Red Hot AmEx

American Express credit card loans have soared by more than 33% over the past year, about ten times the growth of VISA and MasterCard issuers. American Express also reported yesterday it signed up 900,000 new cardholders during the third quarter with 500,000 from the US and 400,000 from abroad. Average quarterly spending per cardholder has climbed nearly 14.0% over the past twelve months from $1,704 to $1,935. Chargeoffs dropped to 4.7% during the third quarter from 6.4% one year ago. Third quarter delinquency (30-89 day) dipped to 2.0%, from 2.2% for third quarter 1998 and 90+ day delinquency declined from 1.0% last year to 0.8% this year. For full financials details on AmEx visit CardData ([http://www.carddata.com/>www.carddata.com][1]).

AMEX TRACK RECORD

3Q/99 2Q/99 1Q/99 4Q/98 3Q/98 2Q/98 1Q/98
Receivables $20.6b $18.3b $16.7b $16.7b $15.4b $14.8b $14.2b
Q Volume $47.1b $46.0b $41.6b $44.2b $41.5b $41.4b $38.5b
Cards 29.2m 28.7m 27.9m 27.8m 29.5m 29.6m 29.5m
Source:
CardData (http://www.carddata.com/>www.carddata.com)

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

Details

NextCard & ONElist

NextCard, the creator of The First True Internet Visa, announced Monday a marketing agreement to become the exclusive credit card for ONElist ([http://www.onelist.com][1]), the leading provider of active Internet communities with nearly 8 million members.

Under the terms of the agreement, NextCard ([http://www.nextcard.com][2]) will offer customized affinity card products and promotions to specialized communities within ONElist. Current NextCard Internet Visa promotions at ONElist include: a coupon for $50 OFF chipshot.com custom clubs and golf equipment in ONElist’s Sports Channel, and a $20 donation to Canine Companion for Independence in their Animal Channel.

“NextCard continues to refine its target marketing approach,” said David Schwartz, vice president of customer acquisition at NextCard. “ONElist’s highly segmented direct marketing capabilities offer us a singular opportunity to market our credit card affinity products to active and relevant audiences in unique communities of interest.”

“ONElist’s commitment to provide valuable and relevant content to our millions of members is a key attribute that makes our communities the most active on the Internet,” said Mark Fletcher, founder, chairman and VP of technology at ONElist. “NextCard offers the best customized credit card product for Internet users and we’re excited to be working with them to serve our members.”

NextCard, Inc.

NextCard, Inc. ([http://www.nextcard.com][3]), creator of The First True Internet Visa in 1997, is considered the industry’s leading issuer of consumer credit on the Internet. The Company has continued to innovate with its complete GoShopping!(SM) Web site, NextCard Concierge(SM), comprehensive rewards, personalized PictureCard(SM) design and exceptional online customer service. NextCard publishes the NextCard eCommerce Index(SM), the premier source of online transaction activity and was named a “HOT 100 Company” by Upside magazine and one of “The Standard 100” most important and influential companies in the Internet economy by The Industry Standard magazine.

ONElist

ONElist is the leading provider of active Internet communities, where members with common interests get together to inform, discover and collaborate. ONEList has nearly 8 million registered members who host more than 250,000 unique communities and exchange more than 1 million emails/hour. Through these free discussion groups, ONElist provides specialized services and e-commerce solutions tailored to each community. Launched in 1998, ONElist is a privately held company based in Redwood City, CA. The company received venture funding from @Ventures III, the affiliated venture capital arm of CMGI, Inc. (Nasdaq: CMGI) and Bertelsmann Ventures, the independent venture capital fund of Bertelsmann AG. For more information about ONElist, visit [http://www.onelist.com][4].

