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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HSBC to Purchase OfficeMax Portfolio

HSBC North America Holdings’ Business Solutions Group has signed a deal to acquire the consumer and commercial credit receivables of OfficeMax. Financial details were not disclosed. OfficeMax has 950 stores. HSBC Retail Services has more than 60 active merchant relationships in the USA, including Best Buy, Levitz Furniture, Saks Fifth Avenue, Bon-Ton, Liz Claiborne, and Gardner-White Furniture. HSBC is currently in the process of acquiring sub-prime specialist Metris Companies. (CF Library 8/4/05)

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Phoenix to Power Alaskan ATMs

Ontario-based Phoenix Interactive has been selected by Alaska USA FCU for the ATM software replacement project of its entire network of NCR ATMs. The Alaska USA Federal Credit Union is the largest credit union in the state of Alaska and counts one of every three Alaskans as members. Phoenix Interactive Design, Inc. provides a Windows-based multi-vendor ATM operating software to the financial services industry.

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PayPal Expands Nebraska Ops Center

PayPal is expanding its La Vista, Nebraska operations center, adding a new building and about 600 employees. The new building is scheduled to be completed in the second half of 2006 and will total more than 125,000 square feet. PayPal’s current facility opened in 2003 with about 500 employees. Today, PayPal has grown to well over 1,000 employees in La Vista in customer service, risk operations, payment processing and sales and will add additional employees for merchant support specialists, risk management experts and experienced sales agents. PayPal was recently named one of the top five best places to work in Omaha for 2005, by the Greater Omaha Chamber of Commerce. PayPal, an eBay company, enables any individual or business with an email address to send and receive payments online securely, easily and quickly.with more than 86 million accounts and is available to users in 55 markets around the world.

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