MASTERCARD RELIEF

In response to the devastating earthquake earlier in the week, MasterCard Worldwide announced its intentions to waive interchange fees on Haitian relief donations made using U.S. issued MasterCard cards to The American Red Cross, AmeriCares, UNICEF, Save the Children and CARE USA. MasterCard has also made a corporate donation to the American Red Cross and is double-matching employee contributions to the Haitian disaster relief fund of the American Red Cross. MasterCard processes approximately 21 billion transactions each year for consumers in more than 210 countries and territories.

Details

U.S. Retail Card Defaults Hit 12.56% in Dec 09

U.S. consumers defaulted on store-branded credit cards in December 2009
at near record levels, having risen 122 basis points (bps) to 12.56%
from the previous month and charge-offs for the year shattering the
January 2005 record of 12.25% five different months with a peak of
12.81% in August. Throughout the year, retail chargeoffs averaged
11.88% (more than 42% above the historical average of 8.34%).
This, according to Fitch’s “Retail Credit Card Chargeoff Index,”
demonstrated near-record default levels during the holiday shopping
season with expectations to rise steadily, subsequent to both
delinquency trends and unemployment projections. For December, the
Index indicates more than one in every eight dollars of receivables was
written off as uncollectable during the November collection period on
an annualized basis. Late stage delinquencies measured by Fitch’s 60+
day retail delinquency index, fell 15 bps to 5.22%, which averaged
5.25% for the past three months and 5.09% for all of 2009 while,
similar to chargeoffs, its deterioration has slowed significantly from
the previous year, yet remain almost 48% higher than 2007.
Subsequently, revolving credit usage decreased at an annual rate of
18.5% in November – the largest dollar-value drop since 1968 and the
14th consecutive decline since October 2008. Credit delinquency having
shot up to 6.70% and 6.88% in October and November, respectively, from
6.43% in September indicate the 09 Holiday shopping season was going to
see a correlating rise in defaults.

2009 CARD DELINQUENCIES
Days +30 +60 +90 +120 Total
Jan. 2.86% 1.47% 0.87% 0.99% 6.19%
Feb. 2.99% 1.58% 0.93% 1.02% 6.52%
Mar. 3.08% 1.61% 0.95% 1.04% 6.68%
Apr. 3.05% 1.59% 0.93% 1.03% 6.60%
May. 3.00% 1.57% 0.92% 1.03% 6.52%
Jun. 2.98% 1.56% 0.92% 1.03% 6.49%
Jul. 2.90% 1.53% 0.90% 1.00% 6.33%
Aug. 2.99% 1.55% 0.94% 1.05% 6.53%
Sep. 2.91% 1.59% 0.91% 1.02% 6.43%
Oct. 3.04% 1.64% 0.93% 1.09% 6.70%
Nov. 3.14% 1.69% 0.95% 1.10% 6.88%
SOURCE: CARDDATA

Details

ASIAN SESAMES

In recognition of Asia’s rising pre-eminence in the innovation and
application of smart technologies, the inaugural CARTES in Asia will
debut “Asian SESAMES Award,” an Asian edition of its CARTES in Paris’
prestigious SESAMES Awards. The Asian SESAMES Award will honor an
enterprise that has successfully created a leading edge smart technology
application in Asia, which has become a key part of one of the
industry’s leading events, the annual CARTES smart card and
identification conference in Paris, which celebrates its 25th
anniversary in 2010. It will be presented to the best project from a
variety of smart technologies categories concerning cards, tokens,
chips, electronic components, terminals, automaton, readers,
manufacturing, printing material, and more in transport, payment,
security and identification applications. The ceremony will be held
March 16, 2010 in Hong Kong at the AsiaWorld-Expo.

Details

DYETRON & OBERTHUR

Oberthur smart card solutions has acquired the payment card personalization assets of Dyetron smart card-based technology solutions for the transportation, communications, government and financial sectors. Having already formed a partnership in June of 2009 to create a service center for Colombian migration to EMV, the two organizations agreed on terms under which Oberthur is to lease the Bogota-based, MasterCard and Visa certified service centers. The service center will operate under the name Oberthur Technologies to provide seamless migration for local banks and easy EMV deployment for international banks with customers. EMV is the global electronic transaction specification that outlines interaction between chip (smart) cards and merchant terminals to ensure worldwide inter-operability to reduce fraud on standard magnetic stripe debit cards.

Details

NCR Managed Outsourcing Services Gain Strong Following in Germany

GA-based NCR is becoming an increasingly popular source for German banks to outsource monitoring, analysis and repair of their self-service systems. Having attracted over 20 German banks in the past twelve months alone, the outsourcing increases availability of their self-service offering while creating additional room for improvement. Signing Incident Management agreements with NCR, the banks entrust NCR with more than 2,000 ATMs, cash recyclers and statement printers to help further develop the business and achieve a more economical operation of their self-service systems on a faster, more efficient model.

