NJ-based Shoppers Charge Accounts Co. has acquired the private label credit card receivables of Coplon’s, a seven-store, high-end women’s apparel retailer, and will now manage all facets of the private label program on an ongoing basis. Under terms of the agreement, SCA acquired the receivables in the Naples, Fla.-based chain’s portfolio and will manage all facets of the private label program on an ongoing basis. Coplon’s card currently accounts for in excess of 30% of total sales. SCA is a division of Hudson United Bank is ranked among the nation’s largest private label credit card companies.
National Processing Company has expanded its partnership with ISOs and as such has sold its non-bank aligned regional sales offices to three key ISOs. This month, NPC sold 14 regional sales offices to three ISO partners including DiamondCard of Rancho Cucamonga, California, Security Check, of Oxford, Mississippi and Universal Debit & Credit of Annadale, Virginia. The remaining NPC regional sales offices are located within the six state footprint of National City which owns 85% of National Processing.
FL-based Global Axcess and its Nationwide Money Services subsidiary have signed three more financial institutions for its “Branded Cash” ATM service to bring its total branded ATMs in operation to more than 300. The Program welcomes the Carolina Collegiate Federal Credit Union, the 1st Bank of Tennessee, and Community South Bank. The “Branded Cash Program” is designed to provide turnkey, economical ATM solutions to financial institutions. A total of four branded ATM sites will be initially deployed in geographic areas serving the customers of these institutions.
The competition in business cards is growing intense as more issuers dole out rewards for charge volume. NC-based BB&T Bankcard & Merchant Services has launched its “Business TravelPoints” program offering rewards ranging from gift certificates to free airline tickets. Under the program, small business owners and their employees, earn as a company, one point for each dollar charged to their “BB&T VISA Business Credit Card.” A 1,000 point bonus is also awarded upon activation. Points expire after three years. There is an annual membership fee of $59. Redemption level for “Business TravelPoints” is generally higher than co-branded airline credit cards. For example, a free domestic airline ticket costs 35,000 and a free international ticket to Europe costs 70,000 points. Most co-branded airline credit cards require 25,000 miles for a free domestic ticket and 40,000 miles for a free ticket to Europe.
Capital One confirmed yesterday it has settled an age discrimination lawsuit filed by about 60 former employees. The lawsuit, filed in December, and joined in March by the AARP, was seeking class action status. Capital One reportedly said the firings of the employees, who were 40 years old and up, were “performance related.” All the parties agreed to keep the terms of this week’s settlement confidential. However, Capital One has denied any liability in connection with the lawsuit. In February, Capital One was ranked in Fortune’s listing of the “100 Best Companies to Work for in America,” for the fourth year in a row. Capital One was also recognized as one of the top “25 Best Places to Work for Women.” (CF Library 3/18/03)
Dallas-based La Quinta has selected Fifth Third Bank’s electronic payment processing division as the endorsed credit card processor for its 350 locations in 33 states. Dallas-based La Quinta Corporation owns, operates or franchises more than 350 La Quinta Inns and La Quinta Inn & Suites in 33 states. Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio.
Capital One yesterday announced plans to close its Fredericksburg, Virginia operations center to reduce operating expenses. The closure, scheduled for December 1st, will affect approximately 650 employees. Cap One says all of the employees will be offered positions at other Virginia locations, primarily in the Richmond area. The card issuer said it will honor its existing community commitments. In the first quarter, Cap One reported profits of $309 million driven by a $112 million decline in marketing expenses, according to CardData ([www.carddata.com]).
Capital One reported yesterday that charge-offs for May increased to 6.40% compared to 6.36% in April, and that its delinquency rate (30+days) declined from 4.86% in April to 4.82% in May. The Company’s ‘managed’ consolidated financial statements reflect adjustments made related to effects of securitization transactions qualifying as sales under GAAP. The Company generates earnings from its ‘managed’ loan portfolio which includes both the on-balance sheet loans and off-balance sheet loans for which the Company has retained significant risk and rewards.
Fifth Third Bank Processing Solutions has inked a deal for Allied Chambers Services to offer a payment card acceptance program to 17 Chambers of Commerce across the state of Michigan which include 35,000 members.
Experian Consumer Direct has acquired VA-based PromiseMark, a developer of Internet-based consumer protection and recovery services for consumers who have been victimized by identity theft, viruses, data loss or hacking. PromiseMark offers its customers a suite of unique identity theft solutions. Its fraud resolution agents are trained to quickly handle identity-theft issues that would normally take a victim two years and 200 hours to resolve on their own. PromiseMark also affords coverage to victims for their financial losses up to $50,000 in the event it cannot remedy all of the damage and recover all of the customer’s losses.
WA-based Intermec Technologies has introduced new wireless credit card authorization software. “Skypay” combines turnkey payment processing and settlement services with application software and mobile equipment, including ‘Intermec 700 Series” mobile computers and “782” work board printers with integrated magnetic stripe readers. The software also supports payment by cash or check. Fifth Third Bank Processing Solutions is providing “Skypay’s” credit card authorization and settlement services. Fifth Third is is providing settlement on all “Skypay” transactions within 72 hours. Intermec Technologies Corp. is a unit of UNOVA Inc.
The Smart Card Alliance will host “Smart Cards in Government 2003” from July 15th to the 17th at the Sheraton National Hotel in Arlington, Virginia.