FVC & VASCO

VASCO Data Security International announced that Value Added Distributor
FVC has become VASCO’s first authorized
training center and certified partner for “VACMAN Middleware” and
“Identikey” in the Middle East. FVC distributes
VASCO’s “DIGIPASS” technology, VACMAN authentication software, aXs GUARD
and Identikey through its channel network enhancing the availability of
VASCO’s authentication solutions across the Middle East, Northern Africa
and Pakistan. As a certified partner, VASCO offers FVC the leverage to enhance its
core offerings and strengthen their relationships with valued customers.
The partnership allows VASCO to bring added value to their end-users
through FVC’s market knowledge, expertise and ability to customize
solutions and services. VASCO is a leading supplier of strong authentication and e-signature
solutions and services specializing in Internet Security applications
and transactions.

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Big 3 Charge-Offs Average 5.83% for Q3

Credit card charge-offs for the nation’s three largest issuers, Chase, BofA and Citi jumped again in the third quarter, now approaching an average of 6.00%. BofA posted third quarter charge-offs of 6.40%, compared to 5.96% in the prior quarter and 4.67% one-year ago. However, BofA’s 44 basis point sequential increase in charge-offs was an improvement over the 77 basis point jump in the second quarter. Citi reported 3Q/08 charge-offs of 6.10%, compared to 5.72% in the prior quarter and 3.86% one-year ago for its Visa and MasterCard domestic programs. Citi’s 38 basis point sequential increase in charge-offs was also an improvement over the 79 basis point jump in the second quarter.
Chase, the nation’s largest issuer, posted third quarter charge-offs of 5.00%, compared to 4.98% in the prior quarter and 3.64% one-year ago
However, Chase’s two basis point sequential increase in charge-offs was far better than the 61 basis point jump in the previous quarter. For more details on third quarter credit card performance visit CardData ([www.carddata.com](http://www.carddata.com))

Credit Card Charge-Offs
3Q/07 4Q/07 1Q/08 2Q/08 3Q/08
BofA 4.67% 4.75% 5.19% 5.96% 6.40%
Chase 3.64% 3.89% 4.37% 4.98% 5.00%
Citi 3.86% 4.30% 4.93% 5.72% 6.10%
Source: CardData (www.carddata.com)

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Meta Payment Systems Joins PCI Council

Meta Payment Systems has joined the
PCI Security Standards Council as a new “Participating Organization”.
As a Participating Organization, Meta Payment Systems will now have
access to the latest payment card security standards from the Council,
be able to provide feedback on the standards and become part of a
growing community that now includes more than 500 organizations. In an
era of increasingly sophisticated attacks on systems, adhering to the
PCI DSS represents an entity’s best protection against data criminals.
By joining as a Participating Organization, Meta Payment Systems is
adding its voice to the process.

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eCommLink and VAT Target Payroll Cards

Prepaid processor eCommLink and OR-based stored value solution provider
Virtual Automated Technologies have partnered and integrated platforms
to offer prepaid solutions for the payroll and incentive markets.
The first programs that eCommLink will process for VAT are prepaid
payroll cards to enable businesses to offer direct deposit to their
employees who do not have a traditional bank account Prepaid debit
cards for multi-level marketing commission payments, payday loans, and
consumer rebate and incentive programs will also be offered through this
partnership.

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INSIDE & ACT

INSIDE Contactless was recognized by contactless technology authority ACT Canada
as winner of its “Lorne Boates Award”. The INSIDE MicroPass contactless platform was chosen by Canadian issuers
and card manufacturers because it was fully certified, secure, and
available in abundant quantities to meet aggressive time-to-market
deadlines. Coupled with the platform’s proven performance in global
markets, INSIDE MicroPass has emerged as the platform of choice for
contactless payment in Canada. MicroPass platforms already power
thousands of contactless consumer transactions in Canada’s grocery,
restaurant, theater, gas stations, and retail outlets.

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WINCOR NIXDORF CENTER

Wincor Nixdorf is to open a prestige new business support centre and help desk in
Dartford with 200 staff to provide IT services to high-street retail names
from Drake House, Crossways Business Park, Dartford.
The company is relocating from
its existing office, Jupiter House at Orbital Business Park in Dartford,
as well as transferring operations and personnel from other regional
business centres and taking on new staff.

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Big 3 Outstandings Rise 5.3% for 3Q/08

Credit card outstandings for the three largest U.S. card issuers, Chase, BofA and Citi, grew by an average of 5.3% in the third quarter. The growth was led by Chase, posting a 7% gain over 3Q/07 to $159.3 billion. BofA was only up 1% to $183.4 billion, while Citi posted a 2.5% increase to $96.0 billion, according to CardData. The three largest issuers have a 53% collective market share in the U.S. market with $438.7 billion in end-of-period 3Q/08 outstandings. American Express will report third quarter results this afternoon. Visa will report third quarter financial results and second quarter card statistics next week. MasterCard is set to issue its full third quarter performance report the week of November 3rd. For the latest third quarter results visit CardData ([www.carddata.com](http://www.carddata.com)).

