SWITCH/MAESTRO VOLUME

“Switch/Maestro” ATM debit card usage outside the UK is up 19% at mid-year, with 9.6 million transactions year-to-date. Last year, over 20 million “Switch/Maestro” transactions were undertaken outside the UK, with ATM transactions accounting for over 18m. There are currently 22 million UK “Switch/Maestro” cardholders who can use their debit card in over 890,000 cash machines and at over 7.8 million retailers worldwide.
The “Maestro” logo has traditionally appeared on the back of “Switch” cards, but is starting to move to the front following the agreement between Switch and MasterCard to replace “Switch” with the “Maestro” global debit brand over the next few years. The “Maestro” brand mark now appears on 466 million cards worldwide and is accepted for purchases at over seven million merchant terminals in 93 countries and territories.

Details

Ford Motor Company Selects Paymentech for Processing

Ford Motor Company has selected Paymentech for electronic payment processing at its nearly 5,000 dealerships across the country. Under the deal, Paymentech will provide access to debit, fleet and gift cards. Paymentech will also become the preferred processor for the company’s system-wide “FORDSTAR” charge and check services program. Paymentech supports the Certegy check guarantee system. The full transition to Paymentech processing is targeted for completion in the fourth quarter.

Details

Small Business VISA Usage Up 27%

VISA International reported this morning that small business nearly outpaced corporate and government usage of VISA products over the past year. Usage growth by small businesses is up 26.4% for the year ending June 30th, to more than $79.3 billion, which includes transactions using “VISA Business” credit and debit cards, as well as small business inventory payments using “VISA Distribution.” Transactions by medium-to-large business and government clients grew 21.3% to just under $79.5 billion per year, including volume on “VISA Corporate” and “VISA Purchasing” credit and debit cards. The commercial sector was up 11.8%. Annual growth rates in VISA’s commercial debit products are 27.6%, and volume amounted to more than $29 billion per year at the end of June.

Details

Metris Unloads Accounts to Improve Liquidity

Metris Companies has closed on the sale of a portfolio of approximately 160,000 credit card accounts and $590 million in receivables. Metris says it will take a third-quarter pre-tax charge of approximately $75 to $85 million due to the sale. The loss associated with the portfolio sale will be largely offset by a gain to be realized in the third quarter from the previously announced sale of the membership and warranty products and operations of Metris’ enhancement services business. Metris also announced that it replaced a $610 million asset-backed securitization maturing in early 2004 to improve its liquidity. The company had faced a September 30th deadline to obtain the new financing.

Details

American Express Introduces Expense Management Reports

American Express has launched a free, online tool, that provides American Express Business cardholders with access to detailed and customizable account information. The new “Expense Management Reports” also offers the option to download data into “Quickbooks” and other financial software and provides access to expense records dating back as far as two years. EMR also enables business cardholders to view spending data online five business days after the end of each billing period; organize data into detailed spend categories; sort charges for all cards by date date, card used, merchant, category or amount; and organize spending by month, quarter or year-to-date.

Details

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