Encore Merchant Services has introduced “eMerchantView,” a new product available to credit union member businesses that use EMS for their credit card processing. This product is an Internet-based solution, which includes six months of history for batch deposit information, transaction details, chargeback information, retrieval information, cardholder account inquiries, and three months of statement history. Encore Merchant Services is a division of Primax Payment Systems, which is headquartered in Wakefield, Massachusetts. Primax Payment Systems currently has over 5,000 merchants located in 48 states.
The Electronic Payments Association has released its first ever list of the top 50 largest receiving financial institutions of ACH payments which shows Bank of America topping the list with more than 507 million payments. A significant finding of the NACHA survey is that the receipt of ACH payments is much less concentrated than origination. The top 5 institutions accounted for 22 percent of ACH volume, compared to 49 percent on the origination side. NACHA is the leading organization in developing electronic solutions to improve the payments system.
Chicago-based iDine Rewards Network is raising $60 million through an offering of Convertible Subordinated Debentures. The Debentures are expected to be redeemable by iDine Rewards Network Inc. commencing in October 2008. iDine intends to use the net proceeds from the sale of the Debentures to pay down the indebtedness outstanding under its existing credit facility and for general corporate purposes. The company also announced Tuesday that it expects third quarter earnings to be within the range of consensus analyst estimates of $0.16 to $0.17 per share, on gross revenues of $89 to $90 million. The company will release its report on October 22nd. iDine currently has 20.4 million credit cards registered through 15.4 million enrolled accounts for its program.
Capital One and Consumer Action yesterday kicked-off their two-day “MoneyWi$e” financial literacy training program in Texas, with representatives from more than 80 local, non-profit groups in attendance from communities across the state. MoneyWi$e was created to provide consumers at all income levels with both the information and practical assistance they need to help better manage their finances. Capital One is one of the largest providers of MasterCard and Visa credit cards in the world. Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 500 index. Consumer Action and leading credit card provider Capital One announced that their joint MoneyWi$e financial literacy partnership will provide free training to more than 80 non-profit groups from communities across Texas.
San Francisco-based BankServ has ranked #63 nationally, and #1 in San Francisco, in this year’s Inc. Magazine’s “Inc. 500” ranking of the fastest-growing private companies in the USA. Of the California companies listed by Inc. BankServ ranked first of six in San Francisco and eighth of 59 in the state. BankServ is a leading U.S. provider of Fed wire transfer and ACH payment solutions for banks, governments, higher education and businesses. The only business magazine dedicated exclusively to owners and managers of fast-growing private companies, delivers real solutions for today’s innovative company builders.
The Washington (DC) Metropolitan Area Transit Authority has given the go-ahead to ERG Group and Northrop Grumman to build the “SmarTrip Regional Customer Service Center.” As a result, residents of the Washington, D.C., Maryland and Northern Virginia metro area will soon be able to use a single smart card to pay fares across 17 transit systems. The “SmarTrip” system is expected to grow to a card base of more than one million over a five-year period. ERG will be responsible for the management of smart cards and operation of the data processing system incorporating clearing, settlement and financial management. Northrop Grumman will be responsible for the distribution of smart cards and operation of the customer service center.
Capital One has partnered with Robert Hammond, author of an ID theft prevention book, to increase awareness and inform Americans on how to prevent identity theft and what to do if they do become a victim.
VA-based BioPay has rolled-out its “bCheck” biometric payment service at nearly two dozen retail locations in Northern Virginia and Maryland. The system enables consumers to use their finger image to authorize a debit from checking account.M To use “bCheck,” customers simply enter their phone number and place their finger on the scanning device to confirm their purchase amount. Yesterday’s announcement represents the largest cluster of businesses using biometric payment systems anywhere in the USA. The company says “bCheck” transaction costs are 75% less than the costs of credit card and off-line debit transactions.
The nation’s oldest, family-owned and operated, retailer of sporting goods, sporting apparel, menswear and brand name athletic footwear has launched a MasterCard. Modell’s Sporting Goods and MBNA have teamed to offer a MasterCard featuring “MVP” points that are automatically redeemed for Modell’s certificates. Cardholders will also receive special offers and opportunities for special privileges. Modell’s operates over 100 stores throughout New York, New Jersey, Pennsylvania, Delaware, Maryland and Virginia area. The new “Modell’s MVP MasterCard” will carry no annual fee.
The ENCORE Cooperative and T.K. Keith Company, a member of the NEBA, have joined together to launch ENCORE Card Services to manage credit union credit card portfolios. The new company will offer two service options, including one service to provide application processing, 24/7 customer service, risk management services for one all-inclusive price, and a second option geared towards larger credit unions that might want to keep various aspects of their credit card program in house. ENCORE Electronic Services Cooperative, formed in 1982, is 100% credit union owned and operated and provides ATM/Debit card routing and other electronic services for 113 member CU’s in eight states. Encore Merchant Services is a division of Primax Payment Systems, and has 5,000 merchants in 48 states. Encore Merchant Services targets new business through credit unions to offer full service credit and debit card acceptance services to credit union member businesses nationwide. In addition to standard credit and debit card processing, Encore Merchant Services offers check guarantee, electronic check conversion, Internet processing solutions, and private label card support.
Memphis-based National Commerce Financial Corporation has sold its merchant payment processing portfolio to NOVA Information Systems. NCF’s has nearly 10,000 active merchants in its portfolio that includes credit and debit card processing, electronic check services, and other value-added services. NCF’s merchant annual sales volume is about $1 billion annually. Under the terms of the agreement, merchant processing will be offered by NOVA to existing customers of NCF, and NCF will jointly market merchant processing with NOVA to prospective merchants. The NCF merchant processing business operates through NCF bank brands National Bank of Commerce and Central Carolina Bank. NOVA Information Systems is a subsidiary of U.S. Bancorp and provides processing services to more than 650,000 merchant locations in the USA and Europe.
Capital One reported yesterday that charge-offs and delinquency declined sharply for the third consecutive month during August. With $65.2 billion in managed loans, and approximately $43 billion in U.S. credit card loans, the issuer reported that charge-offs dropped to 5.34% in August compared to 5.75% for July, and 6.20% in June. Delinquency declined to 4.74% in August, from 4.92% for July and 4.95% in June. At the end of second quarter, Cap One had 45.8 million accounts, including domestic and international credit cards and auto loans. For complete details on Capital One’s 2Q/03 performance visit CardData (www.carddata.com).
Capital One 2003
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%
Source: CardData (www.carddata.com)