EFMARK Intros Managed ATM Services

Illinois-based EFMARK Premium Armored has launched its “Managed ATM Services” platform. EFMARK’s Managed Services consolidates all ATM services under a single provider so customers can enhance efficiency and cut redundant costs in their ATM networks. EFMARK’s turn-key approach includes everything from complete ATM program management and first and second line maintenance to cleaning, cash management, help desk service, hardware upgrades, supplies and custom screen design. EFMARK Premium Armored is the nation’s largest “ATM only” service company, servicing more than 50,000 ATMs in 42 states.

Details

Citi and FDS Close $3.3B Card Deal

Citigroup confirmed it has completed the first phase of its deal to acquire Federated credit card portfolio. The purchase price included an 11.5% premium on Federated receivables under management of approximately $3.3 billion at closing. Additional Federated receivables, totaling approximately $1.2 billion are expected to be transferred to Citigroup on May 1st. In addition, Citigroup is expected to acquire the approximately $1.8 billion credit card receivables portfolio of The May Department Stores Company, prior to August 30th. The Federated and May credit card portfolios comprise a total of approximately 17 million active accounts. At the end of the third quarter, Citigroup had $25.7 billion in private label credit card outstandings and $114.1 billion in bank credit card outstandings, according to CardData ([www.carddata.com][1]) (CF Library 6/2/05)

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

Details

Meijer Completes Contactless Upgrades

Meijer Stores has completed the in-place updating of thousands of VeriFone “Omni 7000MPD” terminals with modules to accept contactless payment cards in Illinois, Indiana, Kentucky, Michigan and Ohio. The Meijer Platinum MasterCard card combines the features and benefits of the Meijer private label store card with the worldwide acceptance of a MasterCard card and the added functionality of PayPass contactless ‘tap and go’ payments. VeriFone Holdings provides secure electronic payment technologies.

Details

FLEXI-RATE VISA

Barclaycard this week launched a new credit card that charges a lower interest
rate to those customers who pay off a higher proportion of their balance each
month. With the new “Barclaycard Flexi-Rate VISA,” cardholders who clear more
than 10% of their balance will be charged an interest rate of 9.9%, those who
pay the minimum 2.5% are charged 16.9%. People who pay between 5.05% and 9.99%
of their monthly balance will be charged 12.9% interest. The new card was
tested as the “Repayment Rewards” card. Last March, Barclaycard began testing
another credit card to encourage responsible debt management. The “Combinations
VISA” comes with a separate line of credit with a lower interest rate and set
repayment terms. Barclaycard has 11.2 million cardholders in the UK. (CFI
Library 9/22/05)

Details

Card Scammers Settle FTC Charges

A group of U.S. and Canadian telemarketers who targeted consumers with poor credit, offering major credit cards with a $2,500 limit for an advance fee of $197 to $300 have agreed to settle with the FTC. The three Florida corporations and one Canadian corporation agreed to pay $415,000 to settle charges they were selling nonexistent credit cards to U.S. consumers. The firms operated under the names “Royal Credit Solutions,” “Imperial Consumer Services,” and “Beneficial Client Care.” The companies are also subject to a suspended judgment of just over $9 million, the total amount of consumer injury in this case.

Details

GreenZap Revenues Up 48% in Q4

San Diego-based GreenZap says fourth quarter revenue earnings are already showing a 48% increase over its third quarter driven by credit card processing, an enhanced rewards program and an online store. GreenZap Storez is a value-add for members and feature discounts from merchants like Office Depot, eToys and Enterprise Rent-A-Car. The company is working on phase two of the Storez where the company says preferred merchants will accept a portion of the sale price in WebCash, GreenZap’s rewards dollar, further increasing the savings to its members. As a means to drive membership, GreenZap rewards account holders with up to $50 in WebCash for opening an account.

Details

Hypercom Names a New CFO

Hypercom has hired Thomas Liguori, current CFO of Iomega Corporation, as SVP/CFO, effective November 14th, while interim CFO Grant Lyon will be departing. Liguori has more than 23 years of experience in corporate financial matters. Previously, Mr. Liguori was Chief Financial Officer of Channell Commercial Corporation, directing all aspects of corporate finance for the company’s operations in the United States, United Kingdom and Australia. He holds a Master’s degree, summa cum laude, in Business Administration with a concentration in Finance from Arizona State University.

