CO-OP Network Offers New Solution
ONTARIO, Calif.-The CO-OP Network said it has developed a solution for credit unions comply with the new requirement by MasterCard International that all ATMs meet Triple DES-data encryption standards-by April 2005.
CO-OP and its processor eFunds have worked with Pi Systems to develop a hardware solution that meets the new fraud protection standard.
The Triple DES technology will replace the Single DES system currently used by ATMs to protect PIN numbers from fraud.
Most ATMs will be able to be retrofitted with the new Pi Systems' product, called 3 DES FIX, CO-OP said.
EDS May Divest CU Processing Biz
PLANO, Texas-Electronic Data Systems, which trimmed its credit union operations last fall with the sale of its consumer network services to Fiserv, is looking to shed its credit union processing business in an effort to raise capital DS, the largest third-party processor of credit union transactions, has hired investment banker Greenhill & Co. to sell non-core assets and is now focusing on the credit union business, according to Wall Street sources.
The business, which provides data processing, Internet banking, bill paying and ATM and debit switching for more than 1,500 credit unions, could fetch as much as $500 million for the company. Mark Gilman, an EDS spokesman, said the company would not comment.
The company exited much of its credit union business last year when it sold its consumer network services operations, which includes several electronic funds transfer networks, to Fiserv for $320 million DS said last year it is looking to sell core assets in an effort to pare debt.
TNB Buys CU Card Portfolios
DALLAS-TNB Card Services has agreed to buy its first two credit union credit card portfolios, a market that has been dominated up to now by MBNA and InfiCorp.
TNB, a unit of credit union-owned Town North National Bank, said it agreed this week to acquire the $7-million card portfolio from St. Louis Community CU arlier, the firm acquired a $2-million portfolio from Spur CU, El Paso, Texas. TNB recently held an open house to celebrate the expansion of its Dallas headquarters, sparked partly by the growth of its card business, and now provides services for 400 financial institutions, most of them CUs.
Insiders Ordered To Repay Loans
BIRCH RUN TOWNSHIP, Mich.-Two former officials with Birch Run Area CU, merged into Credit Union Plus last September, were ordered by state regulators to repay $147,458 in loans they approved for themselves, and have been barred from the state credit union industry for five years.
The state Office of Financial and Insurance Services said that Harold Johnson, president of the tiny credit union, and his daughter, Sherri Hollerback, a member of the credit committee, overdrew their share draft accounts; and that Sheila DeBerardino, general manager, was negligent in allowing it go on.
Johnson and Hollerback were ordered to repay their loans of $27,620 and $119,838, respectively.
Willie Wonka And The Credit Union
SACRAMENTO, Calif.-In a page taken from the popular children's movie, "Willie Wonka and the Chocolate Factory," SAFE Credit Union is promoting its newest branch by hanging bags containing free candy bars on the doors of 8,000 area homes-with some of them holding gold coupons entitling the bearer to special prizes.
The gold coupons hidden in Wonka candy bars in the movie entitled bearers to free tours of the Wonka candy factory. SAFE is offering winners TVs, digital cameras, DVD players and other consumer goods.
Better Than A Toaster...
SUSANVILLE, Calif.-Kids taking out a new account in Lassen County FCU's Looney Toons Kids Club will get something better than a toaster-a chance to win a new bike. Kids who already have an account can qualify for the drawing by making a new deposit. The bike is on display in the credit union's lobby.