Iron Triangle

GTCR Golder Rauner confimed yesterday it has teamed with the former president and CEO of National Processing to form Iron Triangle Payment Systems, LLC. Armed with up to $200 million of equity capital, Thomas Wimsett is looking to form a payment processing services to be based in Louisville. From 1995 through 1997, Wimsett served as President of NPC Check Services, and from 1997 to 1999 as the EVP leading all of merchant services. From 1999 until 2002, Wimsett served as the President and CEO of National Processing. In October 2002, Wimsett resigned abruptly from NPC and Jon Gorney was named CEO. GTCR Golder Rauner also owns and operates Genpass. Other GTCR investments include VeriFone, TransFirst, Transaction Network Services, Skylight Financial, and TSI Telecommunications Services. GTCR currently manages more than $4 billion in equity capital invested in companies providing transaction processing, information technology services, financial services and marketing services. (CF Library 10/1/02; 2/20/03)

Details

WACHA & EPN

WI-based The Premier Payments Resource and the EPN announced an alliance this week that offers WACHAs 400 members ACH processing and value-added ACH services. The Electronic Payments Network is the largest national private sector ACH operator, with a membership of more than 1,240 commercial banks, credit unions and savings banks. In addition to an unsurpassed service and reliability record, EPN is dedicated to making improvements in the ACH network.

Details

Global PAYplus Milestone

NJ-based Fundtech’s “Global PAYplus” solution says it has processed average transactions per second of 394 through benchmark tests conducted using Sun Microsystems’ “Sun Fire 6800” servers. The testing also incorporated the XA industry standard for implementing two phases of a transaction involving more than one data source. This standard ensures the integrity of processing in the event of any type of failure.

Details

New ICMA Members

The Perm Printing Factory of Goznak and Belgrade, Yugoslavia-based GrafoCard have joined the International Card Manufacturers Association as “Principal Members/Card Manufacturers.”Ampflwang, Austria-based Iroplastics Gesellschaft M.B.H. has also joined the ICMA as an associate member, or supplier. Based in Princeton Junction, New Jersey, ICMA is a non-profit association of plastic card manufacturers, personalizers and related industry participants.  With more than 230 members globally, the ICMA acts as a clearinghouse for industry issues, including the production, technology, application, security and environmental issues of plastic cards.

Details

Certegy IT Deal

Certegy has dumped EDS for IBM at a cost of $10 million. The credit card processor has signed a ten-year, $150 million agreement with IBM to provide on-demand technology services for its USA operations by the end of the third quarter. IBM currently provides IT services to Certegy’s United Kingdom and Australia operations. IBM says it will improve Certegy’s IT operations by consolidating, automating and managing a large portion of its mainframe operating systems and hardware operations in the USA. Certegy will record a pre-tax provision of up to $10 million in the first quarter for early exit costs associated with severing the current EDS services agreement.

Details

ICMA & GOZNAK

The Perm Printing Factory of Goznak and Belgrade, Yugoslavia-based GrafoCard have joined the International Card Manufacturers Association as “Principal Members/Card Manufacturers.” Ampflwang, Austria-based Iroplastics Gesellschaft M.B.H. has also joined the ICMA as an associate member, or supplier. Based in Princeton Junction, New Jersey, ICMA is a non-profit association of plastic card manufacturers, personalizers and related industry participants. With more than 230 members globally, the ICMA acts as a clearinghouse for industry issues, including the production, technology, application, security and environmental issues of plastic cards.

Details

Discover 1Q/03

Morgan Stanley reported this morning that its credit services, or “Discover” card unit, posted first quarter earnings of $182 million, a 9% gain over the year-ago quarter. For the quarter ending February 28th, Discover’s managed credit card loans at quarter end rose 4.4% from a year ago to $51.8 billion. However, the interest rate spread contracted by 25 basis points over the same period, as a decline in the cost of funds was more than offset by a lower finance charge yield. Merchant and cardholder fees rose 4% to $547 million largely as a result of higher merchant discount fees from increased transaction volume. Charge volume rose 8% from a year ago to $26.1 billion. The net charge-off rate declined to 6.17%, 23 bps below a year ago. The Company’s continued focus on credit quality helped improve the contractual loss rate despite continued softness in the U.S. economy. The over-30-day delinquency rate improved 42 bps to 6.33%, and the over-90-day delinquency rate improved 17 bps to 2.95% from the same quarter of 2002. For complete details on Discover’s latest results visit CardData ([www.carddata.com][1]).

DISCOVER CARD PORTFOLIO SNAPSHOT
1Q/02* 2Q/02* 3Q/02* 4Q/02* 1Q/03 Y/Y CHNG
Receivables: $49.6b $49.4b $49.7b $51.1b $51.8b +4.4%
Volume: $24.1b $23.5b $24.3b $25.3b $26.1b +8.3%
Accounts: 46.0m 46.2m 46.2m 46.5m 46.5m +1.1%
Actives: 23.8m 23.4m 22.8m 22.6m 22.3m -6.3%
Chargeoffs: 6.40% 6.30% 6.27% 5.96% 6.17% -3.6%
Delinquency: 6.75% 5.63% 5.72% 5.96% 6.33% -6.2%
Yield: 12.63% 12.64% 12.71% 12.45% 11.78% -6.7%

1Q/02 ended 2/28/02; 2Q/02 ended 5/31/02; 3Q/02 ended 8/31/02; 4Q/02 ended 11/30/02; 1Q/02 ended 2/28/03. Source: CardData ([www.carddata.com][2])

[1]: http://www.carddata.com
[2]: http://www.carddata.com

Details

EDGAR DUNN EXPERT

Edgar, Dunn & Company has hired international cards and payments industry expert Nicholas L.A. Kennett as a director of EDC’s financial services practice in its London office. For the past seven years, Mr. Kennett has served in key managerial roles at the Commonwealth Bank of Australia, including Executive General Manager Retail Customer Services and General Manager, Cards & Financing Products. Mr. Kennett has served on key payments industry boards, including as a director of the MasterCard International Asia-Pacific Board and Maestro International/Debit Advisory Board; as a member of MasterCard International Operations Committee; as chairman of Bankcard Association of Australia; and as chairman of VISA Executive Committee of Australia.

Details

CAP ONE PROFITS

US-based Capital One says its UK operations became profitable for the
first time last year. At the end of 2002, the U.K. Bank had 2.8 million
accounts and $3.9 billion in credit card, revolving loan, and installment
loan assets.The UK Bank has been operating independently in France since
2000. Cap One’s total international business had $5.3 billion of managed
credit card receivables. Besides the UK, the issuer also has operations and
activities in Canada, South Africa and France. Capital One’s global
subsidiaries collectively had 47.4 million accounts, and $59.7 billion in
managed loans outstanding as of December 31, 2002.

Details

GPN 1Q/03

Global Payments reported yesterday that revenue grew 8% to $124.6 million in the quarter ending February 28th, compared to $115.3 million in the year-ago quarter. Net income grew 18% to $12.1 million, compared to $10.3 million in the prior year. GPN says the revenue results were driven by its ISO and direct sales channels. GPN also says it continues to achieve improvements in operating income margin due to its acquisition integration efforts and cost reduction programs. The processor reaffirmed its fiscal 2003 annual revenue guidance of $495 million to $514 million. For complete details on GPN’s latest results visit CardData ([www.carddata.com][1]).

[1]: http://www.carddata.com

Details