MasterCard has released a new iPhone application which gives consumers a location-based utility to find and share their favorite picks with friends and family. The “Priceless Picks” application is free for download and is separated into five categories including “Priceless”, “Dining”, “Shopping”, “Entertainment” and “Other.” the new app also offers “Send to a Friend” that allows the user to share their “Priceless Picks” with others via email. “Priceless Picks” will be supported by an advertising campaign that includes three new 15 second “Priceless” television spots breaking next week, produced by McCann Erickson NY. “Priceless Picks” marks the second in a series of iPhone applications from MasterCard, following “MasterCard ATM Hunter,” which lets iPhone users locate the nearest ATM no matter where in the world they are.Details
Credit card volume for the three largest U.S. issuers, ranked by outstandings, fell 18% year-on-year in the second quarter, after falling 17% year-on-year in the first quarter and nearly 13% year-on-year in the fourth quarter. According to CardData (www.carddata.com), the nation’s top three issuers posted $177.5 billion in second quarter volume, compared to $164 billion in the prior quarter and $209 billion for 2Q/08. Chase reported 2Q/09 charge volume of $82.8 billion, a decrease of 12% from the prior year. Excluding Washington Mutual, charge volume was $78.3 billion, a decrease of 16%. BofA posted global cards purchase volume of $51.9 billion,a 19.5% year-on-year decline. Citi reported that purchase volume dropped 18% from 2Q/08 to $42.4 billion. For complete details on second quarter performance visit CardData (www.carddata.com).
BofA* Chase Citi**
2Q/08: +5% +6% NC
3Q/08: -1% +5% -3%
4Q/08: -17% -8% -15%
1Q/09: -19% -15% -16%
2Q/09: -19.5% -16% -18%
* Global Cards
** North America Cards
Source: CardData (www.carddata.com)
Credit unions continue to nibble away at “Big Issuers” turf by now
offering card personalization tools. Dallas-based TNB Card Services
announced the availability of “Design It! Photocard” for all its credit
union clients. Each authorized user on the account can design their own
unique card. Users can upload, format, size and rotate pictures or
graphics. “Design It! Photocard” will receive full marketing support
from TNB in order to drive awareness and usage of the card
personalization tool. TNB says it offers an array of professionally
designed marketing collateral for credit unions to effectively promote
the new service to their members. TNB has more than 550 financial
institutions of all sizes and managing more than two million cards.
Atos Worldline, Heartland Payment Systems, Moneris Solutions, Radiant
Systems and Witham Laboratories electronic payment companies have joined
the non-profit Secure POS Vendor Alliance (SPVA). Created by Hypercom,
Ingenico and VeriFone to foster widespread compliance of existing
security standards to protect cardholder information and defend against
security breaches, the new SPVA members can now provide key security
elements among consumers, merchants and transaction acquirers and
issuers. As a ‘General Member,’ Atos Worldline electronic payments and
transactions, Heartland Payment Systems credit/debit/prepaid card
processing, Moneris Solutions payment solutions, Radiant Systems retail
POS and Witham Laboratories payment security evaluation services now
meet security guidelines, can ensure best practice implementation and
continue to evolve security enhancements to reduce fraud and lower risk
for all participants in card payment transactions.
A new report predicts that the ripple effect of the economic downturn will significantly impair balance growth for the credit card industry through 2010 and that modest growth will resume only
in 2011. TowerGroup also suggests that “Credit CARD Act” will place the bank card industry in suspended animation. Card issuers will be unwilling to liberalize their credit policies until they can calculate the financial risk and reward trade-offs resulting from the new law. The research firm foresees that this could take at least six months to a year after the enactment of the “CARD Act” and that growth will be minimal until mid-2011. TowerGroup further notes that the risk to credit card issuers is that consumers having reduced access to credit will adjust their purchasing behavior, becoming comfortable with pay-now (debit) and pay-ahead (prepaid) products, and will no longer rely as much on credit card lending.
Mobile prepaid solution provider Veritec has been registered by
CA-based Security First Bank in Visaâs “Third Party Registration
Program”. Veritec is now a registered Cardholder Independent Sales Organization
and Third-Party Servicer. As a Cardholder Independent Sales
Organization, Veritec may promote and sell Visa branded card programs.
As a Third-Party Servicer, Veritec provides back-end cardholder
transaction processing services for Visa branded card programs on behalf
of Security First Bank. Security First will start issuing Visa branded prepaid cards on
Veritec’s mobile banking platform. The platform
will also support Veritec’s MTC Mobile Toggle Card Program.
Veritec is now positioned as a registered front-end sales organization
and back-end processor of Visa branded prepaid cards that are issued and
processed on Veritecâs very own banking software platform that is
licensed to the card issuing banks.
