Pimsware Collection Software Solution Unveiled

Georgia-based Portfolio Inventory Management Systems is introducing “Pimsware” this week, a collection software solution for debt buyers, collection agencies, agency managers and collection attorneys. Pimsware is a web-based collection system and is interfaced with letter and skip vendors, outfitted to accept credit card and ACH payments, includes the ability to attached scanned documents to an account and is auto dialer and voice over IP enabled. PIMS develops custom collection systems.

Details

Citi Card Revenues Fall 3%; Profits Up 1%

Citigroup reported that second quarter profits for its credit card business in North America inched up by 1% to $861 million. Credit card outstandings for North America also grew a modest 1% over 2Q/04 to $139.8 billion, impacted by higher payment rates. The figure includes $25.3 billion in private label card outstandings. This is the second time Citi’s second quarter outstandings came in lower than the first quarter, according to CardData ([www.carddata.com][1]). Purchase and cash advance volume increased 9% year-on-year to $72.2 billion. Citi’s account base at the end of the second quarter declined by 1.6 million accounts from the prior quarter and was down 2% from one-year ago. At the end of 2Q/05, Citi had 127.1 million accounts in North America. Citi’s charge-offs increased from 5.50% in the first quarter, to 5.71% for 2Q/05. Charge-offs for bank credit cards jumped to 5.59%, compared to 5.20% in the first quarter and 6.15% one-year ago. Charge-offs for private label credit cards dropped from 6.91% in the first quarter to 6.28% for 2Q/05. Charge-offs for private label cards remain well below year-ago levels by 233 basis points. Delinquency (90+ days) declined slightly from 1.76% for 1Q/05 to 1.70% for the second quarter 2005. Delinquency for bank credit cards was down 15 basis points from the year-ago level. Citi noted that the new bankruptcy legislation caused a short-term spike in bankruptcy filings, adding approximately $175 million to its credit costs in North America cards. For complete details on Citigroup’s 2Q/05 performance, visit CardData ([www.carddata.com][2]).

CITIGROUP
North American Credit Card Net Revenues
2Q/04: $850 million
3Q/04: $1067 million
4Q/04: $1190 million
1Q/05: $911 million
2Q/05: $861 million
Source: CardData (www.carddata.com)

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

Details

TransUnion Intros an Anti-Skimming Product

TransUnion has introduced an anti-skimming solution for card issuers. The new “Common Point of Purchase” creates a pooled database of historical data about all known skimmed cards from multiple credit card portfolios. The aggregated data is then analyzed to identify like places where skimming is repeatedly occurring. When a “common merchant” is found based on industry-determined thresholds and timeframes, TransUnion transmits a daily report to credit card issuers that advises them of the findings via a secure URL. The information is then used to initiate an investigation to determine if the merchant is in fact a victim of credit card skimming. First launched in Canada five years ago, “CPP” is now available throughout North America.

Details

AMEX GOLD CARD

American Express Middle East has launched the country’s first credit
card with a chip. The new smart card features “ID Keeper,” an
application that enables cardholders to securely store their favorite
Web site addresses, personal details, passwords, user names and
auto-fill online shopping order forms. New cardholders are also
automatically enrolled in the “Membership Rewards” program. The new
credit card offers airport lounge access, retail protection insurance,
online fraud protection guarantee and travel inconvenience and accident
insurance. The card is billed in Qatari Riyals. AEME was established in
1959 and set up its first office in Bahrain in 1979. In 1992, AEME
became a joint venture company owned by Mawarid Investment Limited and
American Express.

Details

MBNA Profits Slip 4%; US Card Loans Down 8%

MBNA’s profits slipped 4.2% in the second quarter to $632 million, which included $14 million in restructuring charges. During the second quarter the issuer stepped up low rate offers for cash advances in the U.S. which drove balances slightly higher. U.S. card loans grew from $74.8 billion in 1Q/05 to $75.0 billion but remain 8% lower than one-year ago. Total managed loans as of June 30th were $117.4 billion, an increase of $797.8 million compared to the first quarter. Total volume in the quarter rose to $57.0 billion, an increase of 9.6% over the second quarter of 2004. Total volume includes sales volume of $36.8 billion, which increased by 9.8% over the second quarter of 2004, and cash advance volume of $20.1 billion, which increased by 9.2% from 2Q/04. Managed charge-offs continued to improve year-over-year, declining to 4.60%, but increased from the prior quarter’s 4.48%. One-year ago managed charge-offs stood at 4.95%. Delinquency on managed loans declined to 3.98%, compared to 4.17% in 1Q/05. For 2Q/04, delinquency stood at 4.08%. For complete details on MBNA’s second quarter results, visit CardData ([www.carddata.com][1]).

MBNA TRACK RECORD
Profits Loans
2Q/04: $660.3 MM $118.2 B
3Q/04: $728.3 MM $117.8 B
4Q/04: $768.9 MM $121.6 B
1Q/05: $ 31.7 MM $116.6 B
2Q/05: $632.1 MM $117.4 B
Source: CardData (www.carddata.com)

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

Details

NCR Launches ImageMark ATM Deposit

NCR has launched “ImageMark ATM Deposit,” which combines NCR’s “No Envelope” deposit technology with “ImageMark NCompass” and “ImageMark Passport,” for community banks, thrifts and credit unions. ImageMark ATM Deposit immediately routs a customer’s deposit in an image-enabled ATM to the back office for review and correction, if necessary and allows for immediate processing. Empty envelope fraud is eliminated, delivery is guaranteed between the ATM and the central operation and a common workflow for all remote-deposit capture points is introduced. NCR Corporation is a provider of ATMs, retail systems, Teradata® data warehouses and IT services.

