More major purchase shoppers report starting and ending their shopping journey online this year and spending less time (63 days on average vs. 68 days in 2015) on the path to purchase than in the past. Empowered with research, reviews and real-time discount information, shoppers making purchases of $500 or more are more decisive and…
A new consumer survey finds Millennials tend to use cash, a debit card and checks more often ($5,200) and charge 22% less ($3,300) than the average consumer. Millennials used debit cards, cash and checks for 50% of their overall monthly spend, and credit for only 33%. According to TD Bank’s Consumer Spending Index, on average,…
More than a fifth of all holiday shopping is now occurring online, based on transaction data from 1.3 million U.S. merchant locations. First Data’s Holiday 2015 SpendTrend Report revealed retail sales are up 3.3% for the full holiday season. The sales growth was a marginal increase over 2014’s year-over-year growth of 3.2%. First Data says…
Pre-recession average credit card interest rates hovered around 16%- not far off the current 14.98% average- before dropping to a rock bottom 12.64% back in 2010. Rates have been on their way up since the June average of 14.83% and now sit at record highs. As for the months between, February rates dropped like a…
Fleet fuel card specialist Wright Express reported revenue for the third quarter declined 20% to $86.6 million. However, higher-than-expected MasterCard purchase volumes, fuel prices and late fee income helped mitigate the impact from the weak economy. Total MasterCard purchase volume grew 31% to $876 million, compared to 3Q/08. But, average expenditure per payment processing transaction decreased 35% from the third quarter of 2008 to $52.50. Total fuel transactions processed declined 7% from the third quarter of 2008 to 67.1 million. Payment processing transactions decreased 4% to 53.0 million and transaction processing transactions decreased 17% to 14.1 million. Wright Express says new business again helped offset the contraction in transactions from its existing customer base. For complete details on Wright Express’ third quarter performance visit CardData (www.carddata.com).
Fuel card specialist Wright Express reports that revenue for the second quarter decreased 29% to $78.6 million. Net income for the quarter was $93.2 million, compared with a net loss of $24.4 million for 2Q/08. Profits were driven by reduced credit losses. Total MasterCard purchase volume grew 24% to $771 million. Total fuel transactions processed declined 9% from the second quarter of last year to 66.1 million. Payment processing transactions decreased 8% to 51.6 million, and transaction processing transactions decreased 14% to 14.5 million. The Company says average expenditure per payment processing transaction decreased 40% from the second quarter of 2008 to $47.37. For the third quarter, the Company expects revenue in the range of $78 million to $83 million. For complete details on Wright Express’ second quarter performance visit CardData (www.carddata.com).
TX-based Cardtronics reported that fourth quarter revenues of $116.0 million, were up 55% from 4Q/06. Also, the average number of transacting ATMs increased by 25%; withdrawal transactions per ATM per month increased by 33%, and ATM operating gross profit per ATM per month increased by 18% in 4Q/07. This year-over-year increase was primarily attributable to the 7-Eleven ATM Transaction, which resulted in $36.1 million of incremental revenues during the fourth quarter of 2007. For complete details on Cardtronic’s latest performance visit CardData ([www.carddata.com][1]).
[1]: http://www.carddata.com
The recent avalanche in personal bankruptcy filings is forcing some credit card-backed securities to begin trapping cash in spread accounts. Bank of America and First National Bank of Omaha are already doing so. Chase, Citibank, Metris and National City are also expected to join the list. FitchRatings says bankruptcy filings will cause at least a 30% increase in U.S. credit card charge-offs over the next three to four months and charge-offs could surpass 7.5% from its current level of 5.72% in the near term. However, a more severe scenario where past due balances rise 25% would result in the charge-off index growing to nearly 8%, before falling back closer to the 12-month average. Fitch noted that issuers may take steps to lessen the bankruptcy impact and minimize the likelihood of hitting spread account triggers by adding new or unseasoned receivables.