[1]: http://www.onelist.com/
[2]: http://www.nextcard.com/
[3]: http://www.nextcard.com/
[4]: http://www.onelist.com/

Details

Banamex Goes ICE

Banamex Mexico is deploying 2,000 Hypercom ICE 5000 consumer-activated card payment terminals with integrated PIN pads and smart card readers to merchants throughout Mexico. The deployment by Mexico’s largest bank follows its installation of an additional 66 hypercom Integrated Enterprise Network (IEN) communications gateways for back-end network communications. The resulting Hypercom end-to-end solution will help Banamex Mexico deliver value-added solutions to its merchants and enhance the bank’s transaction processing system capabilities.

The ICE 5000 is a powerful, multi-function touch-screen terminal incorporating a high-speed thermal printer, paper cutter, and Hypercom(TM) FastPOS 9600 bits per second (bps modem technology that completes transactions in less than six seconds. Hypercom’s ICE 5000 provides a highly interactive and intuitive user interface to support complex transactions with minimal user training. In addition to traditional credit and debit functions, the ICE 5000 supports payment options such as smart cards, and new business opportunities such as customer loyalty management systems. When used in conjunction with Hypercom Ascendent(TM) software, the ICE 5000 also supports online advertising and electronic receipt capture, storage and retrieval.

“With Hypercom’s innovative technology, we can offer faster response times, greater flexibility, and consumer-operated card acceptance terminals that support the rapidly increasing range of transaction modes, options and functions,” said Marco Antonio Giardiello, acquiring services executive vice president, Banamex Mexico. “It is a winning solution, and one that can definitely benefit our customers.”

“Using Hypercom’s industry leading technology, Banamex Mexico is the first bank in Latin America to adopt a truly integrated end-to-end solution,” said Jairo E. Gonzalez, senior executive officer, Hypercom Corporation. “We applaud Banamex Mexico for setting the standard for Mexico’s financial industry; and, we are pleased that Hypercom is continuing its leadership role in supporting 100% of the financial communications networks in Mexico.”

Hypercom Corporation (NYSE:HYC) is the single-source global provider of end-to-end electronic payment solutions, including card payment systems, peripherals, network products, software and e-commerce payment solutions that add value at the point-of-sale for consumers, merchants and acquirers.

Headquartered in Phoenix, Arizona, Hypercom markets its products in more than 70 countries through a global network of affiliates and offices in Argentina, Australia, Brazil, Chile, China, Germany, Hong Kong, Hungary, Japan, Mexico, Russia, Singapore, Sweden, the United Kingdom and Venezuela. Hypercom’s Internet address is [www.hypercom.com][1].

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

Details

Chargeoffs Drop Again

Bank credit card charge-off rates resumed their decline in September, according to Standard & Poor’s Credit Card Quality Index of $295 billion in receivables held in trusts of publicly rated credit card-backed securities. Despite expectations that the monthly charge-off rates would increase modestly in September, following lower charge-offs due to seasonal decline in August, the monthly charge-off rate dropped to 5.4% in September, 30 basis points below the 5.7% rate recorded in August. This represents the largest drop since August 1996, when charge-offs fell 40 bps. The 5.4% charge-off rate represents the lowest charge-off rate since the early 1990s when performance for the major trusts was first tracked. Additionally, delinquencies remained at 4.6%. Delinquencies have held steady for the last three months, suggesting that losses will likely stay at these levels rather than spike in the upcoming months. The other performance variables tracked by the indexes showed little change.

STANDARD & POOR’S CREDIT CARD QUALITY INDEXES

Distribution date 10/15/97 10/15/98 8/16/99 9/15/99 10/15/99
Performance month Sep 97 Sep 98 Jul 99 Aug 99 Sep 99
Outstandings(bil.$) 234.2 263.9 290.9 294.3 296.6
Yield (%) 19.1 19.2 19.2 19.8 19.1
Charge-offs (%) 6.7 6.3 5.7 5.7 5.4
Weighted base rate(%) 8.0 7.7 7.4 7.5 7.5
Excess spread (%) 4.4 5.2 6.1 6.6 6.2
Delinquencies (%) 5.3 5.1 4.5 4.6 4.6
Payment rate(%) 14.6 15.4 16.5 17.1 16.9
Source: Standard & Poor’s

Details

HSBC 3Q/99

HSBC slipped in the third quarter according to data gathered by CardData. Receivables decreased from $1,150,824,000 for 2Q/99 to $1,113,558,000 for 3Q/99. Gross accounts also contracted from 785,326 accounts for 2Q/99 to 741,577 for 3Q/99. Actives also declined from 425,981 for 2Q/99 to 397,148 for 3Q/99. Cards-in-force also slipped by 50,000 from 953,060 cards for 2Q/99 to 898,637 for 3Q/99. For more details visit CardData ([www.carddata.com][1]).

