Top Ten Scoreboard

As expected Citibank regained its #1 ranking in the U.S. market during the first quarter. Bank One/First USA’s first quarter receivables dipped by $1.7 billion, due to a seasonal contraction. According to CardData (, seven of the top ten U.S. issuers experienced a decline in outstandings during the first quarter except MBNA, Capital One and Providian. As a group, the percentage of active accounts versus gross accounts declined from 63% at year-end 1998 to 60% at Mar. 31. The average daily balance per active account stood at $2,113 for the first quarter. The average first quarter volume per active account ranged from $484 to $1443 according to the April issue of Bankcard Update.

(First Quarter 1999)

1. Citibank $69.4b 41.4m $36.8b
2. Bank One /FUSA $68.2b 45.3m $26.8b
3. MBNA $56.2b* 26.9m $20.9b
4. Discover $32.1b* 37.4m $13.8b
5. Chase $31.4b 20.6m $11.9b
6. Bank of America $20.7b* 17.2m $11.9b
7. Fleet $14.1b* 10.9m $ 4.3b
8. Cap One $13.9b 18.0m $ 7.4b
9. Household $13.0b 14.3m $ 8.7b
10. Providian $11.8b* 11.0m $3.0b

* MBNA includes international outstandings; Discover’s fiscal quarter
ending Feb.28; Bank of America, Fleet and Providian are preliminary figures;

SOURCE: CardData ( and BankCard Update


Euronet CFO

Euronet Services Inc. has named Daniel C. Stevens, a senior financial services executive with strong international experience, as the Company’s new Chief Financial Officer. Mr. Stevens assumed his post with Euronet on April 20, 1999.

As Chief Financial Officer, Mr. Stevens is responsible for the finance-related areas of Euronet’s entire operations, which comprise a European ATM network and a US-based software company. He is based in Overland Park, Kansas, together with Chairman and CEO Michael J. Brown.

“Dan Stevens brings an excellent mix of in-depth financial expertise and international experience to Euronet,” said Michael Brown. “His proven ability to manage growth will be a valuable asset to us as the Company continues to mature.”

Mr. Stevens was most recently a partner in Rochdale Principals, a new agricultural finance venture organized with other senior executives in the Kansas City area. Prior to that, he was Senior Vice President, Chief Financial and Risk Officer for U.S. Central, a $25-billion AAA-rated financial intermediary and technology, operational and payment provider for the $350- billion U.S. credit union industry. He has also served as Senior Vice President and Chief Financial Officer-USA for the trading, corporate finance and branch operations of the Dutch bank ABN AMRO, as well as Chief Financial Officer for the US operations of the French bank Credit Agricole. He began his financial career as a Certified Public Accountant in the financial services division of Arthur Andersen & Company in Chicago.

Established in 1994, Euronet is a provider of end-to-end electronic banking solutions and transaction processing for retail banks. The Company operates an independent ATM network in Europe and owns a US-based software subsidiary, ARKSYS, specialized in electronic payment and transaction delivery systems. Together with ARKSYS, Euronet offers ATM network participation, outsourced management solutions, and comprehensive software solutions to retail banks around the world. Euronet ATMs accept transactions for a wide range of bank cards through agreements with Visa and MasterCard/Europay sponsor banks and international card issuers such as American Express and Diners Club International. The ARKSYS subsidiary has over 150 active retail banking clients in 60 countries.



The Independent Community Bankers of America has sent a letter to the Department of Justice requesting an end to the DOJ investigation of anti-trust charges against VISA and MasterCard. The ICBA says the issues are moot given Ctibank’s announcement that it would resign its position on VISA’s board of directors. The group says the Citibank development has proven beyond all doubt that competition clearly exists between the two card associations. The ICBA contends that American Express would benefit from a quasi-government endorsement, should the DOJ prevail, which would eventually harm consumers. The letter concludes saying the only deals American Express will make will be with larger banks, seriously weakening the brands community banks rely on in order to compete. Separately the Independent Community Bankers of America announced this morning it has named Sean Perkins to the position of director of marketing.