Details

Syphr Introduces New Credit Report and Loan-Savings Site

Syphr technology provider has introduced MoreThanACreditReport.com new credit report and loan-savings website. MoreThanACreditReport.com is the only place consumers can leverage the site’s loan analysis report “RateMatch,” disclosing to consumers where they can save money each month on their automobile or mortgage loans with a local, community-based bank or credit union. MoreThanACreditReport.com provides consumers with their credit report, credit score, and credit monitoring, in addition to Loan Rates Report powered by Syphr’s “RateTrac,” a Loans Monitor powered by Syphr’s “Payment Patrol,” and a payment savings guarantee, which averages each user is $239.

Details

MasterCard Waives Fees on Donations to Relief

In response to the devastating earthquake earlier in the week, MasterCard Worldwide announced its intentions to waive interchange fees on Haitian relief donations made using U.S. issued MasterCard cards to The American Red Cross, AmeriCares, UNICEF, Save the Children and CARE USA. MasterCard has also made a corporate donation to the American Red Cross and is double-matching employee contributions to the Haitian disaster relief fund of the American Red Cross. MasterCard processes approximately 21 billion transactions each year for consumers in more than 210 countries and territories.

Details

SunTrust Selects MasterCard for Debit Card Issuance

SunTrust Banks and MasterCard have announced SunTrust will convert the company’s debit card programs to MasterCard, expected to begin late this year. The bank will issue nearly five million MasterCard debit cards and expand its current commercial card offering in the future to include MasterCard branded commercial credit cards. SunTrust will continue to offer Visa branded cards as an option for various consumer and commercial credit products. GA-based SunTrust Banks has total assets of $172.7 billion and total deposits of $119.3 billion, serving clients in the selected markets nationally. Terms of the Bank’s agreements with Mastercard were not disclosed.

Details

RushCard Members Given Chance to Win Incentives for DD

With the 2010 tax season in full swing, RushCard announced the “Lunch with Russell” tax season sweepstakes, now in its second year, will reward one lucky cardholder for direct depositing their tax refund onto their Prepaid Visa “RushCard.” This incentive for direct deposit is in addition to being an all around safer, more convenient way to receive payments and receipt of tax refunds 2-4 weeks faster than they would a paper check. Those “RushCard” members who direct deposit their federal or state tax refunds of $100 or more will automatically be entered to win a shopping spree, a personal financial consultation on better money management and a trip for themselves and a friend to New York to have an exclusive lunch with Russell Simmons, philanthropist, entrepreneur and creator of the “RushCard.” OH-based UniRush was created to offer the over 48 million Americans unbanked services on a Prepaid Visa.

Details

Stored Value Card to Provide WWE Card

KY-based Stored Value Solutions will provide World Wrestling Entertainment with gift and promotional cards. The gift cards will be offered on the WWE’s website and will feature several of their most popular superstars. By partnering with SVS, the WWE will offer this gift card program as an additional option to engage their consumers and fans in the WWE experience. Stored Value Solutions provides custom gift card solutions for prepaid cards, loyalty and B2B applications for a diverse set of clients including retailers, airlines, casinos and e-tailers. As a leading provider of magnetic stripe gift cards, Stored Value Solutions serves six of the top ten U.S. retailers and annually processes over 1 billion transactions for 600 clients.

Details

CPSI to Install EZ Card& Kiosk at Utah Jail

Continental Prison Systems, dba EZ Card & Kiosk, the industry leader for taking city and county jails “cashless” is set to install the EZ Technology line-up of products and services for Davis County, Utah. “Serving” over 600 inmates will be four kiosks with plans for additional kiosks down the road. The EZ Technology line-up hopes to take the Jail “Cashless” using the EZ Fully
Integrated Web Services Platform that automatically populates the Inmate Accounting System when the inmate is first booked into the facility via the EZ Booking kiosk to eliminate user errors and reduce staff time through the entire life-of-the-inmate from booking through their release.

Details

FSV Payment Systems Appoints CFO & Director

Network branded prepaid card provider FSV Payment Systems has tapped
Stephen Reesing as CFO and Matthew Frye as Chief Commercial Services
Executive. Reesing served for over five years as CFO of Netspend
Corporation, a leading prepaid debit provider. He will be based in FSV’s
Jacksonville, Fla., office. Reesing is replacing Mark Brockelman, of
Jacksonville, who is retiring. Frye, most recently a senior executive
with PreCash, will be based in FSV’s Houston headquarters.

Details