United Card Bonus

United Airlines and Bank One have introduced the “More Miles” program offering “United Mileage Plus VISA” cardholders to earn bonus miles. The program kicks off by offering cardholders double miles for all purchases charged on the Mileage Plus VISA card at restaurants and home-improvement stores between now and February 28th. The “More Miles” program features a combination of credit card offers, as well as additional opportunities offered exclusively by United’s partners, through which cardholders earn incremental miles during the year. Monthly credit card statement inserts will also feature a unique “More Miles” logo. United’s frequent flyer program has more than 40 million enrolled members. There are approximately three million United VISA cardholders.

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Household 4Q/02

Household reported this morning a 9.0% gain in fourth quarter bank credit card outstandings to $18,952,600,000 compared to 4Q/01. Private label credit card outstandings also grew from $13.8 billion for 4Q/01 to $14.9 billion at end-of-year 2002, an 8% increase. However, Household did experience an increase in both delinquency and charge-offs compared to one year ago. Delinquency (60+ days) hit 4.12% compared to 4.10% one year ago, for its managed VISA and MasterCard segment. However the figure was down 2 basis points from the third quarter. Delinquency (60+ days) for Household’s private label portfolio hit 6.03% compared to 5.48% for 4Q/01. Charge-offs (net of recoveries) climbed to 6.98% for Household’s bank credit card portfolio compared to 6.81% in the previous quarter, and 6.69% one year ago. Private label credit card charge-offs (net of recoveries) declined to 5.91%, compared to 6.12% for 3Q/02, and 5.40% for 4Q/01. For complete details on Household’s latest performance, plus historical portfolio information visit CardData ([www.carddata.com][1]).

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

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NPC 4Q/02

National Processing reported net income for the fourth quarter of $14.1 million, down 22% from comparable 2001 amounts of $18.2 million. Revenue for 4Q/02 was down 4% to $118.3 million compared to $124.0 million one year ago. Merchant Card Services transaction volume for 4Q/02 hit 1.1 billion, a 6% increase over 4Q/01. Card Services dollar volume for 4Q/02 increased 1% to $45.5 billion. Merchant Card Services revenue for the fourth quarter decreased 2% to $113.0 million. NPC says its top line growth in 2003 will be significantly impacted by lower pricing for national merchants and the company’s decision to exit merchant processing for airlines. The airline decision alone will decrease NPC’s year-over-year revenue growth by more than 300 basis points. NPC is projecting 2003 revenue growth of 1%-6%. For complete details on NPC’s latest performance visit CardData ([www.carddata.com][1]).

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

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Vital Marketing SVP

Vital Processing Services has hired Chuck Bruney, formerly with Speer & Associates, as SVP/Marketing and Communications. Bruney joins Vital after a 15-year tenure with Speer & Associates, Inc. (S&A), a financial services consulting practice, where he served as executive vice president and board member. At S&A, Bruney managed a wide range of consulting projects for financial institutions and leading technology providers worldwide.

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TSYS 4Q/02

TSYS reported fourth quarter net income of $35.5 million, an 18.7% increase from the same period last year. Revenue for the quarter was $246.0 million, an increase of 7.9%, compared with revenue of $228.1 million one year ago. The financial results include the acquisition of ProCard, Inc., from Synovus Financial, which was completed on Nov. 1st. TSYS also noted that transactions for the 2002 holiday shopping season increased 6.7% over last year. TSYS expects its 2003 net income to exceed its 2002 net income by 12-15%. For complete details on TSYS’ latest performance visit CardData ([www.carddata.com][1]).

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

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PSCU Signs NM CU

NM-based Sandia Laboratory FCU is moving the processing of its 24,000 signature-based debit accounts and 17,000 credit card accounts to PSCU Financial Services, effective April. The company provides a broad array of cost-effective, highquality financial services that include credit, debit and contact center solutions, along with Internet-based products, to its 500plus member credit unions and their more than 6.9 million cardholder accounts across the nation.

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CARD DEBT

The Reserve Bank of Australia reported that credit card volume in November
hit $9.47 billion among 84.6 million transactions. The level was down $125
million from record volume in October. Australians currently owe $22.4
billion on credit cards compared to $19.4 billion on year ago. Over the
past twelve months credit limits have increased about 11% to $64.2 billion.
There are approximately 8 million credit cardholders in Australia among a
total population of slightly more than 20 million.

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Simon Gift VISA

Simon Property Group reported yesterday that “VISA Gift Card” sales during the holidays were up 30% compared to the sale of Simon gift certificates one year ago. Simon offered its “VISA Gift Card” in 47 malls during the recent holiday shopping season. All Simon properties are expected to offer the “Simon Gift Card” by mid-2003. During the 12-month pilot program conducted in four Simon malls in 2001, the company says it experienced a sales increase of more than 60% compared to regular gift certificate sales during 2000. Simon Property Group currently owns or has an interest in 243 properties in 36 states. The alliance between Simon and VISA was formed in 1997 in an effort to drive purchasing and brand loyalty among the 100 million shoppers who make more than 2 billion visits to Simon malls each year. The current contract with VISA will expire in October 2003. (CF Library 11/17/01; 10/2/02)

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CYBERNET EXEC

CyberNet has named Roberto Galbiati as VP/Southeast Asia. Roberto
brings more than 14 years of experience in the Asian markets of Payment and
Security, having held key positions in the region for RSA Security and
VeriFone. Galbiati’s appointment follows the creation of CyberNet Poland
and the launch of “JADEBreakthrough,” the EMV solution jointly developed
with VISA.

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TSAIE 3Q/02

NE-based Transaction Systems Architects released its re-audit and the filing of its form 10-K, which includes results for the quarter ending 9/30/02 and restated financial statements for fiscal 2000, 2001 and the first three quarters of fiscal 2002. For the third calendar quarter of 2002, revenue was $70.4 million with software license fees of $39.3 million, maintenance fees of $18.6 million and services fees of $12.5 million. The Company’s recurring revenue was $39.8 million or 56 percent of revenue. Recurring revenue consists of monthly license fees of $20.0 million, maintenance fees of $18.6 million and facilities management services of $1.2 million. Operating income was $7.6 million with an operating margin of 10.8 percent. Operating cash flow was $35.3 million and the cash balance as of September 30th increased to $87.9 million. For complete details on Transaction Systems Architects’ 3Q/02 results visit CardData ([www.carddata.com][1]).

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

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