Top Issuer Charge-Offs Drop-Off in November

With only 16.3% of consumers having used credit cards over the Black Friday weekend, down from 30.9% in the year ago period, the top four Visa/Mastercard issuers witnessed a major drop in card charge-offs. Citi charge-offs declined slightly to 10.29% and BofA charge-offs declined from 13.22% in October to 13.00% in November. American Express reported its charge-off ratio dropped from a peak of 10.1% in April to 8.4% for September, 7.8% in October and 7.6% for November. Capital One reported its charge-off ratio rose to 9.60% for November from 9.04% in October. Discover said its managed net charge-off rate increased to 8.43% for the fourth quarter, up 295 basis points and four basis points from the prior year and the prior quarter, respectively. For complete details on the latest metrics visit CardData (www.carddata.com).

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AmEx Global Wins $3.2B Renewed Client Business

American Express Global Business Travel has won through November 2010 more than $2.3 billion in new managed travel business1 with clients spanning from small and mid-sized companies to large market, multinational and global businesses worldwide. Transaction volumes are also on the rise and have seen double-digit growth globally. For client contracts up for re-signing, it was also reported that renewed client business accounted for $3.2 billion year-to-date. New clients won by American Express Global Business Travel in 2010 include AMN Healthcare Inc. (U.S.), AXA Canada LTD (Canada), CareerBuilder LLC (U.S.), FIS (U.S.), Health Care Services Corp (U.S.), Logica (France), NCH Corporation (U.S.), NG (H.K.), Regus (EMEA), Societe Generale (H.K.), The University of Nottingham (UK), Triumph (H.K.).

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Hypercom Card Payment Expands to Philippines

Hypercom has won contracts with the Bank of the Philippine Islands (BPI), which will now offer Hypercom card payment through its more than 800 branches. BPI will begin deploying thousands of Hypercom Optimum payment systems to merchants across the country over a three-year mass rollout. Global payment technology leader Hypercom Corporation delivers a full suite of high security, end-to-end electronic payment products, software solutions and services to address the high security electronic transaction needs of banks and other financial institutions, processors, large scale retailers, smaller merchants, quick service restaurants, and users in the transportation, petroleum, healthcare, prepaid, self-service and many other markets. Hypercom is also a founding member of the Secure POS Vendor Alliance (SPVA).

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Citibank Launches Enhanced Preferred Banking

Citibank introduced its enhanced “CitiBusiness” Preferred Banking for small business owners. Focused on providing more flexibility, convenience and value, “CitiBusiness” is part of Citibank’s renewed commitment to serving the needs of small businesses, which are crucial to job creation and economic recovery in the United States. In addition, CitiBusiness Preferred Banking addresses the increasingly global nature of doing business today, as more and more small businesses look to tap global markets as a way to find new customers and drive sales. The new CitiBusiness Preferred Banking package offers the small business owner Business Interest Money Market Account; Free online stop payments; and the Free Citigold personal account.

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Payment Processing & Encrypted Card Data Partner

Empower Software Technologies has integrated its “Storage Commander” V4 and V5 with PPI Managed Payer Data and PPI PayMover Encrypted Swipe from Payment Processing integrated payments. Elements of PPI’s Point-2-Point Cardholder Data Security Program, the Managed Payer Data and Encrypted Swipe technologies protect payment data through all stages of processing and play a critical role in bolstering PCI compliance for self storage operations. The “Storage Commander” utilizes Managed Payer Data for recurring business, allowing the storage of credit card data on PPI’s secure servers, significantly reducing risk for the self-storage operation and the customer.

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Citi Depositary for Sky-mobi ADR Program

Citi Global Transaction Services has been appointed by China-based Sky-mobi Limited (Sky-mobi) as the depositary bank for its NASDAQ-listed “Level 3” American Depositary Receipt (ADR) program. Sky-mobi’s ADR program was established through a $58,000,000 offering, with an initial offering price of $8.00 per ADR, each of which represents 8 ordinary shares. Citi offers issuers of debt and equity local expertise and is able to deliver specialized solutions for complex capital market transactions across more than 70 countries. Meanwhile, its Global Transaction Services division offers integrated cash managemen and fund services to multinational corporations, financial institutions and public sector organizations around the world.

