The Bombay Company and 388 of its stores have begun deployment of Minneapolis-based Retek’s “Integrated Store Operations” which provides for expedited credit card authorizations. The new store operations infrastructure enables real-time sales and inventory access, faster transaction and credit processing and Intranet/email access in the store that deliver an enhanced customer experience, improved operating efficiencies and increased sales. Rollout of the new store systems is scheduled to be completed by October 2003.Details
MBNA reported that managed loans in Europe increased 45% during the second quarter to $14.5 billion while managed loans in Canada grew 43% to $3.2 billion. During the second quarter MBNA added 460,000 new accounts in Europe and 260,000 in Canada, a 50% increase over the second quarter of 2002. The card issuer also added 16 new affinity programs in Europe, and 46 new affinity programs in Canada, during the quarter. To-date, MBNA has 910 card programs in Europe, and 510 card programs in Canada. In April MBNA announced plans to market credit card and related products in Spain through offices located in Madrid. Spain is the fourth international market entered by MBNA preceded by the United Kingdom, Ireland, and Canada. Since operations began in Spain the issuer has signed 29 affinity programs in Spain.Details
NYC-based Constantine & Partners reported this week that 8,148,276 notices to merchants have been mailed in regard to the settlement of the debit card lawsuit against VISA U.S.A. and MasterCard International. The certified class consists of all persons and business entities that have accepted Visa and/or MasterCard credit cards and therefore have been required to accept Visa and/or MasterCard offline signature debit transactions from October 25, 1992 to the present. Any person or entity that received a copy of the Notice of Settlement in the beginning of July is already registered on the Class Member List and need do nothing at this time. The mailing list was developed from merchant data provided by Visa, MasterCard and the 80 largest merchant acquirers/processors.Details
FL-based Thrifty Nickel, an online publishing concern with 4.1 million customers, has signed Global eTelecom and Integrity Card Service for an electronic check payment solution. Global’s customized technology will enable Thrifty Nickel to accept and process paper checks electronically thus adding increased value and efficiencies. The Thrifty Nickel has published over 400 million private party classified ads, making the Thrifty Nickel the largest free classified newspaper in the United States.Details
First Data and Nashville-based Progeny Marketing Innovations have teamed up to market a new small business benefits program to US merchants. “MyMerchantRewards” offers a range of discounts through Progeny’s parent Cendant Corporation. The program includes discounts and cross-marketing strategies on hotel accommodations through Ramada Inn, Days Inn and Howard Johnson, vehicle rental through Avis and real estate relocation through Cendant Mobility. Discounts also include office equipment and software from IBM and Hewlett- Packard, Airborne Express, Danka business equipment, IDT long distance service, and Ramesys voice-mail services.The small business program is being marketed through First Data and its bank and alliance partners. Merchants are billed for the services used along with their transaction processing fees on one statement.Details
Providian Financial has added James Holdcroft, formerly with Lehman Merchant Banking Partners, and John Douglas, former General Counsel for the FDIC, to its Board of Directors. James Holdcroft most recently served as Managing Director and Principal of Lehman Merchant Banking Partners in New York. John Douglas is currently Partner and Chairman of the Financial Services Group of Atlanta, Georgia-based Alston & Bird. Providian has over $7 billion in reported receivables and over $18 billion in managed receivables and more than 11 million customer relationships.Details
Atlanta-based LendingTree reported this week it received 60,053 credit card requests during the second quarter and closed 5,841 of the transactions. The dollar volume of credit card transactions closed was $29 million. LendingTree’s credit card business produced total revenue of $261,000 for the company during the second quarter. The average revenue per transmit for credit cards was $3.77 compared to $11.73 for auto loans and $18.99 for personal loans. Overall, the Company posted 2Q/03 revenue of $45 million, 84% greater than the revenue for the second quarter of 2002. For complete details on LendingTree’s 2Q/03 results visit CardData ([www.carddata.com]).
