A new survey has found that 84% of small business owners are concerned about fraud in connection to their business finances. The “Foil Fraud” survey, released by SunTrust Banks and the National Small Business Association also showed seven out of 10 small business owners are more concerned about fraud now than they were a year ago. Nearly six in 10 small business owners believe they currently are unarmed to fight fraud. Although online identity theft topped the list of concerns (65), check fraud (45%) and credit card fraud (52%) were the most frequently experienced types of fraud. Of the 82% of small business owners stating they wanted banks to offer more help in fighting against fraud, 46% were either unsure or reported that their bank does not offer online fraud detection services. The survey included more than 500 small business owners in the Southeast.
MasterCard this morning announced an organizational realignment broadening some executive responsibilities, hiring a new senior executive and beginning the transition process for the retirement of its COO, Alan Heuer, at the end of 2008. Heuer has been named to the newly created position of Vice Chairman. Gary Flood, former President, Global Account Management, has been named to the newly created position of President, Products and Services which includes MasterCard Advisors, Marketing and Product. Walt Macnee, former President, Americas, who has been named President, Global Markets. Chris McWilton, who has served as CFO has been named President, Global Accounts. All of the above changes are effective today. Martina Hund-Mejean, formerly with Tyco International, will succeed McWilton as CFO effective November 15th. In addition to the above MasterCard’s Executive Committee will also include: W. Roy Dunbar, President, Global Technology & Operations; Noah Hanft, General Counsel and Corporate Secretary; and, Michael Michl, Chief Administrative Officer.
Online Resources announced that Fifth Third Bancorp has signed a multi-year referral agreement to make Online Resources’ biller-direct payment service “CollectPay” available to its commercial treasury management clients. Under the agreement, Fifth Third will offer “CollectPay” to its commercial clients, which include telecommunications, cable, healthcare, utility, receivables management, public funds, and other businesses. The service will complement the Bank’s suite of cash management services, by enabling clients to offer their customers multiple electronic payment options, and minimize their payment processing costs. Online Resources serves over 10 million end-users and processes $100 billion in bill payments annually. Fifth Third Bancorp is a diversified financial services company with $104 billion in assets and operates 18 affiliates with 1,181 full-service Banking Centers.
Capital One’s third quarter U.S. credit card profits increased nearly 22% year-on-year and about 4% sequentially due to revenue growth and reductions in non-interest expenses. Purchase volume in the U.S. was flat while U.S. managed card outstandings decreased 3% from the year-ago quarter. The number of U.S. card accounts declined by about 100,000 during the quarter, and remained down from the year-on-year figure of 37.5 million accounts. U.S. card net income was $560.8 million, compared to $538.3 million in the prior quarter and $461.6 million for 3Q/06. U.S. managed card outstandings were $49.6 billion for 3Q/07 compared to $51.1 billion one-year ago and $50.0 billion in the previous quarter. Cap One says loan growth was affected by a reduction in marketing of prime customers and teaser rate offers, and a $600 million portfolio sale in the first quarter. Purchase volume hit $21.5 billion for 3Q/07, compared to $21.8 billion for 2Q/07 and $21.4 billion for 3Q/06. The managed delinquency rate (30+ days) for U.S. credit cards was 4.46% for the third quarter, compared to 3.41% for 2Q/07 and 3.53% for the third quarter of 2006. The net charge-off rate for U.S. credit cards was 4.13% for the third quarter, compared to 3.73% for the second quarter and 3.39% one-year ago. For complete details on Capital One’s third quarter performance, visit CardData ([www.carddata.com]).
COF U.S. CARD NET INCOME
3Q/06: $461.6 million
4Q/06: $337.2 million
1Q/07: $495.3 million
2Q/07: $538.3 million
3Q/07: $560.8 million
Source: CardData (www.carddata.com)
Capital One has introduced a no-fee/”no-hassle” rewards card in response to a recent survey suggesting such criteria is popular. The recent survey, sponsored by Capital One, shows that only 10% of Canadian consumers were satisfied with their current rewards card. Moreover, 42% of the participants were bothered by annual fees and 42% were frustrated with expiry dates on credit card rewards programs. In addition, 53% would prefer a cash back reward, 26% prefer gift certificates, 24% would be happy with merchandise, and 39% prefer travel rewards. Therefore, Capital One’s rewards card also offers one reward mile for every dollar spent, a “welcome” bonus of 5,000 miles with first purchase, no limit on the rewards customers can earn, no expiration on rewards for the life of your account, and no blackout dates or seat restrictions among other consumer- friendly features.
The third annual survey of America’s IQ on personal finance shows that Americans understand financial management basics, but that significant gaps still exist in their knowledge. The national survey of 1,003 men and women, conducted by consumer advocacy group Consumer Action and Capital One Financial finds that many Americans are missing important savings opportunities, and don’t take simple steps to protect themselves from crimes like identity theft. The 2007 survey found that: the majority of Americans (64%) consider themselves highly or very knowledgeable when it comes to personal finance; a strong majority of Americans use budgets to stay on top of their daily finances – 64% reported using budgets regularly; most Americans (53%) are still using traditional passbook savings accounts for their savings; and one in five Americans (22%) claim they do not know the interest rate on their mortgage.
