Rewards Network Q3 Revenues Fall 19%

Chicago-based Rewards Network reported third quarter sales of $70.3 million, a 19% decrease from 3Q/04. The Company says the decline was caused primarily by a lower restaurant merchant count and declines in the sales yield, the number of transactions and the average dining transaction amount. Operating revenues declined about 15% to $18.4 million. At the end of the third quarter, Rewards Network had 3.5 million active member accounts and 10,259 restaurants in its programs. The Company offers loyalty and rewards programs via credit cards to the restaurant industry. For complete details on Rewards Network’s third quarter results, visit CardData ([www.carddata.com][1])

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

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OPC Receives Louisiana Contract

The Louisiana Department of Revenue has awarded a contract to Official Payments for electronic tax payment processing services via payment cards. Taxpayers will be able to make secure electronic payments for their individual income taxes and certain business taxes using an American Express, Discover, MasterCard or VISA debit or credit card via the Web or by phone. Louisiana, the 22nd largest state in terms of population, collected approximately $2.2 billion in individual income taxes, and approximately $2.6 billion in sales, corporation income and franchise business taxes, in its last fiscal year. Official Payments provides electronic payment services for the IRS, 26 states, the District of Columbia and 2,000 local government clients nationwide.

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UBC Ranks #19 on the Inc. 500

New Jersey-based United Bank Card ranked 19th on the latest “Inc Magazine 500 Fastest-Growing Private Companies.” This accomplishment is the result of achieving revenue growth of 2,319% from 2001 to 2004. United Bank Card, Inc. is a payment and transaction processor serving businesses nationwide, handling the merchant accounts for over 40,000 locations and processes in excess of 3 billion dollars annually.

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Credit Card Volume Sets a New Record in Aug

Credit card volume soared in August, topping A$15.0 billion, driven partly by higher gasoline prices. Also, after two months of stagnant growth, credit card debt neared the A$32.0 billion milestone in August. One-year ago credit card debt stood at A$27.8 billion. Gross dollar volume on credit card and charge cards in August was A$15.3 billion. Based on data from the Reserve Bank of Australia, consumers charged A$14.3 billion in purchases on credit/charge cards during August, compared to A$12.8 billion one-year ago. Card credit limits reached A$88.2 billion at the end of August, compared to A$78.1 billion for August 2004. There are currently 12.2 million credit card and charge card accounts in Australia, compared to 11.4 million one-year ago.

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Cap One Charge-Offs Surge in Sept

Capital One’s managed delinquency ratio increased for the fifth consecutive month as charge-offs turned sharply north. For September, Cap One reported that managed charge-offs shot up by 85 basis points driven by the late surge in bankruptcy filings. Delinquency increased to 3.73% in September compared to 3.69% for August, and compared to 3.66% for July. Delinquency one-year ago stood at 3.90%. Charge-offs came in at 4.62% for September, compared to 3.77% in August and 4.02% in July. One-year ago charge-offs stood at 4.18%. In June 2003, Cap One’s managed charge-off ratio stood at 6.20%. At the end of September, Capital One had $84.8 billion in global outstandings. U.S. card outstandings of $46.3 billion were flat compared to one-year ago. For complete details on Capital One’s monthly metrics and 3Q/05 performance, visit CardData (www.carddata.com).

Month Charge-offs Delinquency
Sep 04 4.18% 3.90%
Oct 04 4.10% 3.94%
Nov 04 4.35% 3.87%
Dec 04 4.63% 3.92%
Jan 05 4.19% 3.84%
Feb 05 3.96% 3.65%
Mar 05 4.35% 3.45%
Apr 05 4.22% 3.37%
May 05 4.10% 3.43%
Jun 05 3.96% 3.49%
Jul 05 4.02% 3.66%
Aug 05 3.77% 3.69%
Sep 05 4.62% 3.73%
Source: CardData (www.carddata.com)

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NexTran Introduces Transexpress 4000

New Jersey-based NexTran and its processing company, Innobeta Systems, has introduced “Transexpress 4000” which enables standard dial-up ATMs to send transactions using IP. “Transexpress 4000” can reduce costs by 30 percent and process transactions three times faster. The Transexpress 4000 package includes handsets, minutes and necessary hardware. Internet connectivity is provided through Transaction Network Services, Inc. (TNS), Verizon and Nextel. The NexTran Group, LLC is a diversified portfolio of affiliate companies covering the financial services, security, and Internet market segments. Innobeta Systems provides transaction processing and ATM terminal driving services for financial institutions and independent sales organizations.

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Gen X & Y Take Snail Mail Seriously

A new survey by the U.S. Postal Service has found that 53% of “Generation X” and 60% of “Generation Y” who shop for credit cards online are more likely to respond to mail offers than e-offers. The study also found that 70% of “Generation X and Y” are more likely to open and read credit card offers in the mail than by e-mail. Overall, young consumers rate 75% of the mail they receive as valuable. Interestingly, 58% of “Gen X” and 66% of “Gen Y” prefer mailed bills to manage finances. The “X” generation was born between 1965 and 1972, and makes up roughly 17% of the population. Born between 1977 and 1994, “Gen Y” makes up about 25% of the population.

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Oracle E-Business Integrates VISA VCF

VISA International and Oracle have teamed to integrate “VISA Commercial” payment data with the Oracle “E-Business Suite.” The partnership will provide joint commercial customers with better operational efficiency, financial control and cash flow visibility. Among benefits: the ability to pre-populate expense reports with “VISA Commercial Format” commercial payment transactions; able to map “VISA Commercial” payment types for automatic expense type defaulting; and permit automatic hotel folio itemization based on “VISA Commercial” payment feed. The Oracle “E-Business Suite” will include interfaces that enable employees of Oracle licensees to import “VCF” data feeds generated by “VISA Commercial” payment products into the Oracle “E-Business Suite.”

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Experian Tops 40MM Credit Scores

Experian Consumer Direct reports it has delivered 40 million credit scores to consumers since its launch in 1996. Experian Consumer Direct provides credit products to help consumers become more educated about their credit situation with the “Experian-Gallup Personal Credit Index” and “Experian National Score Index”. These Web site destinations are updated monthly with free consumer credit data and informative articles regarding various topics related to personal finance. Experian Consumer Direct is part of Experian Interactive and provides online credit reports, scores and monitoring products delivered directly to consumers over the Internet.

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EnCompass Card Management Beefed-Up

VA-based AOC Solutions has upgraded its “EnCompass” card management and reporting application. A new interface designed to help users with multiple hierarchies across multiple companies. The interface makes daily maintenance and reporting easier by allowing users to log in only once instead of logging in to each company. Also a rotating white card module that effectively assists both the client and the card issuer in managing potential fraud and abuse of card numbers issued to merchants. The module uses client-defined business rules to produce a card number and authorization controls tied specifically to a particular transaction and merchant. Additionally, a new statement generation process that notifies users and managers of statement and transaction availability. Client-defined business rules allow customization of data and message attachments sent to users and their managers.

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FDC Completes Vigo Remittance Deal

First Data has completed the acquisition of Vigo Remittance from Great Hill Partners. Vigo was founded nearly 20 years ago to provide money transfer services to Brazilian consumers living in New York City and Newark, N.J., and has successfully expanded to serve 50 countries worldwide. Vigo operates through more than 4,000 send locations from across the U.S. and more than 48,000 payment locations throughout the world, primarily in the Latin American and Caribbean regions. In 2004, Vigo processed approximately eight million transactions.

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