eBay confirmed yesterday it will pay $10 million to settle a lawsuit with the US Attorney for the Eastern District of Missouri in regard to services it formerly provided to online gambling merchants, which were discontinued following PayPal’s acquisition by eBay. In its report for the quarter ending June 30th, eBay reported that PayPal net transaction revenues were $99.4 million for the quarter, an 89.3% increase compared to one year ago. eBay’s total second quarter payment volume was $2.8 billion, a 7.7% gain over the prior quarter. eBay also reported that its US net transaction revenues for the second quarter totaled $242.4 million, a 45% gain over the year-ago quarter. The company also reported that general and administrative costs totaled $69.5 million for the quarter which included PayPal’s transaction losses, which represented approximately 0.32% of PayPal’s total payment volume. The company also noted that its PayPal transaction processing expense rate increased from 1.14% last year to 1.30% for 2Q/03. However, its PayPal transaction revenue rate increased from 3.25% in 2Q/02 to 3.50% for the second calendar quarter of this year. For complete details on eBay/PayPal’s 2Q/03 results visit CardData ([www.carddata.com]).
Phoenix-based Hypercom reported this morning that it “beat the street” with second quarter income from continuing operations of $4.8 million versus an analyst consensus of an estimate of $3.2 million. However, the payment terminal manufacturer also reported that 2Q/03 net revenues declined 5% to $64.4 million. The Company says a soft global economy and fierce competition continue to impact its revenues. Going forward the company lowered its forecast on projected annual revenues from $265 million-$273 million to $249million-$257 million. During the second quarter, Hypercom introduced the “ICE 5500 Plus,” “ICE 5700 Plus,” “ICE 6000 Plus,” and the “T7Plus” with 56k modem and “FastPOS.” The Company also obtained VISA “PED” certification for integrated pinpads for the “T7Plus” and the “ICE 5500 Plus.” The company was also selected by the Industrial and Commercial Bank of China as its preferred provider for terminals for 2003. For complete details on Hypercom’s 2Q/03 results visit CardData ([www.carddata.com]).
Paris-based Groupe Ingenico has selected Massachusetts-based MSL as its primary worldwide strategic supplier, providing global support for Ingenico’s electronic payment terminals. As part of the multi-year agreement, Ingenico’s subsidiary Telesincro, located in Barcelona, Spain, will transfer to MSL its manufacturing employees with technical expertise in EFTPOS and secure payment products, as well as certain assets and manufacturing space. The Barcelona plant, formerly Ingenico’s only internal manufacturing site, manufactures approximately 600,000 terminals annually, approximately 40% of the company’s global demand. MSL will provide manufacturing, build-to-order (BTO), order fulfillment, and repair services to Ingenico from Barcelona and from additional locations worldwide.Details
Fair Isaac reported second quarter revenues of $163.0 million, a 79% increase over 2Q/02, lead by explosive growth in Strategy Machine Solutions. Net income for the quarter was $30.0 million, compared with $14.4 million, in the same quarter last year. Scoring Solutions revenues for the quarter were $34.5 million, 2% gain over the same year-ago quarter. Strategy Machine Solutions increased 144%, from $39.9 million in 2Q/02, to $97.4 million in 2Q/03. Professional Services revenues were up 57% to $21.9 million. Analytic Software Tools revenues increased 162%, from $3.5 million to $9.2 million during the quarter. For complete details on Fair Isaac’s 2Q/03 results visit CardData ([www.carddata.com]).
Citigroup reported that credit card outstandings for the EMEA region were up 32% for the second quarter, while card loans in Latin America fell by 20% and down 9% in Japan. At the end of 2Q/03, Citigroup had 14.0 million credit card accounts outside of North America, a 7% increase over 2Q/02. Charge volume for international credit cards was up 10%, to $9.0 billion for the second quarter. Total outstandings for international cards were $12.2 billion as of June 30th, a 13% gain over one year ago. In Japan, credit card loans were dipped below $1.0 billion. In the rest of Asia, credit card loans grew 9% to $6.3 billion. Citigroup holds $4.1 billion in card loans for the EMEA region and $400 million in Latin America. Delinquency and charge-offs increased during the second quarter for international cards. Delinquency (90+ days) increased from 1.97% in 1Q/03 to 2.04% for 2Q/03. Charge-offs increased from 4.09% in 1Q/03 to 4.60% for the second quarter.Details