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)
OH-based Diebold has sealed a deal with NC-based Source Technologies for a preferred-provider relationship for kiosk service and maintenance. Diebold will leverage its extensive automated teller machine (ATM) service and maintenance expertise to provide Source Technologies customers with preventive maintenance, break-fix services (onsite or depot), service parts logistics, inventory management, implementation, program management, ongoing support, training, outsourcing and customer service desk support. Source Technologies is a leading provider of integrated solutions for managing financial transactions and other secure business processes. Diebold, Incorporated is a global leader in providing integrated self- service delivery systems, security and services.Details
Buffalo-based M&T Bank has selected Corillian “Intelligent Authentication” for its online authentication services to both its consumer and small business online banking customers. Corillian Intelligent Authentication will be integrated with Cydelity’s eSentry online fraud solution, already deployed at M&T Bank, to provide end-to-end monitoring and protection of the entire online banking session, along with risk based authentication by transaction and individual user. M&T Bank is the principal banking subsidiary of Buffalo-based M&T Bank Corporation. Corillian is the market leader of online banking, payment and security solutions to the financial services industry.Details
TSYS Acquiring Solutions has signed AdvanceMe, a supplier of merchant cash advances for small and mid-sized businesses, to a “preferred partnership” agreement. The partnership expands the TSYS Acquiring Solutions product portfolio by providing its acquiring clients and their merchants with a best-in-class funding solution that is quickly becoming recognized as one of the most business-friendly forms of working capital available. AdvanceMe, Inc. in Kennesaw, GA is the nation’s leading provider of Merchant Cash Advances to small and mid-sized businesses. TSYS Acquiring Solutions is the preeminent supplier of acquiring solutions, related systems and integrated support services to the acquiring industry and its customers.Details
A new report says the small business segment is messy from a segment viewpoint, however, card issuers are missing the emerging business debit card market. Mercator Advisory Group says it found that there are about 8 million small business debit accounts in place, perhaps one of out of three small businesses. The report suggests that positioning small business credit offerings with regard to debit, and perhaps offering dual debit/credit programs will be of increasing importance. Among other findings is the fact that the payment volume of small business credit cards is growing at twice the rate of credit cards overall. Mercator noted that small business credit cards benefit from superior commercial card interchange and higher payment volumes per account than consumer cards.Details
The “Third Annual American Express Platinum Luxury Survey” has found that affluent parents are teaching their children to value philanthropy, cultural experiences, and other personally enriching activities above material goods. Parents said they emphasize the value of the dollar through discussions with their children, and these affluent children are frequently taking part-time jobs when they reach the age of 15. Affluent parents surveyed said when it comes to personal passions they spend the most money on travel, with an average overall annual spend of $13,004. Of the 22% of respondents with a reported household income above $600,000, average overall annual spend on travel increased to more than $20,000. The survey had 1,170 respondents with an average of two children and an average annual household income of $472,000.Details