Bankruptcy Reform Passes House

The U.S. House of Representatives passed H.R. 833, the ‘Bankruptcy Reform Act of 1999’, by a vote of 313-108 yesterday. The U.S. Senate is expected to vote on its version of the legislation by the end of this month. The White House has indicated it will not automatically veto the House bill, however the administration has objected to the use of a means test to force some debtors into a Chapter 13 repayment plan instead of permitting them to erase their debts entirely through a Chapter 7 filing. The House Judiciary Committee tried to lessen the impact of the means test provision, through an amendment, but the it was turned down by a 184-238 vote. However House lawmakers did adopt an amendment requiring credit card issuers to clearly disclose fees, teaser rate/go-to interest rates and how long it takes cardholders to pay off balances by making minimum monthly payments. The amendment also requires issuers marketing credit cards on the Internet to fully disclose terms and conditions of their offers. Lobbying for bankruptcy reform has been “awesome” according to one House member. Public records indicate VISA and MasterCard jointly spent $5.4 million lobbying for bankruptcy reform last year. Meanwhile the White House issued a laundry list of proposed new consumer protection issues yesterday. The list covered consumer financial privacy, improving financial literacy, and expanding access to financial services.


Online Merger

First Data and Home Account Network Inc. signed an agreement Wednesday to merge the operations of First Data Direct Banking with the Home Account Network. The new entity will operate under the Home Account name and will have more than 80 customers, ranging in size from community banks to some of the largest financial institutions in the country. Home Account Network develops software for Internet banking, bill payment and financial planning applications for banks and other financial institutions. First Data specializes in Internet development and operational capabilities for banks, credit unions, savings and loans, non-bank credit card issuers and brokerage houses. First Data will retain a minority equity ownership in the new firm and will provide ongoing data processing services under a long-term contract. Home Account Network also announced this morning that it has signed a re-seller agreement with CheckFree.


AmEx Dominican Republic

Banco del Progreso and American Express announced Wednesday an Independent Operator agreement in which Banco del Progreso will issue American Express Cards in the Dominican Republic for local use in pesos, the country’s currency. Cardmembers will be able to use the Card at American Express establishments in the Dominican Republic and throughout the world.

“Banco del Progreso is proud to have been selected by American Express to be its partner in issuing the American Express card in the Dominican Republic,” said Pedro Castillo, Chief Executive Officer of Banco del Progreso. “This agreement will allow us to offer our clients an outstanding and wide variety of financial services through one of the most important credit card companies in the world.”

“We are delighted to be able to add Banco del Progreso to our growing family of Latin American and Caribbean partners,” said James Li, president of American Express’ Global Network Services Group. “Through strategic arrangements like this one with Banco del Progreso, we are matching the global strengths of the American Express brand and worldwide service with the marketing and operations experience of strong local partners committed to the same kind of high quality service standards American Express offers its customers around the world. ”

Under the agreement announced today, Banco del Progreso will conduct the American Express card issuing business as well as the merchant acquiring and processing business in the Dominican Republic. Banco del Progreso will be responsible for all operations supporting the American Express Card — including billing and payment systems, accounting, customer servicing, credit and fraud control, and charge authorizations as well as marketing the Card in the Dominican Republic.

Banco del Progreso will also take over responsibility for servicing local merchants accepting the American Express Card in the Dominican Republic. As a result of this agreement, the number of merchants accepting the American Express Card in the Dominican Republic will be expanded, significantly enhancing the relevance and utility of the Card to customers living in or visiting the country.

Dominican customers will have access to the American Express international service network and other travel and financial services. The company’s network has more than 1,700 owned and representative Travel Service Offices worldwide and more than 227,000 ATMs in its ExpressCash network.

American Express currently provides a U.S. dollar-denominated American Express Card to Dominican customers. Current American Express Cardmembers will have the option of converting their Card to the new product, retaining their dollar-denominated Card, or carrying both Cards. American Express Travelers Cheque and travel businesses are unaffected by this agreement.

Banco del Progreso, founded in 1974, is among the largest financial institutions in the Dominican Republic. It has 23 offices in 15 cities in the Dominican Republic, and one of the most extensive ATM networks in the country, all of which provide services to major financial and tourist centers.

American Express Travel Related Services Company, Inc., a wholly-owned subsidiary of the American Express Company (NYSE: AXP) — a diversified worldwide travel and financial services company founded in 1850. It provides card, Travelers Cheque, travel and financial services in over 160 countries.


Dutt Joins Fritz

Fritz Companies announced Wednesday the appointment of Ronald F. Dutt as executive vice president and chief financial officer of the global logistics company headquartered here. He was also named to the company’s governing Executive Committee.

