eBay reports that the charity auction of Donald Trump’s “VISA Check Card,” recently used in a VISA commercial, sold for $1495 on July 22nd, after receiving 27 bids. Proceeds from the charity auction will benefit the Jump$tart Coalition for Personal Financial Literacy, which is a nonprofit organization that seeks to improve the personal financial literacy of young adults. Visa is the world’s leading payment brand and largest consumer payment system, enabling banks to provide their consumer and merchant customers with a wide variety of payment alternatives. The Jump$tart Coalition for Personal Financial Literacy is a nonprofit organization that seeks to improve the personal financial literacy of young adults by developing, disseminating, and encouraging the use of standards for grades K-College; and by promoting personal finance education at home and in school.Details
Credit card charge-offs, among “prime” asset-backed securities, took a sharp turn upward in June, climbing 27 basis points sequentially, and remaining slightly above year ago levels. “Sub-prime” ABS charge-offs also increased during June, but stayed below last June’s ratios. “Prime” charge-offs increased to 6.84%, compared to 6.57% in May, and 6.79% one-year ago. However, the 60+ day delinquency index for “Prime” portfolios is 55 bps below the year-ago level, and at its lowest point since July 2002. According to Fitch’s latest issue of “Credit Card Movers & Shakers,” “sub-Prime” charge-offs also increased, to 17.02%, compared to 16.69% in the prior month, and 17.53% one-year ago. It was the sixth consecutive month in which “sub-prime” chargeoffs registered below prior-year results. Late-stage delinquencies (60+days) fell for the fourth straight month to 8.58%, the lowest level since July 2002. Fitch’s yield and payment rate indexes moved in opposite directions during June. Following two consecutive monthly declines, Fitch’s yield index rebounded, climbing 56 bps to 16.77%, 37 bps above the year-ago level. The monthly payment rate slid eight bps to 16.68% yet remained 45 bps above the year-ago level.Details
Experian says its new “VeriScore” has produced up to 50% improvement in promotional return on investments targeting profitable customers. VeriScore helps companies manage acquisition lists, achieve higher response rates, maintain customer approval levels, and develop profitable “Invitation to Apply” (ITA) approaches. VeriScore also provides targeted consumer marketing lists, resulting in improved credit screening applications and emerging consumer targeting, helping companies target individuals with little or no credit history. Experian is a global leader in providing information solutions to organizations and consumers.Details
Home Credit & Finance Bank Russia has signed an agreement with Prague-based MUZO for payment card processing and issuing services
for the Bank’s new, revolving consumer credit program. MUZO, the largest indirect payment processor in the Czech Republic, will integrate a comprehensive front and back office solution for HCFB’s new program based on MasterCard’s PIN-based “Maestro” card. MUZO’s services
will include: authorization for ATM and POS transactions, as well as card personalization and related card management and distribution
solutions of the issued cards including PIN related support services.
HCFB is the second largest provider of consumer credit in Russia.
Global Payments is majority owner of MUZO.
MS-based Triton has received certification for its “Encrypting PIN Pad T1.0” under the Interac Association “Device Certification Program”. Triton’s T1.0 EPPs also received certification meeting VISA(R) International standards recently mandated, thereby ensuring that Triton ATMs are certified to process both Interac and VISA transactions. Triton currently provides distributors, financial institutions, and processors with a total ATM security solution by offering an ATM that complies with international 3DES and Interac MACing security requirements. Triton is the largest provider of off-premise ATMs and ATM management software in North America and has more than 100,000 installations in over 17 countries worldwide.Details
Smartpay Jieyin has completed $65 million
round of equity financing to expand its consumer electronic payment service in China. Chinese consumers will utilize “Jieyin” for the payment of their mobile and VoIP-based long distance phone bills. A significant number of China’s leading mobile operators, with a combined subscriber base of over fifty million consumers, have initially contracted with Smartpay to utilize this service for bill payments.
2b Holdings led the latest round of funding.
Omaha-based Transaction Systems Architects reported second calendar quarter revenue of $72.5 million, a decrease of 2% over 2Q/03. Net income was $18.7 million for the quarter, compared to a net loss of $1.9 million one-year ago. During the quarter, the Company added 13 new customers while maintaining a worldwide presence of 76 countries. ACI Worldwide, the Company’s largest business unit, added seven new customers during the quarter. The Company has revised its revenue estimate for fiscal 2004 from a range of $282 to $292 million to a range of $291 to $296 million. For complete details on TSAI’s second quarter performance visit CardData ([www.carddata.com]).
Euronet Worldwide reported that its overall revenues for the second quarter nearly doubled to $87 million compared to one-year ago.
