GE Business Productivity Solutions has signed a deal with Arkansas-based First Community Bank to offer GE’s “Productivity VISA” to First Community Bank’s middle market and small business customers. Under the agreement, GEBPS will make the Productivity Visa Card available to First Community Bank’s middle market and small business customers.Details
InterCept reported third quarter net revenues of $66.3 million, a 76.7% increase compared with 3Q/01. Net income, excluding net losses generated from InterCept’s ownership of Netzee, and a non-recurring charge to establish a reserve related to the WorldCom bankruptcy, totaled $5.7 million versus $4.0 million for 3Q/01. During the third quarter, InterCept signed a letter of intent with Sovereign Bancorp for its item processing and signed a merchant processing contract with 1st Source Bank in Indiana. The company also appointed Boone Knox to Vice Chairman of the Board of Directors and promoted Lynn Boggs to COO. For complete details on InterCept’s third quarter results visit CardData ([www.carddata.com]).
While delinquency rose 37 bps during the third quarter compared to the second quarter, charge-offs declined 95 bps during the same period. Nine out of the top ten U.S. issuers reported declines in charge-offs during the third quarter. Metris/Direct Merchants Bank was the only issuer reporting an increase. However, Metris charge-offs were only up 10 bps. Compared to the third quarter of 2001, charge-offs were, on average, 8.1% higher. The average third quarter charge-off rate was 7.06%, compared to 6.53% one year ago. Excluding the huge losses at Providian and Metris, the average charge-off rate for the third quarter would have 5.42%. Among issuers reporting the steepest decline since last year are Fleet and Bank One. All three major sub-prime issuers, Capital One, Providian, and Metris reported the biggest increases in charge-offs since 3Q/01. For 3Q/02, Discover reported a charge-off rate of 6.27%, compared to 6.30% in the previous quarter, and 5.79% one year ago. For American Express, losses slowed from 6.20% in 2Q/02 to 5.60% in the third quarter. During 3Q/01, American Express experienced a charge-off rate of 5.60%. For historical data on charge-offs visit CardData ([www.carddata.com]).
TOP TEN VISA/MC ISSUER CHARGE-OFFS
3Q/02 2Q/02 1Q/02 3Q/01 ANN CHNG
1. Citigroup: 5.86% 6.50% 6.41% 5.48% +6.9%
2. MBNA: 4.84% 5.09% 5.00% 4.90% -1.2%
3. Bank One: 5.00% 5.62% 5.69% 5.89% -15.1%
4. Chase: 5.51% 6.42% 5.87% 5.64% -2.3%
5. Cap One: 4.96% 4.98% 4.70% 4.51% +10.0%
6. Providian: 16.71% 17.53% 15.05% 10.33% +61.8%
7. BofA: 5.13% 5.59% 5.43% 4.81% +6.7%
8. Household: 6.81% 7.54% 7.17% 6.75% +0.9%
9. Fleet: 5.25% 5.81% 5.42% 6.26% -16.1%
10. Metris: 15.10% 15.00% 13.00% 10.70% +41.1%
AVERAGE: 7.06% 8.01% 7.37% 6.53%% +8.1%
Source: CardData (www.carddata.com)
London-based Egg plc, a pioneering Internet bank, is launching the “la
Carte Egg” card, an international VISA card, in France this weekend. The
marketing campaign will include over 2,300 TV spots and 7.5 million press
and magazine inserts. Egg expects to reach over 20 million consumers
including 94% of Egg’s target market of consumers aged 25-49 with a
cosmopolitan lifestyle, above average income and with Internet access. The
“la Carte Egg” card will be the first VISA card in France to offer
cashback. The new french version of the Egg VISA will offer 1% cash back on
all purchases, as well as a 12.99% APR. Consumers applying before the end
of the year will have their annual fee waived for the first year (normally
Euro 35) and 5% cash back on purchases up to the year-end. The “Egg France
Index” shows that 32% of French adults (15 million) are using technology –
be it Internet, Digital TV or WAP. About 26% of French consumers (12
million) are using the Internet, with the geographic majority of users
residing in Paris. Approximately 24% of French Internet users are now
banking online, and this is expected to grow to over 7 million by the end
of 2004. The company will begin taking applications online, from France, on
Saturday, November 2nd. Launched in October 1998, Egg is an e-commerce
company created by Prudential.
