NEWS

Visa provides rules access; speeds fraud recovery; changes compliance criteria

Visa U.S.A. is providing its operating regulations to important stakeholders in the Visa system. The regulations will be available Sept. 1, 2006, and will be provided under a nondisclosure agreement.

One month later, Visa will implement Account Data Compromise Recovery (ADCR), a new process that will replace Visa's current compliance process involving compromises linked to counterfeit fraud. Visa expects ADCR to limit exposure and be more cost effective, efficient and equitable for all parties involved. It limits the liability timeframe for acquirers to 13 months and allows for partial recovery of some operating expenses for issuers.

Visa is also expanding the criteria of its merchant validation levels for compliance with the Payment Card Industry (PCI) Data Security Standard. The most significant modification involves the Level 2 merchant category, which has been broadened to include all acceptance channels and applies to any merchant processing 1 million to 6 million Visa transactions per year.

Aite compares online banking authentication vendors

In a new report, "Online Banking Authentication and Fraud Detection: A Vendor Comparison," Aite Group LLC compares 13 vendors of online fraud-detection solutions. Vendors mentioned in the report include Certegy Inc., CheckFree Corp., Checkpoint Systems Inc. and Metavante Corp. By 2010, the study found, spending by U.S. banks on software solutions for online authentication, fraud detection and phishing prevention will increase to $88 million, up from $22 million in 2006.

Draper receives award

The Midwest Acquirers' Association awarded Richard P. Draper, President and Chief Executive Officer of Peripheron Technologies Inc., its MWAA Lifetime Achievement honor. From 1983 to 1993, Draper set records for the sale of VeriFone equipment as the company's largest independent distributor.

Americans say thumbs up to small contactless purchases

More than 100 million Americans would use contactless cards to pay for inexpensive, everyday items such as fast food, convenience store items and transit fares, according to a new survey. Conducted by Ipsos Insight and Peppercoin Inc., the survey found that consumers in households with incomes greater than $50,000 were more likely to use contactless cards than those with lower incomes. The survey also found that concerns about security and ease of use are the two main obstacles facing contactless card acceptance.

ANNOUNCEMENTS

3Delta Systems achieves compliance

3Delta Systems Inc. is compliant with Visa's Cardholder Information Security Program (CISP). This represents the third consecutive year 3DSI has achieved CISP compliance.

AmbironTrustWave attains accreditation

AmbironTrustWave is accredited as a Qualified Security Assessor for Visa International's Asia Pacific and Latin America regions. In addition, Ambiron is performing engagements in Brazil.

Fast Transact completes SimpleCash transfer

Fast Transact Inc. completed the sale and transfer of its cash-advance funding program, SimpleCash. The final agreement includes a reassignment of all domain names and trademark registrations associated with the change of ownership, management and development of the working-capital program. Financial terms and conditions were not disclosed.

Pay By Touch recognized

Pay By Touch was named to the AlwaysOn AO100 List as one of the top privately held companies. The List recognizes the 100 most innovative and successful private firms in the nation based on market potential, customer adoption and investor value.

SMP restructures

Strategic Management Partners is transitioning into three separate entities. John Bigelow, SMP Partner, will return to Professional Payment Consultants, a full service payments consulting firm he founded in 2001. Don Smith, Managing Director, is starting PayEx, a consulting firm with particular focus on mergers, acquisitions and recapitalization within the merchant acquiring sector. Kurt Strawhecker, Executive Partner, is starting The Strawhecker Group, a consulting firm focused on the merchant acquiring sector of the payments industry.

United Bank Card lauded

United Bank Card Inc. was named one of New Jersey's Finest, an award honoring the 50 fastest growing companies in New Jersey. The award program is produced by NJBIZ, a publication covering New Jersey business news.

PARTNERSHIPS

Orion solution certified

Omega Processing Solutions LLC Class A certified and launched the Orion all-in-one check reader, imager and card solution from 4Access Communications Co.

Merchant Warehouse partners with Aldelo Systems

Merchant Warehouse formed a relationship with Aldelo Systems Inc. The new venture allows for deployment of MerchantWare in Aldelo EDC, a payment solution for the hospitality industry. Aldelo EDC eliminates the need for third-party credit card processing software or hardware terminals.

Merchant Warehouse offers Precidia solution

Merchant Warehouse will offer Precidia Technologies' POSLynx220 to North American ECR dealers. Merchant Warehouse will provide qualifying dealers with a $100 discount on each unit purchased before September 30, 2006.