Transactions for the EFT processing segment also doubled, and transactions for the prepaid processing segment were up 140%, compared to the second quarter of 2003. The EFT processing unit posted second quarter revenues of $18.0 million, compared to $12.2 million for 2Q/03.
The EFT business processed 54.1 million transactions in the
second quarter, compared to 27.1 million transactions for the same
period last year. The segment completed the quarter with 5,097 ATMs owned or operated, compared to 3,120 ATMs at the end of the second quarter 2003. The EFT results were largely attributable to the
growth in ATMs in India, Poland and Romania. The prepaid processing unit reported second quarter revenues of $65.6 million, compared to $32.2
million reported for the second quarter 2003. The unit handled second quarter transactions of 54.6 million, compared to 22.8 million prepaid
transactions processed in second quarter 2003. The Prepaid Processing
Segment processes electronic point-of-sale prepaid transactions at more
than 162,000 point-of-sale terminals across more than 68,000 retailers in Europe, Asia Pacific and the U.S. The prepaid processing segment’s second quarter’s revenue were driven by strong growth from the company’s e-pay group, combined with the November acquisition of
transact Elektronische Zahlungssysteme GmbH, a German prepaid
processor, and the company’s U.S. prepaid operations, which were initiated in September with acquisition of Austin International Marketing and Investments, with the January acquisition of
Prepaid Concepts and further expanded with the May acquisition of Electronic Payment Solutions, an electronic point of sale
company operating primarily in the southern U.S.
San Jose-based I-S-Cubed has added support for Diebold and NCR ATMs to “SecureOMS,” its automated key management solution. Banks, credit unions and transaction acquirers can now manage networks containing both brands of ATMs from a single point of control, eliminating their need to implement multiple point solutions. Customers will also be freed from the requirement of maintaining host utilities tied to a particular host application vendor or platform. I-S-Cubed Inc. is a global provider of secure cryptographic key management solutions for network-connected devices in the financial services, retail and enterprise markets.Details
Europay France is tackling cross-border fraud with the deployment of the “IRIS” fraud prevention solution
delivered by IRS Intelligent Risk Management Solutions. “IRIS” is installed at EPF’s processing centers in Paris and alerts to all
suspicious cross-border transactions of the more than 14 million French
MasterCards in real time. Europay says during last months’ pilot phase, it detected more than 30% of the fraud volume, while staying at an exceptionally low false positive rate around 4:1. A similar “IRIS” implementation is protecting cross-border transactions of more than 90 million German debit cards with great success since the end of 2001.
Unlike other neural net solutions, “IRIS” does not use domestic transaction nor cardholder data, and is not dependent on complete cardholder profiles. IRS Intelligent Risk Management GmbH is an affiliate of GZS Gesellschaft
fur Zahlungssysteme mbH, Germany’s leading processing-services provider.
Europay France processes all cross-border transactions for the
MasterCards issued by the French MasterCard members.
Fair Isaac took a big leap yesterday as it announced it has extended its “FICO” scoring to consumers who have minimal or no credit history on file. Predictive information considered in the formulation of this score include payment performance data on financial activities such as deposit accounts, pay day loans, and product purchase payment plans. Fair Isaac estimates as many as 50 million Americans currently do not have “FICO” scores including recent immigrants, people with low incomes, recent widows and divorcees, and young adults. The company has established a fully regulatory-compliant subsidiary, Fair Isaac Credit Services, Inc., to operationally deliver this capability. The new extended “FICO” for credit-underserved U.S. consumers is available for immediate use.Details
After losing more than $182 million on its French VISA card over the past five quarters, Prudential’s UK-based Egg is withdrawing from the French market. For the second quarter, Egg produced an operating profit for its British “Egg VISA” card of $35.3 million versus an operating loss of $30.0 million for its French “la Carte Egg VISA.” Overall, the Egg plc Group made a profit of $1.8 million in the second quarter leading to an overall loss before tax for the first half of 2004 of $7.3 million, down from a loss of $41.9 million in the same period last year. The Group has been trying to sell-off both credit card portfolios but no deal has been announced to-date. During the quarter, Egg added 171,000 new credit cardholders to bring its total portfolio to 2,944,969 cardholders. Total Egg credit card outstandings were $5,630 million at the end of June. For complete details on Egg’s second quarter performance visit CardData ([www.carddata.com]).
UK VISA FRENCH VISA
2Q/03: +$35.3 million -$45.0 million
3Q/03: +$36.4 million -$37.8 million
4Q/04: +$29.3 million -$35.6 million
1Q/04: +$27.6 million -$28.7 million
2Q/04: +$35.3 million -$30.0 million
Source: CardData (www.carddata.com)