CIBC Aerogold Online Incentives

Advantex announced its plans Wednesday to launch the first Internet Shopping Portal linking all CIBC Aerogold VISA cardholders to major e-commerce retailers. CIBC Aerogold cardholders will earn DOUBLE Aeroplan Miles on all purchases when shopping on-line at participating e-commerce retailers, by linking through the CIBC Advantex Shopping Portal. The CIBC Advantex Shopping Portal will be launched prior to the busy Holiday shopping season.

The announcement follows the signing of an agreement with the Canadian Imperial Bank of Commerce and Air Canada. CIBC Aerogold is the number one gold credit card in Canada. Air Canada’s Aeroplan Program is Canada’s most popular frequent flyer program.

“E-commerce retailers face the same challenges of building new and repeat customers as their traditional storefront counterparts. The new CIBC Advantex Shopping Portal will deliver the built-in buying power of several hundred thousand high net worth individuals with high disposable incomes who spend billions of dollars on the credit card each year,” stated G. Randall Munger, Chairman and CEO of Advantex.

CIBC Aerogold cardholders represent a very sophisticated audience who are predisposed to shopping on the Internet, who will now bookmark and pass through the CIBC Advantex Shopping Portal to earn bonus Aeroplan Miles on their purchases. Advantex and CIBC expect high demand from major e-commerce retailers seeking to generate new and repeat customers from the CIBC Aerogold cardholder base. DOUBLE Aeroplan Miles represents a very compelling offer that will drive new business to the participating e-commerce retailers.

“We are very pleased to provide our Aerogold cardholders with an exciting new way to earn incremental Aeroplan Miles,” stated Cheryl Longo, Vice President, Marketing and Business Development, CIBC Card Products Division. “CIBC Aerogold cardholders are early adopters of the Internet, conversant with on-line shopping by virtue of their income and education. We believe the opportunity to earn DOUBLE Aeroplan Miles, on-line, will be a valuable and useful benefit for our cardholders.”

“Expanding into e-commerce is a natural extension of our core business, building on the tremendous success of our CIBC Aerogold Advantex Benefit program with CIBC Aerogold cardholders and merchants alike. There are over 400 participating merchants across Canada, including restaurants, golf courses, country inns and resorts,” stated Munger. “Advantex has a proven track record in creating and managing coalition customer loyalty programs that reach and influence the purchasing behaviour of large consumer groups, in favour of our merchant partners.”

To earn bonus Aeroplan Miles, CIBC Aerogold shoppers will link to leading e-commerce retailers through the CIBC Advantex Shopping Portal, making their purchases directly from the retailers using their CIBC Aerogold card. The bonus Aeroplan Miles will appear automatically on the cardholder’s monthly CIBC Aerogold statement.

Advantex will earn its income from third party referral marketing fees and banner advertising. North American on-line retail revenues are expected to top $36 billion by the end of the year, with a projected growth rate of 145% in 1999, according to a report by The Boston Consulting Group for, a trade association focussing exclusively on Internet retailing.

“On-line shopping is exploding and Advantex is well-positioned with all of the necessary components firmly in place to capitalize on this emerging market,” says Munger, “a large captive user base, a well-established loyalty program and, importantly, an effective low cost means of promoting the Advantex Shopping Portal to cardholders every month through the credit card statements.”

Advantex Marketing International Inc. is a leader in the marketing service field, creating and managing value-added coalition customer loyalty programs for its North American client base for the past 15 years. The company’s customer base is extensive, including large financial institutions, packaged goods manufacturers, daily newspapers, retailers, independent and chain restaurant operators, golf courses, inns and resorts. The Company excels in matching the relative strengths of large and small businesses, creating marketing programs that compound the value for all participating parties. Advantex is a public company, traded on the Toronto Stock Exchange under the symbol “ADX”.


Latin Fleet Card

ESSO Brasil (EXXON) and Hypercom have created the first network to support a multi-national fleet card program with online authorization to transportation businesses throughout Latin America. The new EXXON network and multi-national fleet card program will use Hypercom ‘PINPads’ and ‘Ascendent’ software to allow gas stations to accommodate an array of transactions and payment options. Under the terms of the agreement, more than 1,000 Hypercom ‘S7C PINPads’ will be deployed at petrol stations in Chile, Brazil and Argentina. Following the initial deployment, the enhanced EXXON network will be rolled out to other countries in Latin America, and ultimately is expected to handle more than 250,000 transactions per month for over 500 gasoline stations.


Jensen & Yesil Advises Trintech

Trintech yesterday announced the addition of industry leaders Edmund P. Jensen, former president and CEO at Visa International, Magdalena Yesil, a high-tech venture capitalist in Silicon Valley and a founder of CyberCash, and Robert Schneider, CEO of SCM Microsystems, to its Advisory Board.

