A new study shows that credit card issuers are the primary beneficiaries of new e-check payment methods. The research by NACHA’s “Business Case Validation Task Force” found that credit card issuers have been the leading adopters in using e-checks to collect payments from customers. The Task Force estimates an annualized cost savings of $70-120 million to VISA and MasterCard issuers from faster funds availability, lower operational and clearing costs, and loss reductions. In addition, convenience fees collected from last-minute telephone payments generate an estimated $738 million in annualized fee revenue for VISA and MasterCard issuers, for a total annualized benefit to VISA and MasterCard issuers of $808-858 million.Details
Debit volume for the second quarter hit $353 billion, a 15.0% increase over the same quarter in 2002. Debit growth was particularly strong in VISA Asia-Pacific and VISA Central Europe, Middle East, and Africa, which experienced increases of 23.4% and 37.6%, respectively. During the second quarter, VISA Canada announced that it would join the global migration to chip. It is expected that within seven years, almost every VISA card in Canada will feature chip technology. Also VISA EU was awarded a five-year contract for corporate and purchasing cards for the Office of Government Commerce of the UK Government.Details
HSBC has launched its first fully international banking service for personal customers in the UK, Canada, France, Hong Kong SAR, India, Jersey, and the USA. The new “HSBC Premier International” provides consumers with a portable credit history, enabling an instant credit history transfer between countries to aid in qualifying for credit cards. The new service also offers fee-free ATM withdrawals and free check cashing at HSBC branches worldwide. Plus, global, fee-free Internet transfers between all the customer’s “HSBC Premier” accounts, even in regions where this is normally a charged-for service. Access to HSBC International, the Group’s offshore banking provider, for tax-efficient solutions, multi-currency accounts and offshore investments, is also included.Details
Atlanta-based Global Payments reported yesterday that revenue for the quarter ending August 31st grew 7% to $136.5 million. Net income grew 15% to $16.8 million. However, the company recognized a $1.6 million restructuring charge during the quarter primarily related to one-time employee termination benefits. During the last quarter, GPN announced a plan to consolidate operations, including plans to close three operating facilities and consolidate these and other functions into other existing locations. To date, Global has spent approximately $3 million on this initiative and expects to spend a total of approximately $8 million. The company reaffirmed its annual revenue guidance of $542 million to $562 million and diluted earnings per share guidance of $1.57 to $1.64 for fiscal 2004. For complete details on GPN’s latest results visit CardData ([www.carddata.com]).
NYCE and Celero Solutions have formed a company to provide Canadian financial institutions with ATM and POS transaction switching, ATM terminal driving and connections to other networks. NYCE will own 51% of Everlink Payment Services and Celero will own 49%. Celero currently provides products and services to 244 credit unions in western Canada. Data center operations will be located in Calgary, Alberta. Credit Union Central of Canada, the national trade association and central finance facility for credit unions in Canada, has signed an exclusive, five-year agreement for Everlink to provide EFT services for the Canadian national credit union system.Details
Atlanta-based InterCept Payment Solutions has launched the “iPay” product line which offers: a straight-through processing system; integrated transaction processing and reporting across multiple payment channels; drill-down reporting; and, a fully Internet-based, paperless, chargeback management system.Details
Based on debit and credit card activity for July and August, Toronto merchants suffered significant declines when compared to the previous summer and moderate declines when compared to the rest of Canada. Processor Moneris Solutions says the data show the travel and entertainment sector declined by 18%; restaurants experienced a 25% decrease in dollar volume spending; department stores were down 27%; grocery stores and supermarkets declined 19%; and, total dollar volume spending across all retail categories decreased 7%.Details
MasterCard’s global debit brand “Maestro” now appears on 494.9 million cards worldwide, 14.6% increase over last year. In the second quarter, Europe continued to be the largest cardholder base for “Maestro” with 229.7 million cards, a 6.6% increase over the same period in 2002. GDV for online debit activity in the region for the second quarter of 2003 was $281.3 billion, with purchase volume at $86.4 billion. Meanwhile, the number of “Maestro” cards issued in Asia/Pacific rose to 148.9 million at June 30th, a 14.9% increase over the same period in 2002. GDV for online debit activity in the region for the second quarter of 2003 was $40.5 billion, with purchase volume at $4.6 billion. Card numbers increased an extraordinary 85.3% in the Latin America and the Caribbean region as of June 30th, compared to the same quarter in 2002. This was largely due to “Redeshop” and “Caixa” cards being converted to MasterCard “Maestro” in Brazil. GDV for online debit activity in the region for the second quarter of 2003 was $9.9 billion, with purchase volume at $1.1 billion. The South Asia, Middle East and Africa region also experienced exceptional card growth with a 41.5% increase in the second quarter of 2003, compared to the same period in 2002. GDV for online debit activity in the region for the second quarter of 2003 was $12.1 billion, with purchase volume at $848.4 million.Details