HSBC Retail Hires Market Development Exec

HSBC – North America has hired Molly McCombe, formerly with McKinsey & Company, as managing director of new market development for its retail services business. Before joining HSBC, McCombe was an associate principal at the Chicago office of McKinsey & Company, where she focused on strategy, growth and performance improvement for financial services industry clients. McCombe received a bachelor’s degree in business administration from Boston University. She received her master’s from Northwestern University’s Kellogg Graduate School of Management. HSBC – North America includes all of HSBC’s U. S. and Canadian businesses, including the former Household businesses, and has assets approaching $300 billion.

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Rahaxi and Transaction Network Services Ink a Deal

FreeStar Technology’s Rahaxi Processing Oy has signed a three-year contract with Transaction Network Services. TNS will provide Rahaxi with high-speed cross-border data communications delivering transactions from 5,000 point-of-sale terminals in retail outlets in Finland and Sweden. Rahaxi supports up to 1000 retailers in Northern Europe, and has strategic relationships with Finnish banks including Nordea, Sampo, Oko, and Luottokunta.

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IntegraSys to Offer Penley’s ID Verification

eFunds’ Penley subsidiary and Fiserv’s IntegraSys unit have signed a deal through which IntegraSys will privately label and sell Penley’s “ID Verification” solution to credit unions. This agreement helps IntegraSys provide its credit union customers with an extensive, easy-to-use and cost-effective identity fraud prevention program as well as compliance with the USA PATRIOT Act Section 326, 314(a) and Office of Foreign Assets Control (OFAC) regulations. Penley, a wholly owned subsidiary of eFunds Corporation, offers easy-to-use technology solutions that provide financial institutions with comprehensive information that protects against fraud, offers business intelligence and increases operational efficiency. Fiserv, Inc. provides information management systems and services to the financial industry, including transaction processing, outsourcing, business process outsourcing and software and systems solutions.

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Average American Carries $2,627 in Card Debt

A new survey has found that American males have an average of $2,742 of credit card debt spread out over 2.5 cards, and that females average $2,522 of credit card debt on 3.3 cards. The survey of 1,000 consumers concluded that the average American is now carrying $2,627 in credit card debt, up from $2,294 in 2003. According to the annual “Credit Card Survey” conducted by Myvesta, Americans are now carrying an average of 2.9 credit cards, up from 2.3 in 2003. Regionally, individuals in the South are carrying the most credit card debt with an average of $2,977. People in the Northeast are carrying the smallest balances with an average of $1,918 of credit card debt. Individuals in the Midwest have an average of $2,682 on their cards and those in the West carry an average balance of $2,538.

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Cap One Delinquency Dips; Loans Rise $1.8B

After six consecutive monthly increases, Capital One’s delinquency ratio headed south in November, falling 7 basis points. The declined was helped by a $1.8 billion boost in total managed loans in November, compared to a $455 million gain in October. However, charge-offs headed north climbing 25 basis points last month. For November, Cap One reported that managed charge-offs increased to 4.35%, compared to 4.10% in October, and 5.57% one-year ago. In June 2003, Cap One’s managed charge-off ratio stood at 6.20%. Delinquency decreased to 3.87% for November, compared to 3.94% for October, 3.90% for September, 3.80% in August, 3.77% in July, 3.76% in June, 3.73% in May, and 3.69% in April. Delinquency one-year ago stood at 4.46%. At the end of November, Capital One had $77.7 billion in global outstandings. At the end of the third quarter, Cap One had $46.1 billion in U.S. card loans, compared to $45.2 billion in the second quarter. For complete details on Capital One’s monthly metrics and 3Q/04 performance, visit CardData ([www.carddata.com][1]).

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Capital One 2003-2004
Month Charge-offs Delinquency
Nov 03 5.57% 4.46%
Dec 03 5.10% 4.46%
Jan 04 5.00% 4.39%
Feb 04 4.75% 4.14%
Mar 04 4.74% 3.80%
Apr 04 4.70% 3.69%
May 04 4.40% 3.73%
Jun 04 4.17% 3.76%
Jul 04 4.10% 3.77%
Aug 04 3.87% 3.80%
Sep 04 4.18% 3.90%
Oct 04 4.10% 3.94%
Nov 04 4.35% 3.87%
Source: CardData (www.carddata.com).

