Credit Card GDV Increases 7.7% in 2007

General purpose credit card gross dollar volume is up 7.7% this year in the U.S. approaching a record $2.2 trillion. While VISA and MasterCard are still producing solid growth in debit cards this year, American Express is leading the pack in credit card GDV rising 12.5% in 2007. VISA’s credit card volume is running about 7.4% higher than last year as MasterCard’s credit card GDV is up 5.8% year-on-year. Discover’s credit card volume was up 2.6% though the third fiscal quarter, however the network reported yesterday that U.S. credit card volume rose 6% during the fourth fiscal quarter. For the third quarter VISA had an estimated credit card volume of $247 billion, while MasterCard reported $164 billion, American Express posted $115 billion and Discover reported $31 billion, according to CardData ([www.carddata.com][1]).

U.S. Credit Card Volