CFSI Supports U.S. Treasury Tax Time Debit Card

The U.S. Treasury Department’s announcement of a 2011 pilot program to test the delivery of tax refunds via debit card accounts represents a critical milestone by the Obama Administration to ensure millions of underbanked consumers have access to well-designed transaction products. The pilot program, which was deeply informed by the Center for Financial Services Innovation’s SAFE-T Accounts proposal. The CFSI disclosed the Federal government could potentially save tens of millions of dollars a year through issuing refunds electronically in lieu of much more costly paper checks. The tax time accounts will also introduce more underbanked consumers to the potential and utility of such financial products and broaden the overall market for these and a variety of other financial services and products.

Details

BancVue to Acquire Credit Card Folio From FDIC

BancVue has successfully negotiated the purchase of the Silverton credit card portfolio from the FDIC. Comprised of credit card accounts representing nearly 700 agent bank relationships, the portfolio will be managed under the name “BancVue Card Assets.” BancVue will also be offering a full service card program for those community financial institutions that want to run their own credit card program as a direct issuer. More details on that program will be provided at a later date. BancVue provides financial products, marketing, and consulting solutions to community financial institutions nationwide.

Details

FIS Processing Selected by 11 Community Banks

FIS banking and payments technology has completed 11 new agreements year-to-date for its “BancPac” core processing solution, the latest of which with Town & Country Bank and Trust. A community bank located in Bardstown, KY, Town & Country Bank and Trust Company has deployed the FIS’ “BancPac” core processing solution in conjunction with its ATM/Debit card processing, bill payment, eBanking, imaging, TellerElite and others. “BancPac” can be fully integrated with a suite of modules designed to expedite new account origination, as well as create and maintain a successful sales culture throughout the bank, resulting in greatly improved communications, streamlined administrative functions and a complete snapshot of the sales and service pipeline.

Details

Net1 Launches mPayments Initiative

Net1 UEPS Technologies’ “Virtual Credit Card” has made available its “VCpay” mobile prepaid virtual payment card application. Designed for CNP transactions with US wireless carriers, the “Virtual Credit Card” will be issued through Bancorp Bank. The “VCpay” solution will be made available to prepaid customers as an application that will be pre-loaded on new smart-phones or can be downloaded on select existing devices. With “VCpay,” subscriber can generate a unique, one-time use prepaid virtual card number to securely purchase goods and services or perform bill payments in any CNP environment and does not require the user to have a physical card or a bank account. Virtual accounts can be loaded with cash at MoneyGram U.S. agent locations. Net1 provides its universal electronic payment system as an alternative payment system for the unbanked and under-banked populations of developing economies.

Details

Credit Card Charge Off Rate Falls to 8.1%

The credit card charge off rate has continued to slow after climbing for 2 years straight and now stands at 8.1%. This, after months of soaring past the 6% mark in December of 2008, the 8% mark that following spring, and finally the 10% mark in September of ’09, offers continued relief to rampant fear last year credit card-backed securities would realistically near 12% by this time. This follows average charge-offs in the first quarter having reached an unprecedented 10.93% in March, According to CardData (www.carddata.com). Moreover, Capital One international cards COF hit 7.86% in July compared with 8.3% in June; Discover COF declined to 7.28% from 8% in June; Chase net credit losses fell to 7.88% from 8.32% in June; the BofA charge-off rate fell to 11.39% from 11.98% in June and American Express said its charge-off rate fell to 5.5% from 5.7% in June. In Recent Months, skyrocketing card charge-offs have improved and will hopefully continue to recede far enough from the dreaded 11% mark. For complete details on credit card charge-offs visit Carddata.com (www.carddata.com).

Charge-Offs
JUN 08: 5.3%
SEP 08: 5.5%
DEC 08: 6.0%
MAR 09: 8.7%
JUN 09: 9.5%
SEP 09: 10.1%
DEC 09: 10.6%
MAR 10: 10.9%
JUN 10: 10.3%
JUL 10: 8.1%
Source: CardData
(www.carddata.com)

Details

U.S. Consumers Face Growing Credit Gap

The credit gap for U.S. consumers is growing as lenders expect credit availability to fall short of consumer demand through the end of 2010, with 73% of bank risk professionals expecting the volume of credit applications to increase or remain steady over the next six months. With this, 46% expect approval criteria for credit to get stricter while only 14% expect criteria to be loosened; 38% expect the approval rate for credit applications to decline while 25% expect a higher approval rate. This, according to a recent FICO quarterly survey of bank risk professionals, is consistent with findings earlier in the year showing the number of new credit cards opened by U.S. consumers dropped by 17.7% compared to the previous 12 months. Additional findings show the number of inquiries for new credit fell by 3%; the total amount of credit available on all U.S. consumer credit cards fell by 12.2% during the same 12-month period; 42% of those surveyed expect credit card delinquency to increase); and the percentage of all respondents expecting an increase in credit card delinquencies fell from 59% to 42% since the previous quarter.

