Federated & @pos

@pos has been awarded a contract to provide approximately 5,800 price checker units to Federated Department Stores. This comprehensive rollout calls for the installation of @pos’ price checker solution in a majority of Federated store locations including Macy’s, Bloomingdale’s, The Bon Marche, Burdines, Rich’s, Lazarus, and Goldsmith’s. The first installation of the price checker is intended to be completed prior to the beginning of the holiday season.

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CardinalCommerce Signs More

CardinalCommerce has signed agreements with Transactional Technologies and Digital Courier Technologies to resell “Cardinal Centinel,” an easy-to-install software authentication platform that supports credit card industry initiatives to reduce the incidence of online fraudulent transactions. Cardinal Centinel makes it easy for merchants to participate in these programs and to integrate them into their electronic shopping sites.

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CARD BONDS

South Korea’s structured finance market is benefiting from a vibrant nonbank consumer finance industry that has taken root in the years after the government initiated an aggressive campaign to increase credit card usage. Unlike traditional banks, nonbank finance companies do not take deposits and therefore have a voracious appetite for cheap funding, according to Standara & Poor’s. This need for cheap funding has been the chief driver for cross-border securitizations in South Korea. There are as many as six credit card securitizations expected in the second half of 2002. South Korea began encouraging increased credit card use in 1999 to improve tax collections and bolster domestic growth and consumption, which would lessen the country’s dependence on exports. Since then, according to the Financial Supervisory Commission (FSC), every eligible adult has an average of four credit cards, with the credit card transaction volume at the end of 2001 increasing five times from that of the end of 1999. As a result, the nonbank consumer finance industry is nearing saturation. As of June 30, total household borrowings (including loans from financial institutions and credit card payables) reached 216.1 trillion won (roughly US$185 billion) up from 35.8 trillion won at the end of 2001. The delinquency ratio of these borrowings, according to the FSC, is only 1.24%, while the delinquency ratio on credit card receivables (all amounts over 30 days) is 9.42%, a 2.04 percentage point increase over the end of 2001.

Business Editors
(Editor’s Note: This article, originally published July 30, 2002,
misstated the names of two Korean card companies, Kookmin Card and
Woori Credit Card. A corrected version follows.)

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Household Execs

Household International announced an expansion of its senior leadership team. Bobby Mehta, group executive, credit card services and Canada will now add management of the auto finance business to his current responsibilities. David Schoenholz has been named to the new position of president and COO. Steven McDonald has been named SVP and chief accounting officer. Prior, McDonald served as Household’s managing director-corporate controller. Edgar Ancona, former managing director/treasurer, has been named SVP and treasurer. Thomas Detelich has been named group executive for consumer lending. Sandra Derickson has been named group executive and will add management of the refund lending and insurance services business units to her current responsibilities for retail services. James Kauffman has been named to the new position of vice president-policy and compliance. Ken Harvey has been named to the new position of group executive and CIO.

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SAP KOREA

Walldorf-based SAP AG and South Korea-based Samsung Electronics announced the successful implementation of a private exchange based on “MarketSet,” the joint solution from SAP and Commerce One. Samsung’s private exchange, called Worldwide Trading Network, is a single global system that links all Samsung R/3 and legacy systems using one common platform. To date, Samsung has deployed the Worldwide Trading Network across nine major production, sales, and logistics subsidiaries in Asia, Europe, and the Americas. The company plans to complete its efforts to create a digital business platform by rolling out the system to all of its fifty-nine global subsidiaries by the end of this year. The Worldwide Trading Network enables Samsung to achieve significant cost savings by reducing inventory through tight integration between the sales, procurement, and accounting processes of various subsidiaries around the globe.

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CALLING CARD DEAL

Tokyo-based First Mobile Japan Co., Ltd. has signed a deal with New Jersey-based VocalTec Communications for a calling card solution for pre-paid international service The deployment targets pre-paid calling card consumer services from Japan to China, with subsequent expansion to cover Korea, Taiwan, Singapore, Malaysia and Brazil, and is based on VocalTec’s field-proven multi-service Voice over IP (VoIP) architecture. FMJ plans to expand its service offering to include the provision of global private voice services to multi-national enterprises with globally scattered branch offices.

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Advanta 2Q/02

Advanta reported Business Card net income of $9 million, compared to $8.8 million for 2Q/01. Business Card results for the second quarter included growth in managed receivables to $2.2 billion at June 30th compared to $2.0 billion for the first quarter. Over 30 day delinquencies improved to 6.6% from 7.2% at March 31, and charge-offs on an annualized basis improved to 9.0% from 9.6% at March 31, 2002. Delinquency one year ago was 5.79%. Charge-offs for 2Q/01 were 7.44%. Card volume was $1.3 billion for 2Q/02 compared to $1.1 billion one year ago. For complete details on Advanta’s 2Q/02 results visit CardData ([www.carddata.com][1]).

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

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ICBA Expands Services

ICBA Bancard has added two new credit card options for the nation’s community banks including “Participation Plus” and “20/20” to its Total Card Management agent bank program, which is delivered through its wholly owned affiliate, TCM Bank, N.A. Today there are more than 200 community banks that have chosen Total Card Management as a safe harbor for their credit card customers. Total Card Management is now an even more flexible, income producing solution for those community banks that wish to offer their customers credit cards without the traditional risks and expenses.

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MemberWorks 2Q/02

Membership program specialist MemberWorks reported that 2Q/02 revenues decreased 16.8% to $105.2 million. Excluding revenues from iPlace Inc. in the prior year, revenues would have decreased 7.0% from last year’s quarter. Net income reported for the quarter was $2.2 million, versus a net loss of $5.9 million one year ago, and net income of $10.5 million in the prior quarter. The company expects 3Q/02 revenue to be in the range of $105 million to $107 million. As of June 30th, 6.6 million retail members are enrolled in MemberWorks programs. For complete details on MemberWork’s 2Q/02 results visit CardData ([www.carddata.com][1]).

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

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EURONET 2Q/02

Euronet Worldwide reported that second quarter revenues increased 16%, from $15.1 million for 2Q/01 to $17.5 million. Quarterly transactions on the company’s ATM network increased 36% from 13.8 million in the second quarter 2001 to 18.7 million in the second quarter 2002. The Company posted consolidated operating income of $953,000 in the second quarter, an improvement of $2.7 million over 2Q/01’s operating loss of $1.7 million and an increase of $807,000 over first quarter 2002 operating income of $146,000. The Processing Services segment posted second quarter revenues of $12.9 million, an 18% increase over revenues of $10.9 million for the same period of 2001. As of June 30th, Euronet owned and/or operated a total of 2,840 ATMs compared to 2,548 ATMs on March 31st. Transactions in the second quarter improved from 15.6 million in first quarter 2002. Euronet owns and/or operates ATMs in Hungary, Poland, Germany, Croatia, the Czech Republic, the U.K., Greece and Egypt.

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AmEx Cash Back

American Express has upgraded it “Cash Rebate Card” to now offer a cash rebate of up to 5%. The annual cash reward for purchases is up to 3% and there is an additional rebate of up to 2% for purchases in months in which the account carries a balance. An account is eligible for a rebate applied to a maximum of $50,000 of annual spending. Additional AmEx card benefits include: Purchase Protection Plan, Buyer’s Assurance, and the ability to check and pay bills online. The APR for purchases for the first six months of cardmembership will be a fixed rate of 0% as long as the account is not in default. The APR for purchases are prime rate based. The current APRs are 9.74%, 11.74%, or 14.74%. The APR for Cash Advances is 17.74% or prime +12.99%.

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