For the sixth consecutive year VISA has won the World Travel Awards, being named the “World’s Leading Credit Card” earlier this week. The World Travel Awards honors leading travel-related organizations in worldwide and regional categories that range from airlines, hotels, beaches and cruise lines to credit cards, car rental companies and hotel reservation services. Visa International is a strategic partner with many of the leading global corporations and merchants, creating retail and T&E promotions that deliver extraordinary values to Visa cardholders worldwide. Visa is the world’s leading payment brand generating US$2.7 trillion in annual card sales volume. Visa has unsurpassed acceptance in more than 150 countries.Details
Providian reported Wednesday that charge-offs for its securitized card loans dropped sharply during September to 15.65%, its lowest level this year. However, Providian’s delinquency rate edged up to 12.17%, from 12.12% in August and 11.96% in July. Providian will release its third quarter earnigs report on October 29th. On August 1st, Providian sold approximately $824 million in credit card receivables, representing about 435,000 credit card accounts, to CompuCredit and Merrill Lynch. (CF Library 8/14/03)
SECURITIZED PVN 2003
Month Charge-offs Delinquency
Jan 03 19.38% 13.26%
Feb 03 18.23% 12.89%
Mar 03 19.89% 12.46%
Apr 03 19.80% 12.27%
May 03 20.40% 11.92%
Jun 03 16.76% 11.98%
Jul 03 17.39% 11.96%
Aug 03 17.04% 12.12%
Sep 03 15.65% 12.17%
Source: CardData (www.carddata.com)
MBNA reported that net income for the third quarter soared to $658.8 million, an increase of 66% compared to the third quarter of 2002, and a gain of 21% over the prior quarter. The 51-cents per share earnings beat analyst projections of 47-cents per share. Managed loans for 3Q/03 were up 10%, and charge volume was up 14%. Total managed loans at the end of the third quarter were $112.8 billion, and charge volume was $47.8 billion. Managed charge-offs were 5.13%, compared to 5.35% in the previous quarter, and 4.84% one year ago. Delinquency on managed loans was 4.48%, compared to 4.46% in 2Q/03, and 4.80% in 3Q/02. During the quarter MBNA added 2.7 million new accounts, compared to 3.0 million in the second quarter. The issuer signed 105 new affinity card deals during the quarter. The issuer also renewed more than 350 affinity group contracts during 3Q/03. For complete details on MBNA’s third quarter results visit CardData ([www.carddata.com]).
Sears reported this morning that its domestic Credit and Financial Products division posted a 29% increase in operating income while it experienced a slight decline in revenues to $1.3 billion. Since the prior quarter, Sears’ average credit card outstandings have declined from $29.4 billion to $29.2 billion, due to the continuing contraction in its private label portfolio. The “Sears Gold MasterCard” increased from $12.6 billion in the second quarter to $13.0 billion for 3Q/03. Since 3Q/02, Sears bank credit card portfolio has grown more than 35%. The “Sears Card” declined from $16.8 billion in 2Q/03 outstandings to $16.2 billion in third quarter outstandings. In the third quarter, net charge-offs rose to 7.55%, compared to 5.55% one year ago. Delinquency also edged up to 7.62%, compared to 7.41% for the second quarter, and 7.24% one year ago. Sears also reported that its 3Q/03 net interest margin increased to 14.10%, compared to 13.25% for the second quarter, but below 3Q/02’s 14.75% rate. Sears is in the process of selling its domestic Credit and Financial Products division to Citigroup. For complete details on Sears third quarter performance visit CardData ([www.carddata.com]).
Dallas-based Alliance Data Systems reported that net income for the third quarter increased 138% to $18.6 million, on revenues of $255.7 million, which were up 17% over 3Q/02. Transaction Services revenue increased 14% in the third quarter to $152.2 million. ADS says core client growth in its private label and utility services segments led to a more than 20% increase in the number of statements generated. Credit Services revenue increased 26% in 3Q/03 to $107.0 million. ADS reports that both private label credit sales and portfolio growth grew at double-digit rates as this year’s signings began to ramp-up. Marketing Services revenue increased 11% in the third quarter to $68.1 million. ADS projects 2003 annual revenue of at least $980 million and full-year 2004 revenue of $1.1 billion. For complete details on Alliance Data Systems’ 3Q/03 performance visit CardData ([www.carddata.com]).
