MBNA Europe has launched special pricing on its football credit cards. MBNA is offering a 0% interest on card purchases for 3 months from the date the account is opened and a 0% interest rate on balance transfers for 12 months. After the introductory period the card will revert to a typical interest rate of 15.9%. “Premiership” cardholders also generate a contribution to football clubs each time the credit card is used. MBNA is the largest provider of football affinity credit cards in the U.K. and currently provides branded credit cards to all twenty “Premiership” clubs.Details
Fitch Ratings has hired Les Scharfstein, formerly a VP in American Express’ Corporate Treasury group, as a Director focusing on credit cards. While at American Express, Scharfstein was key in developing Amex’s securitization strategy and helped to establish Amex as one of the premier ABS issuers. Scharfstein will be joining the Consumer ABS Group, headed by Managing Director Claire Mezzanotte, where he will focus on various consumer assets, particularly credit cards.Details
Dublin-based Trintech has agreed to sell off its payment systems business to VeriFone for $12.1 million in cash. The deal is expected to close this month following the formation of a new subsidiary which will hold substantially all of the assets and liabilities of the payment systems business of Trintech. The Company says it is divesting its payment systems business to concentrate on its transaction reconciliation software products and services. VeriFone says the acquisition will enhance its ability to deliver self-service payment, vending, and pay-at-the-pump applications. Trintech reported first quarter revenues of $11.1 million, a 15% decline over 1Q/05 due to lower product and license revenues. The net loss for the quarter was $2.1 million, compared to net income of nearly $400,000 one-year ago.Details
FL-based Cash Now has launched a “Virtual Terminal” Web-based platform for processing electronic payments for the payday loan industry. Virtual Terminal is by far the most advanced web-based platform for processing electronic payments available today. With its easy-to-use, yet powerful user interface, Virtual Terminal enables Cash Now licensees and system users to schedule a single transaction or a series of recurring transactions with a few simple keystrokes. Cash Now Corporation is developing the most comprehensive menu of services in the cash advance industry, all centered on the Cash Now brand.Details
Shinhan Financial Group has reportedly been selected to be the preferred bidder for the controlling stake in the card firm. Shinhan is has also reportedly offered up to $7 billion for the credit card issuer.
Creditors are looking to unload 51% to 72% of LG Card. The winning bidder is to be officially announced on Wednesday. Korea Development Bank, which holds 82% of LG Card, is the lead manager of the sale. The deal would be the largest merger deal in Korean history.
The first contactless small business credit card is being introduced next month. Advanta, a business card specialist, and MasterCard have teamed to roll-out the new “PayPass”-enabled “Advanta MasterCard Small Business.” MasterCard reports that at mid-year there were nearly 10 million “PayPass” cards and devices in the market and approximately 32,000 merchant locations worldwide. Advanta says it will also work with MasterCard to identify the merchants that small business owners do business with in order to grow acceptance of contactless payment cards. At the end of the second quarter, Advanta had 978,517 gross business accounts. Transaction volume for the quarter was $3.0 billion and total outstandings were nearly $4.4 billion. (CF Library 7/27/06)Details
VeriFone has inked a deal to acquire Dublin-based Trintech’s payment systems business for $12.1 million in cash. The deal is expected to close this month following the formation of a new subsidiary which will hold substantially all of the assets and liabilities of the payment systems business of Trintech. Trintech says it is divesting its payment systems business to concentrate on its transaction reconciliation software products and services. VeriFone says the acquisition will enhance its ability to deliver self-service payment, vending, and pay-at-the-pump applications. Trintech reported first quarter revenues of $11.1 million, a 15% decline over 1Q/05 due to lower product and license revenues. The net loss for the quarter was $2.1 million, compared to net income of nearly $400,000 one-year ago.
TRINTECH REVENUE HISTORICAL
1Q/05: $13.1 million
2Q/05: $12.6 million
3Q/05: $11.4 million
4Q/05: $11.5 million
1Q/06: $11.1 million
Source: CardData (www.carddata.com)
A new study concludes that corporate payment card can reduce transaction costs, cut maverick spending, and provide increased negotiated supplier discounts. The report by AberdeenGroup, sponsored by VISA and MasterCard, found that personal cards are still the predominant vehicle to pay for business expenses, as reported by 64% of the survey respondents. Purchasing cards follow closely, with 57% reporting usage, and only 53% using Travel cards to pay for business expenses. About 28% use Fleet cards. The research found that a company could save an average of $8 to $27 per transaction in processing costs when moving to P-card processing. For travel expenses, the estimated potential savings in expense report processing from moving spend under the Travel card can reach approximately $26 per expense report. As a result of moving eligible spend under the Travel card, a company can save approximately 1.2% in financial fees, reduce maverick spending by 6.4%, and reduce the supplier base by an average of 8.5%.Details
A just released semi-annual report found that 46% of small business owners believe incorrectly that banks commonly make loans to loyal customers who are in the midst of a cash flow crunch and 38% believe incorrectly that it’s a good idea to apply to as many lenders as possible when seeking a loan. The “OPEN from American Express 2006 Semi-Annual Monitor” also found that 49% of small business owners incorrectly believe a consumer loan can generally be used to help fund a business. Only 43% think that venture capital is hardly available to small business owners.Details
CA-based Kena Kai has launched a new line of “DataSafe Wallets” which utilizes RF shielding material to protect contactless payment cards. The new DataSafe Wallet line will include bi-folds, tri-folds, credit card wallets, women’s wallets, and passport holders in full-grain Italian leather. Each style will incorporate a patent-pending design of RF shielding material that will block any attempt to access the credit card’s Smart Card chips. The DataSafe Wallets will begin shipping September 30th and will retail for $40-$120. With a distinctive combination of style and innovation, Kena Kai designs unique items for people that enjoy life with a passion and appreciate how technology can often make their lives better.Details
Dillard’s reports it received $6.5 million in Q2 from the “VISA Check/Mastermoney Antitrust” litigation. Dillard’s remains committed to providing a differentiated shopping experience to position its merchandise mix toward a more upscale and contemporary tone to continue to attract customers who are seeking exciting statements in fashion.Details
Citibank has launched a new program for its cardholders offering special discounts and dining offers from nearly 3,000 local and international restaurants. The “2006 Citibank Favorite Restaurants” campaign will run for a year and some restaurants will offer discounts of up to 30% for Citibank cardholders.Details