ shows charge-offs, among card-backed securities, at 5.3% for June compared to 6.1% for May. However, the one-month change in losses was slightly exaggerated due to a change in Bank One’s policy to comply with FFIEC regulations last month. If Bank One had not taken a one-month increase to charge-offs the index loss rate would have declined by only 30 bps in June. Still, the decline represents the largest monthly decline in charge-offs since February 1998 when charge-offs dropped 40 bps. Lower charge-off rates were expected for the most part, as losses have traditionally declined during the summer months. Furthermore, there are leading indications that charge-offs are likely to remain at these levels, if not move lower, given the positive delinquency trends. Delinquencies dropped slightly again in June to 4.1%. This represents six consecutive months in which the delinquency rate has declined.Details
First Data Corp. announced it has begun providing transaction processing services for BMW Bank of North America, a subsidiary of BMW Financial Services. Salt Lake City-based BMW Bank signed an agreement with FDC’s credit card services subsidiary First Data Resources to process its new Visa cards. Financial terms of the agreement were not disclosed..
BMW Financial Services announced earlier this month the introduction of two BMW credit cards — the BMW Ultimate Card, which awards points with every purchase that can be redeemed for rewards designed specifically for BMW drivers, and the BMW Card, a Visa Platinum card which will be rolled out in August..
“First Data is delighted to begin a partnership with one of the world’s most recognized brands and a highly respected company,” said Richard A. Zehnacker, managing director of business development at First Data Resources..
First Data Resources serves more than 1,400 card issuers representing approximately 260 million card accounts on file, up 23 percent from the prior year. .
BMW Financial Services NA, LLC was established in 1993 as a captive finance company to support the North and South American sales and marketing efforts of BMW, including the newest office in Brazil. With over $11 billion in managed assets and more than 320,000 automotive lending customers, BMW FS finances over half of the BMW’s sold or leased in the U.S..
BMW FS established the BMW Bank of North America in 1999 to offer personal banking products to its customers, including credit cards and a line of personal banking products, including checking, savings, CDs and money market accounts..
About First Data.
Atlanta-based First Data Corp. (NYSE: FDC) helps move the world’s money. As the leader in electronic commerce and payment services, First Data serves more than two million merchant locations, 1,400 card issuers and millions of consumers, making it easier, faster and more secure for people and businesses to buy goods and services using virtually any form of payment. With more than 30,000 employees worldwide, the company provides credit, debit and stored-value card issuing and merchant transaction processing services; Internet commerce solutions; money transfers and money orders; and check processing and verification services throughout the United States, United Kingdom, Australia, Mexico, Spain and Germany. In addition, its Western Union(R) network includes approximately 90,000 agent locations with operations in 182 countries and territories. For more information, please visit the company’s Web site at .Details
Gift Check Solutions now offers electronic gift cards as a gift certificate program option just in time for the holidays. The new gift card program benefits both corporate-owned and heavily-franchised retail or restaurant chains and provides the convenience of electronic commerce with the highest levels of functionality, ease of use, reliability, and security.
“Gift Check Solutions strives to provide the total solution for our customers,” said Gift Check Solutions President, John Bechard. “We can now confidently offer a secure, gift card product that is adaptable without requiring additional equipment purchases.”
Utilizing magnetic swipe card technology, all gift card transactions are processed in real-time issuance and redemption. Gift cards may be loaded with any denomination, or clients may choose to set minimum and/or maximum card values. No change is given with purchase; all remaining account balance remains on the customer’s gift card for future purchases.
Gift cards are customized utilizing company logo and theme. Gift card programs include custom sorted reports containing significant information such as card activation date, activation amount, activation and redemption location, redemption amount, and card balance. Customer service is available 24 hour a day, 7 days a week. For more information on the new gift card program, visit Gift Check Solutions’ web site at [http://www.giftchecksolutions.com].
“We provide services that allow our clients control over their gift certificate program while increasing their profitability,” Bechard continues. “Our new gift card program allows us to do just that with confidence.”
Gift Check Solutions is a market leader in the gift certificate service industry. By outsourcing their process to Gift Check Solutions, retail and restaurant chains receive the increased sale and good will of a gift certificate program without the printing, coordinating, fulfillment, and processing headaches.
