VPS

Visa has teamed with India’s Yalamanchili Software Exports to create a joint venture to extend Visa’s processing capabilities outside the USA and Europe. Singapore-based Visa Processing Service Pte. Ltd. began operations this week. Visa says VPS complements Visa’s “Debit Processing Service.” Initially, the JV will focus on providing financial institutions, processors and other payment companies with prepaid and debit processing solutions. Like Visa, VPS will also have capabilities to provide credit, ATM, money transfer and private label processing, as well as a range of payments services, including risk and fraud management, mobile applications, loyalty and cardholder support. Yalamanchili will provide its suite of “NARADA” software products -a multi-currency, multi-language platform for debit, prepaid and credit payment transactions; gateway services for international and domestic networks; and acquiring applications, including ATM terminal driving.

Details

CREDIT CRUNCH

The slashing of credit card credit limits in the United States will inevitably lead to a curtailment in available credit in other countries. Over the past five years credit card credit limits in Australia have soared by more than 50% and in the United Kingdom by 15%. In the U.K. debit cards account for about 74% of all purchases on payment cards, according to APACS. British cardholders owe about US$50 billion on credit cards but have access to about US$237 billion in credit limits as of third quarter 2008. In Australia, credit cardholders owe about US$30 billion but have access to US$78 billion in credit card credit limits. In Australia credit cards account for more than 53% of all purchases on payment cards, according to the Reserve Bank of Australia. While the U.K. is debit driven, the reduction of credit limits could emerge as a major factor in the faltering Australian economy once repricing peters out. Research conducted for Australia’s The Daily Telegraph revealed at least five card providers increased their interest rates in the past three months, even though the RBA has slashed the cash rate by 2% since September. Not a single credit card provider passed on the entire two percentage points of official cash-rate cuts announced since September.

Details

OCT DEBT

Credit card outstandings rose in October for the third consecutive quarter by GBP 400 million. Year-on-year credit card outstandings (not seasonally adjusted) were up about 3.6%. According to the The Bank of England, net credit card lending rose to GBP 56.1 billion in October from GBP 55.7 billion in the prior month. The increase of GBP 1.3 billion in total net lending to individuals in October was below the increase in September and the previous six-month average. The twelve-month growth rate slowed to 4.7%, and the three-month annualized growth rate fell by 80 basis points to 1.2%. The increase of GBP 800 million in net consumer credit in October was higher than that in September, but below the previous six-month average. Net other loans and advances rose slightly in October. The annual growth rate of consumer credit slowed by 50 basis points, to 5.5%; the three-month annualized growth rate fell by 10 basis points to 4.0%.

NOTE: Chart does not include about GBP10 billion from specialist
lenders, retailers, and insurance companies. SOURCE: Bank of England

Details

NuVision Teams for Discover Campus Cards

NuVision Networks has entered into a strategic alliance
with The Discover Network, Sutton Bank and Metavante to become the only
provider of Discover debit cards embedded within student body ID cards
at colleges and universities. NuVision Networks has entered into a
strategic alliance
with The Discover Network, Sutton Bank and Metavante to become the only
provider of Discover debit cards embedded within student body ID cards
at participating colleges and universities. The ID cards can
act as a “Good Funds” debit card, which is a card that will not affect
credit reporting status, will not incur fees, and can never be
overdrawn. They can monitor their account deposits; whether from
student payroll or parents, as well as their expenditures online and in
real-time, all without the need of bank or credit accounts. For every
deposit made by the institution; for refunds or student
payroll, the student will have access to one withdrawal at any ATM
without charge. The college or university can control how the card may
be used by placing restrictions on the card.

Details

CUP & CHINA POSTAL

China UnionPay Data Services has signed a credit card processing
agreement with China
Postal Savings Bank . CUP Data is China’s largest third-party processor
of bankcard accounts,
providing transaction processing, disaster recovery, data migration,
system integration and other value-added services for issuing banks in
China and has more than 50 signed
credit- and debit-processing client banks. China Postal Savings Bank
holds more than US$200 billion in deposits and
has more than 36,000 branches throughout every city in China. TSYS owns
a 44.5% equity stake in CUP Data, a subsidiary of China
UnionPay (CUP). CUP is the only payments network sanctioned by the
People’s Bank of China, China’s central bank, and has become one of the
world’s largest and fastest-growing payments networks.

Details

FNDS & MASTERCARD

Prepaid card issuer FNDS3000 has completed the certification
process with MasterCard in Africa with the launch of a MasterCard branded payroll card.
FNDS3000 has begun to serve the lucrative salary card market in
South Africa where an estimated 12 million employees remain unbanked, or
under banked with an aim issue approximately 1.2 million prepaid debit cards before the
end of 2009 in this market. FNDS3000 is a
financial transaction processing company providing prepaid debit card
and merchant processing solutions, gift cards, bill pay, prepaid cellular and other prepaid products.

