P. Schoenfeld Asset Management, which holds more than 700,000 shares of VA-based TNS, is urging the TNS Board to actively pursue negotiations with a potential purchaser that had made a $20 buyout proposal.
VA-based Tier Technologies has completely redesigned its Web site to reflect its focus on electronic payments and services. Offering a vastly improved browsing experience, the new website permits clients, prospects, investors, recruits and the media to quickly and intuitively gather information about Tier’s transaction-based products and services. Tier Technologies, Inc. offers a diversified array of innovative financial transaction and business processing solutions.
RBS Lynk and Oberthur Card Systems have joined forces to offer prepaid cards to RBS clients. RBS Lynk is the U.S. payment processing division of The Royal Bank of Scotland Group (RBS Group), one of the world’s leading financial services companies and the third largest transaction acquirer in the world. Oberthur Card Systems is one of the world’s leading providers of card-based solutions, software and applications including SIM and multi-application smart cards as well as services ranging from consulting to personalization.
After posting a second quarter profit of more than $7 billion, Shell Oil announced it will distribute 200,000 $10 “Shell Gas Cards” in the its “Million Gallon Giveaway” which starts today. The promotion will run through October 1st and will give away more than $2 million in free fuel including six grand prizes of a lifetime supply of free gasoline. The “Giveaway” is part of the $30 million marketing campaign Shell launched in June. Participating Shell stations will hand out scratch-and-win game cards. The sweepstakes is void in Maryland, New Jersey, Virginia and Puerto Rico.
MasterCard has chosen 11 college students currently serving as Capitol Hill interns to manage a financial literacy campaign on their respective campuses during the 2006 fall semester. The Washington workshop will teach the interns key campaign techniques like event planning and partnership development skills to increase the reach of the financial literacy information in the “Are You Credit Wise?” program. Students participating in this year’s program will be taught different tactics and techniques to reach their peers with the information and materials provided by MasterCard. All materials distributed are exclusively educational and void of any marketing information. MasterCard Worldwide advances global commerce by providing a critical economic link between financial institutions, businesses, cardholders and merchants worldwide.
Once among the top credit card issuers in the country, Chevy Chase Bank recently agreed to pay more than $16 million to former cardholders in a class action lawsuit filed in 1999. The bank, formerly based in Maryland, was renowned for charging cardholders double digit interest rates well above the Maryland usury limit of 24% per annum, in most cases up to 28%. It was among the first card issuers in the U.S. to introduce punitive interest rates on high risk cardholders. The bank subsequently moved its card operation to Virginia to avoid the Maryland usury law. The issuer also notified cardholders in early 1996 it was switching to an arbitration requirement. The Maryland court hearing the case approved the settlement this week. First USA/Banc One (now Chase) purchased the $4.9 billion credit card operation of Chevy Chase Bank in September 1998. (CF Library 9/3/98; 3/9/01)
Consumer Action and Capital One announced that their joint “MoneyWi$e” financial literacy partnership will award stipends totaling $75,000 to community non-profit groups in 13 states. The stipends support the efforts of community educators to help individuals in their communities become financially fit. This year’s recipients – 22 community-based organizations – will provide more than 16,000 individuals with access to the MoneyWi$e curriculum. Capital One Financial Corporation (www.capitalone.com) is a financial holding company, with more than 324 locations in Texas and Louisiana. Consumer Action is a national non-profit education and advocacy organization founded in San Francisco in 1971.
VA-based Smart Payment Solutions has hired Shazia Philipsen as manager of risk management. Before joining Smart Payment Solutions, Philipsen was a risk manager for Lloyds TSB Bank in London, one of the top three banks in the UK, where she supported all non-retail lending business streams to ensure Basel II, FSA and Sarbanes-Oxley compliance. Philipsen earned an MBA from Southampton University and a bachelor’s degree in psychology. She is fluent in English, Urdu, Punjabi and Spanish. Smart Payment Solutions is a payment processing company that helps organizations of all sizes grow and prosper.
Capital One’s second quarter U.S. credit card profits fell 2% year-over-year after soaring in the prior quarter. Purchase volume in the U.S. was up 17% to $20.9 billion while U.S. managed card outstandings increased 5% from the year-ago quarter. The number of U.S. card accounts dropped by about 560,000 during the quarter to 37.2 million compared to 37.3 million in the prior quarter and 37.8 million one-year ago. U.S. card net income was $421.8 million, compared to $602.8 million in the prior quarter and $432.4 million for 2Q/05. U.S. managed card outstandings were $48.7 billion for 2Q/06 compared to $46.4 billion one-year ago and $47.1 billion in the previous quarter. The managed delinquency rate (30+ days) for U.S. credit cards was 3.30% for the second quarter, compared to 3.31% for 1Q/06 and 3.60% for the second quarter of 2005. The net charge-off rate for U.S. credit cards was 3.29% for the second quarter, compared to 2.93% for the first quarter and 4.90% one-year ago. For complete details on Capital One’s second quarter performance, visit CardData ([www.carddata.com]).
COF U.S. CARD NET INCOME
2Q/05: $432.4 million
3Q/05: $481.8 million
4Q/05: $237.0 million
1Q/06: $602.8 million
2Q/06: $421.8 million
Source: CardData (www.carddata.com)
Fifth Third Processing Solutions has signed contracts for merchant processing services with Linens ‘n Things, Uno Restaurants and Rollins. Linens ‘n Things, Inc. is one of the leading, national large-format retailers of home textiles, housewares and decorative home accessories. Uno Restaurant Holdings Corporation franchises and operates over 200 restaurants in 32 states, the District of Columbia, Puerto Rico, South Korea and the United Arab Emirates. Rollins, Inc. is a premier North American consumer and commercial services company. Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio.
VA-based Privaris has hired the former CEO of Tridium as its new CEO. John Petze will focus on the creation of strategic partnerships and sales channels to deploy Privaris’ new products into the market as quickly as possible. Mr. Petze has also been elected a member of the Board of Directors. Petze served since 2003 as CEO at Tridium, a global software products and services company providing a technology platform to control smart devices. Privaris Inc. focuses its technology expertise on the intersection of high security biometric applications and an individual’s right to personal privacy.
Fairfax County Federal CU of Virginia is converting its signature, PIN and ATM debit programs to PSCU Financial Services’ “DebitAdvantage” and has signed a five-year contract extension for credit card processing services. Under the terms of the agreement, Fairfax County FCU will convert more than 11,000 signature, PIN and ATM debit card accounts to the DebitAdvantage platform and PSCU Financial Services will continue processing more than 4,100 credit card accounts for the $145 million, 18,000-member credit union. Fairfax County Federal Credit Union, headquartered in Fairfax, Va., is a not-for-profit, member owned and operated, full-service financial institution. PSCU Financial Services is owned by more than 500 member credit unions representing 10 million cardholder accounts and more than 345,000 online bill payment subscribers.