Dutt assumes responsibility for the financial management of the company worldwide, as well as overseeing the administration of the company’s business plan, human resources practices and investor relations.

“Ron brings to Fritz exceptional financial management skills which will be applied immediately to enhance the company’s overall business practices worldwide,” said Lynn C. Fritz, chairman and CEO and Raymond Smith, COO, members of the Office of the Chairman, in announcing the appointment. Dutt succeeds Robert Arovas who is leaving the company to pursue other endeavors.

Prior to joining Fritz, Dutt was senior vice president, Financial Planning and Analysis, for Visa International’s worldwide operations. He provided leadership for Visa International’s worldwide financial processes, statistical reporting and compliance. Under Dutt’s guidance, this global company restructured worldwide management reporting, established accurate forecasting models, and led the financial review and due diligence for acquisitions.

Before joining Visa International, Dutt served for eight years in senior finance positions at USL Capital, a Ford Motor Company financial services subsidiary headquartered in San Francisco. As vice president of Corporate Analysis, vice president of Finance successively for two key business units, and corporate director of Pricing, he played a pivotal role in realigning core businesses to focus on higher returns. He also developed sophisticated pricing models while adopting disciplined financial management tools.

Previously, during his 12 years at Ford Motor Company, he held positions of increasing responsibility, beginning in the controller’s office of Ford Truck Operations and later becoming international finance manager in the corporate treasurer’s office. He received his MBA in Finance from the University of Washington.

Fritz Companies, Inc. is a leader in global integrated logistics, delivering comprehensive supply chain solutions to its clients worldwide. Fritz provides flexible service options, ranging from door-to-door transportation and material management to sophisticated information management — integrated within customized logistics programs. The Fritz network is composed of more than 10,000 employees and more than 480 locations in some 115 countries.

Fritz Companies, Inc. (NASDAQ: FRTZ) global headquarters is at 706 Mission Street, San Francisco, CA 94103 USA, (415) 904-8360. Recent press releases are available via a fax-on-demand service accessed by dialing 888-286-6419. Additional information is available at the Fritz Internet website:


Teleglobe Calling Card

Teleglobe Communications Corporation Wednesday unveiled a new global calling card program that enables carriers and resellers to add postpaid global calling to the products they sell.

Now available, Teleglobe’s turn-key calling solution enables other carriers to deliver a global postpaid calling card service that is branded in their own name.

“By partnering with Teleglobe, carriers and resellers around the world can enter the US$25 billion postpaid calling card market, thereby helping them increase their revenues by expanding their current product portfolio,” said Andrew Burroughs, vice president of global marketing and product development for Teleglobe Communications Corporation. “The postpaid cards not only carry the brand of the reseller, but when callers use the card they hear custom-branded messages identifying the network with the retailer’s name.”

The Teleglobe postpaid calling card also allows resellers to set the retail rates and distribute the cards, while Teleglobe operates and manages the back office functions, including network management, customized routing, fraud control, customer service and call detail record creation. The reseller is responsible for end-user billing, collections, customer service, marketing and distribution.

Other highlights include:

– Multilingual operator service is available for call completion assistance;

– Voice prompts available in more than 26 languages;

– Worldwide calling from virtually any telephone in more than 100 countries.

Resellers are also able to offer their customers selectable/portable card numbers. The reseller’s customers can select their own card number, which will appear on the face of the card. Customers can choose virtually any easy-to-remember number. They can even transfer the current number on their postpaid card to their new card.

Teleglobe’s postpaid calling card service is another example of how Teleglobe helps the world’s carriers broaden their product offering while saving on costs associated with building new facilities or infrastructure.

The new postpaid calling card service rounds out Teleglobe’s already growing line of wholesale carrier services, which include global voice and data transmission services, Internet access, prepaid calling cards, operator services, home country direct, international toll free services and dial-around services.

Teleglobe Inc. (NYSE:TGO)(TSE:TGO)(ME:TGO) is a recognized leader in global telecommunications. Through its subsidiary Teleglobe Communications Corporation, the company develops and supplies global connectivity services to carriers, switchless resellers, Internet service providers, multinational corporations and broadcast customers worldwide.

