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Industry UpdateNEWSStudy Finds Top Reasons to Bank Online
The research revealed that different generations influence the reasons for online adoption. "Gen X" and "Gen Y" customers view online banking as a routine part of their daily lives. These consumers value the ease of use and educational features of online banking. Baby boomers, on the other hand, view security as the primary factor in adopting online banking. The survey also revealed that the number one impediment for consumers to online banking is security. Preference for Airline Cards Increasing A report by market research publisher Packaged Facts shows that of 6,500 consumer payment card customers surveyed, the number of consumers who prefer co-branded airline cards grew 73% between 2000 and 2003. The report, "The U.S. Market for Co-Branded and Affinity Credit Cards," stated that 93% of those surveyed say the value and features of co-branded cards prompt them to use the cards more often than other types. The report notes that 2002 marked the beginning of a renewed interest in co-branded cards. You can purchase a copy of the report through MarketResearch.com . ANNOUNCEMENTSCOCARD Seeks National Recruiter Merchant acquirer COCARD is seeking a national recruiter that will spearhead the company's growth objectives. Interested parties should submit résumés to mcarnahan@cocard.net or contact Malcolm Carnahan, Executive Vice President, at 866-230-6300. eProcessing Network Certified With Heartland Payment gateway eProcessing Network LLC certified its transaction processing software with Heartland Payment Systems Inc.'s Exchange Platform for retail and MOTO transactions. eProcessing Network, a registered Visa third party service provider, is compliant with Visa' Cardholder Information Security Program (CISP), MasterCard's Site Data Protection (SDP) service, American Express' Data Security Operating Policy (DSOP) and Discover's Information Security and Compliance (DISC) program. The company is also certified to process through FDR Omaha, Paymentech Tampa, Vital/VisaNet, CardSystems and FDMS Nashville. NURIT 8100 Receives Visa PED Class-B Approval Lipman Electronic Engineering Ltd.'s NURIT 8100 POS terminals received Visa PED Class B PIN entry security approval for online debit and offline smart card transactions. The NURIT 8100 is the only fully programmable all-in-one terminal listed by Visa International as meeting the Class B requirements. Additionally, Lipman's NURIT 8000 and NURIT 8320 POS terminals and NURIT 292 PIN pad have received Visa PED Offline approval. Sheetz to Accept PayPass Sheetz Inc. expects to be the first retailer in the nation to accept MasterCard International's radio frequency-based payment option, PayPass, across its entire chain. All 305 Sheetz locations will be ready to accept PayPass by March 1, 2005. In addition, Sheetz will expand PayPass acceptance to all of its stores' gas pumps throughout the spring of 2005. MasterCard Reports Record Transactions MasterCard International reported that its transaction volume for the 2004 holiday season increased 17.9%; it also processed more holiday transactions than any time in its history, with 914.1 million authorization transactions from the day after Thanksgiving through Christmas Eve. MasterCard processed $60 billion in card transactions over its network, a 12.9% increase over 2003. PARTNERSHIPSBrennes Jones Group Inc. and Accel Networks LLC Partner The Brennes Jones Group Inc. and Accel Networks LLC launched a fast POS dial-access solution that provides petroleum merchants using Gilbarco or VeriFone Inc. Ruby systems with lease line transaction processing speeds using only a single standard dial access line. The service, Accelerator800, concentrates multiple POS terminals or systems and establishes a connection over a single standard business line via a national 800 network. The solution reduces connect times to 2.5 seconds. First National and ECHO Renew Contract Electronic Clearing House Inc. (ECHO), a provider of electronic payment and transaction processing services, received confirmation from First National Merchant Solutions, a wholly-owned subsidiary of First National Bank of Omaha, that ECHO's processing contract under the Visa POS Check program has been renewed through December 2005. First National provides check processing for national as well as regional retail merchants. First National first contracted with ECHO to process Visa POS Check activity in December of 2002. Sovereign Bank, First Data Renew Agreement Sovereign Bank and First Data Corp. signed a five-year renewal agreement to