ATM & Debit News articles from July 2004

ATM & Debit News archives from July 2004

Coinstar Targeting Banks.
July 1, 2004... Coinstar Inc. says it has signed an agreement to have its coin-counting kiosks placed in banks. Bellevue, Wa.-based Coinstar signed the deal with Financial Supermarkets Inc., which licenses space inside banks, a spokesperson says. Coinstar...

KeyBank Gambling On Casinos.
July 1, 2004... Cleveland-based KeyBank is getting into the casino ATM business. KeyBank says it formed a partnership with Calabasas, Calif.-based Coast ATM Corp. to place ATMs in casinos, shopping malls and office buildings. Coast ATM will market the program...

Card Limits May Be Affecting Revenue, Survey Data Suggest.
July 1, 2004... Daily limits on how much debit cardholders can spend at the point of sale may be causing issuers to miss revenue opportunities. Many debit cardholders are running up against their issuers' withdrawal limits, forcing them to use alternative...

Visa's Plus Now Surpasses NYCE In ATM Volume.
July 1, 2004... Virtually every U.S. ATM is connected to Visa International's Plus ATM network. Historically, though, most debit card issuers have used Plus as a network of last resort for when their cardholders ventured outside the market of their banks'...

Agent-Bank Market Competition Grows As More Firms Offer Free ATM Access.
July 1, 2004... Agent-banking ATM relationships traditionally have grown slowly and generally have been limited to larger financial institutions providing expanded services to smaller institutions that do not want to invest in additional ATMs. More third-party...

Top U.S. ATM Networks.
July 1, 2004... Network Transactions* Star 79.5 Visa Plus 42.5 NYCE 36.0 Co-op Network 31.3 Pulse 26.1 Source: ATM&Debit News and networks. *March 2004 data, in...

EBT Cards Put Food Stamps Out To Pasture.
July 1, 2004... The U.S. Department of Agriculture has officially ended the use of paper food coupons, which have been replaced entirely by debit cards that deliver food-assistance benefits through electronic benefits transfers, or EBT. Department...

KeyBank Agent Banking Facts.
July 1, 2004... Clients 104 Client Cardholders 2 million Partner Southtrust ATMs 3,076* Source: KeyBank. *Surcharge-free ATMs offered to agent bank clients. Copyright 2004 Thomson Media...

Genpass Adds PayCard Clients.
July 1, 2004... Fort Washington, Pa.-based Genpass Inc., a leading ATM driver, has announced two new participants in its payroll card program. Hartford Healthcare Corp. and the Hartford Healthcare Credit Union have launched the Hartford Healthcare Credit Union...

Correction.(Correction Notice)
July 1, 2004... A headline in last week's issue had an error. As stated in the news brief below the headline, it was Birmingham, Ala.-based Southtrust Corp. and Charlotte, N.C.-based Wachovia Corp. that announced their plans to merge. Copyright 2004...

E*Trade ATM Sale Completed.
July 8, 2004... E*Trade Financial Corp. on July 1 completed the sale of its entire ATM-contract portfolio of 13,100 machines to Cardtronics Inc., the Houston-based ATM independent sales organization, for about $106 million in cash. New York-based E*Trade owned...

Tidel Settles Shareholder Suit.
July 8, 2004... Tidel Technologies Inc., the Houston-based cash-dispenser maker whose finances were hard hit by the bankruptcy of its largest customer, the Credit Card Center independent sales organization, has agreed to pay $3 million to settle a shareholder...

POS Debit Networks Starting To Tinker With Rate Caps.
July 8, 2004... Electronic funds transfer networks generally use interchange and switch-fee policies to make their card programs attractive to issuers and merchants. But with many networks setting a hodgepodge of point-of-sale debit pricing tiers favoring...

Debit Payments Are Pulling In To Parking Spaces.
July 8, 2004... Many cities, including New York and San Francisco, that have extensive public transportation systems enable commuters to use payment cards to pay for train and bus services. Now, more cities are making it possible for driving commuters and...

Companies Starting To Offer Remote Downloading Of ATM Encryption Keys.
July 8, 2004... Installing PIN-encryption keys traditionally has been a manual function requiring technicians to travel to each ATM. The ability to remotely install encryption keys, touted to be a more efficient and less expensive alternative, may be getting...

How Interchange Rate Fee Income Compares.
July 8, 2004... Sale Amount Fee Cap/ Network $40 $80 Max.* NYCE Issuers Default Rate 36cents 62cents 65cents/$85 >$15 billion** 26cents 45cents 45cents/$78 Star Issuers...

Payroll Cards Best Prepaid Option For Smaller Issuers.
July 8, 2004... Prepaid card market growth has generated much enthusiasm in the banking industry. Community-bank involvement, though, may be limited to certain prepaid-market segments, new research suggests. A recent study conducted by Financial Insights...

