Credit Cardholder Satisfaction Drops Sharply

Overall credit card customer satisfaction declined to a three-year low driven primarily by cardholders discontent with rates and fees. Nearly 20% of customers report experiencing an increase in their interest rate since 2008, almost double compared to one-year ago. The J.D. Power and Associates “2009 Credit Card Satisfaction Study” also found that late payment fees, which have the greatest negative impact on
satisfaction, were incurred by 14% of customers, compared with 11% in
2008. Overall satisfaction with fees and rates declined to 603 versus 640 in 2008 and 658 in 2007. The Power study measures customer satisfaction with credit cards by examining six key factors: interaction; fees and rates; billing and payment process; rewards;
benefits and services; and problem resolution. American Express ranked highest among credit card issuers for a third consecutive year with an index score of 762 thanks to strong performance in rewards, benefits and services, and billing and payment process factors. The Discover Card (751) and National City (740) follow AmEx in the rankings. Power noted that overall satisfaction among credit card customers remains the lowest across the financial services industries in which it conducts research, including insurance, banking and investment services.

Details

Epson POS Printer Cited by a National Mag

Epson’s “TM-T88IV POS” printer was named “Best Channel Product” by Business Solutions Magazin
Resellers named Epson’s TM-T88IV Best Channel Product based on scores in five categories, including: Richness of
Features / Functionality, Product Reliability / Durability, Ease of
Integration, Ease of Upgrade, and VAR’s Ability to Service. Resellers were asked to rate products on a scale of 0 (worst) and 5
(best). Epson’s TM-T88IV received the highest scores in Product
Reliability / Durability (4.68) and Ease of Integration (4.56). The
magazine also published a VAR comment corresponding to each product.

Details

CU Introduces Student Credit Card Care Package

With 84% of college undergraduates holding at least one credit card, card issuers are allowed to aggressively market to this demographic for only five more months before legislation puts on the brakes in February 2010. Students on campuses across the country are in the cross hairs this fall, more than half of whom have four or more credit card accounts, graduate with an average of $4,138 in credit card debt (44% more than 2004) and only 17% of whom pay off their balances each month. On average, students accrue more than 14% interest monthly by only making the minimum payment. In response, the Consumers Union nonprofit publisher of Consumer Reports has assembled its “Credit Card Care Package,” via creditCardReform.org, to prepare students for the aggressive credit card marketing tactics, which tend to include gifts in exchange for filling out a credit card application and issuing credit cards to people under 21 without a cosigner. Consumer Union is reminding students cheap gifts are not worth a 35% interest rate in the event of a missed payment; bank accounts with a debit card is usually the better option; shop carefully for a credit card and understand the contract. The new report also warns students of the teaser rate; not to finance big expenses such as an education with a credit card; to pay off balances monthly and on time; and never to cosign for friends.

Details

ABnote North America Upgrades its Website

Plastic and document printer ABnote North America has launched its
new web site. The new web site consolidates information from the former Arthur Blank,
Keystone Plastics, and American Banknote Company brands, and will
eventually be replacing those sites. The new site is primarily designed
as resource for customers to provide them with comprehensive and
up-to-date information on products and services, news, articles,
pre-press guidelines, equipment lists, tradeshow schedules and more.

Details

AmEx Launches a New Take Charge Ad Campaign

American Express has launched a new, integrated marketing campaign
under the theme “Don’t Take Chances, Take Charge”. The marketing
campaign launches today with print advertisements in national
newspapers, including The Wall Street Journal, The New York Times, and
USA Today. Tomorrow, print advertisements will run in major regional
newspapers, including Boston Globe, New York Post, Los Angeles Times,
San Francisco Chronicle and the Chicago Tribune. Television advertising
will begin to air on major broadcast and cable stations such as CBS,
FOX, NBC, TNT, A&E and the Discovery Channel breaking during the U.S.
Open on September 5th. The digital element of the campaign will include
an interactive social media component. Additionally, AmEx has created a
Web site, takecharge.com. The campaign is part of an ongoing effort to
educate consumers about the “Charge Card” and explain why it is a
smarter way to pay.

Details

Dynamic Card Solutions Q2 Revenues Up 87%

CO-based instant card issuer Dynamic Card Solutions reports that second
quarter revenue was $14.8 million, an 87% increase in revenue from last
year..
By adding new customers both domestically and internationally, as well
as expanding existing customers’ deployments of DCS instant issue
software and associated hardware, the company continues to sustain its
significant market share as the preferred vendor-of-choice for instant
card issuance, PIN selection and PIN change. With nearly 500 customers
to date, DCS’ patented flagship software, CardWizard, runs in thousands
of individual branches/stores producing personalized ATM and
Visa/MasterCard plastic cards on demand with private and secure PIN
selection.