Details

AmEx U.S Card Q3 Profits Rise 25% Y/Y

American Express reported that its U.S. Card Services division posted third quarter net income of $446 million, up 25% year-over-year, as revenues increased 14% to $3.0 billion, compared to 3Q/04. However, expenses for marketing, promotion, rewards and cardholder services rose 18%. Card volume in the U.S. increased 17.8% to $89.0 billion. The total number of domestic cards-in-force grew by 1.0 million from the prior quarter to 42 million cards. Worldwide total card loans grew by 11% to $50.6 billion, compared to 3Q/04. Global delinquency increased slightly to 2.4% compared to 2.3% in the second quarter. Net charge-offs, as a percentage of worldwide loans, declined to 4.0% from 4.1% in prior quarter and the year-ago quarter. AmEx noted that average cardholder spending rose 12% and total cards-in-force were up 9% in the quarter. Starting this quarter, AmEx reported results for U.S. Card Services, International Card & Global Commercial Services, Global Network & Merchant Services and Corporate & Other. For complete details on American Express’ third quarter results, visit CardData ([www.carddata.com][1]).

American Express U.S. Card Portfolio Snapshot
3Q/05 2Q/05 1Q/05 4Q/04 3Q/04 Ann Chng
Volume $89.0b 88.5 79.6 83.4 75.6 +17.8%
Cards 42.0m 41.0 40.3 39.9 38.0 +10.5%
Source: CardData (www.carddata.com)

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

Details

Certegy Card Services Revenue Up 11%

Certegy reported that third quarter revenue increased 7.7% to $282.8 million as operating income increased 12.1% to $50.0 million. Card Services generated revenue of $166.5 million for the quarter, an increase of 11.4% above the 2004 quarter. North American card transactions increased 5.2%, driven by 5.1% growth in number of cards processed. Internet banking subscribers increased 18.2% and electronic bill payment users increased 31.9%. Institution merchant processing volumes increased 20.8%, driven by 14.0% growth in transactions and higher average ticket. Check Services generated revenue of $116.2 million in the third quarter, an increase of 2.8% over 3Q/04. Certegy says it expects revenue growth in the fourth quarter of approximately 6% to 8%, driven by upper single-digit revenue growth in Card Services and low to mid single-digit growth in Check Services. For complete details on Certegy’s third quarter results, visit CardData ([www.carddata.com][1])

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

Details

FSV Lands the Former Vital CEO

FSV Payment Systems has hired Jonathan Palmer, former CEO of Vital Processing Services, as president and CEO and has hired Ronald Hynes, formerly of JPMorgan Chase, as EVP of Sales, Marketing and Strategic Development. Palmer currently serves as Chairman and CEO of Lucid Security Corporation, a privately held computer network security company located in suburban Philadelphia. He will continue to serve as Chairman of Lucid. Hynes comes to FSV with more than 15 years of business development and marketing experience, having spent the last six years in the financial services industry. At JPMorgan Chase, he led business development teams within the credit card services group and most recently, for the past two and a half years, has overseen sales, marketing and strategy for Prepaid Solutions.FSV Payment Systems provides prepaid and automated epayments solutions direct to businesses and large employers and to financial institutions as a strategic business partner of Fiserv, Inc.

Details

American Airlines Gift Card Coming

American Airlines is introducing the “American Airlines Gift Card,” in $50 and $100 denominations, on November 1st. The cards will be available at thousands of participating grocery stores, including Tom Thumb, Randalls, Vons, Pavilions, Carrs, Safeway, Genuardi’s and Dominick’s. Up to eight gift cards may be applied to the purchase of a single ticket. The gift cards do not expire and have no fees to keep the card active.

Details

Metris Profits Jump 65% from Prior Q

Metris Companies/Direct Merchants Credit Card Bank reported net income of $53.7 million for the third quarter, down 13% from the year ago quarter, but up 65% sequentially. The sub-prime specialist says the results were driven by improved asset quality and cash flows, which enabled the Company to eliminate all of its corporate debt and invest more heavily in new marketing programs. New account originations for the quarter were 249,000 compared to 165,000 in the second quarter. Gross active accounts remained steady at 2.2 million. Managed credit card loans were $5.8 billion, compared to $6.8 billion for 3Q/04. The managed 60-day delinquency rate was 8.0%, compared to 9.7% for the year ago quarter. The managed net charge-off rate was 12.0% for the third quarter, compared to 14.6% for the third quarter of 2004. Metris and HSBC are currently in the process of merging and expect to complete the deal in the fourth quarter. For complete details on Metris’ third quarter results, visit CardData ([www.carddata.com][1])

METRIS NET INCOME
3Q/04: $61.8 million
4Q/04: $ 0.7 million
1Q/05: $27.6 million
2Q/05: $32.5 million
3Q/05: $53.7 million
Source: CardData (www.carddata.com)

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

Details