NEWS

Research reveals trend toward electronic bill payment

A new study from Fort Knox National Co. reveled that consumers are increasingly using electronic methods to pay their bills. According to "Bill Payments and Expedited Payments Survey," cash flow has become a more important factor in the timing of payments, growing from 48% to 54% year over year. Avoiding late fees was the top reason for using expedited payments, increasing from 64% to 72% each year.

The study found that consumers are willing to pay a convenience fee of $1 to $5 to avoid a late fee or potential negative impact to their credit rating. The research also found that checks and automated clearing house (ACH) payments are the most common forms of bill payment. U.S. mail ranked as the most preferred method for paying bills (28%) followed by biller direct (25%) and bank Web sites (22%).

MasterCard sues FIFA

MasterCard International is seeking an injunction against the Fédération Internationale de Football Association (FIFA), the governing body of the FIFA World Cup. MasterCard wants to prevent FIFA from moving forward with an agreement with Visa International to sponsor the 2010 and 2014 FIFA World Cups. The complaint states that FIFA assured MasterCard that it would not enter into an agreement with a third party. As part of MasterCard's 2002 - 2006 agreement with FIFA, MasterCard was granted the right of first refusal to be the official and exclusive payment solutions sponsor of future FIFA World Cup events.

Self-service banking predicted to increase 50%

MasterCard-owned research and consulting firm TowerGroup estimates that by 2010, retail banking customers in the United States will conduct nearly 60 billion self-service transactions every year, an increase of 50% over self-service transaction volumes forecasted for 2006.

The report, "Customer Self-Service and Retail Banking in the U.S.: Rising Expectations, Challenges, Opportunities," examines customers' attitudes about self-service in banking and their preferences regarding use of ATMs, interactive voice response systems and online banking. The report also describes self-service trends in other industries that will both drive and challenge retail banks' reliance on self-service industry mechanisms.

Aite studies online banking authentication

An Aite Group LLC survey, "Online Banking Authentication: A Survey of Banks," assessed how 21 of the top 50 banks approach multifactor online banking authentication. The study found that 57% of U.S. banks are planning to roll out online multifactor authentication by the end of 2006, with 34% expecting to complete the process in 2007.

Although the deadline for complying with Federal Financial Institutions Examination Council (FFIEC) guidelines for multifactor online authentication is Dec. 31, 2006, a number of institutions have yet to start deployment of a solution.

ANNOUNCEMENTS

Matthews awarded scholarship

Deborah Matthews, ACH Direct Inc.'s Vice President of Marketing, has been awarded a scholarship to NACHA - The Electronic Payments Association's Payments Institute. SWACHA - The Electronic Payments Resource awarded the scholarship. The Payments Institute is a five-day course covering payments industry topics such as ACH, card systems, electronic check, international payments, risk management and emerging issues.

ATB Financial joins cross-border debit program

ATB Financial is the sixth Canadian issuing institution to join the Cross-Border Debit program, offered through an alliance between NYCE Corp. and Acxsys Corp. With ATB Financial in the fold, the Canadian financial institutions participating in the program have issued nearly 15 million debit cards that their customers can use at the 1.2 million U.S. retailer locations that accept NYCE.

Credit Union 24 returns $7.2 million; eliminates fees

Credit Union 24 paid its network-participating credit unions approximately $7.2 million in dividends and rewards for 2005. The disbursement includes a $2.5 million patronage dividend declared by the board of directors, and approximately $4.7 million earned by credit unions through the network's Platinum Rewards program.

Additionally, the board of directors eliminated membership-fee minimums for its member-shareholders. The decision by the EFT network's board is one of the immediate benefits of a new switch-processing agreement with Fifth Third Processing Solutions.

GASA focuses on insider fraud

The Global ATM Security Alliance (GASA) added a set of best practices for preventing insider fraud to its Gallery of Solutions on its 24 x 7 online Cognito global crime management system. GASA's online Gallery of Solutions looks at typical ATM and POS crimes (including physical, electronic and cyber attacks) and outlines countermeasures and preventive best practices.

PayTrace certified with Nationwide Payment Solutions

PayTrace has completed certification of its suite of products to process credit transactions on Nationwide Payment Solutions' network. PayTrace is now certified to process retail, direct marketing and e-commerce transactions through its virtual terminal, shopping cart, application programmer interface, recurring payments and batch upload products.

