Wachovia Corporation has selected “CardWizard” software from Colorado-based Dynamic Card Solutions to enable the instant issuance of an all-in-one campus card that students can use as a student ID card, ATM and VISA debit card. Wachovia will pilot two programs at the University of North Carolina at Chapel Hill and the University of North Carolina at Greensboro. CardWizard instant issue software provides full reporting, card inventory, security and monitoring features required for instant issue. Dynamic Card Solutions is a developer of instant issuance and PIN selection solutions for banks, credit unions and retailers.Details
Atlanta-based RBS Lynk has teamed with ATM USA to introduce Internet ATM transaction processing services. The internet protocol solution will be targeted to convenience stores in the United States. To deploy the service an Internet payment gateway is installed at the site of the convenience store merchant’s Internet connection. Several store locations may be supported by a single payment gateway, depending on transaction volume. ATM USA, LLC is one of the nation’s largest and fastest growing ATM distribution and service providers with more than 2,500 ATMs throughout the United States. RBS Lynk is a single-source provider of electronic payment processing services.Details
The Consumer Education Research Society has been asked by
the Reserve Bank of India to rate the services provided by credit card
issuers. The Ahmedabad-based consumer rights organization has protested
the unilateral and unfair terms and conditions made by some
card-issuing banks. In January, the RBI constituted a Working Group to
promote and protect consumer interest in the matter of credit cards by
banks and credit card companies. The CERC was invited to participate.
The goal of the “Working Group for Regulatory Mechanism for Cards” was
to suggest the type of regulatory measures to be introduced for plastic
cards (credit, debit and smart cards), keeping in mind the need to
encourage their growth in a safe, secure and efficient manner. The
report was released on April 25.
The Federal Trade Commission has won a $10.2 million judgment against a debt-collection operation. The judgment against National Check Control represents the largest judgment in FTC history for violations of the “Fair Debt Collection Practices Act.” In a complaint filed in May 2003, the FTC alleged that the defendants violated the FDCPA by harassing and threatening consumers with claims that they owed money for checks returned for insufficient funds. The defendants made repeated phone calls, sent threatening letters and falsely threatened that consumers could face civil or criminal charges if they did not pay the debts. The FTC alleged that in many cases the consumers did not owe the money or owed far less than the defendants claimed.Details
Smart card specialist Gemplus reported that second quarter net sales were up 12% to $285.8 million and that gross profits rose nearly 18% to $96.8 million. The Company said it achieved its highest gross margin in four years and its ninth consecutive quarter of continuous strong progress during the quarter. In the financial services sector, Gemplus posted a 12% gain in sales to $60.8 million. In total, Gemplus shipped 16.8 million smart payment cards, up 30% year-on-year. Payment microprocessor card revenue rose 31% year-on-year. Bank cards continued to grow very strongly, driven by broad activity in EMV deployment across all regions, particularly in the UK and Turkey. The second quarter saw the first EMV shipments by Gemplus to the Netherlands, Italy and Japan. For complete details on Gemplus’ second quarter performance as well as prior quarters, visit CardData (www.carddata.com).Details
VA-based Portfolio Recovery Associates posted net income of $9.1 million, a gain of 34% year-over-year. Total revenue increased 28% to $35.9 million in the second quarter. During 2Q/05 the Company purchased $1.36 billion of face-value debt for $23.1 million. Cash collections rose 27% to a record $48.8 million in the quarter. Productivity, as measured by cash collections per hour paid, the Company’s key measure of collector performance, stands at a record $137.02 for the first six months of this year, compared with $117.59 for all of 2004 and $135.62 for the first quarter of 2005. The Company went public in November 2002. For complete details on PRAA’s second quarter results, visit CardData ([www.carddata.com]). (CF Library 2/13/03)
Home Capital Group reported that as of June 30th the gross credit card receivable balance totaled $86.0 million, comprised of $83.2 million, or 96.8% in accounts secured either by cash deposits or residential mortgage collateral, and $2.8 million, or 3.2%
which is unsecured. The total credit approved includes $131.1 million in
secured and $5.7 million in unsecured credit, as compared with $69.9 million in secured and $6.5 million unsecured at June 30, 2004. Home Capital does not accept new unsecured accounts. “Equity Plus VISA” credit cards are secured by a collateral residential mortgage, and this product amounted to $71.2 million of the credit card receivable balance as at June 30th, compared to $55.5 million at year-end 2004 and $36.5 million one-year ago. Cash security deposits on credit card accounts amounted to $20.5 million. For complete details on Home Capital’s second quarter performance visit CardData (www.carddata.com).
Smart card specialist, Axalto, posted a 15% gain in second quarter revenue, to $260.9 million. The Cards segment revenue amounted to $243.1 million, a 16% increase over 2Q/04. During the period, Axalto delivered more than 110 million microprocessor cards, an increase of 36%, compared to 2Q/04. In financial cards, Axalto’s revenue rose 14% year-over-year to $54.6 million, following a 10% decline in the prior quarter. Axalto says the volumes of microprocessor cards delivered in 2Q/05 posted a steep rise of 17%, with over 20 million cards sold, while the average selling price of microprocessor cards for banking was essentially stable, up 2%. Revenue in the point-of-sale terminals segment advanced by 6%, to $17.7 million. For complete details on Axalto’s second quarter performance, visit CardData ([www.carddata.com]).
San Diego-based HiCoLoCo has launched the first Web site as a buy-direct portal focused exclusively on the wholesale supply of plastic “CR-80” cards. The website will enable customers in the retail, grocery, health care, casino, hotel and financial industries to price their card project, receive an instant quote and build their card online in real time. Cards are ready to ship in 5-7 working days. The “HiCoLoCo” name is derived from the industry abbreviation “HiCo” and “LoCo” (high and low coercivity) — the terms used to measure the amount of data stored on a plastic card’s magnetic strip.Details
Wisconsin-based USA Paycard has rolled-out its “PayCard MasterCard” prepaid payroll card issued via Genpass Card Systems. This payroll card allows employers to use direct deposit for employees who lack a traditional banking relationship. This translates into lower payroll check processing costs. There are no employer costs to the program and the cards can be used by employees for free using the ‘cash-back’ option at retail POS locations. USA Paycard is a terminal processor in the U.S. driving more than 28,000 ATMs and is the sixth largest switch processor with 360 million transactions annually.Details
IL-based APAC Customer Services says it plans to exit virtually all of its outbound customer acquisition business, restructure operations and focus resources on profitable client relationships in a limited number of key industries. The Company has been hard hit by the national “Do Not Call” registry and regulations. For the second quarter, the Company reported a net loss of $5 million on revenue of $58.2 million. Revenue associated with the business the Company plans to exit was approximately $14.3 million for 2Q/05. The Company expects to incur $10 to $15 million in restructuring charges as it closes more than half of its Customer Interaction Centers and eliminates 400 salaried positions which will generate almost $40 million of annualized cost savings. For complete details on APACS second quarter results, visit CardData ([www.carddata.com]).
Illinois-based International Merchant Services has inked a deal to process with First Data and for First Data Merchant Services to provide payment processing and POS equipment leasing services to IMS merchant clients. International Merchant Services Inc. is an electronic merchant bankcard processor. First Data Corp. is a leading provider of electronic commerce and payment solutions for businesses and consumers 4.1 million merchant locations, 1,400 card issuers and millions of consumers worldwide.Details