Magazine article American Banker

Florida's Honor Card Network Expanding over State Lines

Magazine article American Banker

Florida's Honor Card Network Expanding over State Lines

Article excerpt

NEW ORLEANS -- The Florida Interchange Group Inc., which operates the switch for the Honor electronic banking network, has opened its membership to insured depository institutions in states that have reciprocal banking legislation with Florida.

John P. Landgraf, executive vice president of the Orlando-based switch known as FIG, disclosed the step in a talk here to the electronic banking product strategies conference of the Bank Marketing Association. Reciprocal states number 12 and stretch as far north as the District of Columbia.

"We will be launching an aggressive marketing program to attract membership in the Honor network in those states," Mr. Landgraf said.

The Honor network is the largest electronic banking system in Florida and Mr. Landgraf said its point-of-sale business is growing dramatically without promotion.

He said FIG got into POS only last September and had 369 POS terminals in use in January. By this week, he said, they numbered 988 and they are being added at the rate of 33 to 40 a week.

Merchants number 180 and two of them -- Mobil Oil Corp. and 7-Eleven convenience stores -- have 300 terminals each, leaving the remaining 300 or so scattered among the other 178 merchants. "What I don't see enough of is the importance of the mom-and-pop operation in a maturing point-of-sale environment," Mr. Landgraf said.

POS transactions with the Honor card are running about 12,500 a month.

Princing for participating institutions in reciprocal states will be dramatically different than in Florida, Mr. Landgraf said.

Florida members pay a membership fee of $50 per $1 million of deposits with a minimum $4,000, plus an annual fee of $20 per $1 million of deposits with a minimum $2,000.

Members from reciprocal states will pay a membership fee of only $5 per $1 million in deposits and an annual fee of $10 per $1 million in deposits, with a $2,000 minimum in both instances. …

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