First Data’s “STAR Network” has completed an agreement with NC-based First Citizens Bank to participate in STAR’s direct check debit and verification service. “STAR CHEK Direct” will be used to reduce check fraud losses and processing costs, generate income, and ease the check processing administration. It is the only service that offers real-time, standalone direct verification of funds availability via the consumer’s DDA account, as well as real-time check debit. STAR CHEK Direct is available for both retail POS transactions and telephone and Internet bill payments. Over 10 financial institutions, bill payment processors, and check acceptance companies have utilized the service since its introduction earlier this year. First Data serves roughly 3.5 million merchant locations, 1,400 card issuers, and millions of consumers, making the purchase of goods and services using any form of payment fast, easy, and secure. First Citizens operates 335 branches in 200 cities and towns along the east coast. It has $12.8 billion in assets.
OH-based Holloway Group has signed a five-year contract with Fifth Third Bank Processing Solutions for credit card processing. Holloway Sportswear manufactures and markets unique outerwear and sportswear in the apparel marketplace. According to Rich Schneider, Controller of the Holloway Group, Inc., Fifth Thirdâs complete package lowered their total costs of offering a credit card payment option to their customers. Fifth Third Bank Processing Solutions processes over nine billion ATM and POS transactions per year. It serves over 207,000 retail locations and 1,351 financial institutions around the world, processing $100 billion in credit card sales. As of April 2004, according to The Nilson Report, Fifth Third Bank is the fourth largest bankcard acquirer.
Atlanta-based MARTA and San Diego-based Cubic Transportation Systems unveiled the new “Breeze” smart card-based ticketing system, which enables commuters to travel seamlessly throughout Atlanta using one common smart card to pay for rail, bus, paratransit fares, park-and-ride fees, and potentially, event ticketing, retail purchases, and security access. Cubic is making the new smart card-only multi-modal fare collection and revenue management system under a $72.5 million contract that they obtained last year. MARTAâs new system will offer commuters, public transit users, and tourists a convenient means of travel while increasing revenues and operational efficiency for the agency. Cubic has delivered more than 400 projects in 40 markets on five continents. Each year, almost 10 billion rides are taken all over the world using Cubic fare collection systems.
MasterCard has teamed with Shell Oil to launch a fourth quarter sweepstakes to drive traffic to Shell-branded gasoline stations and generate increased applications for the “Shell MasterCard from Citi Cards.” Each time a customer uses a MasterCard card at a participating Shell station now through December 31 will be entered automatically into the “MasterCard Sweepstakes at Shell.” Prizes include 2005 Chrysler Crossfires and $1,000 worth of premium gasoline. Shell says it expects to achieve a 50% increase in “Shell MasterCard” applications and booked accounts during the promotion. Shell ran a promotion in the second quarter for its private-label credit card, which netted 130,000 new applications. (CF Library 9/22/04)
Capital One has made its first corporate sponsorship of a PBS series with the sponsorship of “BROADWAY: THE AMERICAN MUSICAL” documentary. This will be Capital One’s first corporate sponsorship of a series on PBS. BROADWAY: THE AMERICAN MUSICAL along with Capital One, strives to make American’s realize their own dreams. Capital One is partnered with Thirteen/WNET and PBS in order to bring the series to American viewers. Hosted by Julie Andrews, the series will feature archival footage, newsreels, autobiographical material, and still photos to name a few. BROADWAY: THE AMERICAN MUSICAL is co-produced by Ghost Light Films, Thirteen/WNET New York, NHK, and BBC. Capital One is a Fortune 500 company and is one of the largest providers of MasterCard and Visa credit cards worldwide. Thirteen/WNET New York is a central program provider for public television.