The “2003 Deloitte Technology Fast 500” survey has ranked NJ-based Incurrent #38 and Detriot-based Catuity as #309, and NJ-based Heartland Payment Systems was ranked #7 in the same publication’s “Top 25 Companies By Size” category. The Deloitte Technology Fast 500 is a ranking of the 500 fastest growing technology companies in North America. Catuity, Inc., a leading loyalty software solutions company that provides technical and marketing expertise to credit and gift card issuers, merchants, and processors. Catuity, Inc. is a leading provider of application software that allows merchants, transaction processors and payment card issuers to establish and administer customer incentive and loyalty programs integrated to the payment system at the point of sale. Heartland Payment Systems Inc. is a full-service payment systems solutions provider handling merchant card and payroll processing services for more than 60,000 merchants of all types and sizes. Deloitte, one of the nation’s leading professional services firms, provides audit, tax, financial advisory services and consulting through nearly 30,000 people in more than 80 U.S. cities.Details
Savannah-based GO Software has released “version 2.1” of its “Rapid Transaction Authority” server, a highly scalable transaction switch that supports high volume, multi-threaded transaction processing. RiTA 2.1 is now certified to process transactions via First Data’s IPN, a managed network that lets merchants process transactions quickly, reliably and safely using their existing Internet connection. In addition to saving time and money, the Vital certification supports card verification codes and increases fraud protection for card-not-present merchants, and the Certegy certification offers merchants more options for check processing. GO Software is a leading provider of POS payment processing software. More than 85,000 businesses use GO Software’s solutions to process payments at high speed, expand tender types and lower credit card costs.Details
Louisville, KY-based National Processing reported third quarter revenue of $125.0 million, up 9% from one-year ago. Net income for the quarter was $14.3 million, a 13% increase over 3Q/02. Merchant Card Services processed 1.1 billion transactions for the quarter, an 11% increase. Gross dollar volume processed was $43.9 billion, up 5% over 3Q/02. NPC says the dollar volume processed has trailed transaction growth primarily as a result of the Company’s initiative to exit merchant processing for airlines, which have a large average ticket per transaction. NPC says its results for the year have been constrained by negative national merchant pricing trends, which was somewhat offset in the third quarter by favorable impacts of rate changes from the associations. The company also raised its full revenue guidance from a range of $435 to $455 million to $455 to $475 million. For complete details on National Processing’s 3Q/03 performance visit CardData ([www.carddata.com]).
Minneapolis-based Regis Corporation, the largest owner, operator and franchisor of hair and retail product salons in the world, has launched a series of four gift cards. The “Regis Salon Gift Card” is available in-store or online in values of $25-$50. The “Trade Secret Gift Card” is available in values of $10-$50. The “Mia & Maxx Gift Card” is available in values of $25-$50. The “MasterCuts Gift Card” is available in values of $10-$25. Regis operates and franchises nearly 9,700 salons under brands such as: Supercuts, Jean Louis David, Vidal Sassoon, Regis Salons, MasterCuts, Trade Secret, SmartStyle and Cost Cutters.Details
New research by Ontario-based Geac has quantified a set of “Best Practice” targets for customers which shows company credit card adoption at 76%. Geac surveyed organizations representing some 125,000 Geac expense management users with a combined monthly document volume of over 200,000 expense reports. The customer benchmarking program is the driving force behind a number of best practice service offerings from Geac, and is a key part of Geac’s commitment to improving its customers’ business performance. Geac is a global enterprise software company for Business Performance Management, providing customers worldwide with the core financial and operational solutions and services to improve their business performance in real time.Details
Dublin-based Datalex has inked a deal with American Express for its “Australia’s Travel Advantage” Web site that enables cardholders to book air travel online. Datalex’s solution enables American Express customers to access AmEx-only fares as well as standard airline fares. The combined fares display shows all available flights in the appropriate fare classes, and they can be compared and selected according to the traveler’s preference. The system also checks fare rules and only returns validated flight options for the available seats. Datalex’s “BookIt! FARES” is complemented by “BookIt!
MATRIX,” Datalex’s core integration platform for travel reservations systems supporting multiple customer and professional storefronts and connectivity to a
wide range of inventory. Other Datalex’s customers include Air Canada, Aer Lingus, Amtrak, Best Western, Delta, Disney Cruise Lines, Emirates Airline,
Singapore Airlines, SilkAir, South African Airways, and Thomas Cook.
The fifth annual “VISA International Government Services
Conference” got underway in Edinburgh this week with five technology
companies showcasing their solutions. The conference includes exhibits by
Arcot Systems; Information Security Systems & Services; Kabira
Technologies; nCircle Network Security; and Tripwire. For the first time,
the “VISA IGSC” is highlighting new solutions that governments and
commercial issuers can use to protect critical data assets as they
implement VISA payment and other e-government initiatives. In addition to
safeguarding procurement and employee travel payments, other key areas
include disbursements of payroll and employee benefits, retirement funds,
subsidies, scholarships, health benefits, and incentives and loans to small