Chase Card Loans Up 5%; Volume Rises 12%

J.P. Morgan Chase reported this morning that credit card profits for the third quarter were $421 million on revenues of $3.77 billion. Managed card loans of $131.5 billion were up 5.1% year-on-year and up 3.6% sequentially. During the third quarter, Chase added 2.76 million net new credit card accounts, ending the quarter with 95.9 million cards in-force. Charge volume for the third quarter was $73.3 billion compared to $65.3 billion one-year ago. The managed net charge-off ratio declined to 4.88% from 5.43% in the prior year and 5.56% in the prior quarter. The 30-day managed delinquency ratio was 3.81%, down from 4.24% in the prior year and up from 3.72% in the prior quarter. Bank card volume for Chase’s merchant acquiring business was $123.5 billion with nearly 4 billion transactions. Chase also reported that it ended the quarter with 8,282,000 debit cards. For complete details on Chase’s third quarter performance, visit CardData ([www.carddata.com][1]).

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

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TSYS Revenues Up 15% Lifting Profits 10%

TSYS reported third quarter net income of $39.1 million, a 10% rise over the year-ago quarter. Revenues topped $305 million, a nearly 15% rise over 3Q/03. Accounts on file increased to 315.3 million, up 17.7%, compared to 267.9 million one-year ago. During the third quarter, TSYS signed a definitive agreement to service the combined card portfolios of Chase Card Services, and converted 1.5 million accounts from The Royal Bank of Scotland Group’s acquisition of People’s Bank. Bank of America also selected TSYS to process the 12 million accounts recently acquired from FleetBoston. Additionally, TSYS acquired Clarity Payment Solutions during 3Q/04. The processor says it anticipates 10% to 15% growth in EPS in 2005. For complete details on TSYS’ latest performance, visit CardData ([www.carddata.com][1]).

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

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BofA to Install NCR’s APTRA Edge for ATMs

Bank of America has agreed to use NCR’s “APTRA Edge” open-architecture, client-server software for the bank’s advanced-function ATM channel. NCR says more than 70% of all multivendor projects worldwide currently run on NCR’s Windows-based “APTRA” platform, which enables advanced transactions and relationship-driven services, such as personal preferences, voice guidance, and “No Envelope” Deposit. BofA has more than 16,000 ATMs. In August, S2 Systems announced “OpeN/2” support for NCR’s “APTRA” software and cash acceptor. (CF Library 8/20/04)

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Postilion to Drive Apple Bank ATMs

NYC-based Apple Bank has selected Mosaic’s “Postilion” software to provide ATM driving, transaction switching, and routing. Apple will install the Postilion system to handle ATM transaction processing and debit card management. Mosaic’s Postilion provides Apple with open architecture, which allows easy implementation of new products to be delivered through ATMs. The Postilion Office component will handle detailed reporting and automated settlement and reconciliation for all networks and interfaces. Mosaic Software is a global EFT software company with over 200 customers in more than 40 countries. Mosaic’s Postilion represents the forefront of next-generation payment processing software.

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I4 Commerce and Ross-Simons Launch a Card

MD-based I4 Commerce and Ross-Simons have launched the private label “Ross Simons Preferred Customer Card”. Merchants can access a customized, full-featured credit and loyalty program with the I4 commerce private label program. The new program offering is available to merchants that offer Bill Me Later. Together, the two products provide retailers with avenues to drive sales and loyalty via online, catalog, and in-store. The private label program is integrated through leading payment processor, Paymentech LLC. Ross-Simons is a multi-channel retailer that operates an Internet site for jewelry, tableware, gifts, and collectibles. It also has 14 retail and outlet stores in 9 states. Bill Me Later®, a credit-based payment solution developed by I4 Commerce, improves buying experience online and over the phone. I4 Commerce has alliances for merchant distribution with the largest payment companies in the industry such as First Data Corporation and Paymentech.

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Texas Rangers Merchant Deploys RealPOS 62

Rawlings All American Grille, located inside the Texas Rangers Ameriquest Field, has deployed NCR “RealPOS 62” terminals. The RealPOS 62 provides performance, reliability, and affordability. The terminal features advanced technology and flexible configuration options, improving efficiency and customer service. It is retail hardened to endure harsh environments. Rawlings Sporting Goods manufactures competitive team sports equipment and apparel. NCR Corporation helps businesses build strong customer relationships through their ATMs, retail systems, Teradata(R) data warehouses, and IT services.