Details

Bloomingdale’s AmEx Intros New Insider Perks

Bloomingdale’s and American Express have partnered to launch the Citi-issued “Bloomingdale’s American Express Card.” Offering Cardholders “Insider” rewards and services when shopping at Bloomingdale’s, as well as brand new dining, travel and retail offers when shopping outside of Bloomingdale’s, the “Bloomingdale’s American Express Card” offers the “Daily Wish” program from American Express, which add up to $25 reward certificates for rewards-earners. The new Card also provides access to new emergency assistance referral services; Insider Services with free shipping to a single address for purchases of $150 or more on bloomingdales.com; savings certificates worth up to $925 when shopping at Bloomingdale’s between 9/10 and 9/19; a complimentary coach companion airfare voucher from one of 19 participating airlines when spending $500 at Bloomingdale’s on the Bloomingdale’s American Express Card during the opening weekend of Bloomingdale’s HOT event; 15% back from the total bill at participating restaurants from September 6 through December 31, 2010; double rewards; and Bloomingdale’s “Premium Travel Services” with thousands of dollars in savings.

Details

XIPWIRE to Launches mDonation Campaign

Monmouth College has partnered with XIPWIRE mpayment service to provide students, parents and alumni with the ability to donate to the college via text message from a mobile phone. The convenient text-to-pledge service will be unveiled during the Fighting Scots’ first home game of the football season, marking the official start of the college’s first-ever mobile giving campaign. XIPWIRE enables its users to securely send and receive money using a simple text message. According to the latest report from the Pew Research Center, their 2010 Mobile Access Survey confirms that 72 percent of all mobile phone users are texting – an 8 percent increase in just one year. Furthermore, 11 percent have pledged a donation via text message, indicating that mobile giving is quickly becoming a donation method of choice. For these reasons, Monmouth College immediately saw the impact XIPWIRE could make on the college’s annual fundraising efforts.

Details

WAUSAU to Deliver Imaging Solution to First Niagara Bank

WAUSAU Financial Systems processing solutions has partnered with Burroughs Payment Systems and S1 Corporation payments and financial services software solutions to deploy “ImageTeller” document imaging. Along with the S1 “Branch Teller” application, WAUSAU will provide document capture and advanced workflow capabilities to First Niagara Bank. The
“ImageTeller” electronically captures transactions at the moment they are presented and allows for instant tracking. The solution drives return on investment for First Niagara by improving transaction workflow and reducing overall operating costs with fewer teller data entry, back-office processes and courier runs. S1 will coordinate the delivery of image integrated teller functionality, Burroughs will provide SmartSource Professional scanners for teller stations, and WAUSAU will handle image processing through “ImageTeller” at 57 First Niagara branch locations within seven months from the contract date.

Details

TD Bank Posts 3Q/10 Net Income Up $150mm Y/Y

TD Bank posted 2Q/10 net income of $1.2 billion, compared with the year ago figure of $912 million. Adjusted net income held steady at $1.3 billion, flat year-over-year, while total revenue was $1.2 billion, compared to $1.1 billion last quarter and $1billion the year ago quarter. Additionally, Non-interest expenses totaled $688million, compared to $659million last quarter and $594 the year ago quarter; net income posted $271million, up from the $241million last quarter and the $151million seen in the corresponding period last year; and net income totaled $276million, compared with $241million last quarter and $213million the year prior.

Details

Xbridge Systems Launches Mainframe DLP Solution

Xbridge Systems has launched its “DataSniff” data discovery tool supporting mainframe systems. Xbridge provides QSA’s and internal auditors with a powerful, yet simple, tool to access mainframe data and scan the data for sensitive information. The “DataSniff” solution has the power to uncover data in mainframe data storage environments that were previously considered “untouchable” or wrongly categorized as “exempt” from audit. The requirement to include all cardholder data locations means that mainframe data must be included in future PCI DSS assessments.

Details

Verifone Acquires WAY POS for $9mm

VeriFone has acquired the assets of WAY Systems mobile POS solutions and gateway services for an upfront payment of $6 million dollars and an earn-out payable in one year of up to an additional $3 million dollars should certain performance targets be met. Providing POS solutions and gateway services for mobile merchants WAY has built up a customer base of more than 25,000 mobile merchants over the past 5 years. VeriFone will immediately take over support of these merchants within its expanding PAYware Connect Gateway infrastructure. Additionally, VeriFone will offer continuous non-stop support for all existing WAY mobile systems, bolstered by VeriFone’s extensive mobile portfolio, including PAYware Mobile and VX Evolution secure payment systems.

Details