Givex and ABMIS integrated

Givex and ABM Integrated Solutions incorporated gift card transaction processing into AMBIS' Market² POS application.

BPNA signs with First Data

First Data Corp. and Banco Popular North America signed a new revenue-sharing alliance agreement. First Data will provide merchant payment processing services on behalf of BPNA. The agreement also adds dedicated First Data sales executives throughout BPNA's markets.

Moneris Solutions expands roster

Moneris Solutions Inc. will provide credit card processing services to Freestar Bank (formerly Pontiac National Bank). Freestar signed a three-year agreement with Moneris and will participate in Moneris' Referral Bank program.

Datacard and DCS form agreement

Dynamic Card Solutions announced a preferred vendor agreement with Datacard Group. The agreement will expand joint marketing efforts in the instant-issuance market: DCS' CardWizard technology is now a Datacard Group preferred software solution, and Datacard Group is a preferred card personalization system and services provider for DCS.

Easy CGI, E-onlinedata form alliance

Easy CGI announced a strategic alliance with E-onlinedata Inc. Easy CGI will waive application fees, annual fees and, for a limited time, absorb Authorize .Net's setup fee for new accounts.

Home Federal Savings and Loan selects Edentify

Home Federal Savings and Loan selected Edentify Inc.'s proprietary technology as its primary identity risk management solution to detect, prevent and monitor fraud in the bank's process for opening new checking accounts.

Bankers endorse Elan Financial Services

The Ohio Bankers League subsidiary Financial Institutions Service Co. selected Elan Financial Services as its preferred provider for ATM, debit and credit card services. FISCo will also sanction Elan's MoneyPass surcharge-free ATM network as the surcharge-free network of choice for its member banks.

Fleet One partners with Fast Stop

Fleet One LLC and New Alliance FS Inc.'s Fast Stop retail fuel facilities will launch a private label fuel card program that provides users with detailed, real-time financial transactions 24 hours a day.

Fifth Third Processing signs new contracts

Linens 'n Things Inc., Uno Restaurant Holdings Corp. and Rollins Inc. have signed contracts with Fifth Third Processing Solutions for merchant processing services.

Hypercom partners with resellers

Symbol Technologies Inc. will resell Hypercom Corp.'s Optimum series of multilane payment terminals in North America. Hypercom will manufacture Symbol-branded secure electronic payment devices for resale by Symbol. Additionally, StoreNext Retail Technologies LLC will market Hypercom's Optimum terminals to independent grocers and regional chains via StoreNext's nationwide dealer network.

Retriever Payment Systems names core provider

Retriever Payment Systems named Hypercom as a key core provider of card payment solutions.

IPay Technologies selects VeriSign

IPay Technologies LLC selected VeriSign Inc.'s Identity Protection fraud detection service to provide online security for its customers and financial institutions. IPay Technologies will deploy the service to secure customer login and transaction information.

ACQUISITIONS

EPayments acquires CollectACheck

EPayments Corp. acquired CollectACheck. The acquisition adds more than 1,000 clients to ePayments' electronic check collection (RCK) business. CollectACheck will be a division within ePayments' eCashflow Systems subsidiary. Senior management will continue to be a part of ePayments' sales organization, representing RCK and other services.

CSI purchases majority of Heartland Communications

Computer Services Inc. acquired a majority ownership in Heartland Communications Internet Services Inc. CSI increased its equity stake in Heartland by 14%, bringing its ownership level to 63%.

Merchant Resources merges with Delta Payment Solutions

Merchant Resources LLC completed its merger with Delta Payment Solutions Inc. Financial terms were not disclosed.

First Data to acquire Peace Software

First Data will acquire Peace Software Inc., a customer information system product company that develops software for managing utility billing and customer care. First Data anticipates closing the transaction in the third quarter of 2006.

Pipeline Data acquires Valadata

Pipeline Data Inc. acquired Valadata Inc., a retail credit card processing provider. Pipeline also acquired a separate retail portfolio. Management expects the acquisitions to add 8,500 merchant accounts to Pipeline's existing portfolio, resulting in approximately $190,000 in additional monthly cash flow.

APPOINTMENTS

WRG Services welcomes Adkins

Greg Adkins is the new Director of Sales for WRG Services Inc. He has spent the past eight years with Diebold Inc. where he held various positions. Adkins began his ATM career with National City Bank as the Electronic Banking Manager.

