Bank credit card rates will begin to trickle upward next month in the wake of the Federal Open Market Committee (FOMA) decision to raise short-term rates by 25 basis points (bps). It is likely credit card rates in the first quarter will return to 2010 levels.
U.S. Purchase Dollar Volume (PDV) for Visa and MasterCard (credit + debit) in the third quarter (3Q/15) grew at an annual rate (YOY) of 9.2%. Visa U.S. payment card (credit + debit) PDV for 3Q/15 was up 9.7%. MasterCard U.S. payment card (credit + debit) PDV for 3Q/15 was up 7.8%.
Profits (after tax) among the nation’s big 6 U.S. credit card issuers declined 3.3% in the third quarter (3Q/15), compared to one year ago (YOY) but, rose 4.3% sequentially (QOQ).
Australian credit card gross dollar volume (GDV) rose by 1.0% year-on-year (YOY) in October. Purchase dollar volume (PDV) increased 1.2% YOY and cash dollar volume (CDV) declined 4.0% YOY in October.
Visa and MasterCard international card cash dollar volume (CDV) for the third quarter (3Q/15) posted $709 billion, compared to $722 billion in 2Q/15 and $811 billion one-year ago. However, the nominal year-on-year (YOY) change is meaningless.
While demand for funding by SME’s (small mid-sized enterprises) is down, new research reveals an increase in access from alternative business financing options. Bank loan financing currently has only a 35% financing success rate and is driving alternative sources.
The Consumer Financial Protection Bureau has been on a recent tear: hitting a small-dollar lender for illegal debt collection practices; warning colleges to improve disclosure of school-sponsored credit card agreements; and an upcoming proposal to regulate payday-type loans with more severity.
Citi Retail Services has inked a multi-year renewal agreement with ExxonMobil for its consumer and commercial credit card relationship. The agreement with ExxonMobil is the eighth contract renewal Citi Retail Services has announced since the beginning of 2014.
The Bancorp Finetics Studio video series, which features one-on-one conversations with more than 30 of the financial services industry’s most influential and innovative executives, has released its second installment.
CardFlash News Briefs: PANGEA (D2D); PAYSWAG (Cloud); SEAMLESS (JYSK); and PERK (ZTE).
Atlanta-based Global Payments has inked a definitive agreement to acquire NJ-based Heartland Payment Systems.
The cash-and-stock transaction is valued around $4.3 billion.
Visa and MasterCard U.S. gross (open) payment card accounts (GAC) for the third quarter (3Q/15) grew 7.4% year-on-year (YOY). U.S. credit GAC was up 7.3% YOY and U.S. debit GAC increased 7.5% YOY in 3Q/15.