Top Card Issuers’ Loans Expand 6.5% in 2006

Credit card outstandings among the top five U.S. issuers, holding more than $575 billion in total card loans, grew by an average of 6.5% in the fourth quarter. The nation’s top issuers’ growth was led by American Express with Citigroup ranking at the bottom. AmEx posted a 17% increase in U.S. credit card loans hitting $53.6 billion at year-end 2006. Citi’s U.S. bank credit card outstandings dipped nearly 2% to $111.6 billion. However, Citi’s U.S. private label portfolio expanded by 16% last year. Bank of America and Chase, which includes some international cards, both gained more than 7% last year. BofA’s Card Services includes U.S. Consumer and Business Card, Unsecured Lending, International Card Operations and Merchant Services. Chase’s fourth quarter included 9 million accounts from the acquisition of the BP and Pier 1 Imports private label portfolios. For the latest fourth quarter portfolio figures, visit CardData ([][1])

ISSUER 4Q/06 3Q/06 4Q/05 Y/Y CHG
BofA $203.4 $194.9 $189.2 +7.5%
Chase $152.8 $143.8 $142.3 +7.4%
Citi $111.6 $110.3 $113.7 -1.8%
AmEx $ 53.8 $ 49.5 $ 46.0 +17.0%
Cap One $ 53.6 $ 51.1 $ 48.7 +10.0%
TOTAL $575.2 $549.6 $539.9 + 6.5%
* BofA & Chase include international;
Citi, AmEx and Cap One are U.S. only.
Source: CardData (


AirPlus Wins Best Expense Management Process Award

Airplus International was awarded with the “Best Expense Management
Process.” The company is a global leader in
business travel payment solutions. Airplus’ own software, AirPlus
Integrated Data and Acceptance(A.I.D.A.), is reflective of the companies’
payment solutions. A.I.D.A. enables the purchase of any travel service
with the AirPlus Company Account and automatically records all the
extensive additional data demanded by customers. AirPlus provides
customers with new payment options for travel on more than 200 airline
carriers and helps manage their company’s travel budgets. AirPlus has
about 30,000 corporate customers worldwide.

Advanta Q4 Business Card Outstandings Soar 39%

Business credit card specialist Advanta posted a 39% rise in managed outstandings during the fourth quarter to $5.21 billion. During the fourth quarter, the issuer opened 116,157 new business card accounts and ended the quarter with a record 1,126,083 gross accounts. Advanta’s Business Card unit earned net income of $17.0 million as compared to $20.7 million in the prior quarter, and $13.2 million for 4Q/05. Transaction volume increased 29% to $3.5 billion during the fourth quarter. Charge-offs, on averaged managed receivables, decreased from 3.41% in the third quarter to 3.40% for the third quarter but remain well below 4Q/05’s 6.68% figure. Over 30-day delinquencies on managed receivables dipped 12 basis points to 2.58% from the prior quarter. However, over 90-day delinquencies on managed receivables edged up by 2 basis points to 1.25%, compared to the third quarter of 2006. During the fourth quarter Advanta renewed its processing contract with First Data. For complete details on Advanta’s fourth quarter performance, visit CardData ([][1]).

Period Card Loans
4Q/05: $3.76 billion
1Q/06: $3.89 billion
2Q/06: $4.39 billion
3Q/06: $4.65 billion
4Q/06: $5.21 billion
Source: CardData (


VISA Deepens Ties with the RCP & CFSI

VISA USA has acquired the “What’s My Score” program which helps educate college students in financial matters. The national program was previously under the management of the Responsible Credit Partnership. RCP, which joined The Center for Financial Services Innovation on January 1st. RCP says it will continue its work with VISA and other significant stakeholders in the credit card sector to improve responsible use of credit cards on behalf of “new to credit” consumers. As part of its reorganization, it sought VISA as the new management for “What’s My Score.” In addition to the acquisition of certain intellectual property, VISA will expand its role on CFSI’s “Responsible Credit Roundtable,” which supports credit card issuers working to responsibly and profitably address both short- and long-term needs of new to credit consumers. There are currently 17.5 million college students in the U.S.

Experian’s New Head Of Planning And Design

Andy Hey has been appointed Experian’s new Head of Planning and Design.
Hey will design and manage the development of new products, leading a team
of over 90 people and will be based in Nottingham. Andy brings 20 years’
technology experience to the role. In addition to four years experience with
architecture and design at Boots, he spent 14 years working in financial
services at Accenture.

