DataCash, a MasterCard Company, partnered with digital agency Tangent Snowball, to offer their existing clients the benefits of DataCash’s payment gateway. Tangent Snowball offers a unique range of services including bespoke enterprise e-commerce, built upon their open-source framework ‘Oscar’. Oscar is built for flexibility and is used in production by Tata Group, PepsiCo and Carlsberg amongst others. The new partnership with DataCash combines the passion from both companies to provide industry leading technology for online retailers. The collaboration will offer Tangent Snowball clients an enhanced ecommerce service through the DataCash payment gateway enabling a seamless, secure and inclusive payment experience which can be used across multi-channel platforms for both medium and large merchants.
ElectraCard Services (ECS) electronic payments solutions made available prepackaged, functionally rich, high performance payment switch. The integrated solution meets the needs of financial institutions, local Independent Service Organizations (ISO), retailers and merchant processors and enables them to more quickly adapt to innovation in their markets. ECS ‘Payment in a Box’ bundles HP Integrity NonStop servers and electraSWITCH iTx series to deliver high reliability, extreme scalability and superior price performance. The integrated solution is based on the newly introduced HP Integrity NonStop NS2100 server, allowing customers who require a mission-critical application environment to extend the reliability of NonStop fundamentals at a lower price point.
HSBC Merchant Services launched its “Global Iris” online payment solution. Combining virtual payments with hosted and non-hosted payment pages, which merchants can select individually or as a suite, it gives them greater flexibility. The product has been launched in co-operation with Realex Payments. The virtual terminal allows a merchant to process an online transaction without having to see the customer’s card, for which details are taken over the phone. The merchant then inputs them securely and directly into the virtual online terminal. Also offered is a ‘Remote’ option, which allows the merchant to include an integrated payment page within their own website.
Increasing ATM fraud can cost banks and ATM service providers millions of pounds annually and damage their reputations, but TestLink offers ATM security upgrades in order to stay ahead of the ATM criminals. These include “PINGuard,” designed to protect customers’ pin numbers, ensuring privacy. It helps prevent possible “shoulder surfing” and hidden cameras from recording customers’ pin numbers – making ATM skimming harder for criminals. Also, “PINGuard” can be fitted without tools in 15- 30 minutes, with no need for costly engineering resources to access the inside of the ATM and fit the device. Additionally, the “Raminator” and “PINGuard” provide affordable ATM protection with PINGuard saving up to 80% against most anti-skimming devices.
Douglas MacIver has been promoted VP, Sales and Marketing with InfoTouch touch screen developer for Retail POS Software (POS). InfoTouch Corporation developed the first-to-market Retail Touch Screen POS Software in 1986, and has implemented and serviced thousands of Touch Screen Retail POS businesses over its 25 history. Based on proprietary market research, InfoTouch believes this decade is the start of the POS paradigm shift for retailers, similar to the shift experienced in hospitality POS over the last two decades.
Datacard Group secure ID and card personalization solutions has made available its latest “CardWizard” card issuance software version, 5.3, following extensive research and development. Building on the custom background selection, optimum user interface and reporting functions, enhanced security and multiple language support, “CardWizard 5.3” software integrates Datacard “Affina” smart card software to let issuers build cost-effective smart card development and personalization into their card issuing environments. The “Affina” software is compatible with various card and payment schemes and has been successfully implemented in over 200 central card production environments for EMV-compliant programs.
Sino Payments has executed a $100,000.00 line of credit note from the TAP Group for the TAP “ePayment Services” JV. According to the Hong Kong company registrar, 51% of the newly formed JV Company shares have been transferred to Sino Payments, Inc. TAP Group has already committed $20,000.00 USD of which $5,000 USD was received last week. Sino Payments and TAP Group completed the JV Agreement for TAP Group and Sino Payments to jointly pursue electronic payment processing projects for Asian stores throughout the Asian region.
The uptick of credit card delinquencies for U.S. credit card asset-backed securities is setting the stage for record charge-offs for 2010. However, gross yield, the measure of interest, fees and interchange revenue collected on outstanding balances, continued to increase reaching 20.21%. Fitch’s latest “Credit Card Performance Indexes,” which tracks the performance among most of the U.S. credit card-backed bonds, shows late payments rising to their highest levels in six months. Measured by Fitch’s 60+ day delinquency index, late payments rose 13 basis points in November to 4.54% following a similar increase last month. Charge-offs crept up to 10.68% from 10.09% in the prior month but remained inside of the record high of 11.52% set in September 2009. From 4Q/08 through 2Q/09, Fitch’s delinquency index rose 42% as the economic environment and employment situation worsened. Charge-offs subsequently peaked in 3Q/09 with Fitch’s index reaching 11.52% in September 2009 before receding in recent months. Monthly payment rates, a measure of how quickly consumers are paying off their card balances, fell to 17.64% from 18.57% last month. These MPRs are low compared to 2006 and 2007 when the MPR index routinely topped 20%, but are still strong compared to the average MPR of 16.00% since the inception of the index in 1991.
