Wincor Nixdorf has signed a deal to resell POWERVAR’s “Ground Guard” power conditioning products to protect POS systems in hospitality and foodservice establishments. POWERVAR’s Ground Guard power conditioners eliminate the need for dedicated electrical circuits and isolated ground wiring, through a “ground conditioning” feature combined with standard power conditioning elements. This assures a steady supply of clean power that allows mission-critical POS appliances to operate efficiently.Details
Sydney-based Cards etc has launched the third release of its smart card
management software for card issuers and service bureaus. “Arterium 3.0” is
four times faster than the previous version and offers “Key Manager,” which
provides all the key management capabilities necessary to support Arterium
data preparation and personalization processes, making it easy to create,
generate, import and migrate keys securely.
The software also features an “Application Programming Interface” and
“Software Development Kit,” enabling third parties to develop Arterium
support for their own applications. The software development kit provides a
rapid development environment for developers to build and test code using
the “API.” Arterium manages the entire lifetime of the card from launch
through to expiry and enables partners who share space on the chip to
retrieve and update cardholders, cards and products. Arterium is currently
in use by First Data, Acer Corporation in Taiwan, and ECard in Australia.
Providian reported third quarter net income of $42.1 million compared to second quarter net income of $153.9 million, and net income of $57.2 million one year ago. Providian is in the process of shedding sub-prime accounts and says its portfolio mix is now 60% middle market/40% prime market. This month the Company completed the transfer of servicing for the higher-risk portfolios to CardWorks and CompuCredit. During the third quarter, the Company originated over 520,000 new customer accounts compared to the origination of approximately 350,000 new customer accounts in 2Q/02. Providian ended the third quarter with $19.4 billion in total managed credit card loans and 12.7 million accounts, compared to $19.6 billion in managed credit card loans and 12.9 million accounts at the end of the second quarter. Delinquency is running nearly 29% above last year levels, and charge-offs are up 60% over 3Q/01. For complete details on Providian’s third quarter performance as well as prior quarter visit CardData ([www.carddata.com]).
Providian Card Portfolio Snapshot
3Q/02 2Q/02 1Q/02 4Q/01 3Q/01 Ann Chng
Loans $19.4b 19.6b 22.1b 32.6b 31.7b -38.8%
Accounts 12.7m 12.9m 15.0m 18.4m 17.9m -29.1%
Delinq* 11.23% 10.16% 10.22% 8.81% 8.71% +28.9%
Losses 16.71% 17.53% 15.05% 12.70% 10.43% +60.2%
* 30+ days past due;
Source: CardData (www.carddata.com)
TSYS has been selected as the exclusive processor for Sears Canada’s nine million retail cards and will begin the migration next year. More than 80% of Canadian households are Sears cardholders. TSYS has processed card accounts in Canada since 1989 and is the dominant processor with 20% of the overall card market. Ninety percent of adult Canadians own a banking card, and the average Canadian carries three different credit cards. Canada has approximately 35,000 ATMS and over 600 credit card issuers for a population of nearly 31 million people. More Canadian households use credit cards than in the USA — 89% versus 76%. TSYS also processes for Canadian Tire.Details
Fitch Ratings yesterday downgraded the Metris Master Trust Class A/B/C notes, affecting approximately $4.2 billion of $8.8 billion credit card backed securities issued from the trust. Fitch says the rating actions primarily reflect persistent weakness and expected further deterioration of key performance variables as well as the challenging financial and regulatory environment in which Metris’ continues to operate. Fitch says credit quality has worsened significantly beyond its original expectations and continues to deteriorate. In September, gross charge-offs reached 16.83%, compared to an average of 12.8% in 2001 and 11.18% in 2000. In addition, late stage delinquencies reached 11.1% in the latest period. For complete details on Metris/Direct Merchants Bank quarterly performance visit CardData ([www.carddata.com]).