Wirecard Joins the ADP CardClear Network

Automatic Data Processing has acquired Wirecard AG through ADP’s
CardClear Global Network. This will allow for ADP’s 90-plus
international airlines to process payments and services using Wirecard.
This partnership enhances the service range of airlines seeking global
and regional acquiring solutions. The Wirecard AG software platform is
being used by more than 6,000 enterprises across the globe, including
dba, Gulf Air, HSE24 and QVC. ADP employs over 44,000 and has almost
600,000 customers worldwide. ADP’s clearing division is the Data
Processing Center for more than 80 BSPs in the world.

Ingenico Revenues Climb 17% in 2006 as Debt Declines

Terminal manufacturer Ingenico reported fourth quarter sales of 131 million euros, a 5.2% gain over 4Q/05. The Company says revenues were driven by strong sales Asia and Southern Europe while revenue from Latin America was virtually stable. For the full year revenues grew at a 17% pace. Ingenico also reported the start of a sharp decline in net debt as of December 31st, due to higher profit margins and greater control over working capital requirements. During the fourth quarter, Ingenico introduced “i6780,” the first color touch screen payment terminal with integrated tactile keypad to meet requirements for the visually impaired; teamed with Gilbarco Veeder-Root have joined to develop and deliver comprehensive integrated indoor and outdoor payment technologies that automate petroleum retail sites; and
received “Class B” certification on the “i7780,” “i5100” and “3010” PIN Pad from Chase Paymentech Solutions. During 2006, Ingenico developed its
business in prepaid card recharges, contactless and Near Field Communication payments. For complete details on Ingenico’s latest results visit CardData ( (CFI Library 10/2/06; 10/10/06; 11/13/06)

Diebold to Upgrade and Expand PNC ATMs

Diebold has been selected by PNC Bank as the bank’s single source vendor to upgrade hundreds of ATMs and to add new machines in 2007. The new ATMs will feature the “Intelligent Depository Module” (IDM) technology, a utility that allows checks to be deposited directly into the ATM, providing the customer with an image of the check on the receipt and the screen, elimating the need for a deposit envelope. These enhancements are part of a multimillion-dollar investment by PNC during the next two years to improve the advanced functionality of its ATM network. In 1992, PNC led the industry with the installation of Diebold’s first ATMs that featured “IDM” technology that displayed an image of a deposited check on the ATM screen.

FDC Acquires STV Specialist and Teams with RBG

First Data has acquired Size Technologies, a provider of loyalty, value and transaction marketing solutions. This acquisition will enable First Data to offer to its participating clients access to loyalty features and functionality including couponing, consumer messaging, product-based rewards, customer relationship management and campaign management tools which can be offered at the point of sale, through printed messaging, mobile phone messaging, via the Internet and automated voice response tools. The new program has first been implemented through a relationship with Royal Buying Group, a national organization that implements vendor programs for its member base of over 5,500 convenience store and petroleum locations.

Standard Chartered Offers Customer Card Protection

In partnership with Card Protection Plan, Standard Chartered Bank of
Malaysia will offer customers card protection for not only cards issued
by the bank, but also for other valuable documents in the event that a
wallet or purse is ever misplaced. However, the subscriber is required to
be a
credit, debit, or ATM cardholder. The two types of card protection
offered are an individual
plan at RM78 and a household plan at RM98 per year. The household plan
covers the cardholder and four other persons at the same billing
address. Standard Chartered is Malaysia’s oldest
bank and has a local network of 35 branches across Peninsula and East
With over 2,000 employees, Standard Chartered’ core business is in Consumer
Banking, Corporate and Institutional Banking and Treasury.

Atos To Continue Landesbank Contract

Atos Worldwide has extended its contract with Landesbank Berlin.
The contract reflects Atos’ five year commitment to processing
Landesbank’s entire card portfolio. The portfolio covers 1.7 million
active credit and private label cards. In extending the contract, both
partners are continuing their almost 20-year business relationship to
carry out innovative joint projects in the future. Atos Worldwide is a
company of Atos Origin and is an international information technology
services company. Atos’ annual revenues are EUR 5.5 billion and it
employs over 47,000 people in 40 countries. Landesbank Berlin is
headquartered in Berlin and is the banking market share leader with
close to 50% of the customers in the region and a market leader in the
German credit
card business.

StoreNext to Offer the Pay By Touch Service

StoreNext Retail Technologies and Pay By Touch have signed an agreement to market and distribute Pay By Touch’s biometric authentication and payment service to independent grocers. StoreNext’s dealer network will resell the Pay By Touch store-level hardware, software and interfaces to independent retailers in conjunction with StoreNext point-of-sale systems and provide ongoing service and support. Data and transactions from the independents’ POS systems are processed through StoreNext’s Connected Services suite of Internet-based store management applications. When checking out, shoppers touch a biometric sensor and enter a Personal Search number to authenticate their identity and link to their financial and loyalty accounts. More than 3.5 million members are using Pay By Touch in 3,000 stores across 44 states, the UK and Singapore.