APAC Customer Services Profits Fall 73% in 3Q

Card marketing specialist, APAC Customer Services, reported 3Q/03 net income of $300,000, compared to net income of $1.1 million in the same period a year ago. Net revenues declined 6% to $79.7 million, compared to one-year ago. The Company says that revenue decreased $2.4 million from the second quarter, primarily due to reductions in marketing programs by several financial services clients partly offset by an increase in services provided to certain telecommunications clients. The decline in revenue versus the third quarter of 2002 relates principally to these marketing cutbacks and the expected reduction of services performed under a facility management contract renewed in October of 2002. IL-based APAC employs approximately 11,600 people and maintains 33 customer interaction centers. For complete details on APAC’s performance visit CardData (www.carddata.com).

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Least Cost Routing Service Offered for Bill Payments

First Hawaiian Bank and Bank of the West are now utilizing InteliData’s “Least Cost Routing Service” for routing bill payments from their 100,000 online customers to MasterCard and other remittance providers. While this in-house migration will result in a reduction in certain ASP recurring revenue sources for InteliData going forward, the Company has previously received license fees and will continue to realize annual maintenance revenues for the software license, as well as continuing transaction fees associated with electronic payment matching and least-cost routing services from the banks. InteliData provides Internet banking and Electronic Bill Presentment and Payment (EBPP) technology and services to leading banks, credit unions, financial institution processors and credit card issuers.

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Providian’s Profits Rise as Charge-Offs Decline Sharply

Providian reported net income for the third quarter of $85.3 million, double its profits for the third quarter of last year. During the quarter, the issuer added approximately 400,000 gross new accounts and ended the quarter with about 10.8 million customer accounts. Providian’s managed loans declined to $16.95 billion following the sale of approximately $667 million in loans on August 1st. The issuer says that its net credit losses in the third quarter were better than expected at $607.0 million, resulting in a managed net credit loss rate of 14.37%. The second quarter net credit loss rate was 16.84%. Providian’s managed 30+ day delinquency rates at the end of the third quarter were 9.68%, compared to 9.72% at the end of the second quarter. During the third quarter, the Company formed strategic partnerships with MBNA to cooperatively issue the eBay “Anything Points” MasterCard, an agreement with the Democratic National Committee to market “DNC VISA” cards, and an agreement with the North American Membership Group to issue affinity credit cards for its membership clubs. For complete details on Providian’s 3Q/03 performance visit CardData (www.carddata.com).

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Cardtronics Picks POSLink for Dial-Line Consolidation

Houston-based Cardtronics has selected Transaction Network Services’ POSLink subsidiary to consolidate dial-line access and lower network communications costs for its 12,500 ATM network. By using POSLink for dial-line consolidation and higher-bandwidth connections when necessary, Cardtronics and its customers will experience the benefits of reduced costs and a single point of contact for the thousands of phone lines used to connect its network ATM to the processing network. Cardtronics is the nation’s largest independent owner/operator of ATMs with a network of over 12,000 locations operating in every major U.S. market. Transaction Network Services is one of the leading providers of fast, cost-effective data communications services for transaction-oriented applications. Since its inception in 1990, TNS has designed and implemented one of the fastest, most reliable and lowest cost networks for the transport of transaction-oriented data.

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Capital One Says Revenue Margins will Decline in 04

Capital One said Wednesday that its earnings for 2004 will come in on the low side of analyst projections. The issuer said it expects earnings for next year to be between $5.20 per share and $5.40 per share. The company also announced that it expects the growth rate of its managed loans to be in the mid-teens in 2004, while gradually shifting its managed loan portfolio upmarket and continuing to diversify beyond U.S. credit cards. As a result of this continued diversification and shift upmarket in its portfolio, the company expects its revenue margin to trend lower, and its managed net charge-offs, marketing expenses and operating expenses to also continue to trend lower. Last week, Capital One reported that its profits declined for the third consecutive quarter this year. For the third quarter, Capital One posted net income of $276.3 million, compared to $286.8 million in the second quarter, and $309.1 million in the first quarter of this year. For complete details on Capital One’s third quarter performance visit CardData (www.carddata.com).

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Securitized Card Metrics Show Stability

Fitch Ratings–Encouraging reports on both sides of the employment equation — job creation and jobless claims — have bolstered markets and optimism in recent weeks could provide some much needed relief for out-of-work consumers in the months to come. While it is still early to pronounce a trend, the latest results are welcome news in an area that has prompted the greatest concern for consumer credit quality and credit card asset-backed securities (ABS) performance metrics, according to Fitch’s the latest edition of ‘Credit Card Movers & Shakers.’

For the August collection period, prime chargeoffs fell for the third time in six months, as reported in Fitch’s credit card index. Delinquencies continued to stabilize which could prove positive for future chargeoffs.

Subprime issuers reported weaker performance measures for the August collection period. As measured in the Fitch subprime credit card index, chargeoffs continued to rise and remained above year ago levels.

The latest edition of ‘Credit Card Movers & Shakers,’ which covers the latest trends in the credit card ABS market, is available on Fitch’s web site at ‘www.fitchratings.com’ in the ‘newsletters’ section corresponding with the ‘ABS sector’ or by contacting the Ratings Desk at 1-800-893-4824.

