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Bank's customers will be provided online alternative to traditional international trade settlement mechanisms
NEW YORK AND DETROIT, June 12, 2000 - TradeCard, Inc., an online trade transaction settlement company for importers and exporters, and Comerica, the 24th largest banking company in the U.S., today jointly announced an alliance to market and service TradeCard's innovative international fulfillment and payment product to Comerica's clients.
Comerica will offer TradeCard's services to its customers as an alternative to current international trade payment mechanisms. Using TradeCard, Comerica's customers will be able to initiate, negotiate, fulfill and settle international trade transactions online, 24 hours a day, seven days a week.
"While many banks are still trying to figure out their e-business strategies, Comerica is implementing a cutting-edge solution for international trade," said Kurt Cavano, Chairman and CEO of TradeCard. "Comerica's leadership in the business-to-business sector will benefit Comerica's customers as they do business internationally."
TradeCard's patented compliance engine checks that actual shipment data matches the original purchase contract data agreed upon by the buyer and seller. Once compliance is met or discrepancies have been negotiated online, the seller receives an assurance of payment, and funds are electronically transferred from the buyer's account to the seller's account. In contrast to current trade settlement methods that require buyers and sellers to operate offline and use traditional paper-based and labor-intensive methods, the TradeCard system enables them to complete their transactions online through a secure network.
In addition to benefiting current and prospective customers by providing an online international trade fulfillment and payment alternative that is less labor-intensive than traditional trade payment mechanisms, Comerica anticipates that the bank's trade-related revenue and operating processes will ultimately be enhanced as more companies adopt TradeCard.
"We need to provide best-of-breed e-business solutions to our customers," said Warren Shifferd, Senior Vice President of International Trade Services for Comerica Bank. "TradeCard is helping to redefine global trade by making it easier, faster, and less expensive. If we can assist our customers in this process, it helps all of us."
In addition to offering TradeCard services to its clients, Comerica will also provide first level customer service support to companies using TradeCard in North America.
How TradeCard Works
In order to use TradeCard's patented transaction system, buyers and sellers must first become approved TradeCard members by completing an online application.
To begin a transaction, the buyer creates a purchase order containing the transaction's terms and conditions. This purchase order can be created directly on the TradeCard system, or sent via electronic file from a company's purchase order system or an online marketplace.
TradeCard stores the purchase order on its secure, proprietary database, and notifies the seller that an order is pending. The seller can either approve the purchase order electronically, or can negotiate the order with the buyer online. Once both parties have agreed on the terms of the purchase order, it becomes a purchase contract.
At the time of shipment, the seller populates an invoice and packing list on the TradeCard system using either TradeCard's pre-populating tools, or by means of an electronic file. At this point the seller may obtain assurance of payment from a third party credit insurer. If the order requires inspection, the inspecting party submits an inspection certificate. At the time of delivery a third party logistics provider submits the incoterm-appropriate proof-of-delivery documents.
At any time during this fulfillment phase, either party may submit a request for amendment to the purchase order that will only be effective upon the electronic approval of both parties.
Once all the required documents have been submitted, TradeCard's patented compliance engine automatically verifies that all required terms of the transaction are met by comparing the data of the purchase order with the commercial invoice, packing list and proof of delivery documents. If discrepancies are noted, the buyer and seller can resolve them online.
Once discrepancies, if any, are resolved and compliance is met, a designated global payment provider electronically transfers funds from the buyer's financial institution to the seller's financial institution, settling the transaction. If necessary, foreign currency exchange services can also be obtained from the global payment provider. TradeCard is an open network; buyers and sellers are not required to open new accounts with other financial institutions.
In addition to these core features, TradeCard members can contract for inspection services, and will be able to contract for pre-and post export financing, cargo insurance and other value-added services.
About TradeCard
TradeCard is a business-to-business e-commerce infrastructure that enables buyers and sellers to conduct and settle international trade transactions securely over the Internet. By aggregating buyers, sellers and disparate trade service providers, our solution automates and streamlines existing international trade transaction processes, which are complex, paper-based, time-consuming and expensive. Our objective is to provide a secure, reliable, cost-effective and easy-to-use solution for conducting and settling international trade transactions.
TradeCard, Inc. is headquartered in New York City with offices in Hong Kong, and can be found on the World Wide Web at http://www.tradecard.com.
About Comerica
Comerica Incorporated (NYSE:CMA) is a multi-state financial services provider headquartered in Detroit, with banking subsidiaries in Michigan, California and Texas, banking operations in Florida, and businesses in several other states. Comerica also operates banking subsidiaries in Canada and Mexico, as well as a trade processing company in Hong Kong. Comerica is the 24th largest bank holding company in the U.S., a Fortune 500 company with $40 billion in assets, and is among the top 200 banking companies in the world, based on assets. Comerica is the nation's 12th largest commercial business lender and the 12th largest small business lender. Comerica can be found on the World Wide Web at www.comerica.com.
