During the past twelve months, 7 million U.S. adults have become victims of identity theft. This represents a 79% increase reported in a consumer survey concluded in February 2002. The latest study by Gartner Inc., for the twelve months ending June 2003, found that more than half of all documented identity theft is committed by criminals that have established relationships with their victims. The Gartner study says credit providers mistakenly write ID theft off as credit losses, causing a serious disconnect between the magnitude of identity theft that innocent consumers experience and the industry’s proper recognition of the crime. Gartner says this causes a disincentive to fix the problem with the urgency it requires. Gartner surveyed 2,445 U.S. households by mail during May for the study.Details
The deterioration of key credit performance metrics in the receivables of First Consumers National Bank card bonds have accelerated at an alarming pace during the past four months. The trust’s principal payment rate fell to 3.11% in June from 9.28% in February. The charge-off rate reached its current peak in June at 25.34%, and total delinquencies have increased to 18.36% from 13.63% in February 2003. The trust yield, which historically averaged above 30%, has also declined to its current level of approximately 21%, according to Standard & Poor’s Ratings Services, which lowered its ratings on all classes of First Consumers Master Trust’s series 1999-A and First Consumers Credit Card Master Note Trust’s series 2001-A.Details
Louisville-based National Processing reported that revenue for the second quarter was up 1% to $113.6 million and that net income declined 9% for 2Q/03 to $11.1 million. Merchant Card Services processed 1.0 billion transactions for the quarter, an 8% increase over comparable 2002 volume. Merchant Card Services dollar volume processed for the quarter was $42.2 billion, which represented a decrease of 2% from comparable 2002 volume. 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. NAP says it is increasing its revenue guidance to a range of $435 to $455 million for the year, primarily as the result of the acquisition of Bridgeview Payment Solutions, which should add $10-$12 million of revenue in 2003. For complete details on National Processing’s second quarter performance visit CardData ([www.carddata.com]).
HSBC’s Household reported this morning that its VISA/MasterCard receivables increased by 8% and that charge volume grew by 3% in the second quarter. Household’s active accounts soared by 18% in the second quarter to end at 12,046,000. At the end of the second quarter Household had $16,610,531,000 in credit card loans compared to $15,373,368,000 one year ago and $16,195,385,000 in the first quarter of this year. Charge volume for 2Q/03 was $9,324,621,000, compared to $8,443,767,000, in 1Q/03 and $9,057,805,000 for 2Q/02. For complete details on Household’s second quarter performance visit CardData ([www.carddata.com])
Sears Canada said it intends to submit an application to the
Office of the Superintendent of Financial Institutions for a federally regulated bank.
The company says the establishment of a bank will, among other
things, facilitate the offering of a wide variety of innovative MasterCard
products to customers. The Sears Card represents the single largest credit card franchise in
Canada. In 2002, the company introduced the Sears MasterCard. First rolled out in Ontario, the card is now being introduced in
British Columbia and Alberta. Sears Canada says a bank will bring greater regulatory certainty and harmonization across
Sears Canada’s national financial services operations.
Providian has hired John Botcheller, formerly with Citibank, as EVP of Finance, and has also hired John Hale, the partner in charge of KPMG’s Credit Risk Management Services, as EVP and Chief Enterprise Risk Officer. Mr. Botcheller will be responsible for accounting and financial planning at Providian. Mr. Hale’s responsibilities include the enterprise-wide risk and assurance functions of internal audit, credit review and enterprise risk management.Details
Discover has signed a two-year renewal on its four-year, exclusive marketing sponsorship with The Mills Corporation to be the preferred card of 13 operating Landmark Mills shopping malls, plus St. Louis Mills and Cincinnati Mills, both scheduled to open within the next year. Additionally, the renewal will allow Discover Card to deepen customer relationships through special incentive offers and promotions, including Cashback Bonus(R) awards and the “Little Orange Gift Box” promotion. Using Mills centers, Discover Card will have an opportunity to raise brand awareness through a sustained marketing effort, as well as have the ability to interact with their Cardmembers at the point-of-sale. A highlight of this four year relationship took place in November 2001 when Mills announced the grand opening of Discover Mills, the first-ever naming rights deal for the shopping center industry.Details
Citibank has launched a major campaign to incent its credit card customers to sign up for its free “All-Electronic Program,” offering a $5 statement credit. The program allows clients to receive online only statements, e-mail notifications, view recent statements, sort and view transactions, and in-depth information like merchant names and addresses for transactions.Details
Atlanta-based Global Payments reported that revenue for the quarter ending May 31st grew 11% to $134.3 million. GPN also reports that normalized net income for the quarter grew 17% to $13.8 million. During the quarter the company committed to a plan to close three operating facilities and consolidate these and other functions into other existing locations. GPN says it is projecting revenues of $542 million to $562 million, or 5% to 9% growth, over the next twelve months. For complete details on Global Payments’ second quarter performance visit CardData ([www.carddata.com]).
Dallas-based Alliance Data Systems reported that second quarter revenue increased 20% to $247.6 million and that net income increased 250% to $11.9 million for the second quarter. Transaction Services revenue increased 17% in the second quarter to $151.4 million. Marketing Services revenue increased 16% in the second quarter to $67.4 million. Credit Services revenue increased 27% in 2Q/03 to $98.0 million. ADS says total private label credit sales increased 13% due to the ramp-up of many new client programs. During the quarter ADS added private label cards for Eddie Bauer, Spiegel, Newport News, Stage Stores and American Home Furnishings. For complete details on Alliance Data Systems second quarter performance visit CardData ([www.carddata.com]).
TN-based MAPCO Express, with 243 convenience stores in TN, AR, AL, KY, MS, LA, and VA, has inked a deal for Fifth Third Bank’s electronic payment processing division to handle its payment processing for credit and debit cards as well as EBT, “Fleet Card” processing, and for “Premier Issue,” Fifth Third’s gift card program. Fifth Third Bank processes 8.2 billion ATM and POS transactions per year for more than 185,000 retail locations and financial institutions worldwide. Annually, Fifth Third processes $83 billion in credit card sales.Details
Atlanta-based Global Payments announced Robert Yellowlees’ retirement from the board of directors effective after the October shareholders’ meeting with William Jacobs succeeding Yellowlees as lead director, and also announced the election of Michael Trapp, a retired Managing Partner of Ernst & Young, to its board. Trapp is a member of the board of directors of the Ann Taylor Company and The North Highland Company, as well as an active board member of numerous civic organizations. Yellowlees’ retirement follows his 18 years as a director of the company and its predecessor, National Data Corporation, now NDCHealth. Yellowlees served as the initial board chairman for Global and subsequently as lead director.Details