BB&T Corporation has licensed ACI Worldwide’s “BASE24-es” ATM software to drive some 1,900 ATMs and process ATM and debit card authorizations. BASE24-es is an integrated software solution to acquire, authenticate, route, switch and authorize transactions across multiple channels. BB&T will leverage the advanced scripting capabilities of BASE24-es to better react to market demands.
VA-based Rockingham Heritage Bank has signed a two-year deal with Global Axcess Corp. and its Nationwide Money Services for an ATM “Branded Cash Program”. Under the terms of the agreement, Nationwide Money will install ten branded ATM sites in high-traffic areas, including nine Food Lion supermarkets. EFT Integration, Inc., Global Axcess’ subsidiary, will drive the transaction processing.
Fiserv reported that second quarter processing and services revenues were $659.1 million, a 17% increase over 2Q/02. Pre-tax income for the second quarter was $128.6 million, an 18% gain over the year-ago period. During the second quarter, Fiserv closed two acquisitions including VA-based ReliaQuote and WI-based Wausau Benefits. Since the close of the quarter, Fiserv closed the acquisition of the EDS Credit Union Industry Group and also completed the acquisition of Chase Credit Research and Chase Credit Systems. For complete details on Fiserv’s second quarter results visit CardData ([www.carddata.com]).
VISA’s prepaid teen card got a big shot in the arm today as Bank One and America Online teamed to introduce the “AOL Cash Card.” The new card is part of the “VISA Buxx” program, providing a parent-controlled, re-loadable payment card for teens and young adults. The program allows parents to set spending limits, track their teen’s spending, load additional funds onto the account every month or set up a recurring load schedule to maintain the card as an “allowance,” receive real-time updates on purchases, and access transaction histories entirely online through the AOL service. AOL will make the new card available to members as a new feature of “AOL 9.0 Optimized,” the latest version of the AOL and “AOL for Broadband” services. AOL says the program will be available for members with teenagers ages 13 and up that have “Screen Names” on “AOL 9.0 Optimized.” VISA U.S.A. introduced “VISA Buxx” in August 2000. U.S. Bancorp was the first issuer of the card. There are ten issuers of “VISA Buxx” cards today including: Bank One, Bank of America, Wachovia, First Tennessee, First Union, National City, Sandy Spring Bank, National Exchange Bank & Trust, Hudson Savings Bank, and U.S. Bank. (CF Library 8/10/00)
TN-based MAPCO Express, with 243 convenience stores in TN, AR, AL, KY, MS, LA, and VA, has inked a deal for Fifth Third Bank’s electronic payment processing division to handle its payment processing for credit and debit cards as well as EBT, “Fleet Card” processing, and for “Premier Issue,” Fifth Third’s gift card program. Fifth Third Bank processes 8.2 billion ATM and POS transactions per year for more than 185,000 retail locations and financial institutions worldwide. Annually, Fifth Third processes $83 billion in credit card sales.
Capital One reported a 35% increase in earnings for the second quarter as marketing expenses declined 16% over the year-ago period. For 2Q/03, Cap One reported earnings of $286.8 million, compared with earnings of $213.1 million for 2Q/02. Marketing expenses for the second quarter were $270.6 million compared to $320.4 million in the comparable period of the prior year. Compared to the first quarter of this year, Cap One’s earnings declined $22.3 million and marketing expenses increased $28.9 million. Domestic credit card outstandings increased 10% over year-ago levels to $47.2 billion. Net charge-offs for domestic credit cards for the second quarter were 6.95%, compared to 5.46% for 2Q/02. The 30-day delinquency rate for 2Q/03 was 4.83% compared to 4.51% one year ago. At the end of second quarter, Cap One had 45.8 million accounts and $60.7 billion in total loans, including domestic and international credit cards and auto loans. For complete details on Capital One’s 2Q/03 performance visit CardData ([www.carddata.com]).
Seeking to establish itself as a market leader in the super-prime market, sub- prime specialist Capital One announced today a fixed on-going interest rate of 4.99% to its best customers. Capital One’s new “Platinum MasterCard” will offer the 4.99% fixed APR on new purchases and balance transfers. The new card comes in a market where a growing number of consumers understand that the majority of so-called “fixed” rates have little if any credibility, subject to change upon fifteen days notice. Cap One dubbed the card “the lowest long-term fixed rate in the nation.” The issuer was unable to define the length of “long-term” used in direct mail solicitations for the card. The new card also offers no balance transfer or cash advance fees and no annual fee.
Atlanta-based SunTrust Banks has added “Works Payment Manager” and “Works Card Manager” to its VISA purchasing card program. Works Payment Manager and Works Card Manager, are Web-based applications that are connected to the Visa payment network and allow SunTrust commercial and government clients to automate manual payment policies and procedures and administer card programs online. With Works Payment Manager clients can automatically adjust the credit limits on individual commercial cards while adhering to internal purchasing and payment policies. SunTrust Banks, headquartered in Atlanta, Georgia, is one of the nation’s largest commercial banking organizations with total assets of $120 billion and total deposits of $78 billion.
Diebold’s “Change-Back Machines,” which allows cash customers to pay at the pump and receive change from a self-service terminal without entering the store, have picked up a new customer. The latest machines have been deployed at Sheetz stores in Johnstown and Dunmore, Pennsylvania. The convenience store chain is considering the installation in more of its stores later this year in response to customer demand. Sheetz operates more than 285 c-stories in Pennsylvania, Maryland, Ohio, Virginia and West Virginia. Diebold introduced the “Change-Back Machines” two years ago and has deployed them in more than a dozen states.
Pittsburgh-based General Nutrition Centers has chosen Fifth Third Bank Processing Solutions to fully automate their back office PIN-based debit card operations for 5,300 retail outlets. Fifth Third Direct enables retailers to scan receipts, handwritten notes, or other documents into the system for responding to inquiries from customers or financial institutions. Fifth Third Bank processes 8.2 billion ATM and POS transactions per year for more than 185,000 retail locations and financial institutions worldwide. Pittsburgh, Pennsylvania based GNC, is the largest nationwide specialty retailer of vitamin, mineral and herbal supplements and sports nutrition products.
MD-based Public Health Service Federal Credit Union has become an agent of Encore Merchant Services, which is a division of MA-based Primax Payment Systems. Public Health Service Federal Credit Union will now be able to better service their members by being able to offer POS acceptance solutions to their members. Encore Merchant Services will be handling every aspect of payment card acceptance, including account application and establishment, point-of sale terminal deployment, product development, customer service, and risk management services.
Capital One has changed the name of PeopleFirst Finance LLC to Capital One Auto Finance, an auto finance business Cap One acquired in October 2001. The change will leverage the strengths of PeopleFirst’s online business model with Capital One Auto Finance’s proven ability to provide customized consumer and dealer products and services. Capital One Auto Finance will also provide the convenience, ease and value of PeopleFirst’s direct-to-consumer online auto loans. PeopleFirst will be moving to the new web address http://www.capitaloneautofinance.com on June 27, 2003.