Credit card volume took a surprising dip in July as higher gasoline prices and POS credit card surcharges apparently impacted consumers. Dollar volume declined 5% and transaction volume declined 4% from the prior month. Compared to one-year ago, transaction volume was up a mere 3% and dollar volume grew only 4%. Credit card debt remained flat at $A31.4 billion, compared to the prior month. One-year ago credit card debt stood at A$27.7 billion. Gross dollar volume on credit card and charge cards in July was A$13.5 billion. Based on data from the Reserve Bank of Australia, consumers charged A$12.6 billion in purchases on credit/charge cards during July, compared to A$12.1 billion one-year ago. Card credit limits reached A$87.0 billion at the end of July, compared to A$77.4 billion for July 2004. There are currently 12.1 million credit card and charge card accounts in Australia, compared to 11.3 million one-year ago.
Ohio-based National City has introduced “ANA Nursing Rewards+ VISA,” the first and only credit card in the U.S. that offers nurses both personal and professional rewards and the only card program designed by nurses for nurses. The ANA Nursing Rewards+ credit card offers reward points for every dollar in purchases with a choice of personal rewards. Benefits include online account access, auto rental insurance, roadside assistance, common carrier travel accident insurance, and an extended warranty program. National City Corporation is one of the nation’s largest financial holding companies. The ANA advances the nursing profession by fostering high standards of nursing practice, promoting the economic and general welfare of nurses in the workplace, projecting a positive and realistic view of nursing and by lobbying the Congress and regulatory agencies on health care issues affecting nurses and the public.
Providian’s securitized charge-off ratio dipped another 42 basis points last month but its ABS delinquency rate moved up by 4 basis points, following eight consecutive monthly declines through June. Charge-offs have declined sharply for the past five months and are down about 400 basis points compared to one-year ago. For securitized receivables, Providian’s charge-off rate decreased to 8.40% for August from 8.82% in July. One-year ago ABS charge-offs were 12.39%. Delinquency, on a securitized basis, increased to 6.71% in August from 6.67% in the prior month, and down from 8.37% in August 2004. On a managed basis, charge-offs dropped to 7.10%, compared to 7.42% in July and 10.09% one-year ago. Delinquency, on a managed basis was flat quarter-to-quarter at 4.96%, and down sharply year-over-year to 6.24%. Providian previously reported that managed loans outstanding at the end of the second quarter were $18.6 billion, up 8.1% year-over-year. For complete details on Providian’s latest performance, visit CardData (www.carddata.com). (CF Library 7/22/05)
PROVIDIAN MONTHLY ABS METRICS
Month Charge-Offs Delinquency
Aug 04 12.39% 8.37%
Sep 04 12.45% 8.30%
Oct 04 12.11% 8.48%
Nov 04 12.14% 8.27%
Dec 04 11.73% 8.06%
Jan 05 11.75% 8.01%
Feb 05 11.03% 7.75%
Mar 05 11.18% 7.23%
Apr 05 10.84% 6.95%
May 05 10.28% 6.49%
Jun 05 9.52% 6.48%
Jul 05 8.82% 6.67%
Aug 05: 8.40% 6.71%
Source: CardData(R) (www.carddata.com)
MBNA’s credit card outstandings rose for the third straight month to $98.5 billion, thanks to an aggressive 0% interest rate campaign. The managed delinquency ratio for credit cards edged down by seven basis points to 4.08% in August after remaining flat for four consecutive months. The charge-off rate also declined by 15 basis points to 4.34%, marking its fourth consecutive monthly decline. MBNA’s managed credit card outstandings increased $800 million in August. MBNA recently reported that U.S. card loans grew from $74.8 billion in 1Q/05 to $75.0 billion in 2Q/05 but remain 8% lower than one-year ago. MBNA’s managed charge-off ratio for July was 4.49%, compared to 4.50% for June, 4.77% for May and 4.52% for August 2004. In July 2004, the delinquency ratio stood at 4.00%. The high last year was 4.49%. For complete details on MBNA’s second quarter results and monthly metrics, visit CardData ([www.carddata.com]).