Trintech created the Advisory Board earlier this year to assess market changes and add payment industry heavyweights to help define the company’s future.

“We are fortunate to have the knowledge and experience of our three new Advisory Board members in helping shape the vision of Trintech,” said John McGuire, co-founder and CEO of Trintech.

“It is crucial for Trintech to leverage their invaluable market insight and know-how to compete in today’s market. Ed, Magdalena and Robert also bring with them a wealth of management experience and proven track records.”

Edmund P. Jensen has more than 25 years of experience in the financial and payment card sector. He served as president and CEO of Visa International from 1994 to 1999 and now works with several venture capital firms and as an advisor for several high-tech companies in Silicon Valley.

Prior to his tenure at Visa International, Jensen held the posts of vice chairman and chief operating officer at US Bancorp, where he worked for two decades. Jensen graduated with a Bachelor’s degree in finance from the University of Washington.

“There is great synergy with Trintech’s Internet payment strategy and my experience at Visa International and US Bancorp,” said Jensen. “I’m excited about being a part of Trintech’s future.”

Magdalena Yesil, a high-tech venture capitalist in Silicon Valley, is a world recognized expert in e-commerce and Internet security. She has been instrumental in developing the current Internet payment transaction paradigm as a founder of CyberCash and, later, MarketPay, a transaction aggregation engine that separated the financial transaction from the payment.

For her work in the payment space, she was named Entrepreneur of the Year by Red Herring Magazine in 1997. In the early 1990s, Yesil played a significant role in developing and evangelizing UUnet. Yesil holds a Master’s degree in electrical engineering and a Bachelor’s degree in industrial engineering, both from Stanford University.

“The stakes are high in the Internet payment processing market,” said Yesil. “My experience in the electronic payments industry and Trintech’s Internet vision makes a great fit for embracing e-commerce transaction processing.”

Robert Schneider founded SCM Microsystems, Inc. (Nasdaq:SCMM), a provider of smart-card reader and digital TV security products and technologies, in 1990 and is a world expert on smart-card systems.

Schneider today serves as CEO of SCM Microsystems. Schneider also serves as chairman of the board and managing director of SCM Microsystems GmbH, a German subsidiary of SCM Microsystems, Inc. Schneider earned a degree in Engineering from HTBL. SCM Microsystems is dual listed on the Nasdaq and the German Neuer Markt.

“I am very much looking forward to actively participating as an Advisory Board member at Trintech,” said Schneider. “As card payments move from magnetic stripe to chip and remote devices like set-top boxes proliferate, companies like Trintech and SCM can benefit from our mutual expertise.”

About Trintech

Founded in 1987, Trintech is a leading provider of secure electronic payment solutions for card-based transactions in the physical world and over the Internet. The company offers a complete range of payment software products for credit, debit, commercial and procurement card applications, as well as being a world leader in the deployment of payment solutions for Internet commerce that are fully SSL- and SET-compliant. Trintech’s range of scalable open systems architecture solutions for UNIX(R) and Windows NT(TM) platforms covers consumer, merchant and financial institution requirements for physical payments and the burgeoning world of electronic commerce. Trintech can be contacted at 2105 South Bascom Avenue, Campbell, CA 95008, USA (Tel: 408/879-1884). Trintech can be reached on the Web at [][1].



CompuCredit Surges

Atlanta-based sub-prime specialist CompuCredit Corp. reported Wednesday it signed up 277,000 new cardholders for the second quarter. CompuCredit’s increased marketing efforts during the second quarter resulted in 59% growth in the number of cardholders since the end of the first quarter. The managed net interest margin increased to 21.0% for the second quarter of 1999 versus 19.8% for the first quarter of 1999. The managed net charge-off rate increased to 4.1% for the second quarter of 1999 versus 3.3% for the first quarter of 1999. At June 30, the 60+ day managed delinquency rate fell to 6.4% from 8.2% as of March 31. The decrease in delinquency is attributable to better than expected collections and the increase in new receivables growth. For complete details on CompuCredit’s 2Q/99 visit CardData ([][1]).



Y2K Card Scam

The FTC reached a $100,000 settlement yesterday with a Canadian based company that offered a credit card protection program against potential Y2K-related problems. The FTC filed its complaint against NCCP Ltd., doing business as National Credit Card Protection Ltd., and Cary Title in federal district court. The FTC alleged that the defendants, in an effort to induce consumers to buy their credit card protection program, offered consumers a Y2K protection package that they said would obviate Y2K-related problems. The package consisted of nothing more than adhesive stickers. According to the FTC, the defendants told consumers that the adhesive stickers would safeguard against potential Y2K problems once they were applied to the consumers’ credit cards. The FTC further alleged that the defendants falsely stated that they represent the consumers’ card issuer. NCCP and Title have been permanently barred from engaging in the credit card protection business.