Details

JULY DEBT

Growth in credit card outstandings remained stagnant in July, stuck around GBP 53-54 billion for 2009. However, year-on-year growth was down 55 basis points in July, compared to 2% in June. According to the The Bank of England, net credit card debt was GBP 53.9 billion in July. But, the amount outstanding of credit card lending increased by GBP 300 million following the de-securitisation of credit card portfolios to several UK banks from associated non-resident companies. Overall, the decrease in total net lending to individuals in July (GBP 600 million) was lower than the June increase (GBP 400 million), showing a net repayment for the first time. The twelve-month growth rate continued to fall, by 0.3 percentage points to 0.9% and the three-month annualized growth rate decreased by 0.5 percentage points to zero. Total consumer credit decreased by a net GBP 200 million, below the previous six-month average. The annual growth rate of consumer credit continued to fall, to 1.4% and the three-month annualized growth rate decreased by 0.8 percentage points to 0.2%.

NOTE: Chart does not include about GBP10 billion from specialist lenders, retailers, and insurance companies. SOURCE: Bank of England

Details

Visa to Prepay its Debit Card Settlement

Visa will prepay the remaining payments agreed to in the June 2003 Settlement Agreement by making a single
payment of $682 million instead of the
remaining four annual $200 million payments due through 2012. Constantine Cannon LLP and Hagens Berman Sobol Shapiro LLP, together
Lead Counsel for United States merchants advised the Court
that it believes that the Visa Prepayment Agreement will be more
beneficial to Class Members than proceeding with the previously contemplated
securitization of Visa’s remaining payment obligations. The Visa Prepayment Agreement
equates to completing the securitization at a discount rate of below 8.0% on an
annual basis and it eliminates all market risk, while offering numerous other
advantages not available in the context of a securitization. As with a
securitization, if the Court approves the Visa Prepayment Agreement, Lead Counsel will be able
to make lump-sum distributions of the Visa residual payments to Class Members
with approved claims instead of making installment payments over the next four years
of any residual amounts.

Details

BOKU PAYMENTS

Online mobile payments are gaining momentum merchants and publishers who sell digital goods and services globally. San Francisco-based BOKU reports it is going live in the next week with its payment service in Indonesia, New Zealand, Slovenia and Taiwan, bringing the company’s global reach to 55 countries. Since its launch last summer the company has over 1,000 customers that use BOKU as their mobile payments provider of choice. The bank-grade payment service allows over 1.8 billion potential consumers to shop online and purchase virtual goods and digital content easily and securely using their mobile phone.
BOKU is funded by Benchmark Capital, Index Ventures and Khosla Ventures.

Details

Bling Names Community Payment Services Head

Alternative mobile payment provider Bling Nation has tapped Timothy
Shank, previously with USA Payment Services, as its new director of
Community Payment Services. Shank brings more than 15 years of sales training and development
experience to Bling Nation. He developed sales-based divisions in three
leading credit card processing companies as well as designed sales
procedures and created materials for multi-million dollar initiatives. Shank will lead the
company’s outreach to merchants and small business customers. He will
educate them on Bling Nation and its Community Payments Service, which
enables merchants to bypass the current and costly debit payment model
and replace it with a cost-effective and efficient local payment network.

Details

FORTENT & ACTIMIZE

NICE Systems and its Actimize subsidiary have signed and closed
definitive agreements to acquire Fortent Anti-Money Laundering and
financial crime prevention software solutions for a total, all cash
consideration of $73.5 million. NICE will be acquiring Fortent’s
Compliance and Risk Management business, which will become part of
Actimize, and integrating its employees. Serving financial services
industry clients such as Barclays, JPMorgan Chase, Mizuho, Royal Bank of
Scotland and Scotiabank, Fortent analytics technology will provide
Actimize clients comprehensive solutions, robust service and organized
support. Actimize is now expected to be a $100 million business in 2010
and will continue to leverage NICE’s presence through financial
institutions worldwide to further accelerate market presence.

Details

BOKU Mobile Payments Expands to 55 Countries

Online mobile payments are gaining momentum merchants and publishers who sell digital goods and services globally. San Francisco-based BOKU reports it is going live in the next week with its payment service in Indonesia, New Zealand, Slovenia and Taiwan, bringing the company’s global reach to 55 countries. Since its launch last summer, the company has over 1,000 customers that use BOKU as their mobile payments provider of choice. The bank-grade payment service allows over 1.8 billion potential consumers to shop online and purchase virtual goods and digital content easily and securely using their mobile phone.
BOKU is funded by Benchmark Capital, Index Ventures and Khosla Ventures.

Details