Visa International and Netfish Technologies announced a new global business alliance in which Netfish software products will use Visa’s XML specification for the web to enhance business-to-business transactions.
Ravi Iyer, CEO of Netfish said, “We fully recognize the strength and value of Visa’s Global XML Invoice Specification. It is the first multi-vendor endorsed standard, developed in conjunction with Visa technology partners Commerce One, IBM, Sun Microsystems, Inc. and ValiCert, Inc. We think it provides an ideal complement to our cutting edge business-to-business system integration systems.”
Netfish XDI(TM) provides out-of-the-box-support for Visa’s Global XML Invoice Specification and enables suppliers to send “enhanced data” contained in the invoice for payments made using a Visa product.
Netfish is a leading developer of business-to-business system integration, document management and workflow solutions. Initially the alliance will focus on joint efforts in the handling of invoice and payment data. Visa International and Netfish are also working on partnerships in other areas where their products and services complement one another.
Invoice Data Specification:
Netfish’s technology allows the user to seamlessly integrate with all trading partners, regardless of application or message format. The graphical workflow process allows users to customize rules and events at every point of the transaction. This allows for automated processing of e-business transactions.
Netfish’s XDI software suite, which includes XDI Server, XDI Client and XDI Process Hub, converts existing business documents into Extensible Markup Language (XML) for transactions with business partners, including such popular formats as SAP, Oracle and BAAN. The integration of enhanced data support within this software means suppliers can provide line item details to Visa Purchasing card corporate clients.
Netfish and Visa are working together to provide payment functionality for Visa products within its product suite. This would include both the means for supporting Visa commercial product data storage and display within Netfish core applications, as well as the means for communicating payment data with Visa and its acquirers or processors. Netfish is also integrating the future Visa XML Reporting specification to provide reconciliation and reporting functionality based upon Visa payment and enhanced data information.
Alistair Duncan, Vice President, Visa Commercial Card Information Processing said, “This partnership furthers Visa’s goal of working with innovative leaders like Netfish to provide infrastructure for Visa enhanced data processing services. Netfish technology enables highly automated end-to-end e-business and e-commerce process integration with trading partners.”
He added, “The Netfish alliance will allow Visa Members to more quickly and efficiently integrate disparate legacy and enterprise systems.”
The Alliance Internationally
The alliance further demonstrates Netfish’s desire to expand its products and services to a global community. Netfish was recently chosen by Postgirot Bank AB, a leading SwedishVisa Commercial card issuer, to help create the premier B2B marketplace for the Nordic countries. Postgirot will use the Netfish XDI(TM) eProcess(TM) Hub as the marketplace’s core infrastructure for delivering a variety of advanced B2B services, including secure, end-to-end B2B process integration and payment transactions, to its 425,000 business customers. Postgirot Bank and Netfish will also offer the Netfish XDI System to simplify trading partners’ integration with this new marketplace. Through its use of Netfish’s XDI software, Postgirot and its customers will be adopting Visa’s Global XML Invoice Specification.
The Visa Global XML Invoice Specification uses XML to exchange invoice and payment data across industries and technical processing platforms. It provides a cross-industry, interoperable message format that enables processing of enhanced data across regions and industry sectors and, as clients identify new needs, it can easily be extended and adapted to support additional information needs. The specification can be found at [www.visa.com/xml].
About Visa Commercial Payment Solutions
Visa Commercial Payment Solutions are tailored to meet the needs of its member banks and corporate clients globally. Visa International is experiencing 40% annual growth rates across its commercial card product lines. There are more than 12 million Visa commercial cards issued globally. Visa International’s three commercial card programs, Visa Business, Visa Purchasing and Visa Corporate respectively focus on: the payment needs of small businesses; the procurement needs of medium to large firms; and the travel and entertainment expenses of medium to large firms.
Visa’s Commercial Payment Solutions continue to be at the leading edge of enhanced data, new technologies and delivery channels, meeting changing commercial market needs. Visa’s business-to-business e-commerce initiatives have included online trading hubs, online procurement strategic alliances and global standards for worldwide interoperability.
