National Processing has signed a multi-year credit card processing agreement with Sasnak Management Corporation, d/b/a Carlos O’Kelly’s Mexican Cafe, which operates the chain in approximately 50 locations throughout the Midwest. Under the terms of the agreement, NPC will provide authorization and settlement services for all VISA and MasterCard transactions accepted at all Carlos O’Kelly’s locations. Sasnak Management Corporation is a privately owned company that operates a chain of restaurants doing business under the name of Carlos O’Kelly’s Mexican Cafe. National Processing Company, LLC is a leading provider of merchant credit and debit card processing.
Capital One yesterday reported that its delinquency rate and charge-off ratio continued to drop in March for the fifth consecutive month. The issuer also added $400 million in outstandings last month. With $71.8 billion in managed loans, and approximately $45.3 billion in U.S. credit card loans, the issuer reported that charge-offs dropped to 4.74% for March, compared to 4.75% in February, and 5.00% in January. In April 2003, Cap One’s managed charge-off ratio stood at 6.36%. Delinquency dropped to 3.80% during March, compared to 4.14% for February, and 4.39% for January. Delinquency peaked last year in June when it hit 4.95%. At the end of first quarter, Cap One had 46.7 million accounts, including domestic and international credit cards and auto loans. For complete details on Capital One’s 1Q/04 performance visit CardData (www.carddata.com).
Capital One 2003-2004
Month Charge-offs Delinquency
Apr 03 6.36% 4.86%
May 03 6.40% 4.82%
Jun 03 6.20% 4.95%
Jul 03 5.75% 4.92%
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%
Source: CardData (www.carddata.com)
Capital One reported that its first quarter U.S. card profits increased 26% year-over-year, and 20% sequentially. The issuer also experienced sharply lower delinquency and charge-offs as domestic card loans increased more than 17%, compared to 1Q/03. For the first quarter, COF posted net income for US cards of $386.8 million, compared to $322.7 million in the fourth quarter, and $308.1 million one-year ago. The managed delinquency rate (30+ days) for U.S. credit cards was 3.99% for the first quarter, compared to 4.60% at the end of the previous quarter, and 5.55% for the first quarter of 2003. The net charge-off rate for U.S. credit cards was 5.41% for the first quarter, compared to 6.16% for the fourth quarter, and 7.72% one-year ago. Capital One also reported its overall, managed revenue margin declined to 13.38% in the first quarter from 13.89% in the previous quarter, and 15.70% in the first quarter of 2003. The issuer says it is continuing to shift its product mix upmarket and expects little to no growth in the sub-prime portion of the its credit card portfolio. At the end of the first quarter Capital One had $45.3 billion in U.S. card loans, and a global managed loan portfolio of $71.8 billion. For complete details on Capital One’s first quarter performance visit CardData ([www.carddata.com]).
COF U.S. CARD NET INCOME
1Q/03: $308.1 million
2Q/03: $274.2 million
3Q/03: $276.2 million
4Q/03: $322.7 million
1Q/04: $386.8 million
Source: CardData (www.carddata.com)
VA-based BioPay reported this week that more than one million consumers have now enrolled in its electronic biometric identification systems to pay for purchases and cash payroll checks. To-date BioPay has completed nearly 7.5 million transactions worth $3 billion dollars. Under the program, consumers simply needs to put their finger on the electronic scanner to verify their identity, make a payment, or confirm their check cashing history. Using “Paycheck Secure,” merchants can easily confirm a person’s check cashing history before a transaction is completed. If negative information is noted, the transaction can be cancelled. BioPay’s biometric payment service costs about $0.15 per transaction. BioPay began shipping “Paycheck Secure” in June 2000. BioPay began offering its biometric payment service in September 2003.
Encore Merchant Services has announced the “TeleCheck Eclipse” all-in-one payment terminal, which combines an integrated inkjet printer, check reader, and credit and debit card processing. This digital process allows merchants to accept checks as quickly, safely and easily as credit cards while improving the cash flow of their business. Primax Payment Systems currently has over 5,000 merchants located in 48 states. EncoreÂ® Merchant Services targets new business through credit unions to offer full service credit and debit card acceptance services to credit union member businesses nationwide.
