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Overview Of Card Industry Technology To Loyalty
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Commerce has become a
technical issue. It is not only
about making a financial
transaction, it is about havinga relationship with the
consumer while they are
exchanging currency for goods
and services.
A Thought
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Insight
Kim Resch
Extensive Experience in Debit, Credit, and SmartCards, Mobile Commerce, Loyalty and Incentives.
Practical Experience in new product launchesincluding Amex Blue and smart Visa.
Specializes in project strategy, project management,implementations, and training in the emerging areas ofcommerce.
Dave Carrithers
20 years experience in semiconductor, chemicals,
consumer products, incentives, stored-value & debitcards, etc.
Marketing, IT, Sales, NBD, operations
Focus on product, business & market development
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A Little Laugh
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Objectives Of Today
History of the card industry
Review the different types of cards andpayment types available in the market
Insight into how card products are
processed & the players Review of the loyalty card industry
How & where the money is made in theindustry
Review of the credit card & airline loyaltyprograms
Review of the smart card
Trends in the world of cards & payments
Opportunities
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History Of Payment Cards
1914 - Western Union provided metal cards giving free, deferred-
payment privileges to preferred customers. These cards came to
be called "metal money.
1924 - General Petroleum Corporation issued the first metal
money for gasoline and automotive services first to employeesand select customers and later to the general public.
Late 1930's - American Telephone and Telegraph (AT&T)
introduced the "Bell System Credit Card." Soon, railroads and
airlines introduced similar cards. Credit cards grew in popularity
until the beginning of World War II when "Regulation W" restrictedthe use of such cards during the war and temporarily suppressed
the growth of this new payment alternative.
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History Of Payment Cards
1946 - A New York banker developed a credit system called
Charge-It. When customers charged local retail purchases, the
merchant deposited the charges at Biggins Bank and the bank
reimbursed the merchant for the sale. The bank later collected
payment from the customer.
1950 - Mr. McNamara created Diners Club charge card.
1951 - Customers of New York's Franklin National Bank
submitted an application for a loan and were screened for credit.
Approved customers were given a card they could use to make
retail purchases. The merchant copied the customer information
from the card onto a sales slip, called the bank for approval of
transactions over a certain amount. The bank would credit the
merchant account for the loan minus a fee to cover the costs of
providing the loan.
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History Of Payment Cards
1959 - Many banks were offering the option of revolving credit,
which allowed customers to make regular payments on the
balance owed rather than having to pay off the entire balance at
one time.
1965 - Bankcard associations began when Bank of America
formed licensing agreements with other banks. This enabled them
to issue BankAmericard and Interchange transactions among
participating banks.
1966 - Fourteen US banks formed Interlink, a new association
with the ability to exchange information on credit card
transactions.
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History Of Payment Cards
1967 - Four California banks formed the Western States
Bankcard Association and introduced the MasterCharge program
to compete with the BankAmericard program.
1967 - Jrgen Dethloff invents the smart card computer.
1969 - As the bankcard industry grew, banks interested in issuing
cards became members of either BankAmericard or
MasterCharge. Their members shared card program costs,
making the bankcard program available to even small financial
institutions.
1970 - As credit card processing became more complicated,outside service companies began to sell processing services to
VISA and MasterCard association members. This reduced the
cost of programs for Issuing Banks and Acquirers and increased
the size of the bankcard industry.
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History Of Payment Cards
1970 / 1971 - MasterCharge and BankAmericard developed rules
and standardized procedures for handling the bankcard paper
flow in order to reduce fraud and misuse of cards. The two
associations also created international processing systems to
handle the exchange of money and information and established
an arbitration procedure to settle disputes between members.
1976 - A pre-paid phone card was introduced by the Italian
national phone company SIP. The introduction of the phone card
was brought about by an extreme shortage of coins in the country
which led to a rash of payphone thefts. The Italian phone card
used a magnetic stripe, similar to those found on credit cards, and
required the use of a payphone specially equipped with a
magnetic card reader.
