Sallie Mae has deployed “Net.Pay,” as its comprehensive suite of billing and payment transaction solutions, at 29 more colleges and universities across the USA. The Net.Pay suite includes the Tuition Payment Plan that allows students and their families to schedule payments by semester or annually, on-line or through traditional methods, and receive counseling on payment options. Net.Pay also helps make university administration more effective, efficient and flexible by offering students, alumni and others fast, efficient and secure payment transactions on- or off-line. SLM Corporation, commonly known as Sallie Mae, is the nation’s leading provider of education funding, managing more than $85 billion in student loans for more than seven million borrowers.Details
Digital Insight reported third quarter revenues of $39.4 million, a 16% increase over last year, and net income of $4.6 million, an 180% increase compared to net income of $1.7 million for the third quarter of 2002. Revenues for the third quarter ended September 30, 2003 increased 16% to $39.4 million from $33.9 million for the quarter ended September 30, 2002. Under Generally Accepted Accounting Principles, the Company reported net income of $4.6 million, or $0.14 per diluted share, in the third quarter, a 180% increase compared to net income of $1.7 million, or $0.05 per share, for the third quarter of 2002. Digital Insight Corporation is a leading Internet banking provider for visionary financial institutions. Through its comprehensive portfolio of outsourced, Internet-based financial products and services built upon the company’s unique architecture, Digital Insight enables banks and credit unions to become the trusted transaction hub for their retail and commercial customers.Details
Providian Financial confirmed Thursday that the Democratic National Committee has selected it to market and issue an affinity credit card to supporters of the Democratic Party. Individuals will have the option of designating their earned rebates as donations to the DNC, or they can earn accelerated rewards for making a donation to the Committee. The new “DNC” card will begin marketing in late October. Cardholders will also be able to choose from a number of attractive, patriotic card designs, including: an American flag with a superimposed DNC logo, the Democratic Party donkey mascot, and an image of the U.S. Constitution. Providian received approval for the program concept in an Advisory Opinion issued by the Federal Election Commission on August 14, 2003.Details
Vital Processing Services has “Class A” approved the Lipman “NURIT 3020” to process on its network. The NURITÂ¨ 3020 is one of our most exciting products,said Mony Zenou, President and CEO of Lipman USA. It is small, its affordable and its highly customizable. Lipman ([www.lipmanusa.com]) is a wholly owned subsidiary of Lipman Electronic Engineering, Ltd. Operating worldwide, Lipman ranks among today’s premiere providers of robust, flexible, and highly customizable electronic payment solutions. The worlds recognized leader in technology-based commerce enabling services, Vital Processing ServicesÂ¨ (VitalÂ¨) brings the power of pure commerce to more than 300 Acquirers and one million Merchants.
Citigroup reported that its international cards business produced third quarter income of $166 million, an increase of 37% over the year-ago quarter. During the quarter the issuer added 1.6 million accounts net to its open account base, outside North America. Charge volume for international credit cards was up 18%, to $10.3 billion for the third quarter. Total outstandings for international cards were $13.6 billion as of September 30th, a 25% gain over one year ago. In Japan, credit card loans were flat, while in the rest of Asia, credit card loans grew 12% to $6.6 billion. Citigroup holds $4.6 billion in card loans for the EMEA region and $400 million in Latin America. Delinquency and charge-offs both decreased during the third quarter for international cards. Delinquency (90+ days) declined from 2.04% in 2Q/03 to 1.88% for 3Q/03. Charge-offs declined from 4.60% in 2Q/03 to 4.27% for the third quarter.
The provision for credit losses decreased due to improvements in Hong Kong and Taiwan, and the release of loan loss reserves in Argentina, partially offset by deterioration in the UK and Korea.
Capital One reported that its profits have declined for the third consecutive quarter, however, compared to 3Q/02 the issuer’s profits are up 6.8%. 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. The issuer says its growth in superprime loans has reduced margins. Also, marketing expenses for the third quarter increased $45.4 million since the second quarter to $316.0 million. One year ago, Capital One spent $185.8 million in marketing expenses. The increased third quarter marketing produced 621,000 net new accounts. The issuer ended the quarter with 46.4 million accounts. During the third quarter, Capital One grew its managed loan portfolio by $6.5 billion to $67.3 billion. The managed charge-off rate declined to 5.44% in the third quarter, from 6.32% in the previous quarter. One year ago charge-offs stood at 4.96%. The managed delinquency rate (30+ days) declined to 4.65% from 4.95% at the end of the previous quarter. One year ago delinquency was 5.31%. For complete details on Capital One’s third quarter performance visit CardData ([www.carddata.com]).
