Dallas-based Alliance Data Systems’ Epsilon unit is acquiring CPC Associates for $70 million in cash. CPC is a provider of consumer and business data. Its data products and marketing solutions are used by direct-response marketers, marketing services/data providers, and franchises/small businesses. Epsilon itself is a current client. One of CPC’s most successful products and key market differentiators is its “new mover” data offering. ADS says the acquisition is part of its expansion strategy for the U.S. Loyalty and Marketing Services business. CPC employees will be integrated into Epsilon. The deal is expected to close in the fourth quarter.Details
Small-box value discounter, Dollar General, will begin accepting VISA credit and debit cards tomorrow at its 8,190 stores in 34 states. Dollar General was the first among its peer group to roll out readers for electronic benefits cards. Dollar General has been accepting PIN-based debit cards since 2003. Fifth Third Processing Solutions serves as the electronic card processor for all of Dollar General’s electronic payments. VISA says the dollar store retail segment has been one of the last untapped markets for payment card acceptance.Details
Bank of the West and First Hawaiian Bank, subsidiaries of BancWest Corporation, have renewed and expanded their relationship with First Data. First Data Debit Services will begin providing PIN and ATM driving services for Bank of the West’s 1.2 million cardholders. FDDS will continue to provide signature debit processing and network access for Bank of the West. First Hawaiian renewed its network agreement with First Data and will begin to utilize First Data Debit Services for PIN processing and ATM terminal driving services for its 750,000 U.S. cardholders. Both Bank of the West and First Hawaiian Bank have chosen First Data’s “STAR Network” as their primary EFT network.Details
Korean Air and U.S. Bank have upgraded their “SKYPASS VISA” program to the “VISA Signature” level. “Signature” cardholders receive double miles on Korean Air ticket purchases, annual renewal bonus miles, two Korean Air VIP lounge coupons and a $100 discount coupon on a Korean Air online ticket purchase each year. “Signature” benefits include a no pre-set spending limit enabling cardholders to use the credit card as a 30-day charge card. U.S. Bank currently offers six “SKYPASS VISA” cards including: “SkyBlue” with no annual fee, “Signature,” “Classic,” and “Secured” for personal use or business and the “Company” card for business needs. Korean Air operates about 400 flights per day to 92 cities in 32 countries. U.S. Bank and Korean Air unveiled the co-branded “SKYPASS VISA” in April 2002. It was the first credit card introduced in the U.S. market by an Asian carrier. (CF Library 4/2/02)Details
Korean Air has upgraded its “SKYPASS VISA” program to the “VISA Signature” level in the USA. “Signature” cardholders receive double miles on Korean Air ticket purchases, annual renewal bonus miles, two Korean Air VIP lounge coupons and a $100 discount coupon on a Korean Air online ticket purchase each year. “Signature” benefits include a no pre-set spending limit enabling cardholders to use the credit card as a 30-day charge card. U.S. Bank currently offers six “SKYPASS VISA” cards including: “SkyBlue” with no annual fee, “Signature,” “Classic,” and “Secured” for personal use or business and the “Company” card for business needs. Korean Air operates about 400 flights per day
to 92 cities in 32 countries.
MA-based RSA Security has teamed with FL-based Verid to expand the range of strong authentication technologies included in its comprehensive “RSA Adaptive Authentication” solution. Verid’s knowledge-based authentication technology presents consumers with a series of personalized questions based on deep background data derived from a variety of public and commercially available information sources. The technology conducts sophisticated analytics to build a comprehensive knowledge profile and guides the consumer through an intuitive and interactive process until identity is confirmed. RSA Security Inc. is the expert in protecting online identities and digital assets. Verid is the leading provider of real-time Knowledge Based Authentication solutions that accurately verify identity without compromising consumers’ comfort, convenience or privacy.Details
Lloyds TSB has launched a new American Express credit card that offers a personal lifestyle assistant and VIP access to airport
lounges worldwide. The new “Lloyds TSB Premier American Express Credit Card” also offers bonus rewards for everyday spending such as petrol stations and supermarkets as well as travel and entertainment earn 1.33
reward points for every GBP 1 spent. Cardholders can have a personal lifestyle assistant for GBP 4.95 per month. The service is provided by one of the world’s leading lifestyle concierge providers, TenUK. For an extra GBP 8.95 per month cardholders can also obtain “Priority Pass Prestige” membership, worth GBP 518, which gives them unlimited access to over 500 VIP airport lounges in 90 countries worldwide.
Morgan Stanley reported this morning that its Discover unit posted pre-tax profits of $368 million for 3Q/06, a 54% jump over one-year ago. Significantly lower bankruptcy charge-offs, improved credit quality, and record volume drove the solid results. Discover posted gross dollar volume of $30.2 billion, a 13% gain over the prior year quarter. Purchase dollar volume rose 15% over 3Q/05. Managed merchant, cardholder and other fees were $579 million, up 9% from a year ago. Managed outstandings of $49.6 billion increased 5% over year-ago levels, however, U.S. managed outstandings declined slightly to $45.1 billion from $45.2 billion one-year ago. Compared to the prior quarter, U.S. managed outstandings increased by $1 billion. The managed credit card net charge-off rate for the third quarter was 3.81%, 131 basis points lower than 3Q/05. The managed credit card over-30-day delinquency rate was 3.41%, a decrease of 50 basis points from the third quarter of 2005 and the managed credit card over-90-day delinquency rate was 1.59%, 21 basis points lower than one-year ago. However, charge-offs and delinquency rose from the prior quarter. The account base declined slightly during the third quarter by approximately 300,000 accounts from the second quarter. Active accounts were flat sequentially but up 2% Y/Y. For complete details on Discover’s third quarter performance, visit CardData ([www.carddata.com]).
DISCOVER CARD PORTFOLIO SNAPSHOT
($ billions; accounts/actives millions)
3Q/05* 4Q/05* 1Q/06* 2Q/06* 3Q/06* Y/Y CHNG
Outstandings: $47.1 $46.9 $47.8 $48.5 $49.6 +5%
Volume: $26.7 $26.1 $26.8 $28.5 $30.2 +13%
Accounts: 45.6 45.5 46.1 45.9 45.6 NC
Actives: 19.2 19.2 19.6 19.6 19.6 +2%
Chargeoffs: 5.12% 5.76% 5.06% 3.30% 3.81% -131bps
Delinquency**: 3.91% 3.98% 3.45% 3.29% 3.41% – 50bps
Yield: 12.04% 11.94% 12.13% 12.69% 12.38 + 34bps
Notes: 3Q/05 ended 8/31/05; 4Q/05 ended 11/30/05; 1Q/06 ended 2/28/06; 2Q/06
ended 5/31/06; 3Q/06 ended 8/31/06 ** delinquency is 30-90 days
and excludes 90+ days. Includes both domestic and international cards.
Source: CardData (www.carddata.com)