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Size and Location Affect Overdraft Fees

New research has found large disparities in checking overdraft fees
across the country. The study by Chicago-based Moebs Services
found that financial institutions in Miami charge an average fee of
$30.26 per OD, while the average fee per overdrawn check in Washington
D.C. is $28.15, and in Denver is $28.02. Banks and credit unions with
less than $100 million in assets charged an average of $24.28 per
overdrawn check; those with $100 million to $1 billion charged $26.74;
financial institutions with more than $1 billion charged an average of
$27.93; and banks with more than $20 billion in assets charged $33.43.
Moebs also found that debit-card overdrafts are allowed by an average of
47.8% of banks and 57.9% of credit unions. The national average for
debit card overdrafts is 52.7%. ATM overdrafts are allowed by an average
of 33.5% of banks and 40.5% of credit unions. The national average for
ATM overdrafts is 36.9%.

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ICICI/BA AMEX

ICICI Bank and British Airways have partnered to launch American Express credit cards for Indian international travelers. The new “ICICI Bank British Airways American Express” credit cards offer up to 9 miles for every Rs. 100 spent on the card and a 5% discount on select flights charged to the card. The new co-branded card also offers a 25,000 mile bonus for cardholders who book and fly on British airways from India to the UK within the first three months of membership. There is also a bonus of up to 8,000 miles when the card is first used. The new program offers a “Classic” card for an annual fee of Rs. 3,500 or a “Premium” card for an annual fee of Rs. 7,000.

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FDC’s REMITCO and WFS Expand Services

WAUSAU Financial Systems and First Data subsidiary REMITCO have entered
into a new agreement that expands WFS’ proprietary software solutions
into a full service offering for remittance processing. Under the
agreement, WFS will provide multiple levels of service that
allow organizations to choose end-to-end remittance processing or a more
limited solution that can grow over time. The expanded solution can be
used by a number of industries, including financial services, utilities
and insurance companies. First Data will
host the software environment, manage the service facilities, and
provide the labor necessary to process the transactions. The agreement
also calls for First Data to beta test new WFS product development and
new releases and upgrades to the software. The WFS remittance solution
supports nearly 4 billion transactions annually. REMITCO has used the
WAUSAU Financial Systems software within its lockbox network for nearly
five years.

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PayPal’s Total Volume Rise 28% in 3Q/08

eBay reported that PayPal posted $597 million in net revenue for the
third quarter, an increase of 27% year-over-year, but flat sequentially.
Net total payment volume for the quarter was $14.8 billion, an increase
of 28% year-over-year. Global active registered accounts increased to
65.3 million, representing 19% year-over-year growth. During the third
quarter, PayPal handled 214.5 million payments, a 2% increase over the
prior quarter, and up 28% from 3Q/07. PayPal’s 3Q/08 transaction revenue
rate remained at 3.89% from the prior quarter and 3.87% in the year ago
quarter. The processing expense rate for the third quarter was 1.20%,
compared to 1.23% from the prior quarter and 1.21% for 3Q/07. PayPal’s
transaction loss rate inched up two basis points to 0.29%. For complete
details on eBay/PayPal’s third quarter performance, visit CardData
([www.carddata.com](http://www.carddata.com)).

PAYPAL HISTORICAL
$VOLUME #ACCOUNTS
3Q/07: $11.6 billion 54.8 million
4Q/07: $14.0 billion 57.3 million
1Q/08: $14.4 billion 60.2 million
2Q/08: $14.9 billion 62.6 million
3Q/08: $14.8 billion 65.3 million
SOURCE: CardData (www.carddata.com)

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Capital One U.S. Card Profits Down 45%

Capital One’s third quarter U.S. credit card profits of $340.4 million
were down 45% year-on-year, but up slightly more than 1% from the second
quarter. COF’s revenue margin rose 46 basis points year-on-year to
15.42%. Purchase volume in the U.S. declined slightly to $26.5 billion
for 3Q/08, compared to $26.6 billion one-year ago and $26.7 billion for
the prior quarter. Additionally, the number of U.S. card accounts
declined by 500,000 since the prior quarter to 37.9 million, and are
down three million, compared to one-year ago. U.S. managed card
outstandings were $69.4 billion for 3Q/08 compared to $68.1 billion in
the previous quarter and $66.7 billion for 3Q/07. The managed
delinquency rate (30+ days) for U.S. credit cards was 4.20% for the
third quarter, compared to 3.85% for 2Q/08 and 3.80% for the third
quarter of 2007. The net charge-off rate for U.S. credit cards was 6.13%
for the third quarter, compared to 6.26% for the second quarter and
3.85% one-year ago. Cap One says its U.S. Card business remains cautious
on loan growth and continues to focus its marketing and originations on
the parts of the U.S. Card market that the company believes provide the
best combination of risk-adjusted returns and losses. For complete
details on Capital One’s third quarter performance, visit CardData
([www.carddata.com](http://www.carddata.com)).

COF U.S. CARD NET INCOME
3Q/07: $626.8 million
4Q/07: $498.7 million
1Q/08: $491.2 million
2Q/08: $340.4 million
3Q/08: $345.0 million
Source: CardData (www.carddata.com)

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