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History Of Payment Cards
1977 - BankAmericard became VISA.
1979 - MasterCharge changed its name to MasterCard.
1982 - Japan's Nippon Telephone and Telegraph introduced the
first Japanese pre-paid phone card to make calling moreconvenient for the tens of thousands of daily subway riders in
Osaka and Tokyo. Like its European counterparts, the Japanese
pre-paid cards relied on a magnetic strip and specially equipped
telephones.
1993/1994 - Experimental card operating system at the University
of Karlsruhe. It was mainly intended to implement and compare a
family of public key crypto protocols worked on at the European
Institute of System Security. Hence the name of the card was
"ICEcard" (Ic card for Cryptographic Experiments).
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History Of Payment Cards
1990 New York's RBOC, Nynex released the first pre-paid calling
card that used PIN authorization instead of the magnetic stripe.
Nynex's card permitted the cardholder to dial an 800 number and
enter his PIN to make long distance phone calls.
1993 First bank debit card/ checking card issued.
1994 - MAOSCO and Keycorp create programmable smart cards.
1995 Selective Use Debit Card Issued Exclusively Yours Card.
1995 First Stored-Value card issued Your Choice Card.
1996 Visa Cash Stored-Value Launched.
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Card Industry Landscape
The Why!
The Players!
The Program Specifics!
The How!
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Definition of Terms
Card Associations: Both VISA and MasterCard are not for-profit organizationswho both issue credit cards and set and maintain the rules for processing. Theyare both run by board members who are mostly high-level executives from theirmember banks.
Issuing and Acquiring Banks:An issuing bank is the original bank that issuesthe card, such as a First USA Visa card. The acquiring bank is the bank set upby the merchant to accept transaction processing for cards accepted.
Authorization Request and Response: An electronic request for authorizationsent to an Issuer by a merchant or Acquirer. The response can approve, declineor route the transaction.
Authentication: A cryptographic process that validates the identity and integrityof data used in smart cards.
Smart Card/Chip Card:A plastic card embedded with an integrated circuit, orchip, that communicates information to a interface device. Chip cards offerincreased functionality through the combination of significant computing powerand data storage. Chip cards are capable of holding multiple applications andsometimes are referred to as Multi-Ap Cards.
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Definition of Terms
Online Authorization: A method of requesting an authorization through a datacommunications network other than voice to an Issuer, an authorizing processor,or stand-in processing.
Offline Authorization: A method of processing a transaction between the cardand terminal at the point of transaction without sending the transaction online tothe Issuer for authorization. Transactions are sent in batch format to theprocessing systems.
Processor: A vendor acting as the agent to a bank that provides authorization,clearing, or settlement services for merchants and banks.
Host Systems: A computer system used by an Issuer, Acquirer, Merchant, Clientor Vendor to perform in-house processing.
Interchange: The fees merchants pay to the card associations or companies onthe transactions, usually a % of the sale price.
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Card Industry Landscape
TheWhy!
ThePlayers
TheProgramsSpecifics
TheHow!
Psychology of a card program
Cardholder Corporate
Sponsor
Merchant
/ POI
Access Device(Card, Transponder,Terminals .)
Rewards(Points,coupons)
Program(Loyalty supplier,database, rules)
Collateral(setup, statements,printed materials)
Technology(Systems, processing, hardware, firmware, Issuing)
BanksIssuing andAcquiring
Processor
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Transaction Breakdown
Cash Check Card eCurrencies*
In Store 60% 10% 30% 0%
Web 0% 0% 95% 5%
Catalog/Phone
0% 30% 70% 0%
* Represents e-coins/e payment services, direct deposit
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Card Facts
2000 - MasterCard's 20,000 member institutions had issued over437 million branded cards world wide, 15.4 percent more than theprevious year. The number of cards issued in the US reached235.1 million in 2000, 16 percent above the 1999 level.
MasterCard association generated $857 billion in gross dollarvolume (GDV), which includes both purchase activity and cashtransactions, representing a 21.5 percent increase on 1999. In thefourth quarter of 2000, GDV rose 19 percent to $231 billion. In theUS, full year GDV registered its highest growth rate in six yearshaving risen 20.2 percent to $423 billion.
