Fledgling Cartel Network Wins Endorsement, 4 More Customers

The Cartel Network has made more progress toward becoming an independent force in transaction processing.

Integrated Delivery Technologies Corp., the Buffalo-based company that began promoting Cartel in late 1994 as an alternative to bank-owned credit card and funds transfer networks, reported a trade association endorsement and the signing of four financial institutions and a supermarket chain.

The endorsement - from the Community Bankers Association of New York State - is especially significant in that it makes Cartel "network of choice" for up to 120 member banks, said Integrated Delivery Technologies chairman Joseph E. Wolfson.

The deal came just ahead of Cartel's official launch Tuesday. Including access to automated teller machines operated in 4,460 locations by Cartel's data processor, Affiliated Computer Services of Dallas, the upstart network will be capable of handling transactions through 10,500 terminals at retailing locations in 44 states.

Those locations include 130 supermarkets in eight eastern and northeastern states of the Maine-based Hannaford Bros. Co.'s Shop 'n Save chain. Hannaford Bros. is the 14th and latest retail chain on Cartel's roster, joining such others as Albertson's, Kroger, Target, Wal-Mart, Price Chopper, Tops, and Wegmans.

The last three are supermarkets concentrated in the upstate New York areas that are Cartel's base. Mr. Wolfson's experience and contacts there date back more than 20 years to the start of the Metroteller electronic banking system.

Metroteller was created by the defunct Empire Savings Bank in Buffalo and sold in the late 1980s to Electronic Payment Services Inc.'s MAC system. MAC is one of the regional networking giants whose pricing policies have caused a minor revolt among retailers and community bankers - a sentiment Mr. Wolfson has tried to tap into by providing a competing gateway service.

Mr. Wolfson's latest financial institution signings around Buffalo and Rochester were: Unit #1 Federal Credit Union, which serves General Motors employees; Niagara County Federal Credit Union; First National Bank of Rochester; and Cortland (N.Y.) Savings Bank.

Earlier this year, Cartel signed Lockport (N.Y.) Savings Bank and Savings Bank of the Finger Lakes in Geneva, N.Y. It also has a reciprocity agreement to make Cartel available to 350 financial institution customers of Affiliated Computer Services.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER