New SCA Portfolio

Allied Lumber has placed its private label credit card program under the direction of Shoppers Charge Accounts Co.. Under the terms of the agreement, the Mahwah, N.J.-headquartered SCA acquired the receivables in Allied’s portfolio and will administer all facets of the private label card program on an ongoing basis. Allied Lumber operates a single location in Ripley, Tenn., selling lumber, garden supplies, appliances and hardware.

SCA, which services independent, regional and national retailers throughout the U.S., acquires retailers’ receivables or will develop private label credit programs for merchants who currently don’t offer a house charge. In both situations, SCA assumes responsibility for generating customer billing statements; managing credit, collection and lockbox functions; and creating customized marketing programs. Ranked among the nation’s largest private label credit card companies, SCA is a division of Hudson United Bank, a subsidiary of Hudson United Bancorp (NYSE: HU).


SunTrust Card Head

SunTrust Banks announced a series of senior management appointments designed to facilitate implementation of SunTrust’s business strategies and achievement of the Company’s financial goals.

“When viewed in context of our existing organizational structure, the changes we are announcing today reflect SunTrust’s ongoing commitment to balance local market focus and decision-making with our corporate priorities of improved operating efficiency and increased standardization,” CEO Humann noted.

The changes, which are effective immediately, are:

* Carl Mentzer, 54, has been promoted to head of SunTrust’s Commercial Banking line of business, a new position at SunTrust. Previously, Mr. Mentzer was CEO of SunTrust Bank, Tampa. In his new capacity, Mr. Mentzer’s responsibilities include strategic oversight for SunTrust’s business with smaller and “middle market,” commercial firms. He is also responsible for Commercial Loan Operations, Merchant Services, Business Card and support activities related to business with smaller and middle market companies.

* Dennis Patterson, 50, has been promoted to head of SunTrust’s Retail Banking line of business, also a new position at SunTrust. Previously, Mr. Patterson was SunTrust’s Marketing Director. In his new capacity, Mr. Patterson has broad responsibilities related to SunTrust’s business with individuals including Private Banking, Consumer Lending, branches and non- branch distribution channels, Insurance and Credit Cards, as well as Business Banking.

* Messrs. Mentzer and Patterson both report directly to Mr. Humann. SunTrust’s other line of business heads are John Clay, Corporate and Investment Banking; Jenner Wood, Wealth Management (formerly trust and investment services); and Donald Downing, Mortgage Banking.

* James M. Wells III, 53, President of Crestar Bank, SunTrust’s banking unit serving Virginia, Maryland and Washington, D.C., has been named to the additional post of Crestar Chief Executive Officer. As CEO, he succeeds Richard G. Tilghman, 58, who remains Crestar Chairman and Vice Chairman of SunTrust. Mr. Tilghman has previously announced his plans to retire on Dec. 31, 2000.

* George Koehn, 56, has been named President, SunTrust Bank, Florida. In his new capacity, Mr. Koehn assumes senior executive responsibility for three SunTrust Florida banking units, as well as statewide retail and commercial business lines, in addition to his current role as Chairman and CEO of SunTrust’s Central Florida banking unit. Mr. Koehn reports to Theodore Hoepner, CEO of SunTrust Bank, Florida.

* Mr. Hoepner, 58, as previously announced, has assumed corporate-wide responsibilities at SunTrust for Technology, Operations and Efficiency in addition to his Florida role. He has also now assumed senior executive responsibility for the Corporation’s Human Resources function.

* Joy Wilder Morgan, 37, has been named Director of Corporate Strategic Planning and Line of Business Strategies, another new position at SunTrust. In her new role Ms. Wilder Morgan, previously head of Market and Product Management for SunTrust, will report to Mr. Humann. She will be responsible for SunTrust’s long range strategic planning, expansion strategy and line of business-related strategy development and implementation support.

* Craig Kelly, 54, has been named SunTrust Marketing Director, also reporting to Mr. Humann. Previously head of Strategic Marketing at Crestar, Mr. Kelly succeeds Dennis Patterson in his new position. Mr. Kelly will be responsible for marketing activities throughout SunTrust including advertising, direct marketing, product management and development, marketing research, customer information and database marketing, sales support and SunTrust Online, Inc. a subsidiary which provides electronic delivery alternatives on behalf of SunTrust’s banking units.

* John Frank, 55, has been named SunTrust’s Director of Branch Administration and Sales, a new corporate position. Mr. Frank will have broad responsibilities related to SunTrust’s network of almost 1,100 branches. Included is responsibility for SunTrust’s Private Banking and Personal Account Executive programs, branch sales production campaigns, incentive plans and administration, plus customer cross-sell and retention programs. Mr. Frank was previously CEO of SunTrust Bank of Middle Georgia.

SunTrust Banks, Inc., the nation’s 9th largest commercial banking organization, provides a wide range of financial services to meet the needs of its growing customer base in Alabama, Florida, Georgia, Maryland, Tennessee, Virginia, and the District of Columbia. Its primary businesses include traditional deposit and credit services as well as trust, brokerage and investment services. Through various subsidiaries, the company provides mortgage banking, insurance, data processing and information services.