About Visa International
As the “World’s Best Way to Pay,” Visa is the world’s leading payment brand and the largest payment system worldwide with more volume than all other major payment cards combined. Visa plays a pivotal role in advancing new payment products and technologies to benefit its 21,000 member financial institutions and their cardholders.
Visa has more than 80 smart card programs in 35 countries and on the Internet, with 23 million Visa chip cards, including 8 million Visa Cash cards. Visa is pioneering SET Secure Electronic Transaction(TM) programs to enable and advance Internet commerce. There are over 1 billion Visa, Visa Electron, Visa Cash, Interlink and PLUS cards in the market.
Visa-branded cards generate US$1.6 trillion in annual volume and are accepted at over 19 million worldwide locations, including at more than 627,000 ATMs in the Visa Global ATM Network. Visa’s Internet address is [www.visa.com].
About Netfish Technologies
Netfish Technologies is a leading provider of highly scalable XML-based B2B integration solutions used by the world’s top Internet-enabled companies, such as Cisco Systems, NTT Communications and Sun Microsystems, to enable B2B eCommerce with their customers, suppliers and partners. In 1999, Oracle Corporation named Netfish Technologies as one of the “Top 50 eBusiness Solution Developers on Oracle” and one of the top four “Most Innovative eBusiness Solution Developers on Oracle”. In 2000, UPSIDE magazine named Netfish Technologies as one of the “UPSIDE Hot 100” private companies, recognizing the company’s innovation, leadership and performance in the business-to-business category. Founded in 1997, Netfish is based in Santa Clara, CA. Visit [www.netfish.com] for more information.
Netfish Technologies, XDI and XDI eProcess are trademarks of Netfish Technologies, Inc. All Rights Reserved. All other company, brand and product names are referenced for identification purposes only and may be trademarks which are the sole property of their respective owners.
Memphis, TN-based Concord EFS reported 2Q/00 revenue of $290.1 million and net income of $46.0 million. For the six months ended June 30, revenue and net income were $547.9 million and $84.3 million, respectively. The results of each six month period exclude pretax acquisition-related charges of $0.8 million incurred during the first quarter in the acquisition of Card Payment Systems and pretax acquisition and restructuring charges of $34.8 million incurred during the first quarter of 1999 in the acquisition of Electronic Payment Services. The company says the revenue growth during the second quarter was fueled by strong sales through its expanded ISO channel, continued cross-sell and conversion of settlement contracts, and above-market transaction growth within its market segments. For complete details on Concord EFS’s second quarter results and prior quarters, visit CardData ([www.carddata.com]).
InsLogic, a leading provider of online insurance infrastructure services, announced the appointment of former Bank One Chairman and CEO John McCoy to the InsLogic Board of Directors.
“Over the last 30 years John McCoy has earned a reputation as a financial services visionary. His experience in guiding strategic growth, developing new markets and delivering customer satisfaction is going to be of tremendous value to the company,” said InsLogic CEO Peter Berczi.
“The insight that John will bring to InsLogic will be a crucial element in the continued expansion of our operations in the U.S.,” Berczi said. InsLogic has been operating in the Canadian market for more than five years prior to its expansion into the U.S. in Q2 2000. The company provides a series of multi-channel, insurance infrastructure and agency services linking insurance companies to consumers through established brands. Earlier this year InsLogic received a $30 million in investment from Warburg Pincus, Marsh & McLennan Capital and majority shareholder Onex Corporation.
“After I reviewed InsLogic’s capabilities I knew I wanted to be involved with the company,” McCoy said. “The insurance business is rife with inefficiencies that prevent customers from getting what they want, when they need it, and how they want it. InsLogic’s multi-channel approach to selling and servicing insurance through established, brand-name institutions is a natural solution for addressing these inefficiencies,” McCoy said: “InsLogic is creating the ability to sell insurance at a consumer’s point of need — for example, at the time of a major purchase such as a home or a car. That’s an exciting place to be.”
