CyberSource Q4 Card Volume Jumps 50% Sequentially

CyberSource reported revenue for the fourth quarter of $7.7 million, compared to $7.4 million in revenue for the same period last year. Transaction and support services revenue was $6.1 million for the fourth quarter of 2003 as compared to $5.1 million for 4Q/02, representing an increase of 18%. The Company says 4Q/03 dollar volume for credit card authorizations hit a record $5.4 billion. CyberSource processed 85.8 million transactions in the fourth quarter, a 39% increase from the same quarter last year. The Company signed 395 new customers in the fourth quarter. For the last four quarters, the total number of new customers signed was 1,394. Over 3,000 businesses now use CyberSource solutions. For complete details on CyberSource’s fourth quarter performance visit CardData ([www.carddata.com][1])

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

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PRIVILEGE CARD

Alpha Card and SN Brussels Airlines have partnered to launch two new co-branded charge cards. The “SN Brussels Airlines American Express Card” and the “SN Brussels Airlines American Express Gold Card” are linked to the SN Brussels Airlines’ “Privilege” frequent flyer program. For every Euro spent on either card, standard cardholders will receive one “Privilege Mile.” Additionally, the “Gold Card” will accrue two “Privilege Miles” for all SN Brussels Airlines ticket purchases, plus 10,000 bonus miles for the first transaction. Also, for 15,000 Euros spent on the card in any single year, the “SN Brussels Airlines American Express Gold Card” offers a free return trip anywhere in Europe with SN Brussels Airlines (value 20,000 “Privileges Miles”). Alpha Card is a joint venture company between American Express and Fortis Bank.

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USA Technologies Expects Revenues to More than Triple

PA-based USA Technologies projects that its revenues for the year ending June 30th will fall between $8 million and $10 million, and that revenue for the 2005 fiscal year will come in between $25 million and $30 million. USA Technologies also announced financial expectations for its fiscal 2005 year, which begins on July 1, 2004. In fiscal year 2005 the Company expects to generate $25 to $30 million in revenues. USA Technologies is a leader in the networking of distributed assets, wireless non-cash and m-commerce transactions, associated financial/network services and interactive media technology and energy management.

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Consumers More Concerned about Off-line Fraud

A new survey has found that Americans are less concerned about online credit card fraud than offline credit card fraud. The study, conducted last week by Ipsos-Insight, found that 76% of respondents said credit card fraud is either a moderate or major concern, while only 69% of respondents felt the same way about online credit card fraud. Only 4% of the Ipsos-Insight survey respondents reported having been the victim of credit card fraud as a result of using their credit card online. However, about 18% of Americans reported being a victim or knowing someone who had been the victim of online credit card fraud. Ipsos-Insight says the perception that online is safer may be derived from the fact that, up to this point, less people have been the victim of online fraud.

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MBNA Profits Up 30%; Delinquency & C-Os Drop

MBNA reported that net income for the fourth quarter increased to $703.5 million, an increase of 30% compared to the fourth quarter of 2002, and a gain of 7% over the prior quarter. Managed loans for 4Q/03 were up 10.5%, and charge volume was up 14%. Total managed loans at the end of the fourth quarter were $118.5 billion, and charge volume was $50.1 billion. Domestic credit card loans were up 8% year-over-year to come in at $85.8 billion. Managed charge-offs dropped to 4.97%, from 5.13% in the previous quarter, and 5.04% one year ago. Delinquency on managed loans also dropped, to 4.39%, compared to 4.48% in 3Q/03, and 4.88% in 4Q/02. Managed charge-offs for credit cards dropped to 4.66%, from 4.82% in the previous quarter, and 4.72% one year ago. Delinquency on credit card also dipped, to 4.28%, compared to 4.36% in 3Q/03, and 4.72% in 4Q/02. During the quarter MBNA added 1.9 million new domestic accounts and 620,000 foreign accounts. The issuer signed 74 new affinity card deals during the quarter. The issuer also renewed about 500 affinity group contracts during 4Q/03. For complete details on MBNA’s fourth quarter results visit CardData (www.carddata.com).

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Advanta Nears $3B as Performance Metrics Improve

Business card specialist, Advanta, reported that charge volume approached $2.0 billion for the fourth quarter, a 7% gain over the third quarter, and a 14% increase over 4Q/02. Managed loans also neared $3.0 billion at year-end, a 15% increase over the year-ago quarter, and a 3.7% gain sequentially. Net income for the fourth quarter of $11.6 million represented an increase of 2.7% over 4Q/02. The issuer ended the quarter with managed receivables of $2,958,835,000. Card volume for the fourth quarter was $1,944,617,000. Charge-offs on managed receivables dropped to 7.31% on an annualized basis, as compared to 8.27% for the quarter ended September 30th, and 7.89% one-year ago. Over 30 day delinquencies on managed receivables also declined, to 5.82%, compared to 6.15% in the prior quarter, and 6.15% in 4Q/02. For complete details on Advanta’s 4Q/03 performance visit CardData (www.carddata.com).