MasterCard has 21 million acceptance locations worldwide, a 12.7percent increase on 2000.
1998 - Visa had issued 655 million cards, generating salesvolume of $ 1,4 trillion and was accessible at 488,585 ATMs.
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Card Facts
Affinity Cards
MBNA Corp. The Wilmington, Delaware-based issuer issuescards for 4,000 groups, ranging from virtually every college anduniversity in the US to the International Bridge Club. Thecompany's 2000 annual report says its average account balance
was USD $3,519, compared with the industry average of USD$2,311. The average transaction value for MBNA customers wasUSD $129, compared with the industry's USD $99.
First USA has more than 2,000 partnership programs, includingrelationships with America Online Inc., Microsoft Corp., andYahoo! Inc.
According to association estimates, about 40 to 50 percent ofcards issued worldwide are multibranded (either a co- branded,affinity, or loyalty card), a level that some say is the saturationpoint for the market.
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Card Facts
Affinity Cards
MasterCard has more than 12,000 co-branded and affinityprograms worldwide. Visa has about 9,000 multibrandedprograms worldwide. About 20 percent of its US card base is co-branded or affinity.
Auto and airlines cards each account for 23 percent of the co-brand card market, followed by retail cards at 19 percent,
according to Visa and MasterCard figures.
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How Money Is Made
MasterCard & Visa are not-for-profit associations, which supportmember banks, which share a common network
American Express & Discover Card are, for-profit companies andown their own networks
All card associations and companies charge an interchange fee tothe merchants that offer their cards
Ranges:
MasterCard & Visa 1.2% to 3%
AMEX 2.5% to 5%
Discover Card 1.2% to 4%
MC & Visa issuing banks get a cut of the interchange (between.03% and 1% based on size of issuing volume)
Acquiring Banks get a cut of the interchange fee, plus sometimesa processing fee (between .002% and 1%)
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How Money Is Made
Processors charge a fee to handle transaction bundling and datareporting, etc. Range between 1 cent to 25 cents per transaction
Card issuers charge consumers a fee to have a card, rangingfrom $25 a year to $300 a year
Purchase cards charge yearly fees on reporting and filteringsupport (range from $50,000 to $200,000 a year)
Cost per card, by card manufactures range from 10 cents to $5dollars based on the type of card (i.e. smart card)
Breakage & float
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Types Of Cards
Charge Cards American Express
Retail Store/Private Label
Credit Cards
Visa/ MasterCard
Secured Credit Cards Purchase/ Procurement Cards
Debit/ Check Cards
Stored-Value Cards Gift Cards
Phone Cards
Membership & Other Cards
Smart Cards
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Types Of Card - Charge
Charge Cards American Express
Retail Store & Gas Cards
Interesting Points
No line of credit must be paid off each month
Heavy penalties for late payment
In the past most retail stores offered one
Profitable for the stores
Single retailer version limited use
Service & extended warranty sales opportunities
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Types Of Card Credit Cards
Credit Cards
Visa/ MasterCard
Affinity Cards
Airline Cards
Interesting Points
Limited in what can be done
Payment pretty straight forward
Requires credit check & approval
Market seems to be at saturation point
Operates on an open platform
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Types Of Card - Secured
Secured Credit Cards
Target market is credit consumers
Requires a deposit of between $500 and $2,000
Monthly payment is required otherwise draw down ondeposit and high penalty
Requires high maintenance and yearly fees Operates on an open platform with some level of
authorizations
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Credit/Debit OnlineTransaction Processing
Legacy Hosts
Visa or MC systems
Processor
-Merchant accepts card
-Validates card by
signature check or PIN
-Processes transaction
-Consumers bank approves
transaction, sends back to
merchant
-Settlement will post to statement.
Request
Auth
Settlement
Request
Auth
Settlement
-Merchants bank initiates
transaction -Routes to locations
determined by card ids for approval
and processing
-Collects card ID/number, Merchant
ID, Amount.