NC-based BB&T has launched a new money transfer product for its Hispanic clients that includes PIN debit card. The new “EnvioFacil” card and service is available through the Bank’s “Hispanic Banking Centers.” “EnvioFacil” allows clients to open an account with cash. If they already have a BB&T account, they can transfer funds directly into an “EnvioFacil” account. Accounts can have a maximum value of $2,500 each month. The minimum deposit is $25; the maximum is $1,000. Once the account is set up, the client will mail their family a packet with the “EnvioFacil” card and instructions on how to retrieve cash from an ATM. BB&T says more than 73% of Hispanic consumers in the BB&T footprint do not have a bank account and more than 82% do not own a credit card.
Newport News Municipal Employees Credit Union in Virginia, and Parkridge Credit Union in Chattanooga, Tennessee have signed deals for Global Axcess’ turnkey ATM network solution. The Company’s Branded Cash Program is a turnkey ATM network solution, owned and managed by Nationwide Money, that is marketed to credit unions, community banks, and regional financial institutions. Global Axcess Corp. was founded in 2001 with a mission to emerge as one of the nation’s leading network-based electronic commerce and transaction processing companies. Through its wholly owned subsidiary, Nationwide Money Services, Inc., the Company provides turnkey ATM management solutions that include cash, project and account management services.
Sky Financial Group has completed the sale of its dental financing affiliate, Sky Financial Solutions to MBNA. SKY markets financial products and services to dental professionals, including financing for practice acquisition, equipment financing, and working capital. Nearly three-quarters of all dentists in the USA carry an MBNA card. Sky is endorsed by 33 dental associations and MBNA’s credit card products are endorsed by 39 dental associations. MBNA says the financing of dental practices is a good strategic fit with its affinity marketing strategy. MBNA said it will retain Sky Financial Solutions’ management team and employees. Sky Financial Solutions has outstanding loans of nearly $800 million.
Publix Super Markets has inked a deal to give RBC Centura Bank customers free access to Publix’s 850 “Presto!” ATMs. This agreement more than doubles RBC Centura’s ATM network, providing customers fee-free access to 850 Presto! ATMs across Florida, Georgia, South Carolina, Alabama and Tennessee. RBC Centura Bank offers a wide range of financial services and advice, including a complete line of banking, investment, loan, mortgage, life insurance, and other services, to individuals and businesses in North Carolina, South Carolina, Virginia, Georgia, and Florida.
BC Ferries of British Columbia is launching a six-month pilot project for an automated cashless self-ticketing system in July. San Diego-based Cubic Transportation Systems has been awarded the contract.
Cubic will deploy its “Express Vendor,” a ticket vending machine which accepts credit card-only payment and issues a paper receipt and boarding pass. There are more than 600 “Express Vendor” machines deployed in New York. The units are designed for wall-mounting or free-standing, and also features user-friendly interfaces and programming in up to eight languages. Since its start in 1960 as a two-vessel, two-terminal operation, BC Ferries now operates a fleet of 35 vessels serving more than 45 ports of call along the British Columbia coast.
Consumer Action and Capital One announced their joint “MoneyWi$e” financial literacy partnership will grant more than $125,000 to 36 community-based non-profit organizations in 8 states. Now in its second year, the MoneyWi$e stipend program provides financial support to help local organizations deliver financial literacy training to under-served communities across the country. Capital One Financial Corporation () is a holding company whose principal subsidiaries include: Capital One Bank and Capital One, F.S.B., which offer consumer lending products, and Capital One Auto Finance, Inc., which offers primarily automobile financing products. Consumer Action is a non-profit, membership-based organization founded in San Francisco in 1971.
TSYS and BB&T have extended their card processing relationship, which began in 1997, for another three years. Under the terms of the agreement, both companies, which are wholly-owned subsidiaries of Winston-Salem, N.C.-based BB&T Corporation, will utilize the TSYS credit, debit and commercial platforms, including TSYS’ subsidiary ProCard, which will provide technology support and services for BB&T’s commercial card accounts. BB&T Corporation and its subsidiaries offer full-service commercial and retail banking and additional financial services such as insurance, investments, retail brokerage, corporate finance, international banking, leasing and trust. TSYS (NYSE: TSS) (www.tsys.com) brings integrity and innovation to the world of electronic payment services as the integral link between buyers and sellers in this rapidly evolving universe.