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MC CORP CARDS

MasterCard has juiced-up its multinational corporate card program with a number of new enhancements. Under the “MasterCard Multinational Corporate Program,” the MasterCard global network of financial institutions deploy systems that deliver detailed
transaction data to all multinational customers. A common file format
makes it possible to consolidate data, in the “MasterCard Global Data
Repository,” from different sources. Multinational organizations that
adopt MasterCard commercial payment solutions can receive consolidated
reports through “MasterCard Smart Data Online,” an MIS system, or other
reporting applications even though they may have offices in different
countries that use different banks. The “MasterCard Multinational Corporate Program” encompasses the “MasterCard Corporate Card,” “MasterCard Purchasing Card,” and “MasterCard Corporate MultiCard.”

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BofA and National Processing Deal Done

Bank of America closed its $1.4 billion acquisition of National Processing. As the No. 1 check processor, and debit card issuer and the No. 4 credit card issuer in the United States, Bank of America feels that the acquisition will enable them to innovate and create efficiencies in electronic payments. B of A is the No. 1 Small Business Administration lender in the U.S. It serves clients in 150 countries and has connections with 96 percent of the U.S. Fortune 500 companies and 82 percent of the Global Fortune 500. National Processing, Inc. provides merchant credit and debit card processing through its wholly owned operating subsidiary, National Processing Company, LLC, which supports more than 700,000 merchant locations and represents one out of every six MasterCard(R) and VISA(R) transactions processed nationwide. National City Corporation’s core businesses include commercial and retail banking, consumer finance, asset management, and mortgage origination and servicing. It is one of the nation’s largest financial holding companies.

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Citi’s International Card Profits Rise 21%

Citigroup reported that its international cards business produced third quarter net income of $200 million, an increase of 21% over the year-ago quarter. During the quarter the issuer added 100,000 net accounts to its customer base, outside North America, ending the quarter with 20.8 million accounts. Charge volume for international credit cards was up 31%, to $13.5 billion for the third quarter. Total outstandings for international cards were $15.1 billion as of September 30th, an 18% gain over one year ago. However, outstandings are down from the second quarter’s $15.7 billion. In Japan, average credit card loans were flat sequentially, but up 9% over year ago figures. In the rest of Asia, credit card loans grew 30% to $8.6 billion. Citigroup holds $5.4 billion in card loans for the EMEA region and $500 million in Latin America, which grew 17% and 25%, respectively. Charge-offs increased during the third quarter as delinquency remained flat for international cards, compared to the previous quarter. Delinquency (90+ days) remained at 1.55% for 3Q/04. Charge-offs increased from 4.24% in 2Q/04 to 5.08% for the third quarter. For complete detail’s on Citigroup’s international cards performance visit CardData ([www.carddata.com][1]).

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

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CIBC Foreign Exchange Settlement Approved

CIBC has received court approval of a settlement of a class action brought on behalf of CIBC VISA cardholders in Canada over foreign exchange transactions. The card issuer began publishing notices in 28 newspapers over the weekend, according to CardFlash International. Under terms of the settlement, announced in late August, CIBC VISA cardholders will be getting up to a C$14 credit by year end. CIBC agreed to a settlement of C$16.5 million, plus C$3 million to plaintiffs’ counsel, and to pay the costs of notification, administration, and distribution of the settlement funds. Up to C$13.85 million will be paid directly to cardholders in December as credits ranging from C$.72 to C$14.32. The plaintiffs, represented by Paul Pape and Harvey Strosberg, had alleged that the conversion of transactions from a foreign currency resulted in an undisclosed or inadequately disclosed mark up. This mark up was added to the VISA International wholesale conversion rate to obtain the Canadian dollar equivalent for foreign transactions. Similar lawsuits are pending in the USA.

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Paymentech Adds 23,500 Gas Stations

Dallas-based Paymentech has added more than 23,500 petroleum locations to its customer base this year, the largest petroleum market gain in the last decade for the Company. Paymentech’s petroleum-specific payment solutions such as Partial Debit Authorization, enables consumers to pay at the pump using debit cards, even if they are low on cash and do not meet the authorization requirement. The solutions have contributed to many contract wins and have saved merchants numerous sales. Paymentech, L.P. processes the most payment transactions in North America along with over half of all Internet transactions for retailers who accept U.S. and international payments through the traditional point of sale, Internet, catalog, and recurring payments. Along with its Canadian affiliate, Paymentech processed 7B transactions and $162B in sales volume.

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