ABS 60+ DAY DELINQUENCY
Jan 09: 4.04%
Feb 09: 4.33%
Mar 09: 4.44%
Apr 09: 4.37%
May 09: 4.45%
Jun 09: 4.31%
Jul 09: 4.26%
Aug 09: 4.06%
Sep 09: 4.22%
Oct 09: 4.41%
Nov 09: 4.54%
About 30% of U.S. consumers plan to adjust this yearâs travel plans for Thanksgiving. Nineteen percent of the general population who traveled last year will be staying home in 2009. The findings come from the American Express “Spending & Saving Tracker” which indicates that consumers have not measurably changed their overall outlook on spending compared to last month but they are starting to open their wallets for the holiday season. Against the backdrop of high unemployment and a soft housing market, however, they expect to be more selective. As one might expect, consumers said they plan to spend significantly more over the next 30 days on travel, compared to last month (41% versus 33%). Nearly eight in ten of the affluent expect to spend more, or about the same, over the next 30 days on dining out (78%). Compared to last month, consumers expect to decrease spending in groceries (49% versus 40%), grooming (23% versus 16%) and tuition (19% versus 5%).
Credit card charge-offs are on track to hit the 14% to 15% level by the end of this year based on historical performance. The August ABS and managed credit card loan statistics are all showing double digit charge-offs for the first time during a seasonally down period. Fitch Ratings says the increase in charge-offs was widespread across the industry and reversed the one-month respite in the prior period. Index results also show late stage delinquencies improving for the third consecutive month and higher portfolio yields helping to offset the charge-off deterioration and maintain excess spread levels. As a result, charge-offs will remain elevated until there is an improvement in the unemployment rate and more meaningful declines in delinquencies. According to Moody’s “Credit Card Index” for U.S. ABS, the overall delinquency rate increased to 5.79% in August from 5.73% in July, and compared to the March peak of 6.40%. Charge-offs increased to 11.49% in August from 10.52% in July. CardData reports that managed charge-offs hit 10.49% for the first time in August.
2009 GENERAL PURPOSE CREDIT CARD LOSSES
Fitch Moody’s CardData*
Jan 7.40% 7.74% 6.95%
Feb 8.41% 8.24% 7.11%
Mar 8.89% 9.30% 8.67%
Apr 9.66% 9.97% 8.78%
May 10.44% 10.62% 9.51%
Jun 10.79% 10.76% 9.71%
Jul 10.55% 10.52% 9.59%
Aug 11.52% 11.40% 10.49%
*excludes American Express and Discover
Card industry analyst/investment banker R.K. Hammer has released a selection criteria that card programs can use to select better agent bank card issuing partners. 1. The RFP process must be all-inclusive, that is only one selection process by an outside third party â no additional process taking place simultaneously whereby one or more potential issuing partners is silently “exempt” from the RFP conditions. 2. Fourteen days is enough for any issuing bank to present their written expression of interest or letter of intent. 3. Present the current penetration level of cardholders compared to the universe of total customers in the Offering Memorandum. 4. Hold the issuing card provider to customer service level standards equal to or higher than presently enjoyed. 5. Any card department that “touches” your customers should have contractual service levels to be met, and reported monthly to you. 6. A form of risk/revenue sharing that was first popularized by affiliate and agent banks over 30 years ago is making a comeback: where the issuing bank and their agent bank programs allow some percentage of risk/reward sharing. 7. The extensiveness of monthly data reporting is another important factor which separates Best-in-Class from weaker performers. 8. Ask for two classifications of references: first, at least three agent banks of similar size to your opportunity; and second, three agent banks who have left their program, and the reasons why. Both types of references are needed to get a more complete picture of what doing business with the issuer will be like for you.
For the second consecutive month, credit card delinquencies breached
all-time highs according to the latest “Fitch Credit Card Index”
results. At January month end, the 60 plus day delinquency rate was
4.04%. Credit card issuers typically charge off receivables after 180
days of delinquency or within 60 days of a bankruptcy filing. This
month’s rise in delinquencies indicates that gross charge-offs, at 7.40%
as of January month end, are likely to rise significantly in the near
term. Fitch’s “Prime Credit Card Delinquency Index” posted its second
consecutive record high last month reaching 4.04% up from 3.75% in the
prior month. The index has surged more than 23% in the last three months
and the latest figures are 30% above historical averages. The index
measures the percentage of credit card receivables that were reported
more than 60 days past due through January.
90+ DAY DELINQUENCY
Aug 08: 3.12%
Sep 08: 3.13%
Oct 08: 3.25%
Nov 08: 3.75%
Dec 08: 3.28%
Jan 09: 4.04%
Source: CardData (www.carddata.com)