Details

TNB Raises Balances and Lowers Risk for CUs

MI-based Lapeer County Community CU says that aggregate balances on its credit card accounts have increased by 18% since TNB Card Services purchased the portfolio in 2003. Lapeer says 80% of all transactions now come from low-risk accounts and that its loan-to-share ratio is now 90%, compared to about 70% before the acquisition. The 21,000 member credit union also noted that TNB has been able to improve the overall risk of the portfolio, boosting the average weighted FICO score to 692. Dallas-based TNB has purchased more than 60 card portfolios from credit unions over the past two years. It serves more than 450 financial institutions and manages more than 1.6 million cards.

Details

Diebold to Purchase Tata Infotech’s ATM Plant

Diebold has signed an agreement to purchase Tata Infotech’s ATM manufacturing plant in Goa. In 2002, Diebold and Tata Infotech entered into a contract-manufacturing agreement in which Tata set up a separate facility to manufacture Diebold ATMs in India for distribution by Diebold throughout India, South Asia and Southeast Asia. The facility will be renamed Diebold Goa Manufacturing. The 30,000 square-foot facility is equipped with modern manufacturing equipment, including testing facilities and production and inspection equipment to undertake prototyping and fabrication.

Details

Q1 Direct Credit Card Mail Sets a New Record

Direct mail credit card offers during the first quarter were up 11%, making it the highest quarter to-date. According to Synovate’s “Mail Monitor” there were 1.42 billion credit card offers mailed in the first three months of this year. The record high mailings coincide with increasing promotions of bankcards with issuer proprietary reward and rebate programs, which made up 27% of all bankcard mailings in the quarter, up from 16% in the prior year. Synovate says that during the first quarter, 43% of solicitations offered a low introductory APR, usually 0.0%, up from 21% the previous year. However, the response rate reached a record low of 0.4%. According to “Inside Track,” Synovate’s credit card owner behavior and communication tracking service, reward card holders spent more than twice as much as non-reward card holders in the first quarter.

Details

BofA Managed Credit Card Loans Up 14% in Q2

Bank of America’s credit card loans grew 14% in the second quarter ending with $59.3 billion. The issuer opened a record 1.6 million new credit card accounts during the quarter as pre-tax card income hit $414 million. Second quarter charge-offs were 6.23%, compared to 6.17% in the prior quarter, and 5.88% one year ago. BofA says the increased charge-offs reflected growth and seasoning in the portfolio, the impact of last year’s changes in minimum payment requirements and bankruptcy reform. The managed 30+ day delinquency was 4.25%, compared to 4.20% in the first quarter and 3.86% for 2Q/04. Managed 90+ day delinquency was 1.96%, compared to 2.10% in the first quarter, and 1.76% for 2Q/04. BofA also reported that its merchant acquiring business handled $84.3 billion in processing volume during the second quarter on total transactions of 1.8 billion. Additionally, the issuer noted that debit card purchase volume rose to over $35 billion in the quarter, an increase of 27% from second quarter 2004. For complete details on Bank of America’s 2Q/05 performance, visit CardData ([www.carddata.com][1]).

BOFA CARD LOAN HISTORICAL
2Q/03: $30.8 billion
3Q/03: $33.6 billion
4Q/03: $36.6 billion
1Q/04: $37.3 billion
2Q/04: $52.0 billion
3Q/04: $55.4 billion
4Q/04: $58.6 billion
1Q/05: $57.9 billion
2Q/05: $59.3 billion
Source: CardData (www.carddata.com)

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

Details

NRF Lauds the Second Interchange Lawsuit

The National Retail Federation said Friday it welcomed the new lawsuit filed against VISA by grocers and drug stores over credit card interchange rates charged to merchants, saying it will help focus attention on the “hidden tax” for consumers. The lawsuit alleges monopolistic practices on the part of Visa, price fixing and illegally tying products and separate network services and contends that Visa’s association rules have restrained merchants’ ability to negotiate lower interchange fees. The National Retail Federation is the world’s largest retail trade association.

Details

Major Grocers/Drugstores Sue VISA Over Fees

Kroger, a major grocery chain, and six other major merchants yesterday filed a federal lawsuit against VISA over its interchange fee practices. The lawsuit alleges horizontal price fixing by VISA and its members in the setting of interchange rates and charges VISA with creating and imposing rules and restrictions that preclude merchants from being able to negotiate lower fees. Kroger says credit and debit interchange fees have increased 11 times over the past five years and currently cost the firm about $350 million annually. Kroger noted that in 2003, for the first time ever, electronic payments comprised more than 50% of Kroger’s sales. Today, over 60% of Kroger’s overall transactions are made via credit or debit cards. Joining Kroger in the lawsuit are Ahold, Albertson’s, Eckerd, Maxi Drug, Safeway, and Walgreen. MasterCard was not named in yesterday’s lawsuit filed in U.S. District Court, Southern District of New York. A copy of the lawsuit is available via CardFlash Online ([www.cardflash.com][1]).

[1]: http://cardflash.com

Details