Redbox has inked a deal with Ahold to offer fully automated DVD rental kiosks in Stop & Shop supermarkets and Giant Food stores throughout the Northeast United States. Each fully-automated redbox DVD rental kiosk holds more than 500 DVDs. Consumers use a touch screen to select their favorite movies, swipe a valid credit or debit card and go. For added convenience, customers can keep the DVD for as long as they’d like for $1 per night plus tax, and return their DVD to any redbox kiosk nationwide. Redbox Automated Retail, LLC is a renter of DVDs through automated kiosks. Stop & Shop/Giant Food operates 563 stores in New England and the Mid-Atlantic region.
Ohio-based Fifth Third Processing has acquired IN-based Card Management Corporation for an undisclosed price. Formed in 1988, CMC, headquartered in Evansville, is a provider of services to financial institutions and retailers for credit card, debit card, merchant and private label programs. They operate a second multi-lingual contact center in Tucson. More than 127,000 financial institutions and merchant locations partner with Fifth Third. Processing Solutions, a division of Fifth Third Bank, processes more than 17 billion ATM, POS and e-commerce transactions per year and drives more than 12,400 ATMs.
Capital One’s fourth quarter U.S. credit card profits increased 17% year-over-year but were cut in half sequentially due to the October bankruptcy surge and increased marketing expenses. U.S. managed card outstandings increased 7% from the third quarter but were up less than 2% from the year-ago quarter. U.S. card net income was $237.0 million, compared to $481.8 million in the prior quarter and $201.9 million for 4Q/04. U.S. managed card outstandings were $49.5 billion for 4Q/05 compared to $48.6 billion one-year ago and $46.3 billion in the previous quarter. Capital One also began disclosing volume figures with the fourth quarter. Purchase volume in the U.S. was up 19% to $21.2 billion. The managed delinquency rate (30+ days) for U.S. credit cards was 3.44% for the fourth quarter, compared to 3.86% for 3Q/05 and 3.97% for the fourth quarter of 2004. The net charge-off rate for U.S. credit cards was 5.70% for the fourth quarter, compared to 4.69% for the third quarter and 4.93% one-year ago. For complete details on Capital One’s fourth quarter performance, visit CardData ([www.carddata.com]).
COF U.S. CARD NET INCOME
4Q/04: $201.9 million
1Q/05: $458.2 million
2Q/05: $432.4 million
3Q/05: $481.8 million
4Q/05: $237.0 million
Source: CardData (www.carddata.com)
Columbus, OH-based Alliance One, a selective-surcharge ATM group, has launched a program to reimburse the referring credit union’s $250 annual fee for sending new financial institution members its way. If a credit union refers three or more financial institutions that become participants during that same time period, Alliance One will not only reimburse the referring credit union’s fee for 2006, they’ll waive the $250 annual fee through 2010. Any credit union can join Alliance One, regardless of which ATM networks it uses or whether or not it owns machines. Participation costs only $250 a year, with a one-time startup fee. Alliance One is one of the largest non-network-specific ATM alliances in America.
Bank of Hawaii has renewed its relationship with the STAR Network for PIN-secured debit services. Bank of Hawaii is the largest independent financial institution in the state of Hawaii. PA-based Fulton Financial has also renewed STAR Network as its primary ATM/debit network. The STAR Network is now the primary network for ATM and PIN-secured debit access for Fulton Financial’s approximately 250,000 ATM and debit cards. First Data will also continue providing ATM processing services for all of Fulton Financial Corporation’s 235 ATMs.
Baltimore-based Mercantile Bankshares has renewed its merchant processing contract with Metavante. Metavante will continue to provide Mercantile merchant processing services, including transactional approval and authorization, settlement and accounting solutions and fraud detection. Metavante Payment Solutions delivers electronic money movement through an integrated payments network, including an ATM/PIN-debit network in NYCE, online bill pay, a complete suite of payment cards and automated clearing house (ACH) processing. Mercantile Bankshares Corporation has assets exceeding $16 billion.
Chicago-based Moneris Solutions has signed agreements to provide credit card processing services to six higher education institutions including Arizona State University, University of Vermont, Duquesne University, James Madison University, Saint Mary’s College of California and Virginia Tech. Under the agreements, Moneris will provide credit card processing services through infiNET’s QuikPAY product, which provides the fully integrated automated payment and commerce solution for the higher education market. Students and families of these universities will have the convenience of paying their tuition and fee statements online with a credit card. Moneris Solutions is an electronic transaction processor and is a joint investment of the Royal Bank of Canada and the Bank of Montreal, which have assets in excess of $700 billion.
NC-based BB&T has created a new Payments Services Division. The creation of BB&T’s Creative Payments Solutions subsidiary in 2003 laid the groundwork for the new unit. The new PSD will enter automated clearinghouse and wire transfers; debit and prepaid cards; bill payment; and treasury services. The new unit will also oversee Creative Payments Solutions, Mid-America Gift Certificate Company and BB&T Payroll Services Corporation. The bank has named BB&T veteran Bennett Bradley to lead new division.
The State of Virginia has signed a deal to issue MasterCard purchasing and travel cards to employees, agencies and other participants, and to use “vPayment” via GE Consumer Finance . COV will also be implementing vPayment, the CPS electronic settlement tool that provides additional controls and data capture compared to traditional purchasing cards. Corporate Payment Services, the commercial card unit of GE Consumer Finance, develops and markets corporate bank cards and e-settlement tools designed for small-, medium-, and large-sized companies and organizations.
Virginia-based BioPay has launched its biometric payment technology in Duke and Duchess Shoppes in Ohio. The service is the first of its kind in a convenience store in Ohio. Duke and Duchess Shoppes, a chain of 100 stores across Ohio and West Virginia, will implement BioPay’s payment system with an initial launch of 10 of its convenience stores to give their customers faster checkouts and greater convenience when making a purchase. BioPay’s payment service, a processing solution that allows customers to make purchases with a simple, secure placement of the finger, offers merchants a low-cost form of payment, while reducing incidents of fraud. Duke and Duchess Shoppes will be offering a free cup of coffee or soft drink at enrollment and receive a buy one get one free coupon after the consumer’s first BioPay purchase. BioPay is a Biometric Transaction Company, processing today more than 17 million transactions in excess of $7 billion.
MBNA’s former EVP/Director of Financial Reporting and Control, Desiree Burke, has been hired by Penn National Gaming as VP/Corporate Controller. Burke’s responsibilities at Penn National will include financial accounting and reporting such as Securities and Exchange Commission (SEC) filings, certifications and Sarbanes-Oxley compliance and documentation. Burke brings eighteen years of accounting experience to her new position at Penn National. She joined MBNA in 1994 and held positions of ascending responsibilities in the finance department including Executive Vice President/Assistant Controller and Executive Vice President/Director of Control. During her tenure with MBNA she was also responsible for merger and acquisition accounting and reporting. Burke earned a Masters in Accounting from Widener University. Penn National Gaming owns and operates casino and horse racing facilities in thirteen jurisdictions including Colorado, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi, Missouri, New Jersey, Ohio, Pennsylvania, West Virginia and Ontario.
Fifth Third Bancorp announced that EVP Neal Arnold, who headed the Company’s payment processing business, resigned yesterday. Arnold had served as executive in charge of the Company’s investment advisor, payment processing, mortgage and consumer lending businesses. Those businesses will report to George A. Schaefer, Jr., President and CEO of Fifth Third. Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio. with $104.6 billion in assets.