provide electronic payment processing products and services for Sovereign Bank's merchant customers in the New England and Mid-Atlantic markets. The agreement extends Sovereign Merchant Services, which First Data and Sovereign Bank first created as a strategic alliance in 2001. First Data provides merchant payment processing services on behalf of Sovereign Bank in Connecticut, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania and Rhode Island. Umpqua Selects NOVA Umpqua Bank has chosen NOVA Information Systems as its provider of integrated payment processing for its commercial customers. NOVA will provide processing services, customer service and support operations to the bank's 1,500 merchants. Umpqua Bank will market new merchant services referrals through its 92 stores located throughout Oregon, Southwest Washington and Northern California. The companies expect credit and debit card processing volume from this agreement to reach $215 million annually. WestHost Forms Alliance With e-onlinedata Inc. WestHost formed an alliance with e-onlinedata Inc., an Internet merchant account provider. e-onlinedata's merchant services will include real time transaction management, online reporting, direct deposit and superior customer support. The companies will waive application fees, annual fees, and for a limited time, absorb Authorize.Net's setup fee for new accounts. For discount rates and transaction fees, visit their Web site at http://members.westhost.com/ internet-merchant-account.html . ACQUISITIONSRentPayment Acquires eRentPayer RentPayment, the largest credit card processor in the property management industry, will acquire privately held eRentPayer, a payments solution for property management companies. The acquisition will enable RentPayment to offer advanced property management software integration, check scanning, and other Web-based payment technologies. RentPayment currently processes payments for more than 3,200 properties representing over 1,000,000 apartment units. First American Payment Systems Acquires National Data Funding Corp. First American Payment Systems LP acquired substantially all of the assets of National Data Funding Corp. (NDFC). NDFC is a full service merchant acquirer serving approximately 3,800 merchants and 230 ATMs. Its merchant portfolio features a mix of grocery, drug and convenience store merchants along with national chains. In addition to traditional merchant services, NDFC has developed a multi-lane wireless technology. NDFC also features an in-house POS equipment deployment and repair facility, which it will leverage across all of First American's distribution channels. Fifth Third Completes First National Bankshares of Florida Acquisition Fifth Third Bancorp completed its acquisition of First National Bankshares of Florida Inc. Fifth Third Bancorp will merge First National's subsidiary bank, First National Bank of Florida, with Fifth Third Bank (Michigan) and combine with Fifth Third's Florida affiliate on a management basis. Fifth Third Bank (Florida) will have nearly 100 full-service locations, approximately $5 billion in deposits and approximately $7 billion in assets. Former First National President Kevin Hale will assume leadership of the Florida affiliate. Metavante to Acquire Prime Associates Metavante Corp. signed a definitive agreement to acquire all the outstanding stock of Prime Associates Inc. The company will continue to operate under the name of Prime Associates, and will become a subsidiary of Metavante, with existing management continuing in their positions. Prime Associates is a provider of software, data and services that address the regulatory and compliance mandate of financial institutions such as anti-money laundering regulations. SmartPay Acquires Intrinsic Technology SmartPay Jieyin Ltd., a provider of electronic payment services in China, entered into an agreement to acquire DT Intrinsic Technology Ltd. Intrinsic provides billing and service management software platforms to Chinese mobile carriers through its wholly-owned subsidiaries, Shanghai Intrinsic Technology Co. Ltd. and Shanghai Intrinsic Consulting Co. Ltd. APPOINTMENTSVECTORsgi Names Vice President of Marketing VECTORsgi promoted Larry Best to Vice President of Marketing. In his new position, Best will continue to oversee all facets of marketing the company's VECTOR and AdVance product lines and consulting services including advertising, public relations, analyst relations, direct mail campaigns, product positioning, training sessions, sales seminars and trade show activities. Prior to joining VECTORsgi in 1997 as Marketing Manager, Best served