Capital One has introduced a no-fee/”no-hassle” rewards card in response
to a recent survey suggesting such criteria is popular. The recent survey,
sponsored by Capital One, shows that only 10% of Canadian consumers
were satisfied with their current rewards card. Moreover, 42% of the
participants were bothered by annual fees and 42% were frustrated with
expiry dates on credit card rewards programs. In addition, 53% would
prefer a cash back reward, 26% prefer gift certificates, 24% would be
happy with merchandise, and 39% prefer travel rewards. Therefore,
Capital One’s rewards card also offers one reward mile for every dollar
spent, a “welcome” bonus of 5,000 miles with first purchase, no limit on
rewards customers can earn, no expiration on rewards for the life of your
account, and no blackout dates or seat restrictions among other consumer-
MasterCard’s “PayPass” continues to exert leadership and momentum in the global contactless payment arena. Over the past twelve months the number of “PayPass” cards and devices has soared by 60%, rising to 16 million at mid-year. This month in the U.S., Harvard University Employees CU became the first credit union to offer “PayPass”; PETCO Animal Supplies announced it will accept “PayPass” in all of its 900 stores; MO-based Central Bancompany became the first community bank holding company to issue “PayPass” cards; and Einstein Noah Restaurant Group, Einstein Brother’s Bagels and Noah’s Bagels, announced that they will begin accepting contactless payments at their over 400 locations. Last month, MasterCard and VeriFone announced that New York City taxis will begin accepting “PayPass,” with more than 5,000 NYC taxis anticipated to accept PayPass by December and MasterCard and USA Technologies announced the installation of a record number of cashless payment terminals, up to 7,500 into Coca-Cola vending machines in several markets nationwide. Internationally, “PayPass” trials and roll-outs are currently underway in 18 countries, including Australia, Canada, France, Indonesia, Italy, Japan, Korea, Lebanon, Malaysia, Mexico, the Philippines, Spain, Switzerland, Taiwan, Thailand, Turkey, the United Arab Emirates, and the U.K.
According to a recent survey by Credit Canada for its “Credit Education
Week Canada”, 90% of Canadians “feel” more in debt than 5 years ago,
yet 53% have no household budget for debt alleviation. What is even more
surprising is that 80% are unaware of what their credit score is and 26%
ignore the effect of interest rate fluctuation when granted a loan or
These alarming statistics reflect a great need for consumer education in
school of debt management and planning for the future. In response, Credit
Canada and Capital One Financial Corporation are teaming up to co-sponsor
the “Credit Education Week Canada” to build awareness on personal finance.
In doing so, representatives of the companies will tour schools to empower
people with the tools and knowledge to address the country’s fast growing
debt issues. This tour will consist of University Campus fairs in the
area with presentations and essay contests. Specific topics will address
of youth and money, identity theft/fraud, retirement planning and
Capital One has introduced “Capital One Rewards Money Market”, a money market account that offers consumer rewards miles every month based on a savings balance. The new “Capital One Rewards Money Market” account has a competitive interest rate currently at 4.65 percent Annual Percentage Yield (APY), and customers earn one mile for every $20 of average balance per month, including interest. Plus consumers can enjoy the same ‘no hassle’ rewards benefits Capital One has offered for years, including no blackout dates, no seat restrictions, no advance booking or Saturday night stay requirements, and flights on any airline.
TX-based Woodforest National Bank signed an agreement with the PULSE EFT Association extending the bank’s participation in the PULSE ATM/debit network. The agreement ensures continued access to Woodforest’s debit cardholders to PULSE’s nearly 260,000 ATMs, as well as point-of-sale (POS) terminals across the U.S. PULSE will also continue to provide Woodforest with signature debit processing and gateway connections to other networks. Woodforest National Bank is a $2.4 billion bank with more than 350 branches located in Texas, Illinois, Indiana, Maryland, North Carolina, Ohio, Pennsylvania, Virginia and West Virginia. PULSE is owned by Discover Financial Services.
Capital One announced that it will close origination operations at its GreenPoint Mortgage. The company estimated that the total after-tax charge associated with this closure will be approximately $860 million, or $2.15 per share, the vast majority of which is expected to be incurred in 2007. Approximately $650 million of these expenses result from the non-cash write-down of goodwill associated with the acquisition of GreenPoint Mortgage as part of the North Fork Bancorporation in December 2006. The remaining $210 million of after-tax charges includes approximately $100 million in after-tax restructuring charges associated with severance benefits and facilities closure, and approximately $110 million after-tax valuation adjustments related to ongoing operations in the third quarter. As a result of the expected charges, the company is revising 2007 earnings guidance down by $2.15 per share (diluted). The company now expects 2007 earnings of approximately $5.00 per share (diluted). Without the charges related to the mortgage banking business, the company would have maintained its existing earnings guidance.