Scheidt & Bachmann and OTI Target Automated Fare Collection

Mönchengladbach-based Scheidt & Bachmann GmbH has signed a deal to use Israel’s On Track Innovations Ltd’s contactless products for electronic payment solutions in its management systems for gasoline stations, mass transit ticketing, car parking and leisure centers and railway protection. The first joint effort is targeting automated fare collection programs. Scheidt & Bachmann will act as the system integrator, with OTI supplying readers and software for Scheidt & Bachmann’s front-end solutions. Applications developed by OTI include product solutions for micropayments, mass transit ticketing, parking, petroleum payment systems, loyalty programs, ID and secure campuses. OTI’s clients include MasterCard, BP, First Data Resources, Repsol, the Government of Israel and ICTS. Scheidt & Bachmann is a family-run company since its inception in 1872 and is currently managed by the founding family’s fifth generation.

Details

MBNA Charge-Offs Drop for the Fourth Consecutive Month

MBNA reported Monday that charge-offs for its credit card portfolio continued to decline for the fourth consecutive month, while delinquency edged up slightly in August. However, the delinquency rate increase to 4.38% is well below the levels posted in the first quarter. The nation’s second largest bank credit card issuer reported that charge-offs fell to 4.81% in August, compared to 4.95% in July, and 5.01% for June. Charge-offs started the year at 5.15%. Delinquency increased 3 bps from July’s 4.35%. MBNA also reported that managed credit card outstandings for the end of August were $96.8 billion. MBNA also holds more than $14.1 billion in other consumer loans.

MBNA 2003
Month Outstandings Charge-offs Delinquency
Jan 03 NA 5.15% 4.85%
Feb 03 NA 5.10% 4.91%
Mar 03 $92.9 b 5.05% 4.62%
Apr 03 $93.9 b 5.02% 4.49%
May 03 $95.3 b 5.04% 4.36%
Jun 03 $96.4 b 5.01% 4.34%
Jul 03 $96.5 b 4.95% 4.35%
Aug 03 $96.8 b 4.81% 4.38%
Source: CardData (www.carddata.com)

Details

Online Banking Usage Doubles Among Tiny Business

A new research study shows that online banking usage has doubled in the micro market and grows by 26% in the small business market. Micro market companies are defined as businesses with annual revenue between $50K and $1 million, while the small business market is defined as those with annual revenue between $1 million and $20 million. The study by Informa Research Services also found that 44% of companies in the small business market now use online banking. As recently as 12 months ago, only 12% of all businesses with less than $1 million in annual revenue used the online channel for routine banking. That figure is now 24%. Informa says what makes this trend even more significant is that adoption increased during a downturn in technology spending.

Details

Alliance Data Systems Closes Stage Stores Card Deal

Alliance Data Systems has completed the acquisition and conversion of approximately $224 million associated with Stage Stores’ portfolio of approximately 800,000 active private label credit card accounts, and has assumed overall operation of Stage Stores’ private label credit card program. ADS’s bank subsidiary will also own the new accounts and balances generated during the term of the 10-year alliance. At closing, Stage Stores received consideration of approximately $239 million from ADS and expects to record a pretax gain in the third quarter of approximately $12 million, or approximately $7.6 million after tax. About 220 associates currently employed at Stage Stores’ Credit Support Center in Jacksonville, Texas, have been employed by ADS. Stage Stores operates a total of 366 stores in 13 states under the Stage, Bealls and Palais Royal names. (CF Library 5/22/03; 8/21/03)

Details

Providian’s Securitized Charge-Offs Down 234 bps Since January

Providian reported Monday that charge-offs for its securitized card loans headed south during August to 17.04%, and remain substantially lower than levels posted for the first five months of this year. However, Providian’s delinquency rate edged up to 12.12%, from 11.96% in July. On a reported basis, Providian’s charge-offs dropped to 10.42% for August, compared to 12.05% in July, 12.85% in June, and 15.16% for May. Reported delinquency declined to 7.68% in August, compared to 7.70% for July, and 8.31% in June. 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%
Source: CardData (www.carddata.com)

Details

ENCORE Card Services Launched for Credit Unions

The ENCORE Cooperative and T.K. Keith Company, a member of the NEBA, have joined together to launch ENCORE Card Services to manage credit union credit card portfolios. The new company will offer two service options, including one service to provide application processing, 24/7 customer service, risk management services for one all-inclusive price, and a second option geared towards larger credit unions that might want to keep various aspects of their credit card program in house. ENCORE Electronic Services Cooperative, formed in 1982, is 100% credit union owned and operated and provides ATM/Debit card routing and other electronic services for 113 member CU’s in eight states. Encore Merchant Services is a division of Primax Payment Systems, and has 5,000 merchants in 48 states. Encore Merchant Services targets new business through credit unions to offer full service credit and debit card acceptance services to credit union member businesses nationwide. In addition to standard credit and debit card processing, Encore Merchant Services offers check guarantee, electronic check conversion, Internet processing solutions, and private label card support.

Details