JPMorgan Chase & Co reported net income for the 4th Quarter 2013 at $5.3 billion. This was a slight increase from 4th Q 2012 which was reported at $5.2 billion. Revenue for the quarter was down 1% to $24 billion compared to the same period in 2012. Legal costs associated with a number of issues was noted as a reason for the drop in profits. Adjusted for the significant items disclosed in our earnings press releases this quarter and in the fourth quarter of 2012, EPS would have been $1.40 this year compared with $1.35 in the prior year and ROTCE would have been 15% this year, flat compared with the prior year.
Bank of America Merchant Services will offer the First Data “OfferWise” solution to all eligible merchants’ 650,000 U.S. locations through 2Go Media’s iDeals Marketing Platform, which integrated the solution into its iDeals Marketing Platform bringing offer creation, distribution and redemption for merchants. The integration of the First Data OfferWise solution through an API developed by CardSpring will allow Bank of America Merchant Services customers to electronically attach offers such as deals, eCoupons and loyalty programs to one or more of a consumer’s payment cards or mobile wallets to enable automatic redemption of the offer at the point of sale. The customer simply swipes the card at the merchant’s point of sale and the offer is redeemed.
Discover ranks 49th on IDG’s Computerworld 2012 list of the “100 Best Places to Work in Information Technology,” marking the 10th straight year the company has been recognized for its workplace environment. Computerworld’s 19th annual list ranks the top 100 workplaces for technology professionals based on salary, benefits, diversity, career development and training, among other factors. Discover’s commitment to striking a healthy work/life balance, including offering employees 25 days of paid vacation and sick time and performance-based incentive plans, helped secure this year’s top 50 ranking. IT employees can also participate in a “hoteling” telework program, enabling them to connect to the company network and work from home.
MasterCard cardholders now have the ability to earn valuable rewards and special offers when making qualifying purchases with their linked MasterCard card at participating retailers across the United States. MasterCard and shopkick partnered to give cardholders the ability to earn “kicks” proprietary reward currency when they link their card to shopkick’s Buy & Collect program and make qualifying purchases, which can be redeemed for gift cards, music downloads, movie tickets or other offers. Consumers will receive 250 bonus kicks for each MasterCard card they link to the Buy & Collect program, for a limited time during the kickoff period.
Heartland Payment Systems, one of the nation’s largest payment processors, announced GAAP net income of $13.8 million, or $0.34 per share, for the three months ended March 31, 2012. Adjusted Net Income and Adjusted Earnings per Share were $15.7 million and $0.39, respectively, for the quarter ended March 31, 2012, compared to Adjusted Net Income…
Navy Federal Credit Union and Cartera Commerce card-linked marketing solutions released a new card-linked offer program for Navy Federal members to boost rewards for shopping. Navy Federal launched its new Member Mall to more than one million members. Members can now earn extra cash back or rewards points — up to 15 times their normal rewards earning — with online shopping offers linked to their Navy Federal credit card accounts. The program is run on Cartera’s card-linked offer platform, which powers card-linked offers for four of the top five financial institutions, four of the top five airlines and more than 150 million U.S. consumers. The Cartera platform is a fully hosted, managed service allowing Navy Federal to pull merchant offers from Cartera’s exclusive Offer Cloud, link them to card member accounts, display them via multiple marketing channels, track and confirm purchases, and deliver rewards.
Visa and shopkick mobile app that rewards consumers for walking into stores, announced cardholders can now qualify for valuable rewards just for paying with Visa. Shopkick now lets mobile users earn more redeemable “kicks” by choosing to link their eligible Visa debit or credit card into its new Buy & Collect program and then making qualifying purchases at participating shopkick merchants with the linked card. Shopkick users have the option to earn more rewards while shopping in their favorite stores and merchants can increase sales and better measure the effectiveness of their location-based marketing efforts. The relationship with shopkick’s Buy & Collect program aligns with Visa’s ongoing commitment to deliver greater value to financial institutions and merchants, while enhancing the consumer shopping experience.
Many businesses will face substantial rate hikes instead of rate reductions under a new law set to go into effect soon, according to merchant rights advocate Robert Livingstone, president and founder of IdealCost.com, a consulting firm that reduces credit card acceptance fees for merchants without switching their existing provider. The Durbin Amendment of the Dodd-Frank Act is supposed to substantially reduce card acceptance fees for merchants across America, according to IdealCost.com. Visa and MasterCard have already announced historically high credit card processing rate increases to begin in October. Credit card processors acting as brokers between Visa/MasterCard and businesses will receive the rate reduction, many of which intend to pocket the difference.
