The new CvvPlus real-time, dual-factor, out-of-band, fraud prevention solution authenticates cardholders conducting Card-Not-Present (CNP) transactions. This is the first product from FL-based Tender Armor.
Fundtech global transaction banking solutions announced Ecobank Pan-African bank launched Fundtech’s “Global CASHplus” cash management system across its network of affiliates covering 30 countries throughout Africa. Ecobank has ambitious growth objectives for its corporate cash management business, as its client base is increasingly requiring access to cross-border transactions and online payment systems. Ecobank made the strategic decision to utilize Fundtech’s “Global CASHplus” electronic platform, supporting the growth in transactional volumes of its corporate clients. The bank has implemented the Payments, Receivables and Balance reporting modules of Global CASHplus.
Down the long bumpy road that was April 2010, consumer confidence was shaken, but in the end remained flat on the Discover U.S. Spending Monitor. The discrepancy in the final numbers from March to April was practically nil, dropping only from 89.5 to 89.4. This was no indication, however, of variation throughout the month. From April 6 to April 20 alone, there was a near 10-point increase in consumers who felt the economy was worsening, from 46% to 56%, while the number of consumers rating their personal finances as poor shot from 20%-28%. Meanwhile, those who said their finances were getting worse exploded from 46 to 55% in conjunction with skyrocketing gas prices.
But when all was said and done, those feeling economic conditions were getting worse stood at 51%-the same as in March- as 18% feel conditions are the same, down 2 points from the previous month, and 26% feel the economy is improving, a 1-point increase from March. To blame: Gas Prices. This is clear to the 57% planning to change their summer vacation because of unmanageable fuel costs while 68% are forced to cut back on discretionary spending. Also throughout the month of April, only 34% described their finances as good or excellent, while 64% say their finances are fair or poor, 49% of whom disclosed they are only worsening-compared to the 48% in March. Only 21% say their finances are improving, compared to 22% in March, for a telling sign of the times.
Contrary to growing figures for promising growth across the board, IE. falling unemployment and credit card chargeoffs, consumer confidence is continuing to slip, down for the second straight month in March thanks to high gas prices on budding pessimism. This, as indicated on the Discover U.S. Spending Monitor, also shows the majority of consumers rate the economy as poor at 53%, practically unchanged from February. Having fallen 2.6 points to 89.5 to below 90 for the first time since December 2010, the Discover U.S. Spending Monitor reflected 35% rate the economy as fair and just 10% rate the economy as good or excellent.
Furthermore, the majority of Americans at 51% feel economic conditions are getting worse, a 7-point jump from February and the highest number since September 2010. Twenty percent of respondents feel conditions are the same, while 25 percent of the population feels the economy is improving. Only Thirty-two percent rate their finances as good or excellent, down 3 points from February; 42% rate their finances as fair; and 24% say their finances are poor. Overall, 33 percent of consumers expect to spend more in the month ahead, an 8-point rise from February while a majority of consumers at 55% are planning to spend more on gas, groceries and their mortgages, up 14 points from February and the highest since July 2008.
Canadian Tire Financial Services reported that its net managed credit
card receivables for the second quarter increased 19.8% year-over-year
to $3.1 billion. The average credit card balance in the second quarter
hit $1661, up 20% from one-year ago, largely driven by its “Options
MasterCard” product. For the prior quarter, the average credit card
balance came in at $1609. Financial Services’ pre-tax earnings of $43.4
million were up 9.6% from the second quarter of 2004. Canadian Tire’s
MasterCard receivables represent approximately 91% of CTFS’ total
managed portfolio. CTFS’ retail credit card and personal loan
receivables make up the remaining nine percent of the portfolio. CTFS,
in conjunction with BMO Bank of Montreal, markets the “Commercial Link
MasterCard” while the receivables are owned and managed by BMO Bank of
Montreal. For complete details on Canadian Tire Financial Services’
second quarter performance, visit CardData (www.carddata.com)
Stock market analysts are encouraging investors to hold onto stocks next week and not react in fear. Analysts are pointing to past declines in market indexes that occurred in reaction to events, that reversed themselves within days or weeks. The NAIC says immediately following the Japanese attack on Pearl Harbor in 1941, the DJIA dipped 5.9%, but it recovered to its previous level within two days. The Dow dropped 6.5% following Iraq’s 1990 invasion of Kuwait but recovered within two days. One of the largest market reactions to a national crisis, a 17.9% drop in the Dow following announcement of the 1973 Arab oil embargo, also was short-lived. Credit card stocks may be impacted by lower charge volume but there is evidence that more consumers are revolving balances this year than last year. This is the first time since 1991 that the number of revolvers has increased, according to CardData’s mid-year issuer data. Rising interest revenue and declining merchant revenue could be off-setting trends that stabilize credit card related stocks for the remainder of 2001.
In its strongest attack on pending bankruptcy reform to-date, the Consumer Federation of America charged yesterday that card issuers have aggressively stepped up credit card marketing and credit extension while endorsing and promoting tighter bankruptcy laws. The CFA based its charges on the growth in credit card solicitations and credit lines. According to the CFA report entitled: “Recent Trends in Bank Credit Card Marketing and Indebtedness”, credit card solicitations have doubled and unused credit lines have tripled over the past five years. The CFA also pointed to the surge in sub-prime credit card loans as an example of “irresponsible lending”. MasterCard responded to the charges by saying all economic trends continue to support the ability of American consumers to manage their credit card spending and debt appropriately. MasterCard’s chief economist cited figures showing 40% of Americans pay-off card balances each month and 97% of cardholders make card payments on-time. VISA reportedly cited the drop-off in direct mail response rates as off-setting the growth in the number of credit card solicitations. The industry funded Bankruptcy Issues Council also piled on yesterday saying it is “ironic” the CFA opposes needs-based bankruptcy reform while 68% of Americans support the changes.