Details

SI SERVIZI & TNS

Issuing and acquiring specialist Si Servizi has signed an agreement with Transaction Network Services for network
connectivity and payment transaction processing services.
The organization will use TNS’ services for dial up connectivity to
process payment transactions over the Public Switched Telephone Network.
Si Servizi will also utilize a special function of the TNSOnline
solution to allow its customers to monitor transaction activity through
terminal identification numbers rather than phone numbers.
The TNSOnline solution is a web based network management portal which
allows Si Servizi to monitor network devices, view transaction activity
in near real time, and provide problem management status.
Si Servizi is part of CartaSi Group, the leading card issuer and
acquirer in the Italian market. It provides companies, banks, and
financial institutions with electronic payment systems services and
solutions that support both front and back office activities.

Details

Consumer Debt Index Q3 Increases 30% Y/Y

The “Consumer Debt Index” for the third quarter of this year stood at 13.55, up more than 6.5% since the end of the second quarter and nearly 30% since the third quarter last year. Debt Settlement USA
reports that the increase in its “Index” was largely driven by the mortgage delinquency rate, which is up 16% over the past quarter, and nearly 87% in the past year. Additionally, the rate of consumer loans more than thirty days past due was up nearly 3.1% in the third quarter and increased by more than 16% since a year ago. The third quarter also saw a tightening of the consumer credit market, as consumer credit outstandings only grew by $8.1 billion, or about a third of a percent since the second quarter of this year. The “Index” is comprised of the Consumer Price Index, consumer credit outstandings, the mortgage delinquency rate, and the consumer loan delinquency rate.

Details

Black Friday Weekend Retail Sales Rise 7%

General merchandise, apparel, furniture, sporting goods, electronics,
hobby, books and other related store sales for November 28th rose 3%
over 2007 to $10.6 billion. Shoppers spent an average of $372.57 over
the “Black Friday” weekend, up 7.2% over last year as total spending
reached an estimated $41.0 billion. ShopperTrak reports that
regionally, the South lead the way with a 3.4% rise over 2007, with the
Midwest (+3.0%), West (+2.7%) and Northeast (+2.6%) closely following.
The NRF reports that Friday was clearly the busiest day of the weekend
with 73.6 million people hitting stores and Web sites for doorbuster
sales. Though traffic did subside after Friday, retailers were also
buoyed by two-day sales as 56.9 million people shopped on Saturday, up
from 48.3 million last year, while another 26.2 million people planned
to shop on Sunday. Thanksgiving Day also continues to increase in
importance as the number of people who shopped on Thursday was up 48%
over last year. The NRF found that 23.3% of shoppers were at stores by 5
a.m. while more than half were at stores by 9 a.m.

BLACK FRIDAY WEEKEND HISTORICAL
2004: $22.8 billion
2005: $27.8 billion
2006: $32.8 billion
2007: $38.5 billion
2008: $41.0 billion
Source: NRF

Details

CIBC CASH BACK

CIBC is paying out $75 million in annual cash
dividends earned by cardholders of CIBC Dividend and Dividend Platinum Visa
credit cards. Cardholders will find a credit
representing the cash rebate rewards they have earned throughout the year on their December statements.
Holders of the CIBC Dividend Platinum card earn up to 2%
of their net annual card purchases. The no-annual-fee CIBC Dividend
card rebates cardholders up to 1% of their net annual card
purchases. CIBC cardholders benefit from using their
cards in a multitude of ways beyond annual dividend payments such as the
more than 2,000 CIBC Aerogold Visa customers who fly with their Aeroplan Miles
every day, and more than 1 million flights or merchandise rewards are
claimed each year by CIBC reward card customers.

Details

OTI Third Quarter 2008 Revenues Rise 10%

New Jersey and Israel-based On Track Innovations reports that revenues
for the third quarter increased by 10% to $10.9 million. Net loss on a
GAAP basis for 3Q/08 decreased by 39% to $4.8 million. At the end of the
third quarter the Company had $106 million in total assets and $32
million in cash. During the quarter, OTI and Renesas Technology
partnered to develop a secure contactless microcontroller payment
certified by “MasterCard PayPass” and Visa; agreed to supply its
contactless readers to the ERG Group for Utah Transit Authority’s
contactless credit card bus payment solution; and its “Saturn 6000”
countertop reader and “Saturn 6500” outdoor reader has been approved by
Visa and MasterCard. For complete details on OTI’s latest performance
visit CardData (www.carddata.com). (CF Library 8/5/08; 10/4/08; 10/29/08).

Details

Aite Releases a Credit Card Issuing Analysis

A new report released by Aite details the ongoing challenges faced by
credit card issuers such as new customer
acquisition, card activation, and customer retention and card usage.
The report is based on interviews with 12 of the top 100 U.S. credit card
issuers and examines issuers’ attitudes toward their vendors, including card
networks and processors. Credit card issuers are going through their
most turbulent times since
the introduction of credit cards. Potential new legislation and
regulation threatens to reshape their business model, and issuers are
facing rising charge-offs and a continued assault from merchants
lobbying to cap or reduce interchange rates.

Details