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

Details

Providian Shuffle

Providian Financial has created a new division, Emerging Businesses, and has named Seth Barad as division head. David Alvarez, who has been responsible for Providian’s unsecured credit card business, has been named president, Credit Cards. Providian also named James Rowe, EVP, E-Commerce. Rowe has headed Providian’s E-Commerce division since it was formed in February and also serves as CEO of its subsidiary, GetSmart.com. Providian also named Ellen Richey to the newly-created position of Vice Chairman. Richey will continue in her capacity as General Counsel, a position she has held since 1995.

Details

Hunt Involved With Default Proof

Default Proof Credit Card System, Inc. announced that David K. Hunt, Chief Executive Officer of Twinsburg, Ohio based PlanSoft Corporation, has joined the Company as a member of the newly formed Default Proof Credit Card System, Inc. Advisory Board.

PlanSoft is a leading worldwide provider of Internet based, business-to-business, e-commerce, solutions for the meeting, convention and event industries.

Mr. Hunt has an extensive financial community background. Prior to his current occupation, Mr. Hunt served as, President, CEO and Director of Global Payment Systems. Global provides electronic transactions, information and electronic commerce solutions for financial institutions, corporations and government agencies. Previous to Global Payment Systems, Mr. Hunt was President and Chief Executive Officer of AT&T Universal Card Services Corporation, where he was accountable for P&L, all operations, and developing and executing overall business strategy for one of the country’s largest credit card issuers. As an AT&T officer and member of Global Operations Council, Mr. Hunt helped shape AT&T’s future strategy. Mr. Hunt has also served in the previous capacity as senior executive vice president of Signet Banking Corporation, where he was responsible for numerous retail activities over a number of years.

The Advisory Board will bring levels of expertise and business exposure to the Company during this very important phase in the Company’s forward development. The Company is preparing to launch its dynamic new web site ubuydebitcards.com (patent pending) and anticipates favorable action from the U.S. Patent and Trademarks Office on its revolutionary ATM Debit Cards Dispenser (patent pending). The Company is conducting substantive negotiations involving opportunities surrounding both patents pending. It is anticipated that Mr. Hunt, as well as other yet to be named Advisory Board members, will provide valuable cooperation and input in support of the aggressive activities and marketing plans of the Company.

The worldwide e-commerce capabilities of the ATM Debit Cards Dispenser as well as of ubuydebitcards.com, are both integrated into the intellectual property of the Company.

Details

1ClickCharge CFO

1ClickCharge, the pioneering single-click Internet payment service, announced the appointment of Joseph W. Rio as Chief Financial Officer. As 1ClickCharge’s CFO, Rio will supervise all accounting and financial matters, including reporting, budgeting, managing audits, and developing and reviewing internal controls. In addition to finance, Rio is responsible for legal, human resources and facilities.

Rio joins 1ClickCharge from the position of Vice President and Controller of Vendor Financial Services, a $13 billion (assets) subsidiary of GE Capital. His responsibilities there included accounting, internal and external reporting, treasury and cash management, and financial integration of acquisitions for the 13 businesses that comprise VFS. Previously, he was a CPA with Arthur Andersen and Company, and held various financial management positions during a ten-year career at MasterCard International. As Senior Vice President and Controller at MasterCard, Rio was selected Financial Executive of the Year in 1996 by the Westchester Chapter of the Institute of Management Accountants for leading revenue and expense strategies that improved MasterCard’s operating margin from zero to six percent. Other positions he held at MasterCard include Vice President of Budgets and Financial Analysis, Director and Assistant to the Chief Executive Officer, and Manager of Financial Analysis.

