Credit Card Mail Hits a Five-Year Low

A new report finds that credit card solicitations to U.S. households has dropped off by 17% in the second quarter to slightly more than one billion pieces. However, response rates have remained flat at 0.6%. According to Synovate’s “Mail Monitor,” card issuers that cut back solicitations the most were HSBC (-54%) and Citigroup (-45%). Citibank’s mail volume was the lowest quarter recorded in over 10 years. Overall, the card mail volume figures are the lowest seen since 4Q/03. For households receiving offers, the reductions to the prime rate have had a positive impact on the terms being promoted. Synovate notes that the mean single/go-to APR declined from 12.91% in 2Q/07 to 11.36% in 2Q/08.

CARD MAIL HISTORICAL
YEAR OFFERS RESPONSE
1998: 3.44b 1.2%
1999: 2.54b 1.0%
2000: 3.54b 0.6%
2001: 5.01b 0.6%
2002: 4.89b 0.5%
2003: 4.29b 0.6%
2004: 5.23b 0.4%
2005: 6.05b 0.3%
2006: 5.76b 0.5%
2007: 5.30b 0.6%
2008: 4.00b 0.6%
Source: Synovate’s Mail Monitor

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APNALOAN COMPARATOR

Providing comprehensive information on 212 different cards by 28 credit
card issuers, the Apnaloan.com credit card comparator service provides
consumers a versatile tool designed to help users make informed
decisions when choosing a card. Narrowed down to consumer spending
preferences with such categories as Entertainment, Free for Life, Cash
back and Fuel, the site allows users to sort based on reward cards or 28
other parameters such as annual fee, interest rates, balance transfer
interest rates, joining fee, cash withdrawal fees, surcharges, add-on
cards, late payment fees, over limit charges and many more. These
parameters can also be combined to allow the user to find the perfect
card to suit their needs.

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TNB Inks the East Texas Professional CU

TNB Card Services has acquired the processing services for East Texas
Professional Credit Union.
It is converting the more than 17,000 debit and ATM cards for the $334
million community-based credit union serves 45,000 members in 10 Texas
counties.
The expanded processing partnership will enhance East Texas Professional
Credit Union’s ability to serve its members. The credit union will be
able to instantly issue debit and ATM cards, as well as empower
cardholders to easily change PIN numbers without being required to visit
a branch. TNB’s neural network will mean better protection for debit
cardholders and the credit union against fraud. Debit cardholders will
also have access to 24/7 call center support.

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Vesdia Names an Interactive Marketing Exec

The Vesdia Corporation loyalty marketing and merchant network service
has appointed Melanie Wernick VP of interactive marketing bringing with
her more than 15 years of expertise. In her new role, Wernick will be
responsible for all interactive assets of the organization with
particular emphasis on enhancing the consumer shopping portals, driving
additional development of Vesdia’s online shopping mall and electronic
marketing activities. Most recently VP of Sales and Marketing at
PRIMEDIA, Wermick was directly responsible for the management of
marketing initiatives to increase interactive revenue after having
served in business development, channel development and marketing for
MindSpring internet service provider. Vesdia’s loyalty solutions create
marketplace differentiation for financial institutions, affinity groups
and merchants using customer loyalty programs.

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NCO Group Revenues Grow 23% During 2Q/08

PA-based NCO Group reported revenue of $405.0 million and a net loss of $14.8 million for the second quarter. The Company noted that its service businesses continued to over perform despite an absence of planned revenue from the collection of our owned portfolios and some volume fluctuations amongst its CRM clients. Furthermore, the reduced collections in its PM business negatively impacted the Company’s earnings, causing additional impairment on several older portfolios.
NCO is organized into three operating divisions: Accounts Receivable Management, Customer Relationship Management and Portfolio Management.
For complete details on NCO’s latest results visit CardData ([www.carddata.com](http://www.carddata.com))

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Travelex Inks a Major Deal with the ICBA

Travelex and the Independent Community Bankers of America have
signed agreements for the distribution of the Travelex “Cash Passport”
currency cards and “CashPax” wallet-sized packs of foreign currency
through participating bank locations. “Cash Passport” foreign currency
MasterCard cards are available in Euros and British Pounds and can be
used to withdraw money from ATMs. “CashPax” are designed to provide
enough foreign currency to pay for immediate cash transaction in small
denominations of $100 or $250 in Canadian Dollars, Euros, Australian
Dollars, British Pounds, Japanese Yen, Swiss Francs, and Mexican Pesos.
Travelex provides foreign exchange across the world while ICBA provides
a voice for nearly 5,000 community banks throughout the United States.

