Certegy has renewed a five-year agreement with South Dakota-based Total Card to provide transaction processing services to over 250,000 cardholders nationwide. Certegy Inc. provides global credit and debit processing to over 6,500 financial institutions, 117,000 retailers and 100 million consumers. Total Card performs front-to-back operations for its owned portfolio of VISA credit cards issued by Plains Commerce Bank.Details
Choice Hotels International has signed an exclusive three year agreement with Shift4 to provide its $$$ ON THE NET software to franchisees. $$$ ON THE NET allows Choice’s associates to quickly, accurately and securely process credit card transactions from their property management systems through any processor. Shift4 provides web-based, real-time enterprise payment solutions for the hospitality, retail, foodservices and e-commerce markets.Choice Hotels International is one of the world’s largest lodging franchisors, marketing more than 5,000 hotels in over 40 countries.Details
Citibank has introduced a unique way to say “Thank You” to its customers. Following the success of the ThankYou Network for card holders , Citibank customers receive points to redeem for rewards from brand name merchants when they use everyday banking services. Points can be redeemed online. Customers may combine ThankYou Points for banking with the ThankYou Points they acquire when using Citi credit cards. Citibank is a global financial services company with 200 million customer accounts and does business in more than 100 countries.Details
Oberthur Card Systems reported that first quarter sales grew 17% to $154.4 million. During 1Q/05, the company delivered 43 million smart cards, compared to 34 million in the year ago quarter. However, the number of payment cards delivered was 19.6 million compared to 20.5 million for 1Q/04. Sales of payment cards decreased to $41.4 million, a 6.5% decline. Sales for magnetic stripe cards, scratch cards and memory cards increased 11.9% to $24.6 million. For complete details on Oberthur’s first quarter performance, visit CardData ([www.carddata.com]).
Capital One’s first quarter U.S. credit card profits more than doubled from the fourth quarter as the issuer cut marketing expenses from $511.1 million in 4Q/04 to $311.8 million for the first quarter and posted lower operating costs and improved metrics. Year-on-year Capital One’s net income was up more than 18% to $458.2 million. U.S. card outstandings of $46.6 billion were up 2.8% compared to one-year ago but down 4.1% from the previous quarter. The managed delinquency rate (30+ days) for U.S. credit cards was 3.66% for the first quarter, compared to 3.97% for 4Q/04, and 3.99% for the first quarter of 2004. The net charge-off rate for U.S. credit cards was 4.73% for the first quarter, compared to 4.93% for the fourth quarter, and 5.41% one-year ago. The company now expects its quarterly managed charge-off rate to stay below 4.25 percent this year. Total managed loans for 1Q/05 grew 13.6% year-on-year to $81.6 billion. Cap One expects that managed loans will grow at a rate of between 12% and 15% this year. During the first quarter, Cap One completed the acquisitions of Hfs Group, Onyx, InsLogic, and eSmartloan. Capital One also announced a definitive agreement to acquire Hibernia Corporation. For complete details on Capital One’s first quarter performance, visit CardData ([www.carddata.com]).