American Express reported its Travel Related Services division produced third quarter net income of $553 million, twice last year’s third quarter earnings, but down $12 million from 2Q/02. The earnings were driven by higher volume and wider net-interest yields, despite flat card growth for the third consecutive quarter. Volume was up 7% over 3Q/02, but lower than the second quarter level. As a result, merchant fees rose 5% as average discount rates declined from 2.67% for 3Q/01, to 2.63%. AmEx says charge card interest expense decreased 33% due to lower funding costs and lower receivable balances. Human resources expense declined primarily as a result of lower staffing levels, outsourcing, and other cost containment efforts. The AmEx card portfolio also showed that delinquency and charge-offs were flat compared to one year ago. However, delinquency edged up slightly to 3.2% for the third quarter. Charge-offs declined significantly from the second quarter from 6.2% to 5.6%. AmEx also noted that marketing and promotion expenses rose 31% from year-ago levels, reflecting expanded card acquisition programs and the introduction of new rewards-oriented card products during the quarter. Other operating expenses increased due in part to higher cardholder loyalty program costs and the impact of the technology outsourcing agreement with IBM. For complete details on AmEx’s third quarter performance as well as prior quarter visit CardData ([www.carddata.com]).
American Express U.S. Card Portfolio Snapshot
3Q/02 2Q/02 1Q/02 4Q/01 3Q/01 Ann Chng
Volume $58.2b 58.7b 54.3b 55.8b 54.4b +7.0%
Loans $32.2b 31.6b 31.3b 32.0b 31.3b +2.9%
Cards 34.8m 34.8m 34.8m 34.6m 34.7m +0.3%
Delinq* 3.2% 3.1% 3.4% 3.3% 3.2% NC
Losses 5.6% 6.2% 6.5% 5.9% 5.6% NC
Yield** 9.7% 9.8% 9.6% 9.6% 8.8% +10.2%
* 30+ days past due; ** net interest yield
Source: CardData (www.carddata.com)
BankServ will offer its customers Stratus “ftServer” systems, an Intel processor-based server platform. The ftServer line includes a range of models, configurations, and performance, including an entry-level system with a starting price under $20,000. Last month, Stratus announced the powerful, enterprise-class ftServer 6500 system, the industry’s first 4-way SMP fault-tolerant server for Windows 2000 Advanced Server computing environments.Details
Target reported yesterday its “School Fundraising” program has produced a second payout this year of $13.2 million for K-12 schools from eight million participating “Target VISA” and “Target Guest Card” holders. With School Fundraising, families, teachers and members of the community can designate the eligible K-12 school of their choice to receive an amount equal to 1 percent of their Target Visa and Target Guest Card purchases made at Target and target.com.Details
Capital One has taken a license from Ronald Katz Technology for customer service delivered through automated systems as well as the combination of automated systems and live agents. The license to Capital One Services Inc. covers services in the “Financial Services Call Processing” Field-Of-Use. These services, including customer service provided to consumer and business accounts, are delivered through automated systems as well as the combination of automated systems and live agents.Details
Concord EFS reported a 30% increase in revenues for the third quarter from $436 million for 3Q/01 to $568 million. The Company says PIN-based debit outpaced every other transaction category by growing in excess of 35% in the third quarter. Concord notes that year-to-date acquired debit transactions have already exceeded full year 2001 acquired debit volume. However, September volume was somewhat lower than expected. During the third quarter, Concord produced net income of $94.3 million, a 7% increase over 3Q/01. The processor signed 122 new contracts with financial institutions for services such as ATM driving and debit card processing in the third quarter and added approximately 22,200 new merchant locations to its payment processing service, including 1,182 new quick service restaurant locations. Concord’s STAR network reached the one million milestone in its POS locations in the third quarter. For complete details on Concord’s third quarter performance as well as prior quarter visit CardData ([www.carddata.com]).
SchlumbergerSema has been awarded the “FIPS 140-1 Level 2” certificate
for its new “Cryptoflex e-gate” 32K smart card. The company becomes is the
first smart card vendor to offer a USB and ISO smart card with FIPS
certification. The “Cryptoflex e-gate” smart card combines ISO and USB
standards, offers logical and contactless physical access, and features
“egate” technology, which integrates the functions of the smart card reader
into the card itself.