Pennsylvania-based American Bank has joined “SUM,” a selective surcharging program managed by the NYCE Network. American Bank has been recognized as one of the top Internet banks in the country by Gomez Advisors, Inc. and Bankrate.com(R) Top Tier award.Details
Atlanta-based Global Payments has named Mac Schuessler, formerly VP/Global Purchasing Solutions for American Express, to the position of VP/Marketing. Schuessler will be responsible for branding, marketing communications, public relations and new product marketing initiatives and will manage the company’s business-to-business payments programs. Global Payments Inc. is a leading provider of electronic transactions processing services to consumers, merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and multi- national corporations.Details
JPMorgan Chase confirmed this morning it would continue to issue credit, debit and commercial cards through both VISA and MasterCard. Chase will also retain its positions on VISA USA’s board. JPMorgan Chase and Bank One merged July 1st. Chase will be the brand name for both credit and debit cards. Commercial cards will be issued under both the Chase and JPMorgan brands. Bank One cards and branches are now converting to the Chase brand. The company has approximately 96 million credit cards issued.Details
Connecticut-based Open Solutions has landed Dennis Lynch, former CEO of NYCE, to its Board of Directors. During Lynch’s tenure, NYCE became one of the largest consumer payment entities in the U.S., serving over 2,100 financial institutions at more than one million ATM and retail locations. Lynch served on the executive committee and the board of the Electronic Funds Transfer Association (EFTA), and is a past chairman of the Network Executive Council. Open Solutions offers a fully-featured strategic product platform that integrates core data processing applications with Internet banking, cash management, CRM/business intelligence, financial accounting tools, electronic image/item processing, Check 21, interactive voice response, and loan and payment origination solutions.Details
CreditPipe announced that its “MobileCredit” m-commerce service has become the first mobile transaction processing switch to complete VISA International certification in South Africa. The VISA International audit team was led by the association’s e-risk auditor, who traveled from London, and who was accompanied by a representative from Visa International South Africa. The division employs a dual audit process that has a minimum of two auditors reviewing each process simultaneously. The detailed audit ranged from physical security inspection to software security and transaction flow, and resulted in CreditPipe’s certification of “VISA Secure Electronic Commerce Requirements for Mobile Payment Hosts v1.0.” MobileCredit service utilizes “Wireless Internet Gateway” technology that resides on a GSM cellular phone’s SIM card.Details
Target reported that its pre-tax credit card profits for the quarter ending January 31st increased 21% over the year ago quarter and 12% sequentially. Excluding the disposition of its Mervyn’s and Marshall Field’s card portfolios, Target’s credit card receivables increased 9.7% compared to 4Q/03. Target’s fourth quarter credit card profits were $134 million, compared to $120 million in the prior quarter, and $111 million one-year ago. Target reported that its total credit card receivables, which include its VISA and “Guest” cards, were $5.46 billion as of January 31st, compared to $4.97 billion one-year ago. Delinquency (90 days+) for 4Q/04 was 3.5%, compared to 3.8% in the third quarter, and 4.2% one-year ago. Charge-offs were 7.6% for 4Q/04 compared to 9.55 one-year ago. Target’s credit card unit had revenues of $288 million in 4Q/04, a 9.1% increase over 4Q/03. Target also noted yesterday that it is switching to variable rate pricing from fixed rates for its VISA credit card program this year. For complete details on Target’s latest performance visit CardData ([www.carddata.com]).
TARGET AVERAGE CARD LOAN HISTORICAL
(Excludes Mervyn’s & Marshall Field’s)
4Q/03: $4.973 billion
1Q/04: $4.688 billion
2Q/04: $4.716 billion
3Q/04: $4.914 billion
4Q/04: $5.456 billion
Source: CardData (www.carddata.com)
Helsinki-based FreeStar Technology reported that revenues for
the fourth quarter rose 18% to $424,772, compared to one-year ago.
The net loss increased by approximately 6% to $1,350,302 for 4Q/04.
During the quarter, Rahaxi processed 4,285,230 transactions, an increase of 1,127,946, or 33.58%, over the 3,358,284 transactions that were processed in the corresponding period in the prior year. Rahaxi Processing OY currently processes in excess of 1,000,000 card payments per month for an established client base that comprises companies such as Finnair, Ikea, and Stockman. For complete detail on Freestar’s fourth quarter performance visit CardData (www.carddata.com).
The FTC is seeking public comment by April 25th to aid its staff in preparing a study on the effects of credit scores. The FTC is seeking information on any aspects of credit scores and credit-based insurance scores, including their use and how it has changed over time. The FTC requests that any comment filed in paper form be sent by courier or overnight service, if possible, because U.S. postal mail in the Washington area and at the Commission is subject to delay due to heightened security precautions.Details
Centurion Bank has signed a multi-year ATM outsourcing and deployment agreement with Euronet Worldwide. Under the agreement, Centurion Bank will outsource its entire network of 152 ATMs to Euronet India. The company will take over the operation of the bank’s ATMs within the next sixty days and provide end-to-end ATM outsourcing services from its operations center in Mumbai. In addition to ATM outsourcing services, Euronet provides shared ATM networking services to Centurion Bank through its Cashnet network, the largest nationwide multilateral shared ATM network in India today comprising nine member banks with more than 3,500 ATMs across the country.Details
Diebold Credit Corporation has officially been renamed Diebold Global Finance Corporation to reflect its international push. Diebold Global Finance has grown to become the only captive finance organization in the financial self-service, security, and card systems industries. Its attractive financing alternatives allow customers to cost- effectively acquire new Diebold technology solutions and obtain needed flexibility to better manage the cost of rapid change. Diebold, Incorporated is a global leader in providing integrated self- service delivery systems, security and services.Details
Four Icelandic banks have partnered with Diebold. ATMs manufactured by NCR are now powered by Diebold terminal software at
Iceland’s Landsbanki, Kauphthing Bank, Islandsbanki and the Savings Bank
Datacenter. Previously, Icelandic banks operated in an NCR hardware and software environment. The solution was developed using Diebold’s “Agilis Power” software toolkit. Hugur, the software house that develops all Icelandic ATM applications, used “Agilis Power” to develop a custom application that will run on approximately 250 NCR terminals throughout the country. The addition of Agilis also enabled the banks to make their ATMs compliant with EuropayMasterCardVisa.
The monthly payment rate among credit card-backed securities rose to an average of 17.44% in December. Charge-offs headed south by 4 bps to 6.07% during December. Delinquency, among credit card ABS, dropped from 4.50% in November to 4.31%. According to Moody’s Investors Service, the excess spread ratio declined to 6.64% in December from 6.75% one-year ago. It was the first decline in 12 consecutive months of increases.Details