The contraction of the CT-based People’s Bank domestic credit card portfolio appears to have leveled off, although average receivables decreased 20% or $597 million during 2001. People’s also reported yesterday that charge-offs and delinquencies moderated during the fourth quarter. Net charge-offs for 4Q/01 were 7.36%, compared to 7.58% for 3Q01, and 4.62% for 4Q00. Delinquencies, as a percentage of quarter-end managed loans, were 4.08% compared to 4.19% for 3Q01 and 3.56% for 4Q00. People’s global portfolio dropped by $943 million, or 22% last year, primarily due to the sale of its U.K. portfolio. The U.K segment accounted for $405 million of the decline. People’s has about 2.5 million accounts according to CardData. For complete details on People’s fourth quarter 2001 and prior performance visit CardData ([www.carddata.com][1]).
[1]: http://www.carddata.com
American Express was the fourth worst performing stock among the 30 “blue chip” companies in the ‘Dow Jones Industrial Average’ with a 34% decline in 2001. However, all of the credit card monoline stocks hit new lows after September 11, but most have recovered well. Metris/Direct Merchants Bank has rebounded by 90% while MBNA and Capital One are up nearly 50%. Providian has slowly stabilized, trading up 78% since the collapse of its stock following the 3Q/01 earnings report.
COMPANY 01-LOW 12/31 CHG
Metris $13.50 $25.71 +90%
Providian $ 2.00 $ 3.55 +78%
MBNA $23.43 $35.20 +50%
Capital One $36.40 $53.95 +48%
American Express $24.20 $35.69 +47%
NextCard $ 0.41 $ 0.52 +27%
Source: CardData (www.carddata.com)
Baltimore-based Creditrust has overhauled its internal processes and named a new President/COO in the wake of a misappropriation of $500,000 in corporate funds. The company, which specializes in debt collection and sub-prime credit card issuance, said it discovered in an audit that a former management employee misdirected $500,000 in corporate funds by submitting an unauthorized check request and then seeking to redirect those funds through Creditrust’s collection payment stream. The company said it has recovered all of the funds and that collections were not misstated which therefore had no impact on the company’s financial results. Creditrust indicated it discovered the wrongdoing in October but did not disclose the matter until the company’s 8-K filing with the Securities and Exchange Commission on Wednesday. Creditrust’s share price dropped 21% yesterday to close at approx. $11.50 per share. The stock peaked at more than $34 per share early this year. Creditrust’s shares dropped about 30% in October following rumors of trouble. In response to yesterday’s SEC filing, Standard & Poor’s withdrew its ‘Above Average’ ranking on Creditrust Corp. and removed the company from S&P’s’s ‘Approved Servicer List’. Creditrust says the withdrawal of the optional service rating, while unfortunate, is not a default under any of Creditrust’s bond issues, and has no impact on the company’s bonds. Meanwhile Creditrust named Barry Dumser President and COO yesterday.
ExTerra Credit Recovery, Inc., a leading purchaser of non-performing credit card debt, announced Friday Standard & Poor’s Rating Agency has formally ranked the Company as an ‘Average’ loan collector. ExTerra is one of only eight loan collectors listed by the rating agency and approved as an Asset-backed Servicer.
“Above Average is the second highest ranking granted by Standard & Poor’s. Given ExTerra’s relatively short time in operation – just over two years – we feel this is a significant achievement for the Company,” said Suzanne Sheuerman, ExTerra’s president and chief executive officer.
ExTerra Credit Recovery ([http://www.exterra.com][1]), specializes in the purchase and recovery of non-performing credit card debt. Founded in 1997 by a team of banking and financial services executives, ExTerra currently owns and manages more than $450 million in credit card receivables. The Company has three call center facilities -Walnut Creek, California (east San Francisco Bay Area), Youngstown, Ohio, and Baton Rouge, Louisiana.
[1]: http://www.exterra.com/