Cap One’s Delinquency Up; Charge-Offs Down

Capital One’s managed delinquency ratio increased for the fourth consecutive month while charge-offs retreated last month. For August, Cap One reported that managed charge-offs dipped by 25 basis points, while delinquency edged upward by 3 basis points. Delinquency increased to 3.69% in August, compared to 3.66% for July, 3.49% for June, 3.43% for May and 3.84% in January. Delinquency one-year ago stood at 3.80%. Charge-offs came in at 3.77% for August, compared to 4.02% in July, 3.96% in June and 3.87% one-year ago. In June 2003, Cap One’s managed charge-off ratio stood at 6.20%. At the end of June, Capital One had $83.0 billion in global outstandings. U.S. card outstandings of $46.4 billion were up 2.7%, compared to one-year ago. For complete details on Capital One’s monthly metrics and 2Q/05 performance, visit CardData ([www.carddata.com][1]).

Month Charge-offs Delinquency
Aug 04 3.87% 3.80%
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%
Source: CardData (www.carddata.com)

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

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HID Rolls Out iClass R90 Reader

HID has introduced the “iCLASS R90 Long Range Reader”. An “iCLASS” card
provides parking lot and building access, as well as vending, POS,
records and logical access. The “R90” features read range distances up to
18 inches with auto- tuning enabling more consistent read ranges and a
“Parking Hold” function that allows connection to a loop detector to
ensure accurate detection of vehicles in parking lanes. The “R90” reads
HID “iCLASS” 13.56 MHz contactless smart cards, any ISO 15693 card serial number (CSN) and is compatible with industry standard Wiegand protocol access control panels. HID manufactures contactless access control cards
and readers for the security industry and pioneered the development of
radio frequency identification technology for physical access
control.

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Advanta-Chase Fight Reaches a Conclusion

The U.S. District Court for Delaware has ordered Advanta to pay Chase Manhattan Mortgage $17.5 million plus interest. The judgment was made on September 8th and involved a 2001 lawsuit filed by Chase over its $1 billion+ acquisition of Advanta’s mortgage business. The Court rejected Chase’s claims for damages of more than $88 million plus interest, except for one contract claim against Advanta. Earlier this month, Advanta and Chase settled a 2004 claim relating to Chase’s February 2001 acquisition of Advanta’s mortgage business. Under terms of the settlement Chase agreed to pay $8.75 million to Advanta.

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Comdata Hires an ISO Merchant Services Exec

Comdata has named Mark Wilson, formerly EVP at Nashville-based ProfitPoint’s sales division and VP at iPayment, as VP/ISO Merchant Services for Comdata Processing Systems. Wilson was formerly executive vice president in ProfitPoint’s sales division in Nashville, Tenn., where he recruited sales staff to resell gift, loyalty products and services. Prior to joining ProfitPoint, Wilson was with iPayment of Nashville, Tenn. where he recruited ISOs and agents as well as identified merchant portfolios for acquisition. Comdata Corporation is a business-to-business issuer and processor of payment cards. Ceridian Corporation is an information services company.

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MasterCard Achieves a SEPA Milestone

MasterCard Europe announced that the migration of over two billion annual debit transactions from “ec” and “Switch” to MasterCard’s “Maestro” has been completed, making the MasterCard platform “Single European Payment Area” ready. “Maestro” branded cards support both
magnetic stripe and chip PIN solutions, offering both short term usability and long term compliance within an EMV chip environment.
In the UK this month, the final phase of the migration of over 1.3 billion domestic “Switch” POS transactions to MasterCard’s processing platform was successfully completed, and the final phase of the migration of 20 million “Switch” cards to the Maestro brand is well underway. Thirteen countries of the European Union have adopted “Maestro” as a domestic and international point-of-sale and ATM brand. “Maestro” has over 580 million cardholders globally, 250 million in Europe alone.