Parkeon At A Glance.
July 8, 2004... Headquarters Moorestown, Pa. Business Parking Kiosks* U.S./Canada Installed Base 5,000 Largest City Contract Seattle Source: Parkeon Inc. *Card-accepting parking meters. ...

Key Remote-Key Suppliers.
July 8, 2004... I-S-Cubed Inc. Product SecureOMS ATMs Trusted Security Solutions Inc. Product A98-R Source: I-S-Cubed, Security Solutions Inc. Copyright 2004 Thomson Media Inc. All Rights Reserved. http://www.thomsonmedia.com...

Viad Spins Off MoneyGram Unit.
July 8, 2004... Viad Corp., whose chief businesses are convention services and event marketing, has spun off its Minneapolis-based money-transfer business MoneyGram International Inc. in a tax-free stock transaction. Shareholders of Phoenix-based Viad received...

Fifth Third Tabs Star's Drucker.
July 8, 2004... Cincinnati-based Fifth Third Bank's Fifth Third Processing Solutions unit has named Charles Drucker as its new president. Drucker formerly was executive vice president and chief operating officer of Star Debit Services, a division of First Data...

Visa Prepaid Card Hits Malls.
July 15, 2004... U.S. Bank and WildCard Systems Inc., which last month began rolling out a prepaid gift card at 54 shopping malls owned by The Macerich Co., expect to sell 600,000 to 800,000 of the cards this year, says John Focht, U.S. Bank vice president of...

Gift Cards Gain In Incentive Use.
July 15, 2004... The use of prepaid gift cards is becoming an increasingly important tool to motivate, reward and retain employees, the results of a recent survey suggest. In the survey, conducted by First Data Corp.'s ValueLink gift and spending card service,...

For Visa, Debit Card Use Online Soon Will Exceed Credit Use.
July 15, 2004... Visa USA last year announced that, for the first time, U.S. consumers were using Visa check cards more often than credit cards at the point of sale. That same milestone soon will occur with Web-based Visa purchases. Visa check cards were...

Decisions Pending On Chase's Debit, EFT Network Ties.
July 15, 2004... New York-based J.P. Morgan Chase & Co. took over Chicago-based Bank One Corp. on July 1, forming the nation's third-largest debit card issuer. Now, Chase has some significant debit-network decisions to make. Bank One's contract with its...

U.S. Navy's Ships Are Going Cashless With A Smart Card-Based Debit Card.
July 15, 2004... For years, the U.S. Navy has deployed some 200 ATMs aboard 175 ships to enable sailors to access cash. Now, with the implementation of a debit card-based cashless system, the Navy plans to mothball its ATMs. Sailors have used the ATM cash...

Debit Card Use Online Grows.
July 15, 2004... Q1/04 Q1/03 Change Visa Check Card Purchases* 96.57 64.17 50.5% Volume** $6.14 $3.99 53.9% Visa Credit Card Purchases* 99.37 74.43 33.5% Volume** ...

What Bank One Brings To Chase.
July 15, 2004... Preferred EFT Network Star* ATMs 4,350 Debit Cards** 6.5 million Signature-Based 5.22 million PIN-Only 1.28 million Source: Bank One and ATM&Debit News....

BofA Hopes NPC Deal Will Counter Check-Use Slide.
July 15, 2004... Bank of America Corp. on July 13 moved to counter it's sliding check-processing business by announcing plans to buy one of the nation's leading merchant processors of electronic debit and credit card transactions, National Processing Inc., or...

The Navy's New Card.
July 15, 2004... Name Navy Cash Function Cashless Transactions Replaces 200 At-Sea ATMs Source: U.S. Navy Copyright 2004 Thomson Media Inc. All Rights Reserved. http://www.thomsonmedia.com http://www.cardforum.com

ATM Exchange Gets Visa's Nod.
July 15, 2004... Visa International has granted technical approval of ATM Exchange Inc.'s 3DES Plus Triple Data Encryption Security conversion kit. The kit is designed for use in upgrading encryption keys in older NCR and Diebold ATMs. Visa's "Class B" approval...

Bank 'Bearish' On Payroll Cards.
July 22, 2004... Jeffrey M. Trachtman, vice president of bank card products at Fifth Third Bank, said during a recent visit with Thomson Media staff in Chicago that the Cincinnati-based bank has no plans to issue payroll debit cards. In fact, he says the bank...

KeyBank Gains A Promoter.
July 22, 2004... Cleveland-based KeyBank will use Pemco Technology Services Inc., a Seattle-based processor of debit card and ATM transactions for 240 credit unions, to market its agent-banking program. The program offers participating financial institutions...

Million-Dollar ATM Thefts Less Likely Today, Experts Say.
July 22, 2004... The case of ATM armored-car firm owner Daniel Antolini, who last week was sentenced to seven years in prison for stealing at least $5 million from East Coast banks and credit unions, raises questions about the security of cash being supplied to...

