About CoreCard

CoreCard Corporation (CoreCard) engages primarily in the business of providing technology solutions and processing services to the financial technology and services market, commonly referred to as the FinTech (financial transaction solutions and services) industry. The company’s operations are conducted through its affiliate companies located in Romania, India, the United Arab Emirates and Colombia, as well as the corporate office in Norcross, Georgia, which provides significant administrative, human resources and executive management support. CoreCard’s foreign subsidiaries are CoreCard SRL in Romania, CoreCard Software Pvt Ltd in India, CoreCard Colombia SAS in Colombia, and CoreCard Software DMCC in the United Arab Emirates, that perform software development and testing, as well as processing operations support. CoreCard designs, develops, and markets a comprehensive suite of software solutions to program managers, accounts receivable businesses, financial institutions, retailers and processors to manage their credit and debit cards, prepaid cards, private label cards, fleet cards, buy now pay later programs, loyalty programs and accounts receivable and loan transactions. CoreCard utilizes the same core software solution in its processing operations as it sells to licensees, although licensees typically request a variety of customizations which may or may not deviate from the core software solution offering. The CoreCard software solutions allow companies to offer any type of transacting account or card issuing program, as well as installment and revolving loans, to set up and maintain account data, to record advances and payments, to assess fees, interest and other charges, to resolve disputes and chargebacks, to manage collections of accounts receivable, to generate reports and to settle transactions with financial institutions and network schemes. The CoreCard proprietary software applications are based on CoreCard’s core financial transaction processing platform (CoreENGINE) and address the unique requirements of customers and program managers that issue or process: Credit Cards/Loans: Revolving or non-revolving credit issued to consumer or business accounts (with or without a physical card) that typically involve interest, fees, settlement, collections, etc. Within this market, CoreCard offers software specifically tailored to handle private label cards, network branded (i.e., MasterCard, VISA, American Express or Discover) bank cards, fleet cards, loans of any type, or any other type of ‘system of record’ accounts receivable. Prepaid/Debit Cards: Pre-loaded funds drawn down for purchase or cash withdrawal typically involving a variety of fees but no interest. Numerous examples exist, including gift cards, loyalty/reward cards, health benefit cards, payroll and benefits disbursement, student aid disbursement, government assistance payments, corporate expense cards, transit cards and any other type of ‘system of record’ stored value accounts. The CoreCard software solutions allow customers to optimize their card account management systems, improve customer retention, lower operating costs and create greater market differentiation. The CoreCard solutions are feature-rich, have web interfaces, including a standard library of APIs and contain financial transaction processing solutions that allow customers to automate, streamline and optimize business processes associated with the set-up, administration, management and settlement of credit, prepaid and loan accounts, to process transactions, and to generate reports and statements for these accounts. The CoreCard product functionality includes embedded multi-lingual, multi-currency support, web-based interface, real-time processing, complex rules-based authorizations, account hierarchies, documented APIs for easy integration to the backend functionality and robust fee libraries. These features support customer-defined pricing and payment terms and allow CoreCard’s customers to create new and innovative card programs to differentiate themselves in the marketplace and improve customer retention. CoreCard offers a full array of card and account management software solutions, available either for in-house license or outsourced processing by CoreCard’s processing business (Processing Services) at the customer’s option. CoreCard also provides customers with a unique option to license the same CoreCard software that is used in the CoreCard processing environment and transfer it in-house for customer-controlled processing at a later date. License: CoreCard sells a software license to a customer who then runs the CoreCard software system, configured for the customer’s unique requirements, at a customer controlled location. It usually requires substantial additional resources from CoreCard to customize or operate the licensed software. CoreCard is de-emphasizing the license option. Processing Services: CoreCard offers processing services that allow customers to outsource their card processing requirements to CoreCard. CoreCard manages all aspects of the processing functions using its proprietary software configured for each processing customer. CoreCard processes prepaid cards and credit cards (private label and open loop/network) for a number of customers and anticipates steadily growing this business further in 2023 and future years. CoreCard has multiple secure processing data centers at third party locations, is certified as compliant with the Payment Card Industry (PCI) Data Security Standards and has an SOC 1 and SOC 2 independent audit report that can be relied on by its prepaid and credit processing customers. It has obtained certification from American Express, Discover, MasterCard, Visa, Star and Pulse. The company’s customer, Goldman Sachs Group, Inc., represented 75% of its consolidated revenues for the twelve months ended December 31, 2022. CoreCard has relationships with several financial institutions that are important for network certification, referrals for processing or program managers, and sponsoring prospective card programs. CoreCard has Program Manager capabilities in addition to processing services, which has allowed the company to gain additional experience and adding the potential for increased revenue, although it does not expect any significant revenue impact as a Program Manager in the near term. The CoreCard software platform and modules include CoreCREDIT, CoreENGINE, CoreISSUE, CoreFRAUD, CoreCOLLECT, CoreAPP, CoreMONEY and CoreACQUIRE. Using a proprietary, base transaction processing platform called CoreENGINE, the CoreCard application modules have been further enhanced to meet the specific requirements of different market segments; for instance, CoreISSUE is available in different versions tailored to the requirements for issuing prepaid cards, fleet cards, bank cards or private label cards/accounts, as well as accounts receivable management. In addition, CoreCard configures and/or customizes its robust base modules with additional or specific functionality to meet each customer’s requirements. The company has developed and licensed such products to customers in the prepaid, fleet, private label, retail and credit markets. As is typical of most software companies, CoreCard expects to continually enhance and upgrade its existing software solutions and to develop additional modules to meet changing customer and market requirements. As of December 31, 2022, CoreCard had focused its extensive development and limited sales activities on building a base of customers in each of its target markets, as well as putting in place the infrastructure and processes to be able to scale the business successfully, particularly for the Processing Services business. CoreCard typically sells its products directly to customers, often in competitive situations, with relatively long sales and implementation cycles. The company receives software license fees that vary depending upon the number of licensed users, number of accounts on the system, and the number of software modules licensed. The company also derives service revenue from implementation, customization, and annual maintenance and support contracts for its licensed software. CoreCard’s licensed software products are used by its customers to manage and process various credit, debit and prepaid card programs and there are a number of federal and state regulations governing the issuance of and the processing of financial transactions associated with such cards. As part of CoreCard’s processing business, CoreCard provides compliance-related services, including data and network security, customer identification screening and regular reporting, which enable its customers to be in compliance with applicable governmental regulations, including but not limited to the Bank Secrecy Act and Anti-Money Laundering regulations with final responsibility for compliance resting with the customer. Development Costs For the year ended December 31, 2022, the company spent $11.7 million on software development. Patents, Trademarks and Trade Secrets The company has one U.S. patent covering aspects of CoreCard’s core software platform. It has registered with the U.S. Patent and Trademark Office and several foreign jurisdictions various trademarks and service marks for its products. The company presently markets its products under trademarks and service marks, such as CoreCard, CoreENGINE, CoreISSUE, CoreCOLLECT, CoreMONEY and others. History The company was founded in 1973. It was incorporated in 1991. The company was formerly known as Intelligent Systems Corporation and changed its name to CoreCard Corporation in 2021.