VASCO Digipass Reades Receives EPCI Certification

VASCO Data Security International has announced that it is
the first vendor to receive the “EPCI” (Electronic Payment Certification
Institute) certification. The EPCI certification for VASCO’s “Digipass”
stands for the authentication functions allowing a cardholder to
authenticate himself/sign transactions and to check the card’s “Proton”
balance. The certification also includes MasterCard and VISA EMV-CAP
specifications. VASCO has clients in more than 390 international financial institutions and approximately 1,700 blue-chip corporations and governments located in more than 90 countries.

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Oberthur Revenues Up 16% in the First Half

Oberthur Card Systems reported that revenues for the first six months of this year were up 15.8%. The Company delivered close to 88 million microprocessor cards compared to 67 million in the first six months of last year, a 30.7% increase on a year-on-year basis. The revenue in the smart cards segment amounted to $191 million with a 20.4% growth at constant exchange rates, whereas the magnetic stripe segment rose by 11.4% to $45.6 million. Smart card shipments increased by +30.7% in the first six months to a volume of 87.9 million cards. The revenue for smart cards in the Banking segment grew by 9.1% at constant exchange rates to $82.3 million. The Americas region grew 10.6% to $64.7 million. The region performed particularly well in magnetic stripe banking cards. For complete details on Oberthur’s latest performance visit CardData ([www.carddata.com][1]).

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

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TD VISA offers Double Rewards on VISA Business

TD Canada Trust is offering a special double rewards sign up bonus on new
“TD Business VISA” cards with the “Travel Rewards Option” or on existing business cards that add the “Travel Rewards” option until September 23rd. These customers will receive double points on net purchases made
until December 31st. This offer is in addition to the existing 3,500
“Bonus Points Offer” currently available to all customers who request the travel Reward Option on their Business Visa card. TD Bank Financial Group serves more than 14 million customers with CDN$368 billion in assets.

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AmEx and Delta Restructure Partnership

In the wake of the Delta Air Lines bankruptcy, American Express says it had to restructure some of its financial arrangements with the airline. Under terms of a new deal, Delta has agreed to repay $500 million that AmEx advanced in the fourth quarter of last year and the first quarter of this year as prepayment for the purchase of “Delta SkyMiles” reward points used in AmEx reward programs. In return, TRS has agreed to lend to Delta $350 million as part of Delta’s post-petition debtor-in-possession financing. Delta has filed a motion asking the Bankruptcy Court to authorize it to continue it relationship with AmEx. AmEx says the “Delta SkyMiles Credit Card” co-brand portfolio accounts for less than 10% of the Company’s worldwide billed business and less than 15% of worldwide managed lending receivables.

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Canadians Hold 100 Billion Unredeemed Points

About half of the respondents in a recent study said they participate in a credit card rewards program. Of those, 43% said they have used points for an experience type reward, while a full 80% say they are looking to use their points for something special in the future. The findings come from a recent study by American Express Canada. AmEx estimates that Canadians are holding onto close to 100 billion in unused points.

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Certegy and Fidelity National to Merge

Certegy and Fidelity National Financial have inked a deal to merge. Under the terms of the agreement, FIS and Certegy will be combined in a tax-free, stock-for-stock exchange. FIS’ software processes nearly 50% of all U.S. residential mortgages, it has processing and technology relationships with 45 of the top 50 U.S. banks, more than 2,800 small and mid-sized U.S. financial institutions and clients in more than 50 countries who rely on its processing and outsourcing products and services. Certegy is a provider of credit, debit, check risk management and cash access services to over 6,500 financial institutions and 100,000 retailers.T he name of the combined company will become Fidelity National Information Services, Inc. and it will trade on the NYSE under the trading symbol “FIS.” The headquarters for the combined company will be in Jacksonville, Florida. FNF Chairman and CEO William Foley will also serve as Chairman. FNF CFO Alan Stinson will become EVP/CFO of the new FIS.

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Card Activity Plummets in July; Debt Levels Off

Credit card volume took a surprising dip in July as higher gasoline prices and POS credit card surcharges apparently impacted consumers. Dollar volume declined 5% and transaction volume declined 4% from the prior month. Compared to one-year ago, transaction volume was up a mere 3% and dollar volume grew only 4%. Credit card debt remained flat at $A31.4 billion, compared to the prior month. One-year ago credit card debt stood at A$27.7 billion. Gross dollar volume on credit card and charge cards in July was A$13.5 billion. Based on data from the Reserve Bank of Australia, consumers charged A$12.6 billion in purchases on credit/charge cards during July, compared to A$12.1 billion one-year ago. Card credit limits reached A$87.0 billion at the end of July, compared to A$77.4 billion for July 2004. There are currently 12.1 million credit card and charge card accounts in Australia, compared to 11.3 million one-year ago.