[1]: http://www.carddata.com
[2]: /images/g/graphs/cofperformance_nov04.jpg

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Euronet Signs a ATM Contract with a Mumbai Bank

Euronet Worldwide announced a multi-year ATM outsourcing agreement with a large multinational bank in Mumbai, for their network of 245 ATMs. Euronet will provide ATM driving services from Euronet’s
operations center in Mumbai and will provide all of the day-to-day
outsourcing services, including transaction processing, network
management and monitoring, security, cash forecasting and replenishment,
help desk, incident management, maintenance and full reconciliation and
settlement services.In addition to ATM outsourcing services Euronet provides shared ATM networking services to the bank through its “Cashnet” shared ATM network. “Cashnet” is the largest nationwide multilateral shared ATM network in India today, comprised of nine member banks with more than 3,400 ATMs across the country.

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FTC Issues its FACTA Report to Congress

The FTC has issued its report to Congress containing studies on credit report accuracy and completeness required by “FACTA.” Among its findings is that the costs of providing “Negative Information Notices” could be significant, and sending unsolicited notices to consumers could open additional avenues for fraud and identity theft. The FTC suggests that an opt-in system in which consumers could choose to receive negative information may achieve the proposed requirement’s goals without significantly elevating costs. The report notes that the market has begun to provide credit monitoring services that offer similar benefits.

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Hilton HHonors Ties a Best Program Award

Business Traveler magazine has awarded a tie for “Best Hotel Rewards Program” to the “Hilton HHonors” loyalty program. Business Traveler magazine each year surveys its readers — among the most frequent business travelers in the world — to attain their nominations for airlines, hotels, reward programs, credit card companies, websites and other travel-related companies. Approximately 30 awards were announced. Hilton HHonors(R) is a guest reward program that gives frequent travelers a faster way to earn the rewards they want most.

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AsiaPay to Distribute Softforum’s XecurePay ACS

AsiaPay has partnered with Softforum to promote and distribute
Softforum’s “XecurePay ACS” products in Greater China and Asia. The deal covers “ACS Server,” “Enrollment Server,” “ACS Manager,” “WAP Extension,” and “SMS Extension.” Softforum’s “XecurePay” is a 3-D Secure product suite designed to provide a advanced cardholder authentication security for payment with credit card on the Internet. AsiaPay is a secure electronic payment service and solution provider and ePayment security product vendor in Asia.

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SkyCash MasterCard Attracts a New Investor

FL-based Xtreme Distribution Network has become an investor in ChexFirst, a firm that offers a check guarantee program and “SkyCash,” a MasterCard payroll card. ChexFirst is the company’s check guarantee program, and guarantees 100% of all checks collected. SkyCash is a debit MasterCard that retails for $19.95, carries no activation fees, and earns the merchant $5 on each sale. It acts as a fully functioning debit card and a personal bank account, including direct payroll deposit and payday loan. XDNI is a division of Phoenix Telecommunication Group (http://www.phoenix-tel.com), one of the largest licensed wholesale carriers in prepaid telecom.

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Hypercom Gets ICE and S9 Order

Hypercom distributor Alhamrani Universal has ordered 5,000 “ICE 5500Plus” and 5,000 “S9” card payment devices for Saudi Arabia’s
major banks. This marks the largest one-time order ever for Hypercom
Middle East. AU planes to offer the terminals and devices to its clients who include The National Commercial Bank, Arab National Bank, Al Rajhi
Banking and Investment Corporation, Riyad Bank, The Saudi British Bank
and Saudi Hollandi Bank.

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Shell Card Links Up with Jiffy Lube

Shell Oil Products this week announced that the Shell gasoline credit card for consumers and the Shell fleet credit card will now be accepted at most Jiffy Lube service centers. Shell has a 23.1 percent share of the gasoline credit card market, according to the September 2004 issue of The Nilson Report, a newsletter that covers consumer payment systems. Jiffy Lube and Shell have aggressively used credit card marketing programs to retain customers and attract new ones. In November, the two brands began offering a rebate to Jiffy Lube customers who pay for services with their Shell MasterCard(R) credit card. Jiffy Lube, with more than 2,200 service centers in North America, serves millions of customers each year.

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