Hotel Business VISA

The first business credit card offered by a hotel rewards program was released yesterday. The ‘Priority Club Worldwide Business VISA’, offered by Bass Hotels & Resorts and First USA, allows each company employee cardholder to earn points for free hotel nights, frequent flyer miles, merchandise and shopping rewards. The new card program also offers small business owners the opportunity to harness the financial leverage of quarterly management reports, consolidated billing statements to track company cardholders’ spending, and discounts on business products and services. Bass owns Inter-Continental, Crowne Plaza, Holiday Inn, Holiday Inn Express and Staybridge Suites by Holiday Inn. Cardholders receive one ‘Priority Club’ point for every U.S. dollar spent on purchases and an additional 5,000 bonus points with their first purchase or balance transfer. The no-annual-fee card carries a 3.9% fixed APR on purchases and balance transfers for the first five months, followed by a fixed 9.99% annual percentage rate. The card also features a credit line up to $35,000.



GlobeID, the Paris based e-commerce transactions solutions provider, has appointed Daniel Veuve Chief Financial Officer.

Reporting directly to the Chairman and Chief Executive Officer, Daniel Veuve will lead the deployment, development and management of all resources within the Finance department as the company expands not only in Europe but in the United States and Asia.

Francois J. Chaillou, CEO, GlobeID said, “Daniel has strong international experience and a solid background in finance, control and administration. He has a highly successful track record in managing subsidiary companies, business units and international projects – an aspect that is attractive to us as an organization as we grow outside our traditional markets.”

“He has also demonstrated a clear understanding and knowledge of IT applications something that is a bonus for a company such as GlobeID which operates in the fast moving online transaction processing sector,” he concluded.

Daniel Veuve comes to GlobeID with over 20 years experience in both IT and finance having worked with organizations such as SGS (Societe Generale de Surveillance) and Digital Equipment Corporation.

About GlobeID Software

GlobeID Software ([][1]) develops and arkets world class electronic commerce transaction solutions. The company’s products enable high volume operators to provide advanced, cost efficient transaction services to online communities around the world.



skymall and FUSA Sign, the e-commerce subsidiary of SkyMall Inc. , Tuesday announced a national joint marketing agreement with First USA, the world’s largest issuer of Visa credit cards, that will extend each other’s cross-promotional marketing efforts.

According to the terms of the agreement, both companies will collaborate on promotional activities that will extend the marketing reach for both companies. Through this agreement, the brand will be included in multiple First USA marketing initiatives that will reach millions of its cardmembers. In addition, will develop value added offers and programs for First USA that will help attract new cardmembers as well as increase usage with current cardmembers.

The agreement includes multiple marketing initiatives — the development of a co-branded Web site with First USA Worksite Marketing and promotions for the bank’s portfolio marketing group, including First USA Connections direct mail and statement insert programs. will be a featured partner in First USA’s worksite marketing initiatives, which include Web sites designed for participating companies to offer employees a more comprehensive benefits package, including a suite of services and rewards that will include special credit card offers, the Web site, along with discounts, and services for flowers, travel and tickets.

“We are excited about the opportunities of having join us as a premier partner,” said Jim Grant, senior vice president, worksite marketing, First USA. “’s wide range of products and services is a natural fit for our customer base and our regular promotional programs. Likewise, we offer a new base of shoppers it can reach on a monthly basis.”

The marketing partnership also calls for to be a merchant in several First USA Connections marketing campaigns. As part of these marketing efforts, is currently offering 15 percent off any purchase of $100 or more made at the [][1] site now through Sept. 30, 1999. Visitors can now link directly to [][2] from this site.

“Our strategic partnership with First USA enables to reach consumers at work or at home with valuable offers and benefits,” said Thomas C. Edwards, chief marketing officer for “We feel that First USA’s reach as the leading credit card marketer on the Internet combined with its innovative worksite marketing initiatives is ideal for our customers.”

About, the e-commerce company of SkyMall, Phoenix, is committed to fostering a high-quality one-to-one customer experience that exceeds expectations and engages customers in long-term relationships. offers high quality products and services in a one stop shopping e-commerce Web site to millions of consumers using the Internet 24-hours-a-day, seven-days-a-week. Through distribution channels in airlines, hotels, at worksites and in the future over broadband technologies, SkyMall and plan to capitalize on agreements with more than 100 retailers, catalogs and information service partners to create e-commerce solutions for consumers and merchants.

The SkyMall(R) print catalog is a unique advertising vehicle that extends the company’s reach to 70 percent of all domestic airline seat pockets and reaches more than 420 million people each year. For additional information, visit the company at [][3].