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Types Of Card - Purchase
Purchase/ Procurement Cards
Allows for filtering/selective use via SIC codes (i.e.hotels, fuel, etc.)
Spending limits (daily, weekly, monthly, by category)
Intense reporting & tracking
Main target B2B & corporate travel Operate on an open platform, with some level of
tabling/filtering
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Purchase/Procurement CardTransaction Processing
SIC Filtering
Visa or MC systems
Processor
-Merchant accepts card
-Validates card by
signature check or PIN
-Processes transaction
-Merchant;s bank initiates
transaction
-Processes against SIC filter
-Routes to appropriate locations
-Processes transaction
-Approves or Declines
transaction
-Posts to statements on
settlement
Request
Auth
Settlement
Request
Auth
Settlement
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Types Of Card Debit/Check
Debit/ Check Cards Started out as ATM only card
Requires a pin
Access to a bank/ checking account (continual deposits)
No credit line (instead an overdraft line)
Concern by retailers on fees Runs on bank transaction networks (Interlink and Maestro)
Networks originally designed for banks to share information
Operates on an open and/or closed platform with security
Filtered (selective use) and open available
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Debit OfflineTransaction Processing
Legacy Hosts
Visa or MC systems
Processor
Batch Request
Auth and Settlement
Settlement
Request
Settlement
-Merchant accepts card
-Validates card with PIN
-Processes transaction
-Collects batch data and formats
clearing transaction
-Approves or Declines transaction
-Routes to appropriate locations
-Processes transaction
-Posts to statements
Auth and Settlement
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Types Of Card Stored Value
Stored-Value Cards Gift Cards
Phone Cards
Mall Cards
Gas Cards
Interesting Points Open and Filtered (selective use) from one store, to a chain,
to a mall
Funds are pre-loaded on the card most once spent aredisposable
Most are anonymous
Most operate on a closed platform
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Stored ValueTransaction Processing
-Cards are preloaded with
points.
-Merchant requests
transaction
-Verifies Card
Legacy Hosts/filters
Visa or MC systems
Processor
Request
Auth
Settlement
Request
Auth
Settlement
-Transaction processes like
Debit
-Card is validated against
stored value hosts or filtering
-Processes transaction
-Posts to statements
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Types Of Card - Other
Membership & Other Cards Most likely no payment involved
Account &/or membership ID / number
Discounts / punch cards
Special access/ areas
Purchase or activity tracking
Magnetic strip &/or bar code
More about belonging to a club/group
Operates on a closed platform
Loyalty & frequency tracking
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Membership CardTransaction Processing
-Card is accepted
-Checked against internal
database
-Can be routed to third-party
database through processor.
Internal
Database
Processor
3rd
party
Database
Example:
Blockbuster
Example:
Dining Ala Carte
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Types Of Card Smart
Smart Cards Multi functional (debit, stored-value, credit)
Simple cards to very complex (based on chip type)
High security & fraud protection
Requires special reader
Contact & contactless technologies
Operates on closed and open platforms
Can have multiple currencies (i.e. cash, points, etc.)
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Smart CardTransaction Processing
-Card and Terminals authenticated with
cryptograms
-Obtain PIN, if needed
-Verifies static data on chip
-Processes static programs offline
-Sends transaction online
-Routes to any internal legacies
-Verifies risk parameters on card
Legacy Hosts
Visa or MC systems
Processor
Online Request
Auth
Settlement
Online Request
Auth
Settlement
-Validates card and
transaction data
-Routes to hosts
systems
-Processes settlement
-Posts to statements-Formats the crypto authentication
request-Routes and initiate online
transactions.
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Smart Card Overview
Electronic Ticketing &Automated Air Travel Processes
Special Offers andLoyalty Programs
AutomatedCar Rental Processes
E-PurseEnhanced Customer
Information
Corporate Security
Automated LodgingProcesses
POS / Merchant's
Logical & Physical Access
Voucher Replacement
Target Marketing and
Expandable to other
Locations
Mobile Commerce
Smart Card: 101
The MarketSmart Cards in Loyalty
Lessons Learned
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History of Smart Cards
Smart Cards have been around since the early 70s. The patentwas registered in 1974.