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Alliance Reservations Network Integrates GE’s vPayment

Alliance Reservations Network has integrated GE Corporate Payment Services’ “vPayment” electronic settlement tool in their hotel booking process providing a virtual credit card solution for merchant model hotel transactions, that enables hotels to collect payment on the date of checkout. Some large online agencies even pay hotels 90-120 days later. With a reservation guaranteed by vPayment, the hotel collects payment on the date of checkout. Alliance Reservations Network (ARN), a Phoenix Arizona based company founded in 1996, owns and manages over 300 destination Web sites including their flagship site and an extensive network of affiliate sites. GE Corporate Payment Services, the corporate card unit of GE Consumer Finance, develops and markets corporate bank cards and e-settlement tools designed for small-, medium- and large-sized companies and organizations.

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Retailers Offered a Complete Java-POS Based Solution

Wincor Nixdorf, Sun Microsystems, and Retek announced the availability of an integrated solution that enables retailers to easily acquire and implement end-to-end “JavaPOS-based” technology at the POS and on store servers. The solution enables retailers to easily acquire and implement end-to-end JavaPOS-based technology — at the point of sale and on store servers. Retek Inc. is the leading provider of mission-critical software and services to the retail industry. Wincor Nixdorf Inc. is one of the fastest-growing providers of IT products and solutions for the retail and banking industries. Wincor Nixdorf’s offerings include hardware, application software, professional services and a complete range of multi-vendor service programs including on-site support, depot service, advanced exchange and performance-guaranteed supplies procurement.

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ATM Manager Pro Tops 110,000 ATMs

MA-based e-ClassicSystems has recently signed CGI DIRECT, Fastcash, FEDCorp, NationalLink, and Ronald Harman Associates to license its “ATM Manager Pro” which now manages more than 110,000 ATMs worldwide on a daily basis. The flexibility of ATM Manager Pro allowed each customer to acquire a license for the appropriate set of modules necessary to address their specific business needs. e-ClassicSystems, Inc., based in Norwood, Massachusetts, is a premier provider of software solutions to organizations that deploy or manage ATMs. Its product, ATM Manager Pro, is a first-of-its-kind solution for complete ATM business management.

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Cap One’s December Charge-Offs Hit Lowest 03 Level

Capital One reported that its delinquency rate leveled off in December after a six month decline. Charge-offs also declined during December to their lowest level for 2003. With $71.2 billion in managed loans, and approximately $46 billion in U.S. credit card loans, the issuer reported that charge-offs dropped to 5.10% in December, compared to 5.57% in November, and 5.30% in October. Delinquency stayed at 4.46% in December and remains at a 2003 low. Delinquency for October was 4.52%. At the end of fourth quarter, Cap One had 46.7 million accounts, including domestic and international credit cards and auto loans. For complete details on Capital One’s 4Q/03 performance visit CardData (www.carddata.com).

Capital One 2003
Month Charge-offs Delinquency
Apr 03 6.36% 4.86%
May 03 6.40% 4.82%
Jun 03 6.20% 4.95%
Jul 03 5.75% 4.92%
Aug 03 5.34% 4.74%
Sep 03 5.24% 4.65%
Oct 03 5.30% 4.52%
Nov 03 5.57% 4.46%
Dec 03 5.10% 4.46%
Source: CardData (www.carddata.com)

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Credit Card Solicitations Fall 17% Last Year

Direct mail credit card solicitations declined 17% last year. MINTEL’s Comperemedia says consumers received almost 750 million fewer credit card offers in 2003 compared to 2002. This is despite the fact that credit card estimated mail volume increased by 4% in November compared to October. During November, Comperemedia found that the amount of time the introductory rate was applicable decreased compared to previous months and is more likely to be for six to seven months, compared to 12+ months as seen earlier in the year. Balance transfer offers continue to be prevalent as well, and some offers have rates that are applicable until the customer pays off the entire transferred balance. The interest rates on these balance transfers are higher, with the majority falling between 2.99 and 3.99%. Rates on life of balance offers have been lower over the past two months, falling to as low as 2.99, from up to 7.99%. Late fees increased over the past few months; 64% of all offers tracked in November had a late fee of $35 and 17% had a late fee of $39.

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