Travelocity and MasterCard have partnered again to offer up to $400 cash back on cruises purchased through November 11th. According to Bryan Saltzburg, vice president of packaging and cruises for Travelocity, the promotion with MasterCard enables Travelocity to give travelers opportunities to receive great deals in time for the holiday shopping season. Travelocity negotiates thousands of deals with the top airlines, hotels, car rental companies, cruise lines, and other destination services. In 2003, Travelocity had 44 million registered users and booked almost $4 billion of travel. 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.Details
HSBC – North America has renewed its private label credit card contract with Oreck Corporation. The new contract will extend a nine-year relationship between HSBC Retail Services and Oreck. HSBC North America’s retail services business enables Oreck telesales and retail store channels to benefit from their strong operational and marketing capabilities. Special financing options including equal monthly payments or no interest financing will be beneficial to Oreck customers. Oreck products are designed to make cleaning easier, healthier, and smarter. HSBC Retail Services is a leader in issuing private label (merchant branded) credit cards in the U.S. HSBC-North America includes all of HSBC’s U.S. and Canadian businesses and has almost $300 billion in assets.Details
Discover Financial Services has adopted Fair Isaac’s “Enterprise Decision Manager” system. The new software solution will assist Discover in building a decision management infrastructure, which will enhance Discover’s customer decisions. The Enterprise Decision Manager accelerates the development and deployment of decision management applications while reducing IT development and maintenance costs as much as 80%. The solution enables businesses to gain more value from each customer interaction. Discover Financial Services, Inc. operates the Discover(R) Card and the Discover(R) Network for its 50 million plus Cardmembers. Fair Issac assists thousands of companies in acquiring customers, increasing customer value, reducing fraud and credit losses, lowering operating expenses, and entering new markets.Details
Gallant Zone Sdn Bhd has obtained approval from Maybank to be included as a participating merchant in the bank’s “EzyPay” program.
“EzyPay” is an interest-free installment program that enables all Maybank or “Mayban Finance VISA” or MasterCard cardholders to purchase goods from Gallant’s retail outlets and pay by interest-free installments. Under the program, Gallant’s customers would have an option to pay for goods purchased over a 6 or 12 month period. Gallant
is the Malaysian subsidiary of Secured Digital Applications.
KS-based Euronet Worldwide reported third quarter consolidated revenues of $99.9 million, an 88% jump over 3Q/03. Net income for the third quarter 2004 was $6.0 million, compared to a net income of $1.4 million for the third quarter 2003. The EFT processing segment posted third quarter revenues of $20.9 million, a 62% increase. The EFT processing unit processed 70.1 million transactions in the third quarter compared to 31.0 million transactions for the same period last year. The segment completed the quarter with 5,404 ATMs owned or operated, compared to 3,254 ATMs at the end of the 3Q/03. The prepaid processing segment reported third quarter revenues of $75.4 million, a 107% jump over 3Q/03. Total transactions processed by the prepaid processing unit in the third quarter were 59.8 million, compared to 26.3 million prepaid transactions processed in 3Q/03. The prepaid processing segment processes electronic point-of-sale prepaid transactions at more than 168,000 point-of-sale terminals across more than 79,000 retailers in Europe, Asia Pacific, and the USA. For complete details on Euronet’s third quarter performance, visit CardData ([www.carddata.com])
The Office of Fair Trading has submitted a formal request to credit card issuers to explain how they arrive at the fees they charge for going over-limit and for making a late payment. The OFT is also asking issuers to disclose the amount of revenues they collect from such fees. The OFT began an industry wide investigation into alleged unfair contract terms in March after Parliament’s “Treasury Select Committee” asked credit card issuers to stop overcharging and misleading customers. The “Unfair Terms in Consumer Contracts Regulations 1999” render unenforceable credit agreement terms relating to default charges to the extent they are disproportionately high in relation to their actual costs to the card issuer.Details
Providian has extended the employment agreement with its CEO, Joe Saunders, to December 31, 2007. In July, Providian entered into an amendment to Mr. Saunders’ Executive Employment Agreement, which extended the termination date of his current employment agreement from December 31, 2004 to December 31, 2005. On October 19, 2004, Providian extended the term for three years from the original termination date. The July amendment discussed various matters including Saunder’s base salary provision, which is to reflect his current $800,000 a year base salary, a revised target bonus provision, reflecting his 200% bonus, and modified termination provisions to conform the methods of calculating change-of-control payments and benefits to be consistent and applicable to other senior executives of Providian.Details
Advanta posted a 40% increase in net income for its business cards during the third quarter, compared to the year ago period. The current quarter’s earnings of $11.9 million reflect a 179 basis point decline in net charge-offs on managed business credit card receivables. Managed charge-offs for 3Q/04 dipped to 6.48% on an annualized basis, as compared to 8.27% for 3Q/03. During the second quarter, Advanta’s charge-off rate was 6.99%. Over 30-day delinquencies on managed business credit card receivables declined 173 basis points to 4.42%, and over 90-day delinquencies decreased 72 basis points to 2.13%, each as compared to 3Q/03. In the prior quarter, Advanta’s over 30-day delinquency rate was 4.80% and the over 90-day delinquency rate was 2.50%. Managed card loans at the end of the third quarter were $3,221,021,000 compared to $2,876,619,000 one-year ago. Charge volume was $2,125,757,000 for 3Q/04 compared to $1,816,195,000 for 3Q/03. For complete details on Advanta’s third quarter performance, visit CardData ([www.carddata.com]).