Commercialization started in the early 1980s with phone cards.
In 1993, there were 300 million Smart Cards issued in the world.
(80% were phone cards) In 1998, Amex Blue was introduced in US.
In 2000, vendors shipped 1.6 billion chip cards worldwide, of which541 million were cards with microprocessor chips, up 36% from the
year before.In 2005, vendors will ship an estimated 2.4 billion of the higher-endmicroprocessor cards, half of which will be subscriber identitymodule cards for mobile phones
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A smart card resembles a credit card in size andshape, but inside it is completely different
A silicon chip beneath a contact plate
The silicon chip is a small computer with 8-64bitmicroprocessor
It has the same processing speeds as old computers,such as Tandy
What is a Smart Card?
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Smart Card at a Glance!
Silicon
Operating System (MULTOS, JAVA, Windows)
Applications
EMV Loyalty Wallet Misc.Appl.
Contact Plate
1234 5678 9012 3456
Joe Smith
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Why Smart Cards?
Security and fraud reduction
Interactive
Storage Capacity
Dynamic downloading
Side Note: Outside the U.S., Smart Card use hasaggressively taken place because of two major
factors:1. Telecommunications is very poor & costly
2. Majority of transactions are offline
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Types of Smart Cards
Memory Card: No processing capability Contact
Contactless (Proximity): Using RadioFrequency
Combi-Card Transponders or Key Fob
Operating Systems
Java CardMultos
Microsoft Windows for Smart Cards
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Fraud and Security
Magnetic stripe technology remains in wide use in the U.S.However, the data on the stripe can easily be read, written,deleted or changed with off-the-shelf equipment.
To protect the consumer, businesses in the U.S. have investedin extensive online mainframe-based computer networks forverification and processing.
The microprocessor on the smart card is there for security. Thehost computer and card reader actually "talk" to the
microprocessor. The microprocessor enforces access to thedata on the card.
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Fraud and Security
Smart cards are protected with a public/private keyinfrastructure:
Digital Signatures
Cryptography to perform: Data Integrity
Authentication
Non-repudiation
Confidentiality
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Why are Smart Cards Safer?
Built in interactive capabilities
Personalized cryptography
Tamper resistant, cannot be reproduced
Creates card present environment
Individual risk parameters
Note: Security directly contributes to price.
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Standardization
EMV (Europay, MasterCard and Visa)
Card specifications
Terminal specificities
Application specifications
Cross-border concerns
How are they doing so far?
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Common Uses of Smart Cards
The most common smart card applications are:
Credit cards
Electronic cash
Computer security systems
Wireless communication
Loyalty systems, like frequent flyer points
Banking Satellite TV
Government identification
C A li i
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Common Applications
Loyalty: Multiple programs, tickets, points, coupons,one-to-one.
Network Access: secure email, secure sign-on, webaccess.
Payment: Secure transactions, multiple accounts.
Travel: reusable tickets, virtual ticketing, links topayment applications and software, Automatedcheck-in, reduced fraud.
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Smart Cards In Other Countries
Smart cards are much more popular in Europe thanin the U.S.
In Europe the health insurance and bankingindustries use smart cards extensively. EveryGerman citizen has a smart card for healthinsurance.
Even though smart cards have been around in theirmodern form for at least a decade, they are juststarting to take off in the U.S.
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Where The Smart Card Market Is Headed!
Card issuers want chip card to reduce fraud.
Anticipates multi-aps will attract cardholders and transactions.
Chip Manufacturer and Hardware Suppliers are showing losses
Readers are not being adopted.even when free.
Keyboards are progressing.
Merchant migration is happening.
Gimmicks are more successful than functions (i.e.. Blue, Clear)
Internet transactions are seeming more secure.