Racal EMV Smart Cards

Racal Security and Payments is offering VISA and MasterCard member banks a low-price package to personalize smart cards for the increasing number of pilot schemes now being undertaken. Costing approximately a third of the price of a full system, Racal has a number of packages to enable members to issue cards in-house, allowing them to retain total management and not have to rely on expensive third party providers.

The Racal initiative recognizes the difficulties faced by banks in performing the personalization preparation and the physical personalization of smart cards. The development of smart card applications and the learning curve for the new technology is exceptionally time consuming and expensive. Significantly reducing this time and cost, Racal’s off-the-shelf packages allow participating organizations to market their payment and non-financial products without delay.

Complementing Racal’s standard range of P3 products, the P3 software suite will support all the EMV (Europay MasterCard Visa) debit/credit, EMV parameters and Visa cash applications. The package allows for easy movement to a full roll-out program after the pilot scheme is completed.

Racal’s solution provides a secure integral key management environment which allows the card issuer to control the whole key management architecture. The products will also enable issuers to understand all of the areas surrounding the management of card stock, key management, issuance processes and the ‘virtual real estate’ management for the new technology. In this way, the pilot scheme will provide issuers with vital “personalization” experience prior to the full roll-out of the scheme.

Pre-eminent in secure payment, electronic commerce, card payment, secure remote access and enterprise network security, Racal Security and Payments manufactures a comprehensive range of world-leading point of sale terminals and management systems, as well as secure payment systems and network encryption solutions. For almost two decades, Racal has been at the forefront of security and payment technology, co-operating and contributing to set the industry standards used for financial transactions and electronic commerce globally. Racal’s Security and Payments business is part of the Racal Electronics Group that has operating companies world-wide.

Visit the Racal Security and Payments web site at [][1].



Payflow Link

Signio released ‘Payflow Link’ this week. This is the newest addition to Signio’s ‘Payflow’ payment service platform aimed at resellers. The ‘Payflow Link’ platform enables small and medium sized businesses to authorize, process, and manage unlimited credit card, debit card and Internet check transactions for a flat monthly fee of $19.95. For resellers, ‘Payflow Link’ is an easy to use Web hosted payment solution for their small and medium-sized customers.


Air Miles Drive Sales

More than 85 percent of consumers who collect airline miles would switch from their regular stores to a competing merchant offering airline miles, according to a recent survey commissioned by Fort Lauderdale-based Momentum. Momentum is a full-service rewards marketing firm.

The survey of 400 Momentum Mileage Program members found the likelihood of shoppers switching to stores offering air miles for purchases was 85 percent for department stores, 93 percent for office supply stores, 94 percent for drug stores, 92 percent for sporting goods shops and 90 percent for grocery chain stores.

There was additional good news for merchants currently participating in airline miles reward programs, with half the shoppers who already earned miles from merchants saying they would increase the amount they spend in transactions at a specific store in order to earn more miles.

“These findings confirm what the airlines have long known – that miles are a strong motivator with the power to build business and change consumer behavior,” said Ron Kieves, Momentum senior vice president, marketing. “With approximately 57 million frequent flier members nationwide, mileage programs open the door for merchants to attract millions of loyal consumers. Merchants are just now beginning to tap this extraordinary resource.”

Momentum, a leader in the creation and management of mileage loyalty programs for the retail, e-commerce and catalog industries, counts Service Merchandise, The Sharper Image, Eddie Bauer and Spiegel among its network of participating merchants.

Momentum’s proprietary technology makes it easy, convenient and cost-effective for retailers to join the ranks of markets as broad and diverse as dining, travel and stock trading in offering mileage rewards to build business. Enrollment is free to consumers, who may register up to three credit cards and earn up to five miles per dollar each time a registered card is used to purchase goods or services from participating merchants.


Westpac Fraud Intercept

Westpac Banking Corporation, a leading Australia bank, has installed fraud risk management solutions from Fair, Isaac and Company, Inc.,. Fraud Intercept is used to detect and prevent fraud in Westpac’s credit card portfolio. The system combines predictive models, software and strategies, allowing card issuers to identify fraudulent actions and take appropriate action quickly.

“Fraud Intercept brings needed rigors to our operations,” said Peter Clarke, senior manager of Scoring and Automation for Westpac Cards. “By being one of the first banks in Australia to use this kind of advanced automation, we will encourage the fraudsters to stay away from Westpac.”

“Transaction fraud is more and more prevalent, and traditional methods of combating it are no longer suitable,” added Stephen Stanford, senior manager of Credit for Westpac’s Card Products Group. “The level of fraud has risen to such a great degree that you need proactive tools to try to prevent it.”