“We are very pleased to add Joe to our superior management team with his strong technical skills and successful track record as a financial strategist,” said Heidi R. Goff, President and CEO of 1ClickCharge. “With Joe taking the reigns as CFO, I will be able to fully concentrate on the major expansion of the 1ClickCharge payment service.”

Rio earned his MBA in Finance and Accounting from Northwestern University and received a B.S in Biology from Loyola Marymount University.

About 1ClickCharge(TM)

1ClickCharge’s Web payment service makes credit cards perform like cash on the Internet. With its patented authentication technology, 1ClickCharge gives consumers the ability to easily purchase web content on a pay-per-use basis in small dollar amounts. Because 1ClickCharge is 100% outsourced, merchants will quickly realize profits without the technical hassles typically associated with setting up their own Internet payment service. 1ClickCharge’s mission is to lead the industry in single-click Internet payments under $20, a market space it calls Convenience e-Commerce(TM). The company is led by Heidi R. Goff, President and CEO, a 20-year senior management veteran of MasterCard, GlobalPay, ADP and IBM; and Brian Smiga, SVP of Marketing and Business Development, formerly co-founder of software companies Actioneer.com and DaytoDay. 1ClickCharge is a service of 1ClickBrands, LLC, a majority-owned operating company of CMGI, Inc. (Nasdaq:CMGI). Visit the company’s Web site at [www.1clickcharge.com][1].

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

Details

IVI & Ahold

IVI Checkmate Corp. announced Monday an agreement with Ahold U.S.A. Inc. of Washington D.C., naming IVI Checkmate as its preferred supplier of customer-activated payment terminals. Ahold is the leading supermarket operator along the eastern seaboard with more than 1,000 stores represented as five operating companies: Stop & Shop, Giant-Landover, Giant-Carlisle, Tops Markets and BI-LO. The estimated revenue value of the two-year agreement is in excess of $5 million.

The agreement specifies that IVI Checkmate will supply eN-Crypt(TM) 2100 customer-activated payment terminals and eN-Touch(TM) 1000 customer-interactive touch screen and signature capture terminals for installation at Ahold USA subsidiaries’ checkout lanes. The eN-Touch 1000 provides touch screen technology that enable retailers to implement graphically based consumer payment and value-added services that drive incremental sales. In addition to supplying terminal hardware, IVI Checkmate will provide software and support services during the tenure of the agreement.

IVI Checkmate is the third largest electronic transaction solutions provider in North America. The Company designs, develops, and markets innovative payment and value-added solutions that optimize transaction management at the point-of-service in the retail, financial, travel & entertainment, healthcare, and transportation industries. IVI Checkmate’s software, hardware, and professional services minimize transaction costs, reduce operational complexity, and improve profitability for its customers in the U.S., Canada and Latin America. For more information on IVI Checkmate, visit its web site at [http://www.ivicheckmate.com][1].

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

Details

Credit Store Promotions

The Credit Store said Friday that, at a recent meeting of its Board of Directors, the following title appointments were confirmed:

– Michael J. Philippe, Chief Financial Officer and Treasurer, was named an executive vice president of the Company.

– Richard S. Angel was named an executive vice president and General Counsel. He was formerly vice president and corporate counsel.

– Cynthia D. Hassoun, Corporate Secretary, was named a senior vice president. She was previously a vice president.

– Patrick Steffl was named a senior vice president. Mr. Steffl is in charge of Marketing and Portfolio Acquisition and was previously a vice president.

The Board of Directors also confirmed the following senior managers as new vice presidents of the Company:

– Deb Griese, Controller.

– Jean Gerritsen, Director of Operations

– Pat Lund, Director of Human Resources.

– Charles A. Schultz, Director of Finance .

