Business checks can be converted to electronic payments

New rules from NACHA - The Electronic Payments Association allowing for the conversion of business checks took effect Sept. 15, 2006. Now business checks up to $25,000 are eligible to be converted into automated clearing house (ACH) transactions through accounts receivable conversion or point-of-purchase transactions.

VeriFone's Lipman acquisition receives DOJ clearance

VeriFone received clearance from the Department of Justice to complete the acquisition of Lipman Electronic Engineering Ltd. The transaction is expected to close Nov. 1, 2006.

Companies settle patent suit

Three companies involved in a patent infringement dispute settled all ongoing litigation between them, effective Aug. 31, 2006. The companies are 1) Global Cash Access Inc., 2) two divisions of Fidelity National Information Services: Certegy Check Services and Game Financial Corp., and 3) U.S. Bank, N.A. and its subsidiary Ultron Inc.

Global Cash alleged that Fidelity National's divisions were infringing U.S. Patent 6,081,792, which relates to using an ATM as both an ATM and a POS terminal. The defendants asserted that Global Cash had engaged in unfair trade practices. Under the settlement agreement, no party is obligated to pay any money to resolve the claims. The other terms of the agreement are confidential.

Aite Group studies online banking

In a new report, "Online banking: Moving toward a new paradigm," Aite Group LLC forecasts that by 2010, 13% of checking accounts will be opened online in the United States, up from 3% in 2006.

Aite recommends that online banking channel vendors offer value-added services, such as online marketing outsourcing, to remain competitive. Vendors mentioned in the report include CheckFree Corp., eFunds Prepaid Solutions, MasterCard Remote Payment and Presentment Service, Metavante Corp., Princeton eCom, Visa ePay and Western Union.

Banks underutilizing customer statements, survey finds

Research from TowerGroup noted that banks underestimate bank statements. "Bank account statements: Underestimated underutilized, and (finally!) undergoing renewal," argues that banks are missing opportunities to manage dialogue with customers.

The research also noted paper statements have the potential to provide a high degree of personalization in customer communications. Electronic and paper statements will become increasingly viewed as communications vehicles whose role is to shape and direct the customer experience.

ANNOUNCEMENTS

1st Federal Financial grows

1st Federal Financial Inc. recently announced a program focusing on Hispanic merchants' payment processing needs. Before the program began on Aug. 1, an average of two new merchant accounts was added every three days. Now, an average of 2.5 new merchant accounts is being added per day. 1st Federal's merchant portfolio has grown 39.6%. In addition, the company has signed four new agent offices.

Chase Paymentech launches compliance initiative

Chase Paymentech Solutions LLC launched a data security compliance program targeting small to medium-sized merchants. Chase Paymentech will use AmbironTrustWave's Risk Profiler to help measure the degree of risk among a sampling of more than 18,000 of its level-4 merchants.

Comstar Interactive enhances Dealer Zone functionality

Comstar Interactive released Dealer Zone version 10.4.0. The online application enables sales partners to log on to create new merchants, edit existing merchant accounts, order Comstar products, and view user guides and marketing material. The upgrade also allows partners to view pricing plans and commission and billing reports.

Covestic completes SDP testing

Covestic completed the MasterCard Worldwide Site Data Protection (SDP) Vendor Compliance Testing Program. Covestic is certified to provide security scanning for service providers and merchants.

First Data announces record date for spin-off of Western Union

First Data Corp.'s board of directors approved and designated Sept. 22, 2006, for the proposed tax-free spin-off of Western Union. The board declared a dividend of one share of common stock of Western Union for each share of First Data common stock held.

New Edge Networks complies with PCI

For the second consecutive year, Visa U.S.A. has validated New Edge Networks for complying with the Payment Card Industry (PCI) Data Security Standard.

Payment Data Systems has record month

July was a record month for Payment Data Systems Inc.'s credit card transaction and dollar volume. The company's one-month transaction increase of 52% in July resulted in a 20% jump from June's dollar level.

Beebe launches new venture

John H. Beebe, Founder and former Chairman and Chief Executive Officer of Global eTelecom and Chairman of Beebe Communications, launched Perihelion Global. The new company will focus on the acquisition, development and management of technologies, strategic commodity reserves, and assets in the energy, natural resources and communications markets.

SLIM CD completes audit

SLIM CD Inc. completed its annual PCI service-provider on-site audit. Visa recognized the company for safely handling cardholder information for a fourth consecutive year.

