Fee Income Props Up Credit Card Yield

After dipping below 18% in September, the yield on credit card portfolios jumped 50 basis points between January and June. Compared to one-year ago the yield on credit card-backed bonds is up 88 basis points. The healthy yield amidst a rising interest rate climate has been attributed largely to strong fee income. Variable interest rates also have propped-up the yield as issuers pass through any increases within one billing cycle. According to Moody’s Investor Services the yield for June among credit card-backed bonds was 18.51%, compared to 17.63% one-year ago.

ABS YIELD HISTORICAL
Jun 05: 17.63%
Jul 05: 18.33%
Sep 05: 17.78%
Dec 05: 18.28%
Jan 06: 18.01%
Jun 06: 18.51%
Source: Moody’s Investor Services

Details

Card Issuers Offered Austin’s NSFGuard

TX-based Austin Logistics is making its “NSFGuard” predictive analytics software solution for payment risk management available to credit card issuers. NSFGuard’s predictive analytic approach does this by attacking the float decisioning problem with greater precision and accuracy than traditional methods such as rules engines, decision trees and home-grown solutions. NSFGuard, on the other hand, scores each payment, independent of individual account risk assessment. Austin Logistics is a leading provider of next-generation predictive analytic and business intelligence software solutions that anticipate customer value and behavior to drive more profit from every customer interaction.

Details

HoloMag Revenue Lifts ABNH’s Second Quarter

American Bank Note Holographics reported second quarter revenues of $8.4 million, an increase of 22% over 2Q/05. Net income of $1.0 million was double the year ago period. The increase in net income in the second quarter principally resulted from the increased revenue, including the “VISA HoloMag,” “VISA Dove” and “Mini Dove” revenue and the reduction of costs as a result of a negotiated settlement with a vendor. ABNH says $2.3 million of “VISA HoloMag” shipments that were completed and invoiced during the first quarter were not recognized as revenue in that quarter as collection of those amounts were not considered probable at that time as a result of the VISA decision to discontinue their “HoloMag” implementation. Approximately $0.9 million of those amounts were collected and recognized as revenue in the second quarter. During the second quarter, the Company developed a second generation “HoloMag” product that incorporates an electro-static dissipative agent that helps to insulate a vulnerable terminal from electro-static discharge. For complete details on American Bank Note Holographics second quarter performance visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

Details

Pemco Technologies Signs a Utah CU

Seattle-based Pemco Technologies has signed UT-based SummitOne CU for VISA credit and signature debit processing as well as Pemco’s “Extra Awards” card loyalty program. SummitOne Credit Union was founded as Dee Hospital Credit Union in 1954 in order to serve the needs of doctors, nurses, administration, and staff. Pemco Technologies provides innovative payment solutions to the financial industry, including credit and debit card processing, ATM acquiring and switching, cardholder award programs, fraud management, and gift card programs.

Details

UnitedHealth to Offer a Super HSA/FSA Card

Minneapolis-based UnitedHealth Group is gearing up to launch a fully integrated health and payment card that will offer access to portable health records, HSA/FSA financial accounts and a line of credit. The card will be rolled-out broadly in early 2007 through its Exante Financial Services business. UnitedHealth Group has 70 million customers with 20 million magnetic strip ID cards issued over the past three years. The new integrated card will provide real-time confirmation of a patient’s benefits coverage via the UnitedHealthcareOnline provider, access to an individual’s “Personal Health Record,” consumer access for the first time to multiple health accounts (i.e. Health Savings Account, Flexible Spending Account) using the same card. Consumers will also be able to apply for a line of credit attached to the same debit card.

Details

GE MONEY EXEC

GE Money has promoted the CEO of its Australia and New Zealand business to head its worldwide marketing. Thomas Gentile, a nine-year GE veteran who also formerly headed GE Money in France, has been named SVP/Global Marketing. During his tenure in Australia, Gentile generated double-digit growth creating $26 billion in assets, and an annual net income of more than $300 million. A new CEO of GE Money Australia and New Zealand will be named shortly. Last month GE Money reported a global profit of $880 million on revenues of $5.3 billion for the second quarter. For complete details on GE’s second quarter performance, visit CardData (www.carddata.com).

Details

S1 Corporation Sells its FRS Business

Atlanta-based S1 Corporation has sold its FRS business, a division that provides enterprise risk and regulatory compliance solutions, to The Carlyle Group and Kennet Partners. S1 Corporation (Nasdaq: SONE) is a leading global provider of customer interaction solutions for financial and payment services. FRS provides financial institutions worldwide with regulatory reporting, compliance and operational risk management solutions that enable them to increase operational efficiency, reduce costs and mitigate risks.

Details

Banco del Estado Adds More Wincor Nixdorf ATMs

The Banco del Estado de Chile has ordered 186 “ProCash 2100” and “ProCash” 1500 ATMs from Wincor Nixdorf’s partner IBM. The bank will see an increase in its installed base to 665 units after the installation of the new equipment. Including the latest installation at the Banco del Estado de Chile, a country-wide installed base of almost 1300 Wincor Nixdorf systems has been achieved. About 60% of all ATMs
installed at the bank are Wincor Nixdorf systems.

Details

EnterCard Signs a Long Term Agreement with MasterCard

EnterCard International has signed a long term agreement with MasterCard to promote and advance the use of MasterCard in the Nordic region. The total number of “EnterCard MasterCard” branded cards in circulation broke the 500,000 barrier in June. Some of the cards include the “Swedish ForeningsSparbanken’s Charge & Credit Card,” the “Swedish Golf Association’s Membership & Credit Card,” the “Norwegian LOfavor Card” and the credit cards of Norwegian Sparebank1.

Details

Chip & PIN Trips Up American Cardholders

AAA Financial Services says Americans are having problems using U.S.-issued credit and debit cards with U.K. merchants. Since the U.K. is now 100% “Chip & PIN” some merchants are not aware that a mag stripe card will work in a “Chip & PIN” terminal. Other merchants may be reluctant to accept only a signature. The AAA encourages Americans to be more persistent with merchants to complete the transaction with a signature, instead of a PIN. Even though the PINs for U.S. debit and credit cards are not recognized at the point of sale, they will still work at ATMs overseas. More than 130 million “Chip & PIN” cards have been issued in the U.K. since the beginning of the roll-out in October 2003 (this includes more than 65 million debit cards and 65 million credit cards), according to CardFlash International.

Details