MBNA CONSUMER CREDIT CARD SNAPSHOT
Month Outstandings Charge-offs Delinquency
Aug 04 $ 99.7b 4.52% 4.01%
Sep 04 $ 98.8b 4.22% 4.15%
Oct 04 $ 98.5b 4.36% 4.18%
Nov 04 $ 99.9b 4.33% 4.21%
Dec 04 $101.9b 4.12% 4.20%
Jan 05 $ 98.6b 4.46% 4.34%
Feb 05 $ 96.9b 4.27% 4.50%
Mar 05 $ 96.1b 4.29% 4.35%
Apr 05 $ 95.9b 4.34% 4.16%
May 05 $ 95.0b 4.77% 4.16%
Jun 05 $ 96.1b 4.50% 4.16%
Jul 05 $ 96.7b 4.49% 4.15%
Aug 05 $ 98.5b 4.34% 4.08%
Source: CardData (www.carddata.com)
Global Payments announced the first “ATM Cash @dvantage” transaction which enables gaming customers to access cash from their bank accounts by using Global Payments’ proprietary “VIP Preferred” card at casino ATMs. VIP LightSpeed is an Internet-accessible, PC-based platform that provides gaming establishments with a host of cash access services. Global Payments Inc. is a provider of electronic transaction processing services.
San Diego-based GreenZap reports that it has grown its sales force to over 2,300 Internet marketers, and is expected to reach over 5,000 by year’s end. The firm also yesterday announced that it is adding VISA and MasterCard capabilities for processing account upgrades and funding online retail purchases. Earlier this week, GreenZap reported it signed up more than 300,000 members for its online payment service within the first 60 days of launch. The firm says its flat fee pricing and rewards program are its clear advantages over rivals. GreenZap offers two types of accounts, a basic “GreenZap” account and an upgraded “Gold” account. The “Gold” account offers reduced transaction fees, increased rewards and a “GreenZap Stored Value MasterCard/VISA” for off-line spending. (CF Library 6/2/05; 9/13/05)
Florida-based Intellidyn is offering free list suppression services to help direct marketers respond in compliance and with sensitivity to the Hurricane Katrina disaster. Intellidyn has compiled comprehensive and up-to-date transaction, credit, demographic and behavioral databases, and provides in-depth data management, analytic services, list services, database marketing and strategic services.
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California-based No Borders has signed a deal to utilize and resell Security Bank’s “EmpaSys” services, including prepaid debit card loading and electronic bill payment. No Borders provides a debit and stored value card platform offered to residents of developing countries and to recent immigrants. Transaction Management is an electronic payment services company providing electronic transaction services and walk-in bill payment services to a nationwide market.
A new report projects that prepaid debit and stored value card transactions will grow to $257 billion by 2009, up from $63 billion in 2004 in the USA. Boston-based Aite Group says that by 2009, prepaid processors will generate $1.8 billion in revenues, up from nearly $500 million in 2005. By 2009, prepaid processing will be as large an industry as the debit card and ATM processing industry was in 2004. Aite says prepaid debit card (or open loop prepaid card) transactions will amount to about $150 billion transactions by 2009, up from $12.8 billion in 2004. The Aite report reviews the market opportunity offered by prepaid cards, the regulatory framework, the competitive landscape of processors and non-bank marketers and profiles 15 competitors.
Alliance Data Systems has signed five-year agreements with Carter Lumber and its 240 stores in 10 states to provide integrated commercial credit card and consumer private label credit card programs, as well as payment processing services. Alliance Data Systems is a leading provider of transaction services, credit services and marketing services, managing over 105 million consumer relationships. Carter Lumber operates 240 stores in 10 states and has annual sales of $675 million.
First Data has hired David Dibble, formerly the managing director in the JPMorgan Chase technology organization, as CTO. As CTO, Dibble will be responsible for all IT development activities and his team will focus on identifying, creating and implementing technologies that drive customer solutions. At JPMorgan Chase, he was responsible for defining and implementing a global data center strategy as well as critical system integration projects associated with major acquisitions. First Data Corp. is a provider of electronic commerce and payment solutions for businesses and consumers worldwide, serving 4.1 million merchant locations, 1,400 card issuers and millions of consumers.