McCoy, who also sits on the boards of Federal Home Loan Mortgage Corporation (Freddie Mac), SBC Corporation and Corillian Corporation, retired as Chairman and CEO of Bank One Corporation in December 1999. He served in that capacity since the completion of the merger of Bank One and First Chicago NBD. Mr. McCoy was elected President and CEO of Bank One in 1984 and became Chairman and CEO in 1987. McCoy joined Bank One (then City National Bank & Trust Company) in 1970 and was the third generation of McCoys to be associated with the Bank One organization.
Building on more than five years insurance industry experience and IT development, InsLogic provides private label infrastructure, technical and operational resources to enable established brand owners — such as banks, web portals, broker-dealers, and traditional insurance brokers — to directly sell insurance services online from a range of leading insurance companies. In doing so, InsLogic operates as an online business enabler, serving as the licensed broker to brand owners and transparently linking their customers with desired insurance solutions. A key differentiator of the InsLogic business- to-business approach is its proprietary systems solution TIGRES(TM) (Totally Integrated Graphical Real-time E-Commerce Solution). TIGRES(TM) interfaces with multiple carriers’ databases to retrieve real time competitive quotes and to complete policy transactions. TIGRES(TM) enables multi-channel operations and is installed at InsLogic’s two call centers in Toronto, Ontario and Knoxville, Tennessee. For more, see [http://www.inslogic.com]
Nearly nine out of ten Americans are aware of the new dollar coin and more than three-quarters of Americans say they like the dollar coin featuring Sacagawea. According to the third annual ‘Coinstar National Currency Poll’, 47% of Americans are in possession of at least one Sacagawea dollar coin, while another 32% say they have seen one. Forty-seven percent of respondents to the poll said using the dollar coin will be a convenient way to pay for purchases. Those who expect the new coin to be most convenient are men (52%, vs. women 43%) and younger Americans (59% of 18-34-year-olds, vs. 32% of those 65 and over). Once the Sacagawea dollar coin is in wider circulation, one in four (25%) Americans say they will use it as much or more than the dollar bill, while 69% said they will likely use the dollar bill more often than the new dollar coin. Last month Arkansas Federal Credit Union wanted to raise its maximum ATM transaction amount from $300 to $500 but was concerned about the increased frequency of reloading its machine. The solution was found in dispensing the new Sacagawea golden one dollar coin which freed up a note dispenser for $50 bills.The credit union was the first financial institution in the country to dispense the newly minted, golden one dollar coin at an ATM. (CF Library 6-30-00)Details
Comerica announced yesterday it will award double miles on its suite of commercial cards between now and the end of this year. The banks says its partnership with MasterCard and Carlson Wagonlit Travel will enable the upgraded program. Comerica ‘Corporate Card’ clients earn free tickets on any airlines with 20,000 miles of air travel, instead of the industry standard 25,000 to 40,000 miles. Under the program, blackout dates or similar restrictions, do not apply. The Comerica ‘Corporate Card’ suite includes a ‘MasterCard Purchasing Card’ and a ‘MasterCard Fleet Card’.Details
Houston, TX-based Tidel Technologies reported 2Q/00 net income of $2,796,000, a 192% increase over 2Q/99. The company set a record with 3,419 new ATMs shipped during the three-month period ended June 30, a 77% increase from the 1,937 units shipped in the same quarter of 1999. At June 30, 2000, the company’s trailing twelve-month ATM shipments stood at 11,429 units. Tidel says its net income margin improved to 13.8% of 2Q/00 sales compared to 7.8% in the comparable quarter of 1999. For complete details on Tidel’s second quarter results and prior quarters, visit CardData ([www.carddata.com]).
Diebold yesterday reported 2Q/00 net income of $35.8 million on revenue of $442 million. Total worldwide orders for product and service increased in the mid single-digit range for the quarter. Product orders in North America increased in the low single-digit range. Internationally, total product orders in the Asia-Pacific region were up substantially in the double-digit range, excluding the acquisitions. Product orders in Europe, the Middle East and Africa increased by double digits, as well. Latin America orders were down. Diebold noted that during 2Q/00 it received a large order for multiple Merchant Banking Centers for more than $9 million; upgrades for enabling ATM Internet connectivity for another large U.S.-based financial institution valued at approximately $2.5 million; a large ATM order for two prominent Canadian financial institutions, valued at more than $10 million; and a major electronic security order from a large U.S.-based financial institution valued at more than $2 million. For complete details on Diebold’s second quarter results and prior quarters, visit CardData ([www.carddata.com]).