The Strawhecker Group releases latest e-commerce analysis

The Strawhecker Group published its annual Gateway Analysis. The survey found that gateway pricing continues to fall as merchants improve their information technology (IT) expertise. The study focuses on trends in e-commerce including the challenges of PCI compliance and competitive pricing. The study is available for purchase by calling 888-859-5637.

Litle & Co. receives 2006 CIO 100 award

Litle & Co. received the 2006 CIO 100 Award. CIO magazine honors the 100 organizations across the globe exemplifying the highest level of operational and strategic excellence in IT.

PARTNERSHIPS

Payment Processing Inc. partners with AltaPoint

Payment Processing Inc. is powering CreditWare, AltaPoint Data System's credit card processing component to AltaPoint 7.0. AltaPoint provides software support solutions for the electronic medical records and practice management industry.

QI Systems receives $200,000 order

QI Systems Inc. received an order from Cale Systems Inc. The order is valued at $200,000 for QI hybrid card payment terminals. The terminals will be used in Cale self-serve, multispace parking equipment.

Cash Systems wins renewal

Cash Systems Inc. signed a contract renewal with Midway Slots and Simulcast. Cash Systems previously provided the casino with ATMs and will now provide a complete line of cash access services.

Central Payment Corp. partners with GETI

Central Payment Corp. chose Global eTelecom Inc.'s check, gift and loyalty solutions for its partners and merchants.

KeyBank, CheckFree sign multiyear agreement

CheckFree signed a multiyear renewal agreement with KeyBank to be the bank's primary electronic bill payment provider. The agreement includes a joint investment in consumer education on the benefits of electronic bill payment services.

CUcorp and CO-OP align

CUcorp entered into an agreement with CO-OP Financial Services. CUcorp will solely market and promote CO-OP to Michigan Credit Union League members for electronic funds transfer, signature and POS debit, terminal driving, and surcharge-free network services. The agreement lasts through August 2008.

I2c forms alliance with First Bank of Delaware

I2c inc. signed a processing agreement with First Bank of Delaware. The relationship will allow the bank to offer i2c's next-generation stored value card management and processing solution, Managed Card Programs.

Lighthouse1 teams with First Data and UMB Healthcare Services

Lighthouse1 signed an agreement with First Data Healthcare Services. First Data will provide healthcare card services, including transaction card processing, for subscribers using Lighthouse1's health care programs. UMB Healthcare Services, a division of UMB Financial Corp., will work with First Data to support debit card access, investment programs and transaction processing.

Google offers incentives

Google is offering incentives to eligible e-commerce providers that support Google Checkout. Google will pay 0.5% of all Checkout sales plus $25 for each referred merchant who processes at least $500 in sales and three transactions with Checkout. Google is also offering up to $5,000 for level-2 integration by Sept 30.

UBC teams with Hypercom, WAY Systems

United Bank Card Inc. has Class-A certified Hypercom Corp.'s Optimum T4100 multiapplication card payment terminal. UBC is immediately initiating sales of and support for the product.

UBC also selected the WAY Systems MobileTransaction Terminal as its preferred wireless card payment terminal.

Instant Software fortifies partnership with Shift4

Instant Software Inc. and Shift4 formed a preferred partnership. Shift4 certified V12.NET's interface to $$$ On The Net, becoming its primary payment gateway option.

Island Pacific teams with RBS Lynk

Island Pacific Inc. formed an agreement with RBS Lynk to offer integrated payment processing solutions through its newly formed Retail Pro Payment Solutions division. The three-year agreement allows Retail Pro to offer a payment solution with support for credit, debit, check, gift, loyalty and more.

Chamber endorses NationalCard Processing Systems

The Tri-State Chamber of Commerce endorsed NationalCard Processing Systems as its transaction processing partner for its 250 members in the tri-state area.

PULSE and LINK sign ATM agreement

PULSE EFT Association and LINK Interchange Network formed an agreement to allow FI participants in the PULSE ATM/debit network to offer cardholders access to most of the 58,000 cash machines across the United Kingdom. The agreement also allows LINK to offer its FIs access to 250,000 PULSE cash machines in the United States.

North American Bancard selects VeriFone

VeriFone received a multimillion dollar order to provide North American Bancard with several thousand VeriFone Vx 570 POS payment solutions.

Bank chooses NYCE

Sandy Spring Bank is a new NYCE Payments Network participant. The bank brings about 30,000 cards and 47 ATMs into the NYCE Network. Additionally, NYCE has signed 12 FI network participants from Pennsylvania and New Jersey, adding another 80,000 cards and 70 ATMs to the network.