Westpac uses Fair, Isaac’s fraud risk management as an integral part of its customer-focused organization. “Fraud Intercept is an extremely powerful customer service tool,” said Clarke. “We’re talking proactively with customers to identify the fraudulent transactions before they get to the statement. Our staff can talk to customers with confidence. We can tell the customer why we thought a given transaction might be fraudulent.” Westpac also uses several predictive models from Fair, Isaac as well as TRIAD(TM) adaptive control system through First Bankcard System.

Sydney-based Westpac is one of Australia’s leading banks with assets of more than A$118 billion. The bank offers online banking, home loans, mortgages, savings accounts, business finance, investments, superannuation, and insurance, and is both an issuing and acquiring bank for Visa, MasterCard, and Australia’s Bankcard. Westpac is the exclusive banking partner for the 2000 Olympic Games.

Fair, Isaac is a global provider of customer analytics and decisioning technology. Widely recognized for its pioneering work in credit scoring, Fair, Isaac revolutionized the way lending decisions are made. Today the company helps clients in multiple industries increase the value of customer relationships. Fair, Isaac has made the Forbes’ list of top 200 small companies seven times in the last eight years. Headquartered in San Rafael, California, Fair, Isaac has 18 offices worldwide. For the fiscal year ended September 30, 1999, the company reported net income of $30 million on revenues of $277 million. For more information, visit [][1].

NOTE: Fair, Isaac, Fraud Intercept and TRIAD are trademarks or registered trademarks of Fair, Isaac and Company, Inc., in the United States and/or in other countries. Other products and company names herein may be trademarks or registered trademarks of their respective owners.



PULSE Record

The PULSE EFT Association reported yesterday that it processed a record 425 million transactions for approximately 20 million ATM cardholders last year, a 24% increase over 1998 volume. For all of last year the Switch experienced only 36 minutes of unscheduled outages. PULSE noted that more than 50,500 merchants were added during 1999 for a total number of 166,570 merchants participating in the ‘PULSE PAY’ program, which offers fee-free cash back for ATM card users at the point-of-sale.


DebitFone Deal

DebitFone, a wholly owned subsidiary of SATX, Inc. announced Wednesday that they have signed contracts with Thrifty Liquor and Check Cashing in Shreveport, LA. Fifteen DebitFone vending machines have been shipped for placement.

DebitFone is a proprietary prepaid cellular phone using a completely different marketing concept, vending machines. DebitFone’s vending machine dispenses a proprietary prepaid cellular phone; ready for immediate use, with phone number installed, battery charged and 30 minutes of talk time preloaded. Thrifty Liquor cashes in excess of 70,000 payroll checks per month in their 15 mega-stores, which dominate the Shreveport Market. Anton Skell, VP Sales and Marketing for SATX and DebitFone commented, “The high volume of check cashing and traffic in these fifteen stores makes them an excellent location for our DebitFone vending machines.”

DebitFone and SATX continue to pursue contracts and locations well suited for this innovative technology as many months of groundwork and negotiations continue to bear fruit.

SATX Inc. has been recently profiled in TheStockAdvisor Newsletter. For an additional report, send email to


Web Smart Cards is gearing up to provide smart cards and readers to its online members. members will be able to shop, bank and e-mail in the first personalized Internet and e-commerce environment secured by smart cards and public key infrastructure technology. is giving away Microsoft’s ‘Windows Powered Smart Cards’ and Litronic’s smart card reader and PKI security software to every ‘NetCityzen’. Litronic has received an initial order to supply with 100,000 ‘NetSignia 210’ smart card readers and ‘NetSign’, software that smart card-enables leading Web browsers. will also be using ‘ProFile Manager’, Litronic’s premier management tool for deployment of smart card and PKI technology. NetCity says in the future, members will be able to take their smart card and use them offline with ATM terminals, PDAs, and GSM cellular phones.


Tax Terminals

Diebold-DPB has begun delivery of 589 self-service terminals for Argentinean tax payers. Tax payers complete their return on a 3.5″ diskette and then insert the diskette in the self-service terminal. The machine submits the return to the government and uses the terminal’s thermal printer to generate a receipt for the customer’s records. Designed for the Administracion Federal de Ingresos Publicos, the machines will optimize the submission of tax returns at the government agency’s 142 offices nationwide. Diebold-DPB was contracted to install its ‘WS314’ terminals, which will interface with AFIP’s existing Osiris software. Osiris is proprietary software developed to improve the management of federal income tax filings and develop more convenient payment methods for customers. Last April, in a pilot, more than 22,000 returns were processed over a five day period.


4Q/99 Update

Mid-size issuers turned in better-than-average performance during 1999 according to CardWeb’s 4Q/99 survey of more than 350 major bank credit card portfolios.

Issuer 4Q/99 $Recv 4Q/98 $Recv Chg%
BanPonce $532,987,836 $484,556,272 +10.0%
Pentagon FCU $398,041,557 $381,553,382 +4.3%
First Security $238,144,518 $221,374,225 +7.6%
Boeing Emp CU $229,518,426 $207,940,731 +10.4%
Pa St Emp CU $183,750,996 $173,494,178 +5.9%

Source: CardData 4Q/99 Portfolio Survey ( FULL STORY: