The national credit card delinquency rate is down 0.83% in 3Q/10, down nearly 9.8% since 2Q/10 and down 24.6% since the year ago period. TransUnion’s analysis estimates that more than eight million consumers stopped actively using bank-issued, general purpose credit cards over the past year thanks to charge-offs in the higher risk segments of the population, more conservative spending in the low-risk segments, and significant efforts by consumers across the board to maintain the health of their credit card relationships as a financial cushion. Credit card delinquency was highest in Nevada at 1.28%, followed by Florida at 1.09% and Mississippi with 1.06%. Meanwhile, according to TransUnion analysis, also shows the lowest credit card delinquency rates were found in North Dakota with 0.48%, South Dakota with 0.53% and Nebraska at 0.56%. Credit card delinquency was up in the District of Columbia by 19.67% and Mississippi with a 1.92% increase while Alaska (-19.2 percent) and Nebraska (-17.6 percent) saw the largest quarter-over-quarter drop in delinquency. The national average credit card borrower debt edged upward for the first time in six quarters by 0.28% to $4,964 from the previous quarter’s $4,951, but down 11.54% compared to the third quarter of 2009 ($5,612).
PlaySpan has kicked off its “UltimatePay Mobile” virtual currency and micropayments monetization widget for leading smartphone platforms. The “UltimatePay” widget tracks virtual currency balance and provides each user the ability to top-up and view transaction history. The monetization solution at launch for HTML5 also provides a payment widget that allows for easy integration by developers and the ability to set pricing in the widget with a complete PCI Level 1 and SAS-70 Compliant full service Monetization-As-A-Service (MaaS) platform.
Sheetz convenience stores is now offering its customers a Tempo-powered rewards debit card that links to consumers’ existing checking accounts. The Sheetz “Rewards Debit Cards” are issued by Tempo partner First Bank & Trust of Brookings, SD, part of Fishback Financial Corporation, and can be used everywhere Discover cards are accepted. Shoppers using the Sheetz Rewards Debit Card for purchases at Sheetz locations will earn discounts on gasoline purchases, as well as cash-back for purchases at millions of other retailers nationwide. Sheetz is using Tempo’s Web-based debit card platform to offer its own branded debit cards and provide a web portal for consumers to apply for and activate cards, as well as track purchases and rewards. Every time customers use the Sheetz Rewards Debit Card at a Sheetz location they will earn a discount of 2 cents per gallon off at the pump on their next gasoline purchase. Tempo-enabled debit cards are affinity partner-branded, generate valuable cardholder rewards, and can be used for online and offline purchases and ATM withdrawals.
Capital One Canada is set to acquire and service GE Capital’s “Hudson’s Bay Company” credit card portfolio and related assets, with outstanding receivables of approximately $1.3 billion. The acquisition will include the transfer of approximately 400 GE employees directly involved in the Hudson’s Bay Company’s financial services business to Capital One. These employees will continue to work on the Hudson’s Bay Company credit card portfolio at locations in Toronto and Montreal. The transaction was approved by the board of directors of Capital One and GE Capital is subject to customary regulatory approvals and notifications and is expected to close in the first quarter of 2011. GE Capital Retail Consumer Finance offers customized private label credit card programs to more than two dozen partners and has nearly $30 billion in assets and over 40 million account holders.
To shine the spotlight on air travel frustrations, such as lost baggage and flight delays, and help ease quell the frustrations these travelers experience on a daily basis, Capital One Financial has kicked off the Capital One Venture “Most Frustrated Traveler” Sweepstakes, in partnership with AOL’s “Gadling” travel blog. Additionally, among the 74% of credit card holders frustrated with their travel rewards credit cards, 46% are annoyed with the points/miles required to obtain an airline ticket; 31% are irate at number of points/miles they earn for each transaction on their card; and 15% have had enough of blackout dates. Until November 5 at Gadling.com, readers are invited to visit http://www.gadling.com/2010/10/25/are-you-americas-most-frustrated-traveler/ and submit a brief essay detailing their most frustrating travel moment. Five winners will be selected at random to win hassle-free trips and travel accessories. The grand prize winner will receive a free three day-two night trip for two to the destination of their choosing, including roundtrip airfare (within the continental United States). Second prize winner will receive a hassle-free travel essentials pack consisting of items such as a Garmin GPS and Bose noise cancelling headphones. Three runner-up winners will each receive a Marriott TravelCard to help rest and recuperate.
Menusoft Systems Digital Dining restaurant management and POS software systems has selected the “Socket SoMo 650” handheld computer from Socket Mobile productivity solutions as one of their recommended devices for use with their Handheld POS solution. The SoMo 650 allows implementing a handheld POS solution affordable for restaurants with as few as four to five wait staff the opportunity to benefit from the investment in tableside ordering and payment processing technology.
PlaySpan monetization solutions for digital goods, social networks, online games and videos has received Level 1 certification of PCI-DSS for its Monetization-as-a-Service Platform from the PCI Security Standards Council. PlaySpan also achieved SAS 70 (Statement on Auditing Standards No. 70), one of the most stringent auditing standards for service companies. SAS 70 was developed by the American Institute of Certified Public Accountants (AICPA) for service providers that wish to demonstrate a high level of control effectiveness to independent auditors.
PlaySpan monetization solutions for digital goods, social networks, online games and videos has received certification of Level-1 PCI-DSS for its “Monetization-as-a-Service” (MaaS) Platform from the PCI Security Standards Council. In addition, PlaySpan achieved SAS 70 (Statement on Auditing Standards No. 70), one of the most stringent auditing standards for service companies. SAS 70 was developed by the American Institute of Certified Public Accountants (AICPA) for service providers that wish to demonstrate a high level of control effectiveness to independent auditors. It has become one of the most widely recognized auditing standards for service companies.
Capital One Bank has launched its “EndangeredSavers.com” interactive Web site for people seeking money-saving tips and strategies (www.endangeredsavers.com). Offering easy-to-use online tools that can be shared with their entire network of friends and family, “EndangeredSavers.com” encourages responsible savings with such features as the “Saver Quiz” to determine the users’ classification as a ‘High Roller,’ a ‘Cost Cruncher’ or a ‘Cash Coach’ based on their feelings and behaviors towards money in everyday life situations. Additionally, the site offers ‘Sound Advice’ from personal finance experts on topics ranging from saving for a first home to creative ideas for dating on a budget; “Vital $tats” providing statistics on American’s financial habits may surprise people; and “Endangered Savers” videos, challenging consumers to a series of money-related obstacles and trivia. As added incentive to keep saving, Capital One Bank is giving away prizes valued up to $5,000 to visitors of the Web site who enter the sweepstakes and to those who share the Saver Quiz, Sound Advice, Vital $tats or one of the videos with a friend.
Bloomingdale’s and American Express have partnered to launch the Citi-issued “Bloomingdale’s American Express Card.” Offering Cardholders “Insider” rewards and services when shopping at Bloomingdale’s, as well as brand new dining, travel and retail offers when shopping outside of Bloomingdale’s, the “Bloomingdale’s American Express Card” offers the “Daily Wish” program from American Express, which add up to $25 reward certificates for rewards-earners. The new Card also provides access to new emergency assistance referral services; Insider Services with free shipping to a single address for purchases of $150 or more on bloomingdales.com; savings certificates worth up to $925 when shopping at Bloomingdale’s between 9/10 and 9/19; a complimentary coach companion airfare voucher from one of 19 participating airlines when spending $500 at Bloomingdale’s on the Bloomingdale’s American Express Card during the opening weekend of Bloomingdale’s HOT event; 15% back from the total bill at participating restaurants from September 6 through December 31, 2010; double rewards; and Bloomingdale’s “Premium Travel Services” with thousands of dollars in savings.
The national credit card delinquency rate of bankcard borrowers 90 days or more delinquent on at least one credit card decreased to 0.92% in 2Q/10, down 17.1% over the previous quarter and down 21.3% over the year ago period. Over the past two years, the closest the delinquency rate has been nearest this figure was in 2Q/08 when it was 1.04%. Credit card delinquency was still highest in Nevada at 1.50%, although its down from the last quarter figure of 1.79%, when the State still led the nation. Nevada is followed by Florida (1.24%) and Arizona (1.11%). The lowest credit card delinquency rates were found in North Dakota (0.54%), South Dakota (0.55%) and the District of Columbia (0.61%). These findings, according to Transunion research, reflects only Alaska showed an increase in credit card delinquency, up 7.4%, while the largest quarter-over-quarter drop in delinquency was found in the District of Columbia, down -28.2%, and Delaware, down -23%. Additional findings show average credit card borrower debt was down since the previous quarter by 4.1% to $4,951 from $5,165. This is down 13.4% from the year ago figure of $5,719 and is lowest average national balance in 8 years.
90+ DAYS DELINQUENCY
Source: TransUnion Trend Data
The number of small business owners disclosing economic conditions for their business was improving has dropped to 32% in 2Q/10 from the 39% seen in the year ago period. The Capital One Small Business Banking 2Q/10 “Small Business Barometer” suggest U.S. small businesses are experiencing stable or improved financial performance, but an increased number of businesses surveyed have grown more cautious about near-term plans for adding employees and spending on business development and investments. The Barometer also showed 43% of small businesses report stable conditions and 23% say economic conditions are getting worse. Additionally, 37% report their firmâs financial position is better than it was one year ago, consistent with last quarter but up 12 percentage points year-over-year; 43% report stable financial performance; 19% say that finances have worsened relative to one year ago; 25% believe the Gulf oil spill disaster will have a moderate to significant impact on their business and 17% say that itâs too early for them to predict whether or not their business will be affected.