Through Excel Communication’s proven marketing and distribution channels, Teleglobe also caters to an expanding international retail customer base. The company is the fourth-ranked long distance provider in the United States and, according to a recent KMI Corporation study, the owner and operator of the world’s third most extensive overseas telecommunications network.

Teleglobe has a 50% interest in ORBCOMM, the world’s first commercial low-earth-orbit, satellite-based, data communications system. Additional information is available at [][1].



Transpoint Update

CO-based TransPoint LLC confirmed yesterday that seven new banks have joined its Internet bill delivery and payment pilot program. The new participants include: Compass BancShares, Bank United, First Tennessee, BankcorpSouth, Firstar, AmSouth and Amarillo National Bank. In addition to its pilot program with financial institutions, TransPoint is also working with nearly 50 major billing companies, including Consolidated Edison, GTE, BellSouth, PEPCO, J.C. Penney, Mobil Oil and Xerox. TransPoint is the joint venture of Microsoft and First Data, with Citibank as a minority equity investor.


April Sales Modest

April same-store retail sales rose a modest 1.9 percent over the same period last year, as a calendar shift split Easter spending between two months, according to data compiled by TeleCheck Services, Inc., the world’s leading check acceptance company. The Midwest region led the nation, followed by the Southwest, the Mid-Atlantic, the West, the Southeast and the Northeast. The TeleCheck Retail Index is based on a year- over-year, same-store comparison of the dollar volume of checks written by consumers at more than 27,000 of TeleCheck’s 210,000 subscribing locations. TeleCheck is a subsidiary of First Data Corporation (NYSE: FDC).

“This year’s Easter spending was split between March and April, with only the last three days of pre-Easter spending occurring in April. Continued NATO activities in and around Yugoslavia, and the Columbine High School tragedy, may have had a slight negative affect on retail sales by keeping shoppers at home. Overall, though, consumers continued their moderate pace of retail spending throughout the month,” said Dr. William Ford, TeleCheck’s Senior Economic Advisor.

The Midwest was up 3.6 percent, with sales up 4.5 percent in Wisconsin, 3.9 percent in Michigan, 3.7 percent in Illinois, 3.3 percent in Ohio, and 2.1 percent in Minnesota. Milwaukee’s sales rose 4.0 percent, Detroit’s grew 3.4 percent, Chicago’s gained 3.3 percent, Cleveland’s increased 3.5 percent and Minneapolis/St. Paul’s 2.6 percent.

Sales rose 2.5 percent in the Southwest, with Missouri up 3.2 percent, Texas up 2.5 percent and Oklahoma up 1.3 percent. Sales grew by 3.6 percent in St. Louis, 3.4 percent in Kansas City, 2.8 percent in San Antonio, 2.7 percent in Houston and 2.6 percent in both Austin and Dallas/Fort Worth. Both Oklahoma City and Tulsa were up 1.3 percent

Sales rose 2.3 percent in the Mid-Atlantic. Virginia’s sales were up 3.0 percent, Pennsylvania’s rose 2.7 percent, New Jersey’s grew 1.5 percent and Maryland’s rose 1.2 percent. The District of Columbia’s sales gained 2.7 percent, Philadelphia’s increased 3.0 percent, Pittsburgh’s grew 2.7 percent and Baltimore’s rose 0.8 percent.

The West was up 1.7 percent, with gains of 3.4 percent in Arizona, 3.2 percent in Hawaii and 3.1 percent in Colorado. Oregon’s sales rose 1.2 percent and Washington’s gained 0.4 percent while California’s fell 5.1 percent. Sales were up 3.2 percent in both Phoenix and Denver, 1.1 percent in Portland and 0.8 percent in Seattle. Sales fell 3.1 percent in San Diego, 4.3 percent in Los Angeles and 6.3 percent in the Bay Area.

The Southeast rose 1.4 percent. Tennessee’s sales grew 2.6 percent, The Carolinas’ rose 2.4 percent, Louisiana’s gained 1.7 percent and Georgia’s grew 1.5 percent. Florida’s dropped 2.0 percent. Sales rose 2.4 percent in Nashville, 2.1 percent in Memphis, 1.9 percent in New Orleans and 1.8 percent in Atlanta. Orlando’s sales fell 0.1 percent, Tampa’s dropped 1.4 percent and Miami/Ft. Lauderdale’s fell 3.1 percent.