Battle Begins Over Triple DES Conversion Kits.
July 22, 2004... The battle for the pocket books of the owners of perhaps thousands of aging bank ATMs is under way. While the leading makers of bank ATMs would prefer that their oldest machines be replaced with new ones, conversion kits that enable older...

Networks' Approaches Differ As They Compete For Credit-Union Members.
July 22, 2004... The number of EFT networks catering to credit unions has dropped significantly in recent years. While more than two dozen credit-union networks once existed, just two, Co-op Network and Credit Union 24 Inc., today offer credit unions a national...

Key ATM Cash Scam Facts.
July 22, 2004... Convicted: Daniel Antolini, Pres., Executive Cash Services Term: Seven Years For Fraud Vault Cash Stolen: $5 million Source: New Jersey U.S. Attorney's office. Copyright 2004 Thomson Media Inc. All Rights Reserved....

Older Consumers Still Don't Have, Use Debit Cards.
July 22, 2004... Older consumers continue to be the least likely to have a debit card. They also are the least likely to use one, suggesting issuers often avoid giving cards to older folks on the assumption they won't use them, new survey data show. The...

ATM Exchange At A Glance.
July 22, 2004... Headquarters Cincinnati Business ATM Refurbishing/Maintenance President Dave Parlin Source: ATM Exchange Copyright 2004 Thomson Media Inc. All Rights Reserved. http://www.thomsonmedia.com...

Fiserv Payroll Card Gains Client.
July 22, 2004... The Community Bank of Pasadena (Calif.) plans to market Brookfield, Wis.-based Fiserv Inc.'s payroll debit card, Paycheck Plus, to its commercial clients in Southern California, says Rich Wilkinson, the bank's vice president and product...

Dime Outsources Its ATMs.
July 22, 2004... Dime Savings Bank Corp. has signed a six-year deal to outsource its ATM transaction processing and driving to Fidelity National Financial Inc., according to Dime. Dime's ATM transaction processing will be run on the Fidelity Miser system....

Coinstar Inks Prepaid Deal.
July 29, 2004... Coinstar Inc., the Bellevue, Wash.-based provider of coin-counting kiosks that has been adapting its machines to dispense prepaid products, this morning announced that Albertsons Inc. will roll out Coinstar's electronic-payment products at its...

Fiserv Network Volume Rises.
July 29, 2004... The Accel/Exchange electronic funds transfer network during the first six months of this year switched 127 million PIN-based debit transactions, up 25% from 102 million during the same period last year, according to the network's parent,...

EFunds Offers Up Free ATM Access For Payroll Cards.
July 29, 2004... Comdata Corp. today is expected to announce that later this year it will begin to offer its customers' payroll cardholders surcharge-free access to the 15,000 ATMs eFunds Corp. has under management contracts in U.S. off-premise locations. The...

Bank One Goes To School With A Visa Prepaid Card.
July 29, 2004... Financial institutions for years have tried to secure prospective customers early on by working with colleges and universities. In some cases, schools have allowed banks to tie access to demand-deposit accounts to student-identification cards....

Exchanging ATM Check Images Carries Some Risks, Report Shows.
July 29, 2004... The risk for ATM deployers remains too great for real-time exchanges with other banks checks deposited and electronically imaged at ATMs, a recently released report concludes in anticipation of the so-called Check 21 law. Check 21, which takes...

Surcharge-Free Deal Facts.
July 29, 2004... ATM Provider eFunds Corp. Payroll Card Provider Comdata Corp. ATMs 15,000 Payroll Cards 250,000 Source: Comdata Copyright 2004 Thomson Media Inc. All Rights Reserved....

Banks Give Prepaid AmEx Cards A Lift.
July 29, 2004... American Express Co. may find difficulty convincing financial institutions to issue AmEx-branded debit cards tied to checking accounts. But banks are showing interest in the New York-based company's prepaid cards. Some 40 financial...

ATM Check Imaging Facts.
July 29, 2004... * Anti-Fraud Components Lost In Imaging * Liability Rests With Imager * Quicker Detection Of Closed Accounts * Lower Pick-up And Processing Costs Source: Mercator Advisory Copyright 2004 Thomson Media Inc. All Rights...

Diebold Reports Strong Sales.
July 29, 2004... North Canton, Ohio-based Diebold Inc.'s financial self-service division, which includes ATM-related sales and service, generated second-quarter revenues of $388.3 million, up 10.9% from $350.1 million during the same quarter last year,...

VeriFone Nets Whopper Of A Deal.
July 29, 2004... The Miami-based Burger King Corp. restaurant chain installed VeriFone Omni 3750 payment terminals in 2,000 of its U.S. restaurants over the last four months, says terminal maker VeriFone Inc. The terminals were installed in all of Burger King's...