CARDS MAY 04

Consumer purchase volume on credit cards increased 12.6% during May, as balances grew 13.3%, and credit lines edged up 12.7% per annum. During May, Australians charged A$12.8 billion in purchases on credit cards compared to A$11.5 billion one-year ago. At the end of May, consumers owed A$27.2 billion on credit cards versus $24.0 billion for May 2003. The ratio of credit card balances to card credit limits remained flat during May compared to one-year ago, at 37.3%, according to data released by the Reserve Bank of Australia. One-year ago, consumers owed A$24.0 billion with total credit lines of A$64.4 billion. Card credit limits reached A$72.6 billion at the end of May.

Details

Bank One and Disney Launch an Auction

Bank One and Disney will launch an auction next month for “Disney VISA” cardholders offering more than 25 once-in-a-lifetime Disney items and experiences. The “Disney Dream Auction” will launch September 27th. Auction items include recording a song with a “Grammy Award”-winning Walt Disney Records producer, the last remaining pro-am spot in the PGA TOUR’s “FUNAI Classic”, and the “Royal Princess” treatment at Disney’s Grand Floridian. Cardholders must be registered to participate in the auction. The auction will benefit three charities: the Make-A-Wish Foundation, Broadway Cares/Equity Fights AIDS and Free Arts for Abused Children. Bank One and Disney launched their co-branded card in March 2003.

Details

Provident to Escrow Delta’s Jet Card Funds

Delta this week announced it will escrow prepaid fees for its “AirElite” private jet card program with Provident Bank for those enrolling in its “Membership Balance Assurance” program. Delta AirElite offers the MBA program in partnership with The Provident Bank. As members purchase their card, their membership balance is placed in a Provident Bank escrow account. As the membership hours are used, funds to cover the flight charges are released to Delta AirElite to cover each respective trip. This guarantees that the balance of the member’s investment is always secure. Delta AirElite Business Jets is a wholly owned subsidiary of Delta Air Lines (NYSE: DAL), providing aircraft charter, aircraft management, and its innovative Fleet Membership Programs.

Details

National City Launches a VISA STV Card

OH-based National City has launched its new “Stored-Value VISA Debit Card” and has signed IN-based Kimball International to offer the card to reimburse employees for their sales incentive program. The National City Stored-Value Debit Card simplifies the employee payment process for employers by providing a flexible option for use in a variety of activities. In addition to the payroll option, the card allows employers to streamline the reimbursement process, enabling them to distribute funds to immediately reimburse their staff for such expenses as insurance claims, out- of-pocket expenses for travel and entertainment, and incentive compensation. National City Corporation is one of the nation’s largest financial holding companies.

Details

CITGO Offers Access to IP Processing

Alliance Data Systems, Datawire Communication Networks, and CITGO Petroleum have teamed to offer IP-based payment card processing services to CITGO-branded marketers nationwide. Alliance Data currently provides credit card processing for CITGO locations, including authorization and data capture services. The network is Visa CISP certified, equipped to maximize the benefits of the Internet, cost-effective, easy to install and works with VeriFone Ruby and Pinnacle Palm POS systems utilizing the CITGO payment card network. CITGO Petroleum Corporation, based in Tulsa, Okla., is a refiner, transporter and marketer of transportation fuels, lubricants, petrochemicals, refined waxes, asphalt and other industrial products. Alliance Data Systems is a leading provider of transaction services, credit services and marketing services.

Details

Benny Card Get a New CIO

Evolution Benefits has hired Richard Bucchi, formerly with CT-based American Payment Systems, as SVP/CIO. Just prior to joining Evolution Benefits Mr. Bucchi held a similar position at American Payment Systems in Wallingford, Conn., a company recently acquired by CheckFree Corp. Mr. Bucchi earned his Master of Science degree from Rensselaer Polytechnic Institute in Hartford, Conn. and his Bachelor’s degree from Central Connecticut State UniversityEvolution Benefits was founded in 2000 with a commitment to supporting the movement toward greater consumer choice in and responsibility for employee benefits.

Details

MBS Selects Ingrian’s DataSecure Platform

Merchants Billing Services has selected Ingrian Networks’ “DataSecure Platform” to help secure their customers’ credit card data. MBS provides payment processing services for merchants and bank partners worldwide. In addition to the potentially devastating consequences that data thefts pose, MBS must also comply with more stringent security policies set forth by credit card issuers-like Visa’s Cardholder Information Security Program (CISP)-and adhere to legislation like California’s Database Security Breach Notification Act, SB 1386.

Details

iPayment’s Charge Volume Doubles in Q2

Nashville-based iPayment reported that its second quarter charge volume more than doubled to nearly $3.2 billion, compared to $2.9 billion in the previous quarter, and $1.6 billion one-year ago. Second quarter revenues jumped by 65% to $89.4 million compared to $80 million for the first quarter, and $54 million for 2Q/03. Second quarter net income increased to $5.7 million, compared to $5.0 million for 1Q/04 and a net loss of $800,000 for 2Q/03. The Company noted that its purchase of a portfolio of agent bank agreements and 18,000 merchant accounts from First Data performed well during the first six months due to relatively modest attrition. iPayment expects annual revenues of approximately $350 million to $355 million for fiscal 2004. For complete details on iPayment’s second quarter performance visit CardData ([www.carddata.com][1]).

iPayment Charge Volume Historical
2Q/03: $1.6 billion
3Q/03: $1.7 billion
4Q/03: $1.9 billion
1Q/04: $2.9 billion
2Q/04: $3.2 billion
Source: CardData (www.carddata.com)

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

Details

SecurePipe Earns SDP Clearance

Chicago-based SecurePipe has successfully completed the MasterCard “Site Data Protection” compliance testing process. The SDP Compliance Testing program is an expansion of MasterCard’s Site Data Protection Program(TM), a comprehensive, proactive and cost-effective set of global e-commerce and financial security services designed to help protect the Web sites of its member financial institutions, online merchants and other payment processors holding MasterCard account information. SecurePipe delivers Managed Network Security Services to organizations wrestling with lean budgets and the increasing demands of a strong network security posture.

Details