ABNH Posts Record Revenues & Profits

NY-based, American Bank Note Holographics reported that net income for the first quarter rose 50% as revenues increased 28%. The credit card hologram maker posted record sales for the first quarter of $6.4 million and record net income of $600,000. Sales for the fourth quarter of 2004 were $5.5 million and net income for the fourth quarter was $500,000. The Company is in the process of staffing its new state-of-the art facility in Robbinsville, NJ. It expects to move its manufacturing operations from Elmsford and Huntingdon Valley in June and July. ABNH recently signed an agreement with VISA to supply its new “HoloMag” design on VISA-branded cards worldwide. For complete details on ABNH’s first quarter performance visit CardData ([www.carddata.com][1]) (CF Library 4/1/05; 4/11/05)

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

Details

VISA Cards Explode by 76% in 2004

VISA International reports that the total number of cards issued in Indonesia topped 10 million last year, a 75.7% gain. Credit cards grew by 28.8% to 3,649,000 and debit cards increased 188.6% to 6,756,000. Card sales volume soared by 96% to Rp 69 trillion with
retail sales volume up by 32% to Rp 22 trillion. Debit card transactions increased by 137%, while usage of debit cards at merchant point of sale grew by 126%. VISA says there are 60 million consumers with bank accounts eligible for VISA debit cards in the country.

Details

Cetelem to Expand its MasterCard Relationship

Consumer credit provider, Cetelem, has inked a license to use
MasterCard, Maestro and Cirrus brands on a global basis. Cetelem, a subsidiary of BNP Paribas, has already issued 3.9 million co-branded MasterCards in seven countries. Cetelem is established in 20 countries and expects to issue MasterCards in Poland, Slovakia and Belgium. The company currently is developing MasterCard programs in Italy, Spain, Portugal, Czech Republic, Hungary, Germany, and Morocco. Cetelem’s relationship with MasterCard dates back to 1997.

Details

Official Payments Expands MN Services

The Minnesota Department of Revenue has expanded its payment processing contract with Official Payments to enable businesses to make multiple types of business tax payments electronically through OPC’s credit and debit card systems. OPC currently accepts payments for Minnesota individual income taxes, estimated income taxes, and extension income taxes and has now added certain business taxes including sales and use, withholding, special and petroleum taxes. OPC charges a convenience fee for the service. Official Payments provides electronic payment services for the IRS, 25 states, the District of Columbia and more than 1,700 local government clients nationwide.

Details

PRE Solutions Sues Dynamic Telecard

Atlanta-based PRE Solutions has filed a lawsuit against Dynamic Telecard, alleging breach of its “Transaction Processing Agreement” including the soliciting of PRE’s customers. PRE had previously served a cease and desist letter on Dynamic for soliciting PRE’s customers in breach of the agreement. Additionally, PRE’s suit alleges that Dynamic did not honor its commitment to use PRE’s systems to process merchants with whom Dynamic has distribution agreements. PRE Holdings, Inc. along with its subsidiaries PRE Solutions, Inc. and ITC Financial Services, LLC, is a provider of prepaid transaction processing solutions to more than 60,000 retail locations.

Details

Options MasterCard Lifts CTFS Card Loans

Canadian Tire Financial Services reported that its net managed credit card receivables for the first quarter increased 20.5% year-over-year to C$2.82 billion. The average credit card balance in the first quarter hit C$1609, up 19% from one-year ago, largely driven by its “Options MasterCard” product. For the prior quarter, the average credit card balance came in at C$1525. First quarter pre-tax earnings for CTFS were flat at C$25.8 million. Canadian Tire’s MasterCard receivables represent approximately 91% of CTFS’ total managed portfolio. CTFS’ retail credit card and personal loan receivables make up the remaining nine percent of the portfolio. The average number of accounts with a balance decreased year-over-year due to the sale of Canadian Tire’s commercial MasterCard account portfolio to BMO Bank of Montreal in June 2004. CTFS, in conjunction with BMO Bank of Montreal, markets the “Commercial Link MasterCard” while the receivables are owned and managed by BMO Bank of Montreal. CTFS says it plans to increase gross credit card outstandings to C$3.1 billion by the end of 2005. For complete details on Canadian Tire Financial Services’ first quarter performance, visit CardData ([www.carddata.com][1]).

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

Details

Senate Committee to Explore Card Disclosures

The U.S. Senate Banking Committee will hold a hearing on credit card disclosures this week with Federal Reserve Governor Edward Gramlich testifying tomorrow on the “Truth in Lending Act.” The Committee will meet in an open session to conduct a hearing on “Examining the Current Legal and Regulatory Requirements and Industry Practices for Credit Card Issuers With Respect to Consumer Disclosures and Marketing Efforts.”

Details

JCB Launches the Love Mom Card Option

JCB has launched a new credit card option offering exclusive offers, support services, and discounts to help mothers. The new “Love Mom” service can be added to any JCB card and costs 850 yen per year. One major feature is a chance to win an invitation to a members-only parent and child party with Disney characters at Tokyo Disney Resort. JCB “Love Mom” cardholders also receive a free gift on “Mother’s Day” supplied by participating merchants, members-only opportunities to earn double “Oki Doki” loyalty points, and an exclusive selection of merchandise available for point redemption. JCB’s most successful product launches in the past few years include the “JCB Linda Card” for young working women in their 20s and 30s, and the “JCB E-Go Card” for young men. The “Love Mom” option is available for JCB cards issued by JCB and its 75 franchise issuers in Japan.

Details

Intelli-Check Post a Flat First Quarter

New York-based Intelli-Check reports flat first quarter revenues, but a 27.5% increase in year-over-year sales bookings. Revenues for the first three months of 2005 remained relatively unchanged at $296,832 compared to $298,259 for the same period in 2004. Intelli-Check, Inc. ID-CHECK technology instantly reads, analyzes, and verifies the encoded data in magnetic stripes and barcodes on government-issue IDs from approximately 60 jurisdictions in the U.S. and Canada.

Details

Avg Monthly Payment Rates Head South

The historical high level of monthly payment rates hit the brakes in April, dropping to its lowest level in more than a year. The average monthly payment rate of 16.67% is 130 basis points lower than the prior month, and 136 basis points off the peak set last October. Since 2000, the lowest MPR average occurred in October 2001 when it dipped to 14.89%, according to CardData ([www.carddata.com][1]). MBNA recently reported that high payment volumes have adversely impacted its yield on managed loans. (CF Library 4/21/05)

MONTHLY PAYMENT RATES
May 04: 17.15%
Jun 04: 17.03%
Jul 04: 17.33%
Aug 04: 17.65%
Sep 04: 17.94%
Oct 04: 18.03%
Nov 04: 17.85%
Dec 04: 17.62%
Jan 05: 17.98%
Feb 05: 17.51%
Mar 05: 17.97%
Apr 05: 16.67%
Source: CardData (www.carddata.com)

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

Details

TNS Signs Town and Country Food Stores

Town and Country Food Stores has selected TNS to provide network connectivity and data communications services for credit card, ATM and check authorizations at its more than 140 convenience stores throughout Texas and New Mexico. T & C has purchased TNS’ FusionPoint, a data communications solution that enables all technical applications to flow through one broadband pipe, simplifying the connectivity and saving in time and maintenance costs. TNS provides transaction delivery platforms that enable transaction authorization and processing.

Details