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The Current State of the Market
American Express
o Launched Blue September of 1999. Now with over 2
million cards.o Applications: Secure Access, Wallet, Reader,BlueLoot
o Rolling out to multiple countries, Business, Student.
o Decommissioned Wallet
o Focusing on palm computing and mobile.
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The Current State of the Market
Visa USA
o Visa USA Launched smart Visa September 2000
o Over 3 million cards with Providian, First USA and Fleet.
o Applications: Payment, Access, Loyalty, Reader.
o Launched Target POS (Providian made first transaction).
o Hypercom, Vital and National City teaming up for POS
o Pushing Loyalty as driver for merchant
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The Current State of the Market
MasterCard
o Citibank planned September 2001 launch of 4mcards
o Applications: e-cash, loyalty, e-ticketing
o Strong alliances, yet Multos-based.
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Loyalty and Smart Cards
Multi-ap functions are prime for loyalty, yet difficult to please the
whole market.
Closed environments are good examples and ripe for loyalty.
Will supply more security.
Market will not advance without merchant.
Have not proved usable functions are more superior than mag
stripe. What the industry is looking for is a gift card on steroids.
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Opportunities for Loyalty
Relationship management on the card
Multiple earning and redeeming
Individualized information and preferences
Points and programs held locally on card
Info storage capacity
Links to databases
Obstacles In Adoption
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Obstacles In Adoption
Infrastructure
Ease and convenience with Mag. Stripe
Cost of card and conversion
Retailer ROI
Cardholder confidentiality
Standardization
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Lessons Learned
Version and program control
Application segregation
Transaction processing changes
Card/program expiration dates
Replacement cards
Branding
Servicing
Information management / multiple databases
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A Quick Review
Frequent Flyer & Card Programs
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Frequent Flyer & Card Programs
Prior to 1980, FFPs Not Possible Airline Industry Regulation
Lack of Infrastructure
Dominated by Unsophisticated Offerings
Merchandise & Coupon Based
S&H Greenstamps Raleigh Cigarette Coupons
1981 Regulatory & Market Changes Give Birth To FFP
American invents frequent flyer miles
Loyalty Becomes Impossible Without A Planned Program
Hertz joins and subsequently drops, citing the high costs.
Later rejoins after dramatically losing market share without aFFP. Today Hertz belongs to 20 FFPs
After in-house Frequent-Stay Programs, hotels conclude thatthe greatest marketing benefits still come from the FFPs
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Frequent Flyer & Card Programs
"We didn't want an FFP. But it came to my attention thatFFPs were siphoning business travel away from us. We did itdefensively, and I think if we had not done that we wouldhave been terribly disadvantaged."
- Herb Kelleher, President, Southwest Airlines
First 20 Years Of FFP 9.77 Trillion Miles Accumulated
- Source: InsideFlyer Magazine 2001
1985 - Banks Team Up With Airlines
Co-branded Cards Wildly Successful
Average spend up to 10x higher
Active account rate up to 80 percent or higher
Attrition and acquisition costs decline
150,000 members in 1981 to 200,000,000 members in 2001
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Frequent Flyer & Card Programs
By 1991: All major airlines and banks established exclusiverelationships and Hundreds of credit card issuers locked out
1994: Virtual Airline is Born Generic Mile Programs
Miles by a different name:
Single Branded Miles vs. Co-branded Miles
Generic vs. Branded Points Non-Restrictive Points Any Airline In The World
How Generic Points Work:
Sold to Over 125 of the largest US Banks
Consumer Acceptance: fees $25 to $75
Spend Ranges: $8,000 to $22,500 a year Officially Sponsored by MasterCard
Amex plays Follow the Leader
$200 Billion + Spent on Enrolled Cards
No need to Co-brand with an airline partner
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Top Banks With Unrestricted Programs:
Capital One GE Capital
Travelers Bank
Direct Merchants
Bank One Wells Fargo
Household Bank
Town North
Citibank Household Credit
First USA Fleet
Morgan Stanley Dean
Witter
Chase Bank Charter One
MBNA
HSBC
Comerica Merrill Lynch
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Loyalty Learnings
71% of consumers if FFP said they wouldnt tradetheir frequent flyer benefits for lower airfares.