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mUv

For last minute gift ideas, mUv is urging shoppers to log onto www.muvexperiences.com, order a “Weekend eCertificate” from and have it sent directly to their gift recipient. Each themed Weekend eCertificate from mUv is redeemable against one of a selection of experiences in locations across Canada. The certificate recipient chooses himself his all-inclusive experience online, books it by phone and redeems the eCertificate against the selected package, on location. There are 9 themes and more than 500 experiences in dining, getaways, wellbeing or outdoor activities to choose from, starting at $39.99. Offer a mUvWeekend Spa eCertificate to your spouse, a Charming Hotel to your parents or an Extreme to your teenager; you’ll give them all memorable moments they’ll thank you for, long after Christmas is gone.

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Credit Union Credit Card Outstandings Up 4.4% Y/Y

Third quarter 2010 credit union credit card portfolio trends indicate outstanding credit card balances grew at an annual rate of 4.4% between September 2009 and September 2010 to $35.2 billion. This is a slower rate of growth compared to the September 2008-2009 cycle rate of 7.9%. With this, card accounts grew at a 1.76% annual rate over the same period to 13.1 million and cards as a percentage of total assets accounted for 4.4% for no change from the third quarter of 2009. This, according to AssetExchang analysis, also shows credit card penetration continues to trend near 17% while among credit unions with card portfolios larger than $1 million, there were two card portfolios sold with a combined balance of approximately $12 million.

Credit Card Key Performance Indicators
US Credit Unions
SEP06 – SEP10
SEP06 SEP07 SEP08 SEP09 SEP10
Balance Growth 12.41% 16.27% 14.72% 7.92% 4.40%
Account Growth 3.39% 5.44% 4.33% 3.83% 1.76%
Cards as % of
Total Assets 4.07% 4.38% 4.57% 4.44% 4.43%
Penetration 16.52% 16.91% 16.94% 16.83% 16.92%
Average Balance
Per Account $ 2,070 $ 2,282 $ 2,510 $ 2,609 $ 2,676
Credit Line
Utilization 28.35% 29.17% 30.63% 31.35% 32.56%
Charge-Offs
(annualized) 1.53% 1.57% 2.49% 4.18% 4.31%
Delinquencies
(60+ DPD) 1.32% 1.18% 1.63% 2.01% 1.64%
Source: NCUA, AssetExchange, Highline Financial

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LifeLock Proudly Hits 2 Million Customer Mark

LifeLock now helps protect nearly 2 million Americans from the growing threats of identity theft using its state-of-the-art LifeLock Identity Alert™ system. Using multiple technologies and data sources, the LifeLock Identity Alert™ system helps better defend members against the inherent risks of identity theft by searching more than 45 million data points daily. The advanced detection system has helped stop more than 13,000 potential identity theft threats in 2010. This advanced detection system can identify fraudulent applications for many forms of both credit and non-credit related services.

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AmEx & NBA Ink Multiyear Marketing Partnership

The NBA and American Express have partnered to forge a multiyear marketing partnership covering the NBA, USA Basketball, the Women’s National Basketball Association (WNBA), and the NBA Development League (NBA D-League). This revisits their partnership initially agreed on between NBA and American Express from 1995 to 2005 to provide Cardmembers exclusive experiences and access to regular-season and playoff games, and premier NBA events such as NBA All-Star, the NBA Draft, and NBA Games – London 2011, the league’s first-ever regular-season games in Europe. As an Official Partner of USA Basketball, American Express will also provide packages to USA Basketball games and events staged in the U.S. and internationally.

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Royal Caribbean Cruises to Implement Agilysys POS

Royal Caribbean Cruises in Miami has selected the Agilysys “InfoGenesis POS” system for deployment on an additional seven Royal Caribbean ships, for a total to 30 vessels that use Agilysys software solutions. The “InfoGenesis” POS system is an award-winning point-of-sale software solution that combines powerful reporting and configuration capabilities in the back office with an easy-to-use touch-screen terminal application. Designed for multi-unit operations common in hospitality environments, the system can manage any combination of dining, bar, cabin service and gift shop operations. Features include real-time reporting capabilities, packages and prix fixe menus, signature capture, multi-language capability and advanced sorting, filtering and grouping options.

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O Bee FCU & Frontstream Pioneer Card Charity

O Bee Credit Union has partnered with Frontstream Payments to make available online charitable donations to help feed the hungry. Credit card donations are made securely via Obee Credit Union’s website and 100% of the donations go directly to the charity. O Bee Credit Union and Frontstream Payments have partnered to bring credit card processing of charity donations to a financial institution’s web site — specifically, food banks and other non-profits that might not otherwise have the online technology to accept gifts in this manner. FrontStream Payments provides payment products and services to small and medium-sized businesses and independent credit card sales organizations.

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