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NYCE Wins Processing Excellence Award

ITUG, The International HP NonStop Users Group, has named NYCE Corporation 1st place overall availability winner for this year. ITUG presents the award annually to information technology companies that maintain the highest overall system uptime and exercise sound quality assurance practices. For ITUG award consideration, NYCE reported overall availability of the systems that host the NYCE Network and EFT Processing Platform of 99.99 percent during the ITUG reporting period. NYCE Corporation is at the forefront of electronic payments in the U.S., providing consumers with secure, real-time account access 100 million times each month.

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US Dataworks Triples Revenues in Third Quarter

Payment processing software developer US Dataworks this morning reported third quarter revenues of $959,000, nearly triple the revenue reported one-year ago. Net loss for the quarter was $3.4 million, compared to a net loss of $849,000, for the corresponding period in the prior year. About $3.1 million of the loss was due to some debt conversions and refinancings. During the quarter, the Company successfully closed a private placement financing of common stock and convertible debt that raised $4.2 million. US Dataworks says the recent passage by Congress of “Check 21” will help transform the Company dramatically. US Dataworks’ core products include: “MICRworks,” “MICRworks-Lite,” “Returnworks,” “Remitworks,” and “Remoteworks-Daemon.” For complete details on US Dataworks’ 3Q/03 performance visit CardData (www.carddata.com).

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DOJ vs First Data/Concord Set for December 15th

First Data and Concord EFS, Inc. announced that on October 28, 2003, U.S. District Court Judge Rosemary Collyer entered a scheduling order in the litigation filed by the Department of Justice with respect to the proposed merger of the companies. Among other things, that order provides that a hearing on the government’s motion for a preliminary injunction will be consolidated with a trial on the merits and will begin on December 15, 2003.

“The union of First Data and Concord is pro-competitive and good for the payments industry. We look forward to proving that in court and are thankful that the court has agreed to an expedited schedule,” said Charlie Fote, chairman and CEO of First Data Corp.

On April 2, 2003, First Data and Concord announced that the two companies had entered into a definitive agreement to merge in an all-stock transaction valued at approximately $7 billion. For six months both companies worked cooperatively with the Department of Justice (DOJ) seeking clearance under the Hart-Scott-Rodino Antitrust Improvements Act. Notwithstanding these efforts, on October 23, 2003 the DOJ filed a civil antitrust lawsuit to block the proposed merger. Consummation of the merger remains subject to such litigation.

First Data and Concord announced that its shareholders voted to approve the transaction at separate meetings held on October 28, 2003.

About First Data

First Data Corp. (NYSE: FDC), with global headquarters in Denver, helps power the global economy. As an electronic commerce and payment services company, First Data serves approximately 3 million merchant locations, 1,400 card issuers and millions of consumers, making it easy, fast and secure for people and businesses to buy goods and services using virtually any form of payment. With 29,000 employees worldwide, the company provides credit, debit, smart card and stored-value card issuing and merchant transaction processing services; Internet commerce solutions; money transfer services; money orders; and check processing and verification services throughout the United States. First Data also offers a variety of payment services in the United Kingdom, Australia, Canada, Japan, Mexico, Spain, the Netherlands, the Middle East and Germany. Its Western Union and Orlandi Valuta money transfer networks include approximately 169,000 Agent locations in more than 195 countries and territories. For more information, please visit http://www.firstdata.com .

About Concord EFS, Inc.

Concord EFS, Inc., a vertically integrated electronic transaction processor, provides the technology and network systems that make payments and other financial transactions faster, more efficient, and more secure than paper-based alternatives. Concord acquires, routes, authorizes, captures, and settles virtually all types of electronic payment and deposit access transactions for financial institutions and merchants nationwide. Concord’s primary activities include Network Services, which provides automated teller machine (ATM) processing, debit card processing, deposit risk management, and STARsm network access principally for financial institutions; and Payment Services, which provides point of sale processing, settlement, and related services, with specialized systems focusing on supermarkets, major retailers, gas stations, convenience stores, restaurants, and trucking companies. For more information, visit us at http://www.concordefs.com .

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Epson Unveils New Wireless Printer for Retailers and Restaurants

Epson this week rolled-out its “Mobilink” wireless printer designed specifically for the retail and hospitality industries, that supports “802.11b” and “Bluetooth Compact Flash”. Mobilink carries a 1-year warranty and will be available the first quarter of 2004. Epson offers an extensive array of POS printers and transaction terminals for the retail, hospitality, supermarket and banking markets.

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ParTech and Quick Kiosk Eye QSR Market

ParTech, a provider of software, hardware and service solutions to the hospitality and retail industries, and Quick Kiosk, a provider of self-service solutions to the QSR industry, have signed a partnership to offer self-service solutions for QSRs. Under this agreement Quick Kiosk and ParTech will work cooperatively to become an industry-leading provider of self-service solutions for the QSR and entertainment markets, possibly expanding in the future to other vertical markets. PAR has provided integrated solutions to the restaurant, movie theatre, cruise line and recreation industries for over 25 years. Its POS management technology integrates both software applications and PAR’s Pentium-based hardware platform.

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