Source: Frequent Flier Magazine
The proven addition of miles can drive repeat
purchases and maximize customer lifetime value.Source: Hambrecht & Quist
Consumers charge about $3,200 a year on a typicalcredit card add miles and they spend more than
$18,000 a year.Source: Bank Rate Monitor
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Universal Mile + Network + Card
300 Miles 800 Miles250 Miles100 Miles 375 Miles300 Miles
$ 300 $ 300$250$ 100 $ 75$ 300
Gas & OilGrocery Electronics Trip TeleComRetail(online & offline)
+ + ++ +
The Network as a Catalyst for Increased Spend and Activation
Miles Earned Through Partners: 2,125Miles from Card: 1,325 +
Total Earning that Month: 3,450 +
PLUS all othercard purchases
outside thepartner network
$Purchases on
card at partnerretail locations
XYZ BANK
$1,325
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Universal Mile + Network + Card
$0
$100
$200
$300
$400
$500
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
$2,200
$2,400
IncreaseinMonthlyChargeVolu
me(in$Millions)
* Revenue figure based on 2.9% of gross charge volume in interchange and miscellaneous fees, plus 60% revolving balances at 13.9% annual interest.Average Monthly Spend
Incremental monthly revenue volume increases 400%+ & revenues increase $100 Million + a year.
Sample Card Issu er with 200,000 cards
IncreasedSpend
IncreasedActivation
IncreasedAcquisition
TOTAL
$ 4.0 M
$ 2.7 M
$ 1.9 M
$ 8.6M
$ 48.0 M
$ 32.8 M
$22.3 M
$ 103.1M
MonthlyRevenueIncrease
AnnualRevenueIncrease
EXAMPLE*
Incremental monthlycharge volume goes
from $72M to$314.2Man increase
of 430%
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Card & Mile Issues To Keep In Mind
Attainability Of The Program Member: LimitedEarnings Capability = Short-Term Loyalty & Interest
Single Partner, Stand Alone Programs: Even TopCustomers Cant Make For A Successful Program
It Requires A Network
Just Because They Carry Your Card Doesnt Mean
Youve Captured Their Heart: "The research shows
clearly that the existence of a loyalty card scheme is
not associated with a degree of loyalty in shoppinghabits." -Source: Customer Loyalty Today
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Trends Relationship Convergence
WirelessData
Availability
SecurityLoyalty
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Thank You For Your Time
Kim Resch, Founder and President
Creative Commerce Group, Inc.is dedicated to the support of theirclients needs and solutions. Each
client offers unique and specialchallenges, whether in technology,
in concept development, in speedto market or hardware to make ithappen. But through disciplinedproject management, we havehelped clients' launch newproducts successfully, time-and-time again.
Decision making around technical issues is expensive.
Think-tank atmospheres are vital, yet difficult and
expensive to implement in corporate America. Efficient
implementation is the key to success. It is not an
environment for a learning ground. Let us help with:Resources for the Emerging Commerce Industry
Smart Card and Magnetic Stripe Solutions
Hardware Equipment and Implementation
Stored Value Card Applications
Loyalty Strategy SpecialistProject Management Formula Methodlogically
636-861-9850 or [email protected]
www.CreativeCommerceGroup.com
Th k Y F Y Ti
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Thank You For Your Time
David Carrithers, Chief Bee KeeperProviding consulting services for business individuals looking for honestand straightforward counseling, coaching & implementation of business
solutions that improve profit performance and loyalty with employees,
channels andcustomers. www.BusinessHive.com
707-484-3620 or e-mail [email protected]
Generating Results Through:
Targeted Individualized Coaching Program
Improved Customer & Employee Loyalty
Enhanced Product, Market & Business Development Results
Profitable Brainstorming & Product Creation
Faster & More Accurate Product & Business Launch Management
Unbiased Incentive Program Assessment & Support
Dynamic Organizational Development