TowerGroup launches training

A new training program launched by TowerGroup helps technology firms transform the way their sales forces connect to the financial services industry. First piloted in late 2005, the TowerGroup Sales Force Transformation program is being expanded within the United States and internationally. The four-step program leverages a mix of both in-person and e-learning sessions. To learn more call 781-292-5200.

PARTNERSHIPS

Arby's to accept contactless payments

Arby's Restaurant Group Inc. plans to accept MasterCard PayPass at registers and drive-through windows in its company-owned restaurants. Additionally, Arby's will accept ExpressPay from American Express Co.

Comstar software on VeriFone systems

Comstar's Charge Anywhere software and payment gateway is available on VeriFone's Omni and V^x Solutions product lines. With the Charge Anywhere POS solution, merchants can view all transaction detail in real time and process payments via Comstar's Web-based Transaction Manager. The Comstar payment gateway is certified with First Data Corp., Global Payments Inc., Concord/Buypass, TSYS Acquiring Solutions, Chase Paymentech Solutions, Global eTelecom Inc. and CrossCheck Inc.

More credit unions turn to TNB

TNB Card Services completed conversion of four credit union credit card programs. The new conversions took place at Cy-Fair Federal Credit Union, Southwest Research Center Federal Credit Union, Freedom First Federal Credit Union and PCM Employees Credit Union.

In other news, Memorial Hermann Credit Union of Houston is converting its PIN and signature debit card processing to TNB Card Services. The credit union has used TNB for its credit card processing for 20 years.

Peppercoin selected by ERG

Peppercoin's micropayment technology will be a key element in the United States' first contactless credit and debit card bus fare payment solution. The Utah Transit Authority selected ERG Group to deploy a new solution to allow passengers during the 2006/2007 ski season to use contactless credit and debit cards to pay for transit fares on 41 Salt Lake City Ski Service buses.

EZCheck and United Bank Card partner

EZCheck Check Services Inc. partnered with United Bank Card Inc. (UBC) to add its collection service, EZCollect, to UBC's line of merchant payment processing products. With EZCollect, checks returned because of nonsufficient funds are automatically directed from the business's bank to EZCheck for collection. The process is handled electronically, and once the check is collected the merchant receives the full face value of the check.

First Data to process transactions for Microsoft

First Data announced a multiyear agreement to provide global merchant processing to Microsoft Corp. Under the terms of the agreement, First Data will also provide risk management services.

Fiserv adds PassMark's technology

Fiserv Inc. chose PassMark Security as a partner in providing multifactor authentication technology to its banking and credit union clients. Each of Fiserv's core processors will offer two options for implementing PassMark's authentication technology as part of its Internet-banking solution.

Payment Data Systems joins Green Dot

Payment Data Systems Inc. has reached an agreement with Green Dot Corp. to enable stored value cards issued through Payment Data Systems to be loaded at Green Dot Financial Network retail locations. Payment Data Systems cards can be loaded at major retail partners including Rite Aid Corp., CVS/pharmacy, RadioShack Corp., Walgreen Co., and Food Lion LLC.

Inside Contactless extends platform

Inside Contactless extended its MicroPass contactless platform, with new support for the Visa Contactless Mini Card. MicroPass has achieved full compliance with Visa's requirements for security, performance and functionality of Visa Contactless. The Mini Card is approximately half the size of a regular credit or debit card. The MicroPass platform is available to Visa U.S.A. member financial institutions in the Visa Contactless Mini Card form through Giesecke & Devrient.

TriCipher partners with Metavante

Through a strategic partnership with TriCipher Inc., Metavante Corp. is providing a risk-based multifactor authentication solution to its financial institution clients and internal users. Metavante will complement its security offerings with the TriCipher Armored Credential System.

Money Network, Wal-Mart launch no fee payroll check cashing

First Data's Money Network and Wal-Mart Stores Inc. teamed to offer a no-fee paycard check cashing option at more than 3,000 Wal-Mart stores. Using Money Network's Transcheck product, a self-issued check system, the service enables Money Network's paycard clients to provide employees immediate and free access to their payroll funds.

ACQUISITIONS

InComm acquires PRE Holdings Inc.