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Lynch to Head a B2B Payment Solutions Firm

Dennis Lynch, the former president and CEO of NYCE, has joined MA-based Collaborative Financial Concepts, the developer of the “Business Payment Connection,” as chairman. During his tenure, NYCE became one of the largest consumer payment entities in the United States, serving over 2,100 financial institutions at more than one million ATM and retail locations and he was chairman of NYCE for several years and director of NYCE’s Network Board. Collaborative Financial Concepts is a business-to-business payment company.

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Welcome Releases a POS White Paper

Welcome released a white paper titled “Creating Competitive
Advantage at the POS,” the most heavily used customer contact channel,
which shows how a new generation of card products supporting enhanced
payment features can make the moment of payment more fun and exciting,
thereby creating differentiation directly at the point-of-sale.
The moment of payment is one of the very few times that a customer is
holding a payment card in their hands and getting ready to use it. The
rest of the time it’s in the customer’s wallet and probably out of their
mind. Welcome is a provider of payment software that utilizes the full capabilities of EMV standard chip credit and debit cards. The white paper is based on Welcome’s experience with banks migrating to EMV and surveys from consulting companies.

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GreenZap Slowly Nibbles at Rival PayPal

San Diego-based GreenZap reports it has signed up more than 300,000 members for its online payment service within the first 60 days of launch. GreenZap says its flat fee pricing and rewards program are its clear advantages over rival PayPal. PayPal charges a percentage for each transaction. The GreenZap rewards program compensates its account holders with $25 in “WebCash” for opening an account and further rewards members with $5 “WebCash” for referrals. “WebCash” can only be spent online to cover GreenZap transaction fees or to purchase goods and services at a discounted rate in GreenZap stores or at a number of auction sites. GreenZap offers two types of accounts, a basic “GreenZap” account and an upgraded “Gold” account. The “Gold” account offers reduced transaction fees, increased rewards and a “GreenZap Stored Value MasterCard/VISA” for off-line spending. (CF Library 6/2/05)

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VISA Debuts Birds TV Commercial with Gere

VISA International announced the launch of its new TV commercial featuring Hollywood actor Richard Gere, currently being aired
in the Asia Pacific region. Filmed in India, the central theme of the new “Birds” commercial is the spirit of generosity and the giving spirit demonstrated through the ritual of
letting birds go free to bring good luck to a relative or friend
embarking on a journey, a ritual that runs across several different
cultures in the Asia Pacific region. Mumbai-based Ranjit Barot composed the music for the commercial, which was produced and developed by VISA’s advertising agency BBDO Clemenger, Australia with support and collaboration from Stratum Films of Mumbai. In Asia Pacific, 62% of all card purchases at the point of sale being made using VISA cards. There are currently 238 million VISA-branded cards in the region. In 2004, US$475 billion was spent at point of sale or withdrawn from ATMs in Asia Pacific using VISA cards.

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Wincor Nixdorf Hires Software Sales Exec

Texas-based Wincor Nixdorf has landed John Pillmann, formerly with e-Classic Systems and Gasper, as Software Solutions Sales Director for Wincor Nixdorf Banking Solutions. Pillmann brings a track record of more than 20 years of professional sales experience in the financial self-service industry. Prior to e-ClassicSystems, Pillmann worked for NCR Corporation and its subsidiary Gasper Corporation, where he served in numerous executive sales roles for the U.S. and Asia Pacific regions. Wincor Nixdorf is a global supplier of IT solutions to banks and retailers.

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Tonnesen to Become CEO of Triad Guaranty

Mark Tonnesen, formerly a top executive at Royal Bank of Canada and Banc One, has been named President and CEO of NC-based Triad Guaranty, a nationwide mortgage insurer. Mr. Tonnesen comes to Triad with over 20 years of senior management experience in the financial services and banking industry. Tonnesen is a graduate of the University of Pittsburgh where he received an MBA in 1974. Triad Guaranty Insurance Corporation, a wholly owned subsidiary of Triad Guaranty Inc., is a nationwide mortgage insurer providing mortgage insurance to residential mortgage lenders.

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