About First USA

First USA (), a subsidiary of BANK ONE CORP. (NYSE:ONE), is the world’s largest Visa credit card issuer. First USA offers credit cards for consumers and businesses under the First USA, First Card and Bank One names and on behalf of more than 2,000 marketing partners. BANK ONE, with assets of more than $256 billion, is the nation’s fifth-largest bank holding company.



CashRegister On Track

CyberCash reported yesterday that it increased the number of merchants using the ‘CashRegister’ service to approximately 13,000 for the second quarter, adding over 1,100 per month, both the highest in the company’s history. CyberCash credits strategic distribution partnerships, like those with INTERSHOP, Concentric and Compaq to provide integrated e-commerce solutions, for much of this growth. During the second quarter and through the remainder of the year, CyberCash is placing significant emphasis on the distribution of its electronic wallets and the ‘InstaBuy’ service to consumers through key channel partners. Earlier this month, MBNA announced plans to offer the ‘InstaBuy’ service on the ‘Agile Wallet’ platform to merchants under its own brand, ‘MBNAbuy’, as part of a pilot project. In addition, First USA, CyberCash’s first financial institutional partner, will be offering an electronic wallet based on the ‘InstaBuy Agile Wallet’ platform under a bank-branded name. CyberCash also is offering all its existing and future ‘CashRegister’ service merchants the opportunity to sign up for the ‘InstaBuy’ service capability free of charge through October 1, 1999.


Ideal Cardholders – Not

A forthcoming study by J.D. Power and Associates concludes that consumers who apply for a credit card through the Internet carry higher balances but are more likely to miss payments. The ‘1999 Comprehensive Credit Cardholder Market Study’, to be released Aug. 3, says Internet-generated accounts carry balances that are 77% higher than the average. The market study also reveals that Internet cardholders are twice as likely to miss scheduled payments three or more times a year than other cardholders. Power also found that 33% of Internet card applicants are in search of low intro interest rates or because the want or need another card. The study of 10,400 credit cardholders recommends that Internet-generated accounts be managed closely even though acquisition costs are much lower than direct mail-generated accounts.


Advanta 2Q/99

Advanta reported yesterday that its business card division produced net income of $5.6 million for the second quarter compared to $4.0 million last quarter. The increase resulted from significant improvements in portfolio yields. The average yield on the company’s business credit card portfolio, including fee income, increased this quarter to 21.72% from 20.36% last quarter due to increases in rates and higher fee income. A decrease in the net managed charge-off rate on business credit card loans from 5.61% last quarter to 5.22% this quarter also contributed to the increase in net income. Managed receivables for Advanta business cards at the end of the quarter were $886 million, up 6.5% from last quarter and 16.4% from the same quarter last year. For complete 2Q/99 details on Advanta visit CardData ([][1]).



Charge-Offs Dropping

Confirming a trend established by Fitch IBCA and CardData, Standard & Poor’s released data Tuesday afternoon that shows charge-offs are sinking, albeit slowly. According to S&P’s’s ‘Credit Card Quality Index’, the monthly charge-off rate dropped 30 bps to 5.8% from last month’s 6.1% level. The firm says charge-off levels have remained in the 5.8%-6.2% range for the past 12 months, indicating that consumer confidence remains high and a healthy economy has helped mitigate the occurrence of obligor defaults on credit card accounts. Compared with last year’s charge-off numbers, 1999’s level marks a 100 bp improvement. Furthermore, S&P says there are leading indications that charge-offs are likely to remain at these levels, if not move to a somewhat lower level given the positive delinquency trends. June delinquency rates increased slightly, however, the 30-days plus delinquency numbers have stayed under 5.3% since May 1998. The other performance variables tracked by the indexes did show some effects from market conditions. Average yield dropped by 100 bps to 18.9%, and the weighted average base rate increased by 15 bps to 7.2%. Some of these changes may be related to the interest rate uncertainty in the market. In mid-July, the treasury long bonds jumped more than one point. However, despite the increase in the base rate and the lower average yield, excess spread still remains healthy at 5.9%. In comparison, last year’s excess spread numbers were 100 bps less. One variable that has seen little change since July 1998 when it topped 16% has been payment rate, which continues to remain healthy. S&P tracks $276 billion in card backed bonds.


Distribution Date 7/15/97 7/15/98 5/17/99 6/15/99 7/15/99
Performance Month June 97 June 98 Apr 99 May 99 June 99
Outstandings(Bil.$) 225.5 256.7 280.2 278.9 276.3
Yield (%) 19.1 19.3 18.8 19.9 18.9
Chargeoffs (%) 7.0 6.7 5.9 6.1 5.8
Weighted base rate(%) 8.2 7.6 7.2 7.0 7.2
Excess spread (%) 3.9 4.9 5.7 6.7 5.9
Delinquencies (%) 5.2 5.0 4.5 4.5 5.1
Payment rate(%) 14.8 15.6 16.2 16.5 16.6

Source: Standard & Poor’s