InComm, a technology provider and distributor of prepaid products, has finalized the acquisition of PRE Holdings Inc., a U.S. prepaid distributor and processor. InComm reported that it now has more than 145,000 distribution points including big box retail, grocery stores, discount stores, drug stores, travel centers and convenience stores. Financing for the acquisition was provided by JPMorgan Chase & Co.

United Cash Solutions completes acquisition

United Cash Solutions Inc. completed the acquisition of certain ATM-related assets belonging to ATM Advantage 2000 LLC. The acquisition includes assets pertaining to a long-term ATM license agreement with Shaw's Supermarkets Inc., a division of Albertson's Inc. The principals of ATM Advantage 2000 will remain in the ATM industry and continue building their business. Financial terms were not disclosed.

APPOINTMENTS

TNB appoints Executive SVP

Kenneth "Dusty" Bowers, who has worked in the credit union service business for 20 years, joined TNB Card Services as Senior Vice President and National Sales Manager. Bowers comes to TNB from the Credit Union National Association (CUNA) Mutual Group, where he was most recently a Divisional Vice President. Prior to CUNA, Bowers worked in the insurance industry.

North American Bancard hires National Sales Director

Tina Gregory returned to North American Bancard as National Sales Director. Gregory worked at North American Bancard from 2003 to 2004 and since held the position of Director of National Sales for Optimal Payments. She brings nearly a decade of experience in developing and implementing ISO/merchant level salesperson relationships as well as marketing and sales management.

Hayford named Metavante COO

Michael D. Hayford, Senior Executive Vice President and Chief Financial Officer of Metavante was named COO of the company. Hayford, a member of the Metavante board of directors, has served as CFO since 2001. The company will conduct a search for a new CFO; however, Hayford will continue to serve in that capacity during the interim.

AAmonte adds industry veterans

Michael Levitt joined AAmonte Bankcard as Chief Operating Officer and a member of the company's board of directors. Steve Elefant joined the company as Chairman of the Board.

Levitt has been in the bankcard industry for 35 years, starting with the Chemical Bank MasterCard program. In 1984 he was tapped by Sears, Roebuck and Co. to help start the Discover Card and, as Senior Vice President for Sales, ran the Discover Card sales force. Elefant co-founded ICVerify Inc. in 1988. He went on to found several other startups including PriceRadar/Miner, Yaga, AircraftFuel.com. He is currently a Venture Partner at Claremont Creek Ventures and serves on several boards.

AdvanceMe Inc. hires McMahon

Elizabeth McMahon is the new Director of Interactive Marketing for AdvanceMe Inc. McMahon has more than 10 years of marketing management experience. She most recently served as Director of Partnership Development for Capital One Financial Corp.

WAY Systems bolsters management

Industry veterans recently joined WAY Systems Inc. Lance Nakamura was named Chief Technology Officer. Nakamura comes to WAY after a 22-year career at VeriFone. George Devitt, formerly Vice President of Marketing at VeriFone, and Senior Vice President and Chief Marketing Officer at Hypercom Corp., joined the company as Chief Marketing Officer. In addition, Stu Fullerton joined the company as Vice President of North American Sales.

Deluxe announces interim CFO

Terry Peterson will assume the role of Deluxe Corp.'s CFO on an interim basis. Peterson has been Vice President, Controller and Chief Accounting Officer of Deluxe since March 2005, a position he will continue to hold. Prior to coming to Deluxe, Peterson held positions with Ecolab, Provell and PricewaterhouseCoopers.

BOTTOM LINES

• Home Depot Inc. is purchasing a Utah bank (an industrial loan company) and plans to offer financial services, Reuters reported. U.S. bank regulators received an application to transfer control of EnerBank USA, which provides home improvement project loans, to Home Depot.

• Although sales at restaurants, gas stations, department stores and other retailers increased 0.5% in April, according to the Commerce Department, this was a slight decline from a 0.6% increase in March. Many economists attributed the decrease to higher gasoline prices.

• Organized criminals in Western Washington are stealing Visine eye drops, Crest White Strips and Similac infant formula from supermarket chains and then selling the products in California, the Seattle Post-Intelligencer reported on May 10. The supermarkets have lost hundreds of thousands of dollars in just a few months.