Budapest-based Euronet Worldwide reported revenues of $17.9 million for
the third quarter, an increase of 20% over 3Q/01. The Company posted an
operating loss of $615,000 in the third quarter compared to an operating
loss of $1.1 million in 3Q/01. The Processing Services segment posted third
quarter revenues of $13.8 million, a 23% increase. These processing
revenues represent a 6.5% increase over the prior quarter’s revenues of
$12.9 million. At the end of the third quarter, Euronet owned and/or
operated a total of 2,951 ATMs compared to 2,840 ATMs in the prior quarter,
a 4% quarterly increase. Quarterly transactions on the network reached 22.3
million in the third quarter 2002, a 48% increased over 15.1 million in the
third quarter 2001. Third quarter transactions improved by 3.6 million
compared to the prior quarter. Euronet owns and/or operates ATMs in
Hungary, Poland, Germany, Croatia, Serbia-Montenegro, the Czech Republic,
the U.K., Greece and Egypt.
Mobile Knowledge has signed a key contract worth over US$300,000 with
Yellow Checker Cab Company of San Jose, California. Earlier this month, the
company signed a contract with Taxi Equipment Company. Taxi Equipment Co.
provides taxi dispatch, support and technology services to six related
operating companies, including LA Taxi Co-op and Long Beach Yellow Cab
Co-op in California. The company previously inked a deal with Washington,
DC-based Barwood Inc. All three contracts involve Mobile Knowledge’s
“Series 6000” terminals. The terminals provide taxi drivers with the
ability for customers to use credit cards and smart cards. The terminals
feature multimedia color touch screens for use by both drivers and
passengers, and full GPS location-tracking services.
American Express says it will cut up to 100 employees as a result of the merger with the Company’s consumer card and personal financial services businesses. The credit quality of the Hong Kong consumer market has been deteriorating this year with record bankruptcies and losses, according to The RAM Report ([www.ramreport.com]). Charge-offs have risen nearly 50% this year, and by year’s end, the number of bankruptcies in 2002 is expected to more than double, compared to 2001. The AmEx cuts represent 12% of the Company’s Hong Kong work force. There are nearly ten million credit cards in-force in Hong Kong.
The Hamilton Bulldogs in Ontario and CellBucks Payments Network announced
the launch of CellBucks’ “In Seat Services” for Hamilton Bulldog hockey
fans. In Seat Services allow sports fans to order and pay for tickets and
merchandise from their mobile phones and have it delivered in minutes right
to their seats using a secure wireless payment network. Once enrolled with
the CellBucks service, customers need only their mobile phones and their
passwords to conveniently access a wide array of services. CellBucks
operates internationally, and independently of mobile phone providers.
Fiserv has partnered with Houston-based FSV Payment Systems to offer stored-value cards to Fiserv financial institution clients. Stored value has redefined itself from its roots in prepaid phone and gift cards to now include the delivery of banking-style services to the more than 40 million under-banked or non-banked people living in the U.S.Details
Since the onslaught of co-branded cards in 1992, the industry has gone through a number of phases in regard to credit cards offering rewards. After a pull-back over the past three years, the rewards segment is now entering a re-birth. Providian and American Express are the most recent issuers to enter the rewards battle. Providian began testing three new rewards cards in August. Providian’s new suite of cards includes “Providian Airpoints,” “Providian Smart Rewards,” and “Providian Real Cash Rewards.” AmEx rolled out its new “Rewards Green,” “Rewards Gold,” “Preferred Rewards Green,” and “Preferred Rewards Gold” cards in late September. All the AmEx programs have the “Membership Rewards” program as a core feature. (CF Library 9/23/02)Details
IL-based APAC Customer Services reported third quarter net earnings before special charges of $1.8 million. Third quarter revenue of $85.0 million declined in comparison to the prior year and the second quarter due to cutbacks by financial services clients including credit card issuers. The Company also reported Thursday it signed a multi-year contract to continue providing services to UPS. APAC Customer Services is a leading provider of customer interaction solutions for market leaders in financial services, insurance, telecommunications, healthcare and logistics. For complete details on APAC’s third quarter results visit CardData ([www.carddata.com]).
EFTA’s “Robert A. Mooney Award for Lifetime Achievement” has been awarded to Stephen Cole, longtime president and CEO of Cash Station. Cole served as EFTA chairman in 1991-1992 after having headed the Association’s “Card Council” and “ATM Security Task Force” in the mid-1980s.Details