Over the past twelve months average managed charge-offs among the
nation’s top three issuers have nearly doubled, rising from 5.49% for
2Q/08 to a record 10.67% for 2Q/09. Sequentially, charge-offs jumped a
staggering 242 basis points, according to CardData. Chase reported that
its managed net charge-off rate for the second quarter was 10.03%, up
from 4.98% in the prior year and 7.72% in the prior quarter. Excluding
Washington Mutual, the managed net charge-off rate for the second
quarter was 8.97%. Chase notes that within the WaMu portfolio,
charge-offs hit 19.17%, compared to 14.57% in the first quarter and
12.09% at year-end 2008. BofA reported that second quarter charge-offs
for its global cards rose to 11.73%, compared to 8.62% for 1Q/09 and
5.96% one-year ago. Citi posted managed charge-offs for its North
American cards of 10.25% for the second quarter, compared to 8.42% in
the first quarter and 5.54% in the second quarter of last year. For
complete details on second quarter results visit CardData
BofA* Chase Citi**
2Q/08: 5.96% 4.98% 5.54%
3Q/08: 6.40% 5.00% 5.90%
4Q/08: 7.16% 5.56% 6.68%
1Q/09: 8.62% 7.72% 8.42%
2Q/09: 11.73% 10.03% 10.25%
* Global Cards
** North America cards
Source: CardData (www.carddata.com)
In response to research showing 17% of consumers believe online retail
is the least trustworthy retail sector, paired with the notion 83% of us
share that the amount of fraud is increasing everyday, GB Group identity
management solutions has signed a three year deal with ClickandBuy
e-Payments to provide users greater identity protection. Authorizing
ClickandBuy payment processing services for more than 14,000 online
merchants across 26 countries, GB Group monitors for signs of risk and
verifies for customers merchant identities and whether or not they are
authorized to make the required payment. If there is deemed to be any
risk, a full identity check will ensue instantly at the point of sale,
thus reducing the risk of someone else stealing card details on sites
supported by ClickandBuy, which serves consumers using 126 different
currencies and 46 different payment methods.
Bankruptcy alternative Credit & Debt Management of America has named Jason Byrum as Vice President of Sales.
Byrum will be responsible for the entire sales organization
of CDMA. He will also be responsible for new and ongoing training to
ensure CDMA sales people have all of the tools and resources needed to
be successful. He will be responsible for ensuring that during
the company’s growth, the same high standard of ethical service is given
to all customers and the company continues to be recognized as an
industry leader. Byrum joins the company after spending the last 4 years with one of the
largest debt settlement companies in the nation, where he served as the
Director of Training and Development focused on training 50 to 80 new
sales people on a regular basis and is a certified member of the American Management Association and was
nominated as a Training Top 125″ from Training Magazine.
Discover has tapped Mark Zaeske, previously with JPMorgan Chase, as SVP
of finance and chief accounting officer. Zaeske was with JPMorgan Chase
where he served in a variety of positions, including as chief financial
officer of the companyâs Worldwide Securities Services Division, CFO of
the Treasury Services Division, and CFO of the Commercial Banking
Division. Most recently, Zaeske was the Western Hemisphere regional
executive, Treasury, Liquidity and Investment Products at JPMorgan.
Prior to his employment with JPMorgan, Zaeske was treasurer of AIG
retirement savings from 2000 to 2003, and worked as an associate
director and later, assistant treasurer, for Citigroup from 1996 to
2000. He has a bachelorâs degree from the University of Texas and an MBA
from the University of Chicago.
MI-based “supercenter” retailer Meijer is providing thousands of free
Meijer gift cards to families in need through local food pantries.
Each Meijer store will provide 100 free gift cards, each valued at $10,
to a local food pantry to distribute to needy families.
This program comes on the heels of Meijer’s successful “Simply Give”
program, where the company partnered with its customers to generate gift cards for food
pantries to use to stock their shelves. To date, Meijer and its customers have
raised more than $500,000 for local food pantries throughout the Midwest.
Fiserv has signed account processing contracts for five new credit
unions for the “Portico”, “CubicsPlus” and “Galaxy” credit union platforms.
In addition to choosing a Fiserv account processing solution, all of the
credit unions also selected a wide range of value-added Fiserv
solutions, such as Card Services, “Virtual Branch” Internet banking,
“Wisdom” accounting tools, “ConvergeIT” interactive voice response and
other best-of-breed products to help streamline workflows and drive
efficiencies across their enterprise. CT-based Seasons Federal Credit
OH-based Ashtabula County School Employees Credit Union and Miami-based
United Police Federal Credit Union will implement the
Portico credit union platform. Eastern New York Federal Credit Union
will be moving
to the Galaxy credit union platform and TX-based Morris Sheppard
Texarkana Federal Credit Union plans to
implement the CubicsPlus credit union platform.