Martin J. Burke III is The Credit Store’s Chairman and Chief Executive Officer and Kevin T. Riordan is President and Chief Operating Officer. Messrs. Burke and Riordan said, “The Credit Store’s Board of Directors wishes to express its gratitude in a significant and important way through these promotions. The success of our Company — and its rapid move to profitability from its start-up –are to due to the smart and dedicated work of each of these individuals.”

At the same meeting, the Board also confirmed William Buriak as a senior vice president and Chief Information Officer and Jonathan Pike as senior vice president of Operations. Messrs. Buriak and Pike have just joined The Credit Store’s senior management, as recently announced.

The Credit Store, Inc. is a nationwide financial services company engaged in the acquisition and recovery of non-performing consumer receivables and the origination and servicing of credit cards. The Company acquires portfolios of non-performing consumer receivables and originates new credit cards to those consumers who agree to pay all or a portion of the outstanding amount due on their debt. The new card is issued with an initial balance and credit line equal to the agreed repayment amount. After appropriate seasoning, The Credit Store attempts to sell or securitize the credit card receivables generated by its business strategy. The Credit Store began its current operations in Oct. 1996.

Details

Fee Production

With the recent consumer backlash over punitive cardholder fees, many of the nation’s top issuers are building new revenue streams with fee-based services. More than five million Citibank cardholders have signed up for at least one fee-based service while more than one million cardholders have enrolled in two or more fee-based services, according to marketing intelligence gathered by CardWatch ([www.cardwatch.com][1]). The most lucrative new product is a debt suspension/cancellation product. Under such programs cardholders pay a monthly fee and in return their credit card account is frozen in the event of unemployment, temporary disability, family leave, or other specific reasons. Debt cancellation takes effect if the cardholder dies. Since these programs are totally in-house it eliminates privacy issues with sharing cardholder data with third parties and offers a much higher profit margin since it cuts out an insurance partner. Net profit margins for debt deferment programs average nearly 80% compared to the 54% net margin for credit insurance programs. Unlike insurance, debt suspension or debt cancellation programs are not regulated. Over the past year, Citibank and Wells Fargo have introduced debt suspension products. Capital One, Fleet and Providian have offered such debt deferment programs for at least three years.

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

Details

NPC Gets Papa John’s

NPC (National Processing Company) announced that it has entered into an exclusive agreement with Papa John’s International to provide point-of-sale credit card processing services. This agreement increases NPC’s leadership in the emerging quick service restaurant/home delivery market.

Under a new long-term agreement, NPC will provide processing of Visa and MasterCard transactions for all corporate Papa John’s locations.

“We are excited to have Papa John’s as a part of NPC’s Merchant Service business,” said Tom Wimsett, President and CEO of NPC. “The restaurant/home delivery market is an industry segment in which NPC is very focused. Papa John’s is an outstanding company, and we are very pleased to be assisting them in expanding their payment options to include credit card acceptance.”

“Partnering with NPC makes a lot of sense for Papa John’s,” said Lou Di Fazio, Papa John’s International’s Vice President of Corporate Operations. “At Papa John’s we have raised the bar on quality in the pizza category and NPC is helping us provide additional quality and service to our valued customers. Credit card acceptance is simply another way for us to reach the consumer.”

National Processing Company is a leading provider of merchant credit card processing services and corporate outsourcing solutions. NPC processes over $100 billion in credit card sales representing over 2 billion transactions. Approximately 1 out of every 6 MasterCard and Visa transactions are processed by NPC. NPC can be found on the World Wide Web at [http://www.npc.net][1].

Approximately 88 percent of NPC is owned by National City Corporation (NYSE: NCC), a Cleveland-based $85 billion bank holding company.

Papa John’s International, Inc., headquartered in Louisville, Kentucky is the recognized quality leader in the pizza category and the fastest growing pizza company in America.

For three years running, Papa John’s has received the highest quality and overall customer satisfaction ratings among national pizza chains in the prestigious Restaurants & Institutions’ Choice in Chains consumer survey (1997, 1998 and 1999).

[1]: http://www.npc.net/

Details