Sales were down 0.5 percent in the Northeast, with New York up 2.3 percent and Massachusetts down 1.1 percent. New York City’s sales rose 2.0 percent and Boston’s dropped 2.0 percent.

TeleCheck’s index is compiled on a calendar basis and is based on the total sales volume of check-writing consumers at a broad cross-section of retailers. Figures are not adjusted for inflation. Checks account for approximately 37 percent of retail spending. In 1998, TeleCheck authorized over $112 billion in checks and processed more than 2.2 billion check inquiries.

Note: The TeleCheck logo and retail sales figures can be downloaded from the TeleCheck web site at or from PR Newswire and NewsCom.

Atlanta-based First Data Corporation is a leader in payment services, electronic commerce and information management products and services. First Data and its principal operating units process the information that allows millions of consumers to pay for goods and services by credit, debit or stored value card at the point of sale or over the Internet; by check or wire money. For more information about First Data, please visit the Company on the Internet at .

Dr. William Ford holds the Weatherford Chair of Finance at Middle Tennessee State University. Earlier in his career he was president of the Federal Reserve Bank of Atlanta and served on former Fed Chairman Paul Volcker’s Federal Open Market Committee.

April 1999


Florida -2.0% Arizona 3.4% Illinois 3.7%
Ft. Lauderdale -3.1% Phoenix 3.2% Chicago 3.3%
Orlando -0.1% California -5.1% Michigan 3.9%
Tampa -1.4% Bay Area -6.3% Detroit 3.4%
Louisiana 1.7% Los Angeles -4.3% Minnesota 2.1%
New Orleans 1.9% San Diego -3.1% Minneapolis/
St. Paul 2.6%
Georgia 1.5% Oregon 1.2% Wisconsin 4.5%
Atlanta 1.8% Portland 1.1% Milwaukee 4.0%
Tennessee 2.6% Washington 0.4% Ohio 3.3%
Memphis 2.1% Seattle 0.8% Cleveland 3.5%
Nashville 2.4% Colorado 3.1%
The Carolinas 2.4% Denver 3.2% MID-ATLANTIC 2.3%
Hawaii 3.2% District of
Columbia 2.7%
SOUTHWEST 2.5% Pennsylvania 2.7%
Texas 2.5% NORTHEAST -0.5% Philadelphia 3.0%

Austin 2.6% Massachusetts -1.1% Pittsburgh 2.7%
Dallas/Ft. Worth 2.6% Boston -2.0% New Jersey 1.5%
Houston 2.7% New York 2.3% Virginia 3.0%
San Antonio 2.8% New York City 2.0% Maryland 1.2%
Missouri 3.2% Baltimore 0.8%
Kansas City 3.4%
St. Louis 3.6%
Oklahoma 1.3%
Oklahoma City 1.3%
Tulsa 1.3%


Intro to Smart Cards

The Smart Card Forum announced yesterday the next program for ‘The Smart Card Forum Educational Institute, a non-profit educational organization designed to help accelerate the widespread acceptance of smart card technology. Scheduled for June 14-15 in Toronto, the Educational Institute’s “Introduction to Smart Cards” course is staffed by a faculty of world-leading industry experts.


Fidelity AmEx Card

American Express and Fidelity Investments unveiled the new ‘American Express Fidelity Gold Card’ yesterday. The new card will be offered, beginning next month, to new and existing Fidelity brokerage customers who maintain a minimum cash management account balance of $30,000. The $75 annual fee will be waived to all qualifying applicants. Both firms say they will launch a ‘Platinum Card’ version of the program in July. Platinum card customers will pay a reduced annual fee of $225. Cardholders may also elect to enroll in the ‘Membership Rewards Program’ for an additional $25 per year. All card purchases and cash withdrawals will be directly debited from the customer’s Fidelity brokerage account and reported on the consolidated monthly statement. Fidelity says research showed that 70% of its customers currently do not have an AmEx card. The investment brokerage firm also offers a ‘VISA Check’ card through PNC Bank. Fidelity says it will continue to offer the VISA debit card but will no longer promote it. However American Express will not permit Fidelity to place the Fidelity logo on the card. Only the name ‘Fidelity Investments’ will appear next to the AmEx logo. Fidelity also offers the ‘Platinum Plus VISA’ credit card through MBNA with no annual fee and a 12.99% APR.