Capital One Financial is cutting 220 positions at its call center facility located in Irving, Texas and transition the vast majority of the work to its Richmond, Virginia facility. The company intends to close the Irving, Texas site by the end of the second quarter 2005. Cap One noted it will maintain its presence in Texas through the company’s Plano location, where more than 1,000 associates support its Capital One Auto Finance operations. In July, Cap One announced it is cutting 1,400 call center jobs, mostly in Tampa. Cap One says it is dropping 1,100 positions at its Tampa facility and approximately 160 positions in Dallas, and 120 positions in Richmond, Virginia. (CF Library 7/22/04)
Sheetz is deploying Radiant’s outdoor kiosks, which are designed to allow added features such as debit pin pads and magnetic stripe readers for credit, debit, loyalty, and gift card processing. The Radiant outdoor kiosks operates the Sheetz Order-at-the-Pole program, which enables customers to order sandwiches and Espresso Bar items as they fill up their gas tanks. The kiosks have touch screens to enable customers to order their food. They are supported by Intel(R) processors and chipsets as well as the Microsoft(R) Windows(R) XP Embedded operating system. Radiant Systems, Inc. provides innovative store technology for foodservice, petroleum/convenience store, and cinema industries. It has distributed solutions to more than 50,000 sites around the world. Sheetz, Inc. is one of the nation’s fastest growing convenience store chains with over 300 locations along the east coast. The company’s 2003 revenue exceeded $2.3 billion and ranks 109th on the Forbes list of top privately held U.S. companies.
Seeking to expand its consumer finance business in a mature credit card market, the nation’s sixth largest issuer has acquired a major auto loan originator. Capital One Financial is buying Onyx Acceptance Corporation for $191 million in cash. The acquisition will enable Cap One to combine Capital One Auto Finance, which provides auto finance through dealers and direct to consumers, with Onyx which has extensive dealer relationships in California. Ranked by annual originations, the deal makes Capital One the second largest independent auto lender in the USA. Capital One moved into the auto finance business in October 2001 when it acquired PeopleFirst Finance for $150 million. (CF Library 9/24/01; 6/30/03)
Fifth Third Bank has selected SMARTS “InCharge” to monitor and conduct root cause analysis of its authorization system along with the 14,000 ATMs serviced by Fifth Third across the nation. Fifth Third will use SMARTS’ automated business assurance solutions including the InCharge Service Assurance Manger, the IP Availability Manager, the Business Impact Manager, and the Application Services Manager. Fifth Third Bancorp is a financial services company that has $95.6 billion in assets and operates17 affiliates with 1,000 full-service Banking Centers. SMART(R) solves IT management problems using innovative technology. InChargeâ¢ solutions are used by thousands of customers all over the world to resolve problems with IT management.
Capital One’s charge-off ratio dropped for the ninth consecutive month, but delinquency has been creeping upward for the fifth straight month. During August, the issuer added $1.18 billion in managed outstandings. Cap One reported that managed charge-offs dropped to 3.87% for August, compared to 4.10% in July, and 5.34% one-year ago. In June 2003, Cap One’s managed charge-off ratio stood at 6.20%. Delinquency slipped up to 3.80% for August, compared to 3.77% for July, 3.76% in June, 3.73% in May, and 3.69% in April. Delinquency one-year ago stood at 4.74%. At the end of August, Capital One had $75.2 billion in global oustandings. At the end of the second quarter, Cap One had $45.2 billion in U.S. card loans, compared to $45.3 billion in the first quarter. COF’s global managed loan portfolio grew by $1.6 billion to $73.4 billion in 2Q/04. For complete details on Capital One’s monthly metrics and 2Q/04 performance, visit CardData ([www.carddata.com]).
Capital One 2003-2004
Month Charge-offs Delinquency
Aug 03 5.34% 4.74%
Sep 03 5.24% 4.65%
Oct 03 5.30% 4.52%
Nov 03 5.57% 4.46%
Dec 03 5.10% 4.46%
Jan 04 5.00% 4.39%
Feb 04 4.75% 4.14%
Mar 04 4.74% 3.80%
Apr 04 4.70% 3.69%
May 04 4.40% 3.73%
Jun 04 4.17% 3.76%
Jul 04 4.10% 3.77%
Aug 04 3.87% 3.80%
Source: CardData (www.carddata.com).
Stephen Ryan, former SVP at VISA and First Data, has been hired by MA-based GeoTrust as VP of business development. Mr. Ryan has almost 20 years of management experience. At GeoTrust, he will be responsible for driving revenue and market share through strategic alliances with distribution, original equipment manufacturers (OEM), and technology partners. Ryan was a former vice president at Arcot Systems and former vice president at NationsBank. He has a B.S. degree in Management Information Systems from Old Dominion University in Norfolk, Virginia. GeoTrust, Inc. is a leader in Identity and Trust Services. It is the second largest digital certificate provider in the world with over 70,000 companies in over 140 countries using its technology for transaction security.
San Diego-based Cubic Transportation Systems has acquired Quebec-based Traf-Park, a provider of automated parking systems in North and South America.