ADVANTA’S CARD PORTFOLIO SNAPSHOT
Period Card Loans
3Q/03: $2.86 billion
4Q/03: $2.98 billion
1Q/04: $3.08 billion
2Q/04: $3.12 billion
3Q/04: $3.16 billion
Source: CardData (www.carddata.com)
VISA reported that total “Verified by Visa” card volume for the first nine months of this year was $5.4 billion, as the number of transactions increased 200%, compared to one-year ago. More than four million cardholders have signed up for the transaction encryption service to-date. More than 17,000 U.S.-based Internet retailers accept “Verified by Visa.” For participating “Verified by Visa” merchants, nearly three out of every ten dollars spent on VISA cards come from “VbV” authenticated transactions. VISA says the average “VbV” transaction is now $175 compared to $90 for non-“Verified by Visa” transactions, indicating that cardholders who have activated the service feel more confident shopping online. “Verified by Visa” was introduced in 2001.Details
Ingenico announced that Florida-based SIVA Corporation has certified and integrated the “i7770” short-range wireless portable terminal with the “iSiVA” POS system. The “Ingenico i7770” enables
restaurant patrons to pay at the table using an on-line connection to the merchant’s authorization center. It is the first terminal to leverage commercially available “Bluetooth” connection capability in a portable POS device. Bluetooth provides outstanding communication quality, and significant range of approximately 1/2 mile between
the terminal and base. It operates at a very low power consumption rate,
allowing for a high number of transactions without recharging. SIVA markets its products to multi-unit restaurant owners.
Sophia-Antipolis-based ASK has introduced a new universal contactless platform. The new “TanGO” operating system addresses the contact/contactless smart cards needs for mass transit, access control and banking. For mass transit it is adaptable to any regional standards, including Calypso, RIS, VDV Core, ITSO, and RKF. Security features combine an anti-tearing and fast cryptographic calculation based on a DES, DESX or 3DES mechanism. “TanGO” can also clone the legacy cards such as GTML, GTML2 and CD97 to perpetuate existing systems as well as provide the right path to new features. “TanGO” is already available for dual interface and contactless cards.Details
French global smart card specialist, Gemplus, reported that payment microprocessor card revenue for 3Q/04 rose 11% year-on-year, and 18% quarter-on-quarter. However, gross profit for the Company’s financial services unit declined 19%, from $16.1 million one-year ago to $12.9 million. Sequentially, gross profit for the Company’s financial services unit increased 14%. Financial services revenues for 3Q/04 was $67.7 million, compared to $61.2 million one-year ago, and $57.2 million in the prior quarter. Financial services revenue growth was primarily driven by the EMV migration. Microprocessor card revenue growth was partly offset by lower sales in magnetic stripe cards, due to the cannibalization by EMV cards. For complete details on Gemplus’ third quarter performance, visit CardData ([www.carddata.com]).
Revenues Gross Profit
3Q/03: $61.2 million $16.1 million
4Q/03: $69.1 million $12.9 million
1Q/04: $56.9 million $ 8.7 million
2Q/04: $57.2 million $11.3 million
3Q/04: $67.7 million $12.9 million
Source: CardData (www.carddata.com)