NextCard and Capital One continue to dominate online credit card marketing. NextCard ranked #10 among top advertisers during the week of July 10-16. NextCard delivered 63.5 million banner ad impressions during the period, reaching 17.7% of the total Internet audience. NextCard was the only card issuer to make the cut for the top ten according to Nielsen/NetRatings. Meanwhile Capital One scored the #1 ranking as the most viewed banner ad among at-home web surfers. Cap One’s “How FAST do you want a credit decision?” banner ad reached 7.3% of the at-home audience. A banner ad for Providian’s ‘Aria’ card products placed #7 on the at-home list. Among at-work surfers, Cap One’s “FAST” banner ad ranked #3, reaching 10.9% of the at-work audience. Citibank, for the first time, made the cut for most viewed banners. Citi’s “Get out of debt” credit card ad ranked #9 among at-work viewers and Citi’s “Transfer high interest credit cards” banner ad ranked #10 among the same audience. Nielsen/NetRatings says the average click rate for top banner ads is 0.32% for at-home users and 0.16% for at-work users.
Ericsson and SCM Microsystems announced a memorandum of understanding under which they will jointly develop and market wireless mobile smart card reader solutions using Bluetooth and wireless application protocol technology. The devices will enable secure mobile e-commerce over the Internet based on Ericsson’s Wireless Wallet and SCM’s leading smart card reader technology. Under the memorandum of understanding, SCM will also manufacture and supply Ericsson with the Wireless Wallets, which look like a standard wallet and contain a smart card reader usable for every smart credit or identification card the owner possesses.
The memorandum of understanding defines the terms under which Ericsson and SCM will cooperate to develop the Wireless Wallet and explore possibilities for developing a range of additional products. If successful, the companies intend to enter into development and manufacturing agreements for the Wireless Wallet by the end of the year. Initially, the two companies will define a set of specifications including the appropriate interfaces for wireless operated smart card readers with embedded security features meeting the requirements for conducting secure E- and M-Commerce transactions.
The capability to communicate via Bluetooth wireless technology will render the Wireless Wallets highly interoperable with a variety of current and new WAP enabled devices, from cellular phones to PDAs to cash registers. Cellular phones supporting communication standards such as WAP will be the first widely deployed devices supporting the Wireless Wallet.
“We are excited to team up with Ericsson,” said Robert Schneider, Chief Executive Officer of SCM Microsystems. “This agreement will expand SCM’s secure connectivity expertise into wireless solutions. Both Ericsson and SCM bring unique strengths to the relationship. Ericsson brings its expertise in mobile communications technologies, including Bluetooth wireless technology and WAP, as well as its Wireless Wallet architecture. SCM brings its extensive technology base in secure connectivity, including PCMCIA and smart card interface, digital video broadcast (DVB) and U.S. Point of Deployment (POD) Conditional Access. We look forward to a long-term partnership with Ericsson.”
Ericsson is the leading communications supplier, combining innovation in mobility and Internet in creating the new era of Mobile Internet. Ericsson provides total solutions covering everything from systems and applications to mobile phones and other communications tools. With more than 100,000 employees in 140 countries, Ericsson simplifies communications for customers all over the world. Read more at .
About SCM Microsystems
SCM Microsystems is a leading supplier of solutions that open the Digital World by enabling people to conveniently access secure digital content and services. The company operates in four primary markets — Digital TV, Broadband Access, PC Security and Digital Media Transfer. SCM’s advanced silicon solutions, hardware and software enable secure exchange of electronic information for applications such as e-commerce and broadband content delivery by providing controlled access points to platforms such as PCs, digital cameras, and digital television set-top boxes. Global headquarters are in Los Gatos, Calif., with European headquarters in Pfaffenhofen, Germany. For additional information, visit the SCM Microsystems Web site at .Details