POS terminal provider, Lipman, has opened a Canadian office in Mississauga, Ontario. Lipman Canada will be responsible for the sale and distribution of Lipmans full line of transaction solution products marketed under the “NURIT” brand name. Lipman says its wireless and wire-line products are well suited to support the various POS programs currently available to Interac Association Acquiring Members. Lipman’s “2085” and “3020” products have been deployed from coast-to-coast and very shortly additional EMV compliant and smart card ready devices will be rolled out. The “NURIT 8320” (both with and without internal secure PINpad), the “292SC PINpad” and soon to be released “8010” wireless handheld devices are also headed Canada’s way.Details
NACHA has formed a new industry program, the “Corporate Payments Council,” with the first meeting scheduled for November 13th and 14th. The Corporate Payments Council goal is to bring together stakeholders in the wholesale payments arena to develop solutions and best practices that will result in greater use of electronic B2B payments. The total number of business-to-business payments over the ACH Network grew by a respectable 12.4 percent in 2002 to 1.6 billion, and comprised 17.4 percent of all ACH payments. The dollar value of these B2B payments was $18.4 trillion, an average of $11,481 per payment, and 75 percent of all ACH dollars. NACHA is the leading organization in developing electronic solutions to improve the payments system. NACHA represents more than 11,000 financial institutions through direct memberships and a network of regional payments associations, and 650 organizations through its industry councils.Details
American Express released a survey yesterday that shows American travelers expect to spend $2,962 in 2004 compared to $2,163 for this year. American travelers say they plan to dig deeper into their wallets in 2004, spending more for longer vacations, motivated by an enhanced desire to unwind, according to the American Express Leisure Travel Index. The number of travelers planning to spend more than $5,000 will nearly double. American Express Company is a diversified worldwide travel and financial services company founded in 1850. It is a leader in charge and credit cards, Travelers Cheques, travel, investment products, insurance and international and online banking.Details
Bank One and the AARP have signed a five-year renewal to 13 year-old co-branding program. The companies have also added a rewards feature to the card program that offers cash back or gift certificates. The new and improved “AARP Rewards Platinum VISA” gives cardholders a full 1% back on card purchases starting with the first dollar in purchases charged. Every time cardholders accumulate 2,500 points, they may select their desired reward, either $25 cash back or a $25 gift certificate. Participating companies include Exxon, Red Lobster, Blockbuster, Chili’s, Olive Garden, Best Buy, Home Depot, Borders, Sunoco, Best Western, JCPenney, and Hertz. The no-annual-fee card offers a 0% fixed APR for the first 12 billing cycles following the opening of the account. Thereafter, a prime +6.99%, prime +8.99%, or prime +12.99%, depending on the cardholder’s credit score. The companies are also guaranteeing cardholders there will be no telemarketing after they sign-up. The AARP has more than 35 million members.Details
Delegates from 23 countries attended last week’s VISA International Government Services Conference in Edinburgh, being advised of new data on the operational efficiencies attained by using VISA products for government procurement and travel, including savings totaling US$1.4 billion per year for the U.S. federal government program, and Â£108 million cumulative for the relatively newer U.K. government program. VISA says total capital expenditures for the UK government are projected to be over US$685 billion USD in fiscal 2002-2003. Japan spent almost US$745 billion USD last year. The US will spend more than US$2 trillion dollars in 2003. Collectively, the delegates represented governments with more than US$5 trillion in government spending.
VISA also announced new VISA government programs including several new federal, state, and local initiatives in Brazil, a new state program in Costa Rica, and the adoption of VISA cards by the U.S. Department of Homeland Security making more than 75 percent of U.S. federal government card spending on a VISA product . Additionally, VISA announced the global launch of a new “Procure-to-Pay” toolkit that enables banks and governments to analyze best management practices, set realistic goals, and maximize cost savings for government procurement .
Citibank launched “Citi Identity Theft Solutions” to provide personal assistance to its credit cardholders who become victims of identity theft. A key component of Citi’s free comprehensive support program is the trained team of Identity Theft Specialists who will personally provide immediate support and assistance to cardmembers who are victims of identity theft through each step of resolving fraudulent activity and restoring credit standing. Citi Cards is part of Citigroup, the preeminent global financial services company with some 200 million customer accounts in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and asset management.Details