COF U.S. CARD NET INCOME
1Q/04: $386.8 million
2Q/04: $384.1 million
3Q/04: $414.4 million
4Q/04: $201.9 million
1Q/05: $458.2 million
Source: CardData (www.carddata.com)
The Royal Bank of Scotland and Experian have teamed to launch the first identity theft and fraud protection service for consumers in Europe. The new RBS “PrivacyGuard” offers assistance with repairing credit problems caused by ID fraud and includes credit monitoring to alert customers to any unusual account activity. RBS is charging GBP 6.99 per month for the new service.Details
The former head of Sears credit card business has reportedly reached a settlement with Sears’ CEO. Kevin Keleghan, the former president of Sears credit division, filed a lawsuit in mid-November 2002 alleging that Sears has failed to pay him severance benefits, and that CEO Alan Lacy scurrilously attacked his character and credibility. Lacy had said in mid-October 2002 that he had lost confidence in Keleghan after the company uncovered serious problems in its credit card portfolio. The Chicago Sun reports that Keleghan’s attorney said the suit was settled to the parties satisfaction. Sears announced in March 2003 it was looking to unload its $30.8 billion credit card portfolio. Sears eventually sold the portfolio to Citibank in November 2003 for $3 billion. (CF Library 1/29/03; 3/26/03; 7/16/03)Details
Phoenix-based Hypercom Corporation announced that ICICI Bank of India has purchased 5,000 “T7Plus” EMV-certified credit/debit card payment terminals. The terminals and associated software will be rolled out to retail merchants throughout the country over the next two months. The “T7Plus” model accepts all magnetic stripe and EMV cards, providing fast authorization of online transactions with “One-Touch” shortcut keys for quick access to functions and transactions. ICICI Bank is India’s second largest bank with an asset base of Rs 1462.14 billion as of December 31,2004. Hypercom delivers complete card payment terminal, network access device, server and transaction networking solutions worldwide.Details
TSYS reported first quarter net income of $46.1 million, a 42% rise over the year-ago quarter. Revenues hit $350 million, a nearly 23% rise over 1Q/04. Accounts on file increased to 370.6 million, up 32%, compared to 280.4 million one-year ago. TSYS reports that it has 12.6 million stored value accounts now on-file, compared to 4.0 million for 1Q/04. During the first quarter, TSYS acquired the remaining 50% interest in Vital Processing, extended its exclusive processing contract with Bank of America through 2014, extended its existing seven-year relationship with MBNA for commercial-card processing services by an additional three years and announced it was sponsoring the creation of an industry-wide prepaid card trade association. Internationally, during the first quarter TSYS signed a seven-year contract with ABN AMRO Bank and implemented two retail gift card programs in Europe. The processor says it anticipates net income growth to be in the range of 22-25% and revenue growth to be in the 30-33% range for 2005. For complete details on TSYS’ latest performance, visit CardData ([www.carddata.com]).
American Express Business Travel has launched a new corporate online solution for the Chinese market. “American Express Online” will enable multinational corporations operating in China and local Chinese companies to realize the cost-savings, convenience and control that online travel management can deliver. The new solution will automate the travel booking process, resulting in a lower transaction cost that is passed back as savings to the customer. It will also provide travelers
with clear fare options, prompting the selection of the lowest fare and
requiring travelers to provide a reason if the lowest fare is not chosen. In addition, front-end controls within the booking tool will direct travelers toward corporate preferred suppliers and negotiated fares, and exception reports will help companies capture missed savings.
AmEx and TravelSky Technology have formed a partnership to guarantee content access over the next three years. TravelSky will become the exclusive GDS partner for all American Express operations in China.
Georgia-based Benchmark Technology Group has been selected by Wincor Nixdorf as the master reseller of document printers for the U.S. and Canadian markets. Benchmark will be responsible for all certified warranty repairs, parts distribution, training and implementation of engineering changes. Wincor Nixdorf is global supplier of POS systems and ATMs. Benchmark Technology Group Provides branch technology solutions for financial services institutions.Details
NTT DoCoMo is reportedly planning to make a US$936 million investment for one-third ownership of Sumitomo Mitsui Card Co. However,
Sumitomo says that no concrete deal has been made yet. NTT DoCoMo has made clear its intention to expand into wireless payment systems. In July 2004, JCB, AEON Credit Service, and NTT DoCoMo developed “QUICPay,” a payment solution that permits consumers to assign part of their existing credit limit to a specific contactless IC chip, which may be embedded in a plastic card, or incorporated in the customer’s “i-mode FeliCa” service compatible mobile phone. In November, JCB launched a three-month pilot for its mobile infrared credit payment system using NTT DoCoMo phones at 30 merchant locations near its Tokyo headquarters.
Sumitomo Mitsui Card Co. is the second-largest credit card firm in Japan.