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Thales e-Transactions Drives Hypercom Growth

Hypercom reported that second quarter revenue soared by 86%, compared
to the prior year quarter. The surge was primarily driven by the
acquisition of the Thales e-Transactions business line as well as strong
organic sales growth in North America and Northern European multi-lane
terminals, Southern European countertop terminals and unattended
products, Asia Pacific countertop terminals, and South American
services. However, Hypercom posted a $10.9 million net loss in the
second quarter, compared to a net loss of $5.7 million in 2Q/07. The
loss was partially attributable to the transition to contract
manufacturing and the amortization of acquired intangible assets. During
the quarter, National Processing Company “Class A” certified and
commenced selling the “Optimum 4210” and “Optimum T4220” terminals and
the “PV1310 PIN Pad.” Also, the Company introduced a mobile POS solution
suite of products and services and Hypercom’s medCompact became the
first healthcare terminal to pass “e-Health BCS” functional tests
required by Gematik, the German healthcare organization. For complete
details on Hypercom’s latest performance visit CardData ([www.carddata.com](http://www.carddata.com)).

HYPERCOM REVENUE HISTORICAL
2Q/06: $66.1 million
3Q/06: $56.7 million
4Q/06: $64.8 million
1Q/07: $64.8 million
2Q/07: $67.5 million
3Q/07: $70.8 million
4Q/07: $90.7 million
1Q/08: $71.7 million
2Q/08: $125.4 million
Source: CardData (www.carddata.com)

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MUFG & UNBC

Mitsubishi UFJ Financial Group and The Bank of Tokyo-Mitsubishi
UFJ is offering to acquire all publicly-held shares of the
UnionBanCal Corporation, of which it currently owns 65.4%, for
$63 per in cash to total $8.8 billion. BTMU is planning to commence the
offer on August 18 which would designate UNBC as a wholly owned indirect
subsidiary of MUFG. Because one-on-one negotiations have been
unsuccessful, MUFG and BTMU-neither of which have a desire to sell their
respective shares in the organization- have concluded allowing UNBC
stockholders to receive benefits of the offer is the best option to
obtain full stock value. MUFG financial group has total assets of more
than Y190 trillion while its BTMU operating company has around 660
branches and offices serving 400,000 corporate customers and around 40
million individual customers.

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Intersections Q2 Revenues Increase by 45%

VA-based identity risk management services specialist Intersections
reported second quarter revenue of $94.2 million, compared to $65.1
million for 2Q/07. Net income for the quarter was $4.4 million, compared
to $1.3 million for the quarter ended June 30th, 2007. Total subscribers
increased to approximately 5.7 million, compared to approximately 5.3
million subscribers at year-end 2007. Subscription revenue, net of
marketing and commissions associated with subscription revenue,
increased to $51.0 million for the second quarter from $35.1 million for
the second quarter of 2007, and from $46.6 million for the first quarter
of 2008, an increase of 45.3% and 9.5%, respectively.
For complete details on Intersection’s second quarter performance visit
CardData ([www.carddata.com](http://www.carddata.com)).

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Genesis Financial Names a New CEO

Privately-held OR-based Genesis Financial Solutions has announced the
appointment of Patrick Moore as CEO and Tom Broadhead as General
Counsel. Moore will oversee the operational leadership of the
organization, to which he comes from Toyota F.S.B. as COO responsible
for developing a direct-to-consumer business model. Moore also worked as
VP of Customer Management with Capital One and is a graduate of the U.S.
Naval Academy. Meanwhile, Broadhead comes to Genesis from CitiFinancial
as General Counsel, a member of the Legal Department with Capital One
and headed Capital One’s Federal and State Regulatory group. He received
his J.D. from the Marshall-Wythe School of law at the College of William
& Mary, his MBA from Duke University’s Fuqua School of Business and his
undergraduate degree from Dartmouth College.

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MicroBilt to Offer Red Flag Guarantees

MicroBilt is guaranteeing its “Red Flag” identity verification screening
solution will efficiently protect small businesses and consumers against
losses incurred through identity theft, the first risk management
provider to do so. Backed by identity theft insurance from AIG,
MicroBilt security includes the “Falcon ID Generalized Risk IDentity
(GRID)” score by Fair Isaac and meets the November 1 deadline for
compliance with new FTC additions to the Fair and Accurate Transactions
Act of 2003 (FACTA), known as the “Red Flag” rules. These rules define
procedures for detecting, preventing and mitigating identity theft to
include the identification of discrepancies in address histories, fraud
alerts on consumer reports, suspicious use of Social Security numbers,
inactive accounts that suddenly become active, credit freeze
notifications, credit reports showing unusual patterns of activity,
notices from victims of identity theft or law enforcement agencies and
applicant discrepancies.

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