Cap One Enters the UK Home Equity Market

Capital One has signed a definitive agreement to privately held HFS Group, a major home equity loan broker in the UK. Cap One will pay $117 million in cash. HFS originated a volume of approximately 15,000 loans, with a value of approximately $630 million in the twelve months ending March 31st. Cap One has about four million credit cardholders in the UK. The acquisition is part of Cap One’s plans to diversify its business beyond the mature credit card market. In September, Capital One acquired Onyx Acceptance Corporation, a major auto loan originator, for $191 million in cash. (CF Library 9/22/04)

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Datacard’s Maxsys Card System Gets Smarter

Datacard Group has added new features to its “Maxsys” card issuance system. Datacard has integrated a host of intelligent features into the supply products for the “Maxsys” system. Major enhancements have also been made to the user interface of the “Maxsys” system to ensure that the system integrates easily into card issuance operations without burdening operators with a significant learning curve or training. In addition to the easy-to-use interface, all screens and error messages are now available in a variety of languages including English, French, German and Japanese with additional languages to follow.

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VISA Plans for a Mini Chip Card

VISA Europe unveiled plans to issue a miniature EMV smart card. The new “VISA Mini Chip Card” can be issued on a credit, debit, or prepaid platform and also has the flexibility to be issued as any VISA product including “VISA Gold” and “VISA Electron.” Due to its compact size, the “VISA Mini Chip Card” cannot be used at ATMs. The card has an optional perforated hole in one corner. VISA launched its magnetic stripe “VISA Mini” card in 2002 and now issued about 25 million since then, the majority in the USA.

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MasterCard Global GDV Rises 10%

MasterCard International reported third quarter worldwide gross dollar volume (purchases + cash ) of $365.9 billion, an increase of 10% over the third quarter of last year. Total purchases on MasterCard credit and offline debit cards increased 11.1% for the third quarter, as the number of MasterCard cards issued worldwide rose to 656 million.
For the nine months ended September 30th, MasterCard GDV totaled $1.0 trillion, up 9.5% over the same period a year ago. Globally, purchase volume rose 11.1% to $266.8 billion for the third quarter compared to the same period in 2003. In the nine months ended September 30, purchase volume rose 12.2%.

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SCM,OMNIKEY, Kobil Team for PINpad Standards

SCM Microsystems, OMNIKEY, and Kobil Systems have agreed on a joint standard for developing smart card readers with integrated PINpads. Using smart cards with PINs (Class 2 readers) increases the security of transactions. The companies are working under TeleTrusT, a company who aims to promote trustworthy information and communication technology. Class 2 PINpad readers protect smart cards, preventing unauthorized copying or use of information that is stored on the card. SCM Microsystems develops, markets, and sells smart card reader technology, OMINKEY is a world leading manufacturer of smart card readers, and Kobil Systems specializes in developing and marketing smart card based IT and multifunctional smart card terminals.

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CompuCredit Profits Rise Sequentially; COs Drop

Atlanta-based sub-prime specialist, CompuCredit, reported a second quarter profit of $37.9 million, a sharp increase over the prior quarter, but well below 3Q/03’s $56.6 million. Delinquency has dropped significantly to 13.0% in the third quarter from 14.8% in the prior quarter and 15.5% one-year ago. However, the 60-plus day delinquency rate rose to 10.7% from 9.6% for the second quarter, and compared to 10.9% at the end of 3Q/03. Total managed receivables for the third quarter were $1,958,735,000, flat compared to the second quarter, and $2.5 billion one-year ago. As of September 30th, CompuCredit had 2,388,000 accounts compared to 2,222,000 at the end of 2Q/04. The net interest margin was 21.2% in the third quarter, as compared to 22.4% for the third quarter of 2003. For complete details on CompuCredit’s third quarter performance, visit CardData ([www.carddata.com][1]).

COMPUCREDIT NET INCOME SNAPSHOT
3Q/03: $56.5 million
4Q/03: $10.8 million
1Q/04: $17.7 million
2Q/04: $13.8 million
3Q/04: $37.9 million
Source: CardData (www.carddata.com)

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

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MasterCard Tops 200 Million Smart Card

MasterCard International says it has issued more than 200 million “MasterCard,” “Maestro,” and “Cirrus” smart cards globally. Of the 200 million smart cards, 40% of them carry an EMV chip. “The MasterCard M/Chip 4” is a highly flexible smart card application for credit and debit cards and is at the cornerstone of MasterCards’s payment and added value programs. The MasterCard M/Chip 4 can be leveraged by MasterCard’s customers to deliver a range of value-added applications including OneSMART MasterCard Pre-Authorized, OneSMART MasterCard Authentication Program, and OneSMART MasterCard PayPass(TM). The OneSMART MasterCard program includes a range of pre-configured smart card packages including OneSMART MasterCard Payment, OneSMART MasterCard Authentication, OneSMART MasterCard Web, and OneSMART MasterCard Retail. MasterCard International is a leading global payments solutions company that provides a wide range of services that support their global member’s credit, deposit access, electronic cash, business-to-business, and other related payment programs.

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