CU24 elects officers

Credit Union 24 elected its 2006 - 2007 board officers. Ray Cromer Jr., President and CEO of Envision Credit Union, serves as Chairman; Paul Simkins, former President of CORE Credit Union, is Vice Chairman; and Chris Leggett, President and CEO of First Coast Community Credit Union, is Secretary/Treasurer.

ETA appoints committee members

The Electronic Transactions Association (ETA) recently appointed Jeff Thorness, President and CEO of ACH Direct, to its Strategic Leadership and Networking Forum Program Planning Committee. Deborah Matthews, ACH Direct's Vice President of Marketing, was appointed to its Membership Committee.

Robert McCullen, CEO of AmbironTrustWave, was appointed to the association's Presidential Advisory Council. Glenn Goldman, CEO of AdvanceMe Inc., will serve on the Research and Information Resources Committee.

MobileLime appoints Gore

MobileLime appointed Fred Gore to an advisory role. Gore is a 25-year veteran of the financial services industry and served as Senior Vice President and Group Head, North America Acceptance, for MasterCard Worldwide. At present, he serves on other corporate boards and is a Vice President for the Dove Consulting division of Hitachi Ltd.

Linden joins Retriever Payments Systems

Todd Linden joined Retriever Payment Systems Inc. as Senior Vice President of Business Development. Linden has more than 20 years of experience in the payment processing industry. He served as President and Chief Operating Officer of Card Commerce and spent 11 years with Bank of America Merchant Services.

Philipsen named Risk Management Manager

Smart Payment Solutions named Shazia Philipsen Manager of Risk Management. Previously Philipsen was a Risk Manager for Lloyds TSB Bank in London. Before that she was Senior Credit Analyst for IBM's Global Commercial Financing Division.

American Bancard names CFO

American Bancard LLC appointed John J. Rody Jr. its Chief Financial Officer. Rody brings more than 13 years of financial and management experience to American Bancard. Most recently, he was COO and CFO of CRO Realty Inc.

Former Visa executive joins TruComply

John Shaughnessy joined TruComply as an Executive Analyst. Until retiring in 2005, Shaughnessy was Visa's Senior Vice President, Risk Management and Fraud Control.

With 36 years of experience, he is a former board trustee for the Coalition for the Prevention of Economic Crime and a former Vice Chairman and board member of the Internet Security Alliance.

Experian taps Wheeler as CFO

Scott Wheeler was named CFO of Experian Americas. Before joining Experian, Wheeler served as Vice President, Finance and Information Systems, for Avery Dennison. Previous experience includes an executive role at General Electric Co. as CFO and board member of a European joint venture.

Fleet One names Wagner Vice President

Fleet One LLC named Tom Wagner Vice President, Strategic Markets. Prior to joining Fleet One, Wagner was Regional Sales Manager of Veytec Inc.

Wagner also was Vice President, Merchant Sales for Comdata Corp. and was National Accounts Manager for Trendar Corp.

AmEx names treasurer

American Express Co. named David Yowan Senior Vice President, Corporate Treasurer. Yowan joined AmEx in 1999. Most recently, he was the Senior Vice President of Treasury Strategy, Assistant Treasurer of AmEx, and Treasurer of Travel Related Services. Prior to joining AmEx, Yowan was Senior Vice President, Portfolio and Risk Management, for the global consumer banking business of Citigroup.

BOTTOM LINES

• Ninety-three percent of loss prevention executives who participated in the National Retail Federation's 2006 Organized Retail Crime survey think organized retail crime is getting worse. Forty-one percent said it is a significant or severe issue, up from only 30% last year.
• According to the National Association of Convenience Stores' 2006 State of the Industry report, convenience store sales climbed 25.5% to reach a record $495.3 billion in 2005. Per-store sales were $1.081 million. However, expenses went up: Credit card fees cost the industry $5.4 billion, a 42.1% increase over the $3.8 billion in card fees paid in 2004.
• Stores magazine published its first-ever list of Hot 100 Retailers this month. All public U.S. companies with more than $100 million in sales were evaluated. GameStop, which sells computer software and games, topped the revenue growth list: Its revenues jumped 67.8% from 2004 to 2005. The top earner, however, was Casual Male with an earnings increase of 606%.