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Nurses Design New National City Cards

Ohio-based National City has introduced “ANA Nursing Rewards+ VISA,” the first and only credit card in the U.S. that offers nurses both personal and professional rewards and the only card program designed by nurses for nurses. The ANA Nursing Rewards+ credit card offers reward points for every dollar in purchases with a choice of personal rewards. Benefits include online account access, auto rental insurance, roadside assistance, common carrier travel accident insurance, and an extended warranty program. National City Corporation is one of the nation’s largest financial holding companies. The ANA advances the nursing profession by fostering high standards of nursing practice, promoting the economic and general welfare of nurses in the workplace, projecting a positive and realistic view of nursing and by lobbying the Congress and regulatory agencies on health care issues affecting nurses and the public.

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Providian’s Charge-Offs Drop Again

Providian’s securitized charge-off ratio dipped another 42 basis points last month but its ABS delinquency rate moved up by 4 basis points, following eight consecutive monthly declines through June. Charge-offs have declined sharply for the past five months and are down about 400 basis points compared to one-year ago. For securitized receivables, Providian’s charge-off rate decreased to 8.40% for August from 8.82% in July. One-year ago ABS charge-offs were 12.39%. Delinquency, on a securitized basis, increased to 6.71% in August from 6.67% in the prior month, and down from 8.37% in August 2004. On a managed basis, charge-offs dropped to 7.10%, compared to 7.42% in July and 10.09% one-year ago. Delinquency, on a managed basis was flat quarter-to-quarter at 4.96%, and down sharply year-over-year to 6.24%. Providian previously reported that managed loans outstanding at the end of the second quarter were $18.6 billion, up 8.1% year-over-year. For complete details on Providian’s latest performance, visit CardData (www.carddata.com). (CF Library 7/22/05)

PROVIDIAN MONTHLY ABS METRICS
Month Charge-Offs Delinquency
Aug 04 12.39% 8.37%
Sep 04 12.45% 8.30%
Oct 04 12.11% 8.48%
Nov 04 12.14% 8.27%
Dec 04 11.73% 8.06%
Jan 05 11.75% 8.01%
Feb 05 11.03% 7.75%
Mar 05 11.18% 7.23%
Apr 05 10.84% 6.95%
May 05 10.28% 6.49%
Jun 05 9.52% 6.48%
Jul 05 8.82% 6.67%
Aug 05: 8.40% 6.71%
Source: CardData(R) (www.carddata.com)

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MBNA’s Outstandings Rebound for the 3rd Month

MBNA’s credit card outstandings rose for the third straight month to $98.5 billion, thanks to an aggressive 0% interest rate campaign. The managed delinquency ratio for credit cards edged down by seven basis points to 4.08% in August after remaining flat for four consecutive months. The charge-off rate also declined by 15 basis points to 4.34%, marking its fourth consecutive monthly decline. MBNA’s managed credit card outstandings increased $800 million in August. MBNA recently reported that U.S. card loans grew from $74.8 billion in 1Q/05 to $75.0 billion in 2Q/05 but remain 8% lower than one-year ago. MBNA’s managed charge-off ratio for July was 4.49%, compared to 4.50% for June, 4.77% for May and 4.52% for August 2004. In July 2004, the delinquency ratio stood at 4.00%. The high last year was 4.49%. For complete details on MBNA’s second quarter results and monthly metrics, visit CardData ([www.carddata.com][1]).

MBNA CONSUMER CREDIT CARD SNAPSHOT
Month Outstandings Charge-offs Delinquency
Aug 04 $ 99.7b 4.52% 4.01%
Sep 04 $ 98.8b 4.22% 4.15%
Oct 04 $ 98.5b 4.36% 4.18%
Nov 04 $ 99.9b 4.33% 4.21%
Dec 04 $101.9b 4.12% 4.20%
Jan 05 $ 98.6b 4.46% 4.34%
Feb 05 $ 96.9b 4.27% 4.50%
Mar 05 $ 96.1b 4.29% 4.35%
Apr 05 $ 95.9b 4.34% 4.16%
May 05 $ 95.0b 4.77% 4.16%
Jun 05 $ 96.1b 4.50% 4.16%
Jul 05 $ 96.7b 4.49% 4.15%
Aug 05 $ 98.5b 4.34% 4.08%
Source: CardData (www.carddata.com)

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

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GPN Introduces ATM Cash @dvantage

Global Payments announced the first “ATM Cash @dvantage” transaction which enables gaming customers to access cash from their bank accounts by using Global Payments’ proprietary “VIP Preferred” card at casino ATMs. VIP LightSpeed is an Internet-accessible, PC-based platform that provides gaming establishments with a host of cash access services. Global Payments Inc. is a provider of electronic transaction processing services.

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