Cartera Commerce card-linked marketing solutions and Barclaycard US payments business of Barclays in the United States forged a strategic partnership to reward more than three million Barclaycard customers for their shopping purchases. Barclaycard is launching “Barclaycard RewardsBoost,” a new shopping platform for select co-branded card programs including Barnes & Noble, Carnival Cruise Lines, L.L.Bean, NFL and Travelocity — leveraging Cartera’s award-winning loyalty shopping platform and large multi-channel merchant network. The new program will allow these cardholders to earn discounts, rewards, miles and cash back for purchases at participating in-store, local and online retailers.
JPMorgan Chase reported fourth-quarter 2010 net income of $4.8 billion, an increase of 47% compared with $3.3 billion for the fourth quarter of 2009 while full-year 2010 net income was $17.4 billion, an increase of 48% compared with $11.7 billion for the prior year. For the Card Services division, net income was $1.3 billion, compared with a net loss of $306 million in the prior year, and total merchant processing volume was $127.2 billion on 5.6 billion total transactions processed. Meanwhile, end-of-period loans were $137.7 billion, a decrease of $25.7 billion, or 16%, from the prior year and an increase of $1.2 billion, or 1%, from the prior quarter. Average loans were $135.6 billion, a decrease by 17% of $27.6 billion from the prior year and $4.5 billion from the prior quarter. With this, net revenue was $4.2 billion, a decrease of $902 million, or 18%, from the prior year. The provision for credit losses was $671 million, compared with $4.2 billion in the prior year and $1.6 billion in the prior quarter, thanks to lower net charge-offs and a reduction of $2.0 billion to the allowance for loan losses due to lower estimated losses.
Cartera Commerce multi-channel shopping solutions and merchant-funded rewards, in light of the announcement from the Federal Reserve to create a 12-cent cap on the fees merchants must pay banks for processing debit card transactions, is touting its product as an alternative revenue stream and rewards funding model to offset said interchange fees. With this, Cartera Commerce is offering performance-based pricing with no fixed fees and no requirement for banks to fund offers; a world-class merchant network, including more than 1,000 national, regional and local merchants; support for statement credits, cash back, points, miles, coupons and POS discounts; web portals, email, mobile and browser apps marketing; and its Statement Offers solution for targeted, highly relevant discount and cash back offers within a consumer’s online banking statement. This comes after agreements were met in the spring with key conferees on the Wall Street reform bill regarding the Durbin amendment to regulate interchange fees, which passed the Senate 64-33. Modifications to the Durbin interchange amendment regulated interchange fees associated with debit or prepaid cards issued by large banks on behalf of government-administered payment programs; defines âinterchange transaction feeâ to include debit card fees that are established by a payment card network; and provides that the Fed cannot regulate network fees. It also provides card networks can no longer prevent merchants from offering customers a discount to use one card network vs. another and card networks cannot prevent merchants from offering a discount for one form of payment vs. another (cash vs. check vs. credit vs. debit). The law has been met with such scrutiny as that from ABA president/ CEO, having disclosed; “The American Bankers Association is very disappointed that the Senate voted in favor of the amendment that requires the Federal Reserve to promulgate rules limiting the fees merchants pay for accepting debit cards for payment…..The amendment completely upends the existing payment system, and retailers who benefit greatly from the system will pay almost nothing for the costs of maintaining and improving it. Retailers benefit greatly from debit and credit cards in increased consumer spending, lower personnel costs, and protection against fraud. Just picture a gas station where numerous customer transactions are taking place, are paid for with cards at the pump, and only one employee is needed to maintain the register inside the building. The so-called exemption for community banks and credit unions will be completely ineffectual, as both groups stated before the vote” (Cardflash Library, 2010/06/22, 2010/05/17).
American Express has been ranked #1 in customer satisfaction among 10 of the largest card issuers in the U.S., according to the fourth annual nationwide study by J.D. Power and Associates. This study was based on customer interaction, billing and payment process, credit card terms, rewards programs, benefits and services, and problem resolution. American Express credits its investments in recent years, focusing on customer service with the âRelationship Careâ approach for building and strengthening customer relationships. Also, services such as the Amex “Money Manager” fee free online service that helps Cardmembers manage their finances and rewards accounts; “Card with Custom Limits” feature providing Cardmembers the ability to set spending limits for Additional Cards on their account; and mobile payments, allowing users to pay their American Express bill on the Apple iPhone and iPod Touch, are all being credited with the JD Power ranking. Additionally, a more engaged workforce has led to greater productivity, lower employee attrition, and higher customer satisfaction.