WesPay joins with CPA firm

Regional payments association Western Payments Alliance formed a partnership with the CPA firm Turner, Warren, Hwang & Conrad as a preferred provider for ACH audit services. The agreement includes favorable pricing for WesPay members.

Wrg Services and Switch Commerce form partnership

Switch Commerce and wrg services will provide technology-driven ATM and processing services. The companies aim to provide some of the lowest pricing for ATM processing.

ACQUISITIONS

Global Payments Europe to acquire Sarajevo-based processor

Global Payments Inc. plans to acquire the assets of Diginet d.o.o., an indirect payment processor for both POS and ATM transactions. Diginet is based in Sarajevo, Bosnia and Herzegovina. The transaction is expected to be completed during the fourth quarter of 2006. Diginet will serve as Global Payments Europe's regional headquarters in the Balkans.

Mellon acquires ClearTran

Mellon Financial Corp. acquired ClearTran, a provider of electronic and online bill payment solutions. ClearTran became part of the Mellon Working Capital Solutions business but remains based in Parsippany, N.J.

Metavante acquires VICOR

Metavante completed its acquisition of VICOR Inc., which is now a subsidiary within Metavante's Commercial Treasury Solutions division.

APPOINTMENTS

Western Union announces directors

Western Union appointed five new directors who will assume their roles when the company separates from First Data. The new directors include:

• Dinyar Devitre, Senior Vice President and Chief Financial Officer of Altria Group Inc.
• Betsy Holden, Former Co-CEO of Kraft Foods Inc.
• Alan Lacy, Former CEO of Sears Holdings Corp.
• Roberto Mendoza, Chairman of Integrated Finance Limited
• Mike Miles, President and Chief Operating Officer of Staples Inc.

Durick joins Smart Payment Solutions

David Durick joined Smart Payment Solutions as Director of Business Development. Durick will head the company's new office in Nashua, N.H. Durick's background includes 12 years of experience in the check verification, collection and ACH payments industries.

Goff and Siembieda elected to ETA's board

The Electronic Transactions Association elected Heidi Goff to its board of directors. Goff is Executive Vice President and General Manager of the POS Division for Transaction Network Services Inc.

J. David Siembieda, President and CEO of CrossCheck Inc., was also elected to the board. Both will help advise and guide ETA policies and direction to have a positive impact on the electronic payments community.

Two return to First Data

First Data hired Susan Henricks to be President of First Data Resources. From 1998 to 1999, Henricks was President of First Data Enterprises within First Data Resources. She most recently was President, Directories, for RR Donnelley.

Todd Strubbe returns to First Data as President of First Data Debit Services. Strubbe rejoins the company from West Corp., where he served as President of West Interactive Corp. Strubbe was a member of the First Data leadership team from 1995 to 2000.

EFunds appoints Kotwal

EFunds Corp. appointed Shailesh Kotwal President, International Business. Kotwal joins eFunds with more than 17 years' experience in the financial services industry, most recently as Vice President and General Manager of International Insurance Services for American Express Co.

The 41st Parameter has new CEO

The 41st Parameter named Robert Lewis CEO. Previously he was CEO for Evant Inc., CEO for Converge Inc., Managing Director of Operations for Internet Capital Group in London, and Executive Vice President of worldwide operations for Baan Inc.

NXGEN promotes Ryken

NXGEN Payment Services promoted Bill Ryken to Vice President of Business Development. Ryken has five years' experience in the merchant services industry and previously served as NXGEN's Western Divisional Manager.

Peppercoin appoints VP

Mark W. Treco joined Peppercoin as Vice President of Sales and Market Development. Treco will draw on 20 years of sales experience in the retail payments industry including 13 years with VeriFone. Previously, Treco worked at Fujitsu Transaction Solutions Inc.

BOTTOM LINES

• Pessimism about the U.S. economy is at a five-year high among American CFOs. Weak consumer demand is their No. 1 concern, according to the Business Outlook Survey concluded this month by Duke University and CFO magazine. One-third of the 571 CFOs surveyed predict a recession within a year. Rising labor costs and high fuel costs are also leading concerns.
• Following July's trends, nonstore retail sales for August were up 12.5% over August 2005 figures, the Department of Commerce reported. Total retail and food service sales (excluding autos) rose 7.5% over the same period a year ago.
• The unadjusted consumer price index for all urban consumers increased 0.2% in August, according to the Department of Labor. The index was 3.8% higher than the same period last year.