as a Marketing Manager for Computer Associates, where he was responsible for banking product development guidance and management of the sales support department. He also held management positions at Cincom, Hogan Systems Inc. and Peer Services Inc. California Community Banker Elected to ICBA Board of Directors Steven K. Buster, President and Chief Executive Officer of The Mechanics Bank, has been elected to the board of directors of the Independent Community Bankers of America (ICBA), the nation's largest banking trade organization. Buster's duties with ICBA include membership recruitment/retention and acting as liaison between independent community bankers in California and ICBA staff and leadership in Washington, D.C. VeriFone Appoints Two to Board VeriFone Inc. appointed Dr. James C. Castle and Dr. Leslie G. Denend to its board of directors. Castle was formerly the chairman and CEO of DST Systems of California Inc., a worldwide provider of computer services to the cable industry and a provider of billing services to the cable, telephony, financial services and utility industries. Previously, Castle served as President and CEO of Teradata Corp. Earlier, Castle was Chairman, President, CEO and a Director of Infotron Systems Corp. He is also a Director of ADC Telecommunications Inc., the PMI Group Inc., and Southwest Water Co. Inc. In his career Denend has served as President of Network Associates, CEO of Network General Corp., and CEO of Vitalink Communications Corp. Previously, he was Executive Vice President at 3Com Corp. and was a partner in McKinsey & Co. Denend served as Special Assistant to the Assistant to the President for National Security Affairs. He was an Advisor to the Chairman of the Joint Chiefs of Staff and he served as a Director of The Cabinet Council on Economic Affairs. He also currently serves as a Director of Exponent Inc. and McAfee Inc. Grossman Joins Cynergy Data as EVP Michael Grossman joined Cynergy Data in the newly created position of Executive Vice President, Sales. Grossman spent 11 years as a Senior Vice President at Lipman USA. As one of Lipman's co-founders, Grossman was responsible for expanding that company's distribution of terminals to the U.S. market. At Cynergy, Grossman will head the sales department, where he plans to lower merchant attrition, provide comprehensive training, and focus on technology and customer service as essential components of delivering bottom-line value. ABC Bancorp Appoints CEO ABC Bancorp's Board appointed Edwin W. Hortman, Jr. as President and CEO. Hortman has served as ABC Bancorp's President and Chief Operating Officer, as well as a member of the Board, since November 2003 when Kenneth J. Hunnicutt, Chairman of the Board and CEO, announced his retirement. Hunnicutt will become an Executive Consultant to ABC Bancorp and continue to serve as Chairman of the Board. Hortman has 28 years of banking experience. He joined ABC Bancorp in 1998 and he served as President and CEO of Citizens Security Bank, ABC Bancorp's subsidiary. He was promoted to Executive Vice President and North Regional Executive in August 2002, while continuing his role as President and CEO of Citizens Security Bank. Prior to joining ABC Bancorp, Hortman was Senior Vice President of Colony Bankcorp Inc. and President of Colony Management Services. Lasch Joins Alpha Card Services Alpha Card Services Inc. hired Ted Lasch, former Vice President of Business Development for CrossCheck Inc., as National Sales Manager. Alpha Card Services is a registered ISO/MSP of Merrick Bank, South Jordan, Utah. Lasch will be responsible for increasing monthly application count from the company's ISO and agent program as well as offering service to current partners. Redding Joins Nietech Corp. Board Peter Redding, former CEO of Standard Register Co., joined Nietech Corp.'s Board of Directors. Redding served as President and CEO of Standard Register, a provider of document and label solutions for healthcare, financial services, manufacturing and other industries, from 1995 until his retirement in 2000. In addition to Nietech, Redding serves on the boards of Owens and Minor, and Projects Unlimited. Bottom Lines
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© 2005, The Green Sheet, Inc. |
onvenience, time savings and around-the-clock access to account information are the top reasons why more consumers use online banking, according to a study by Bank of America Corp. When the bank asked consumers, "What prompted you to start banking online?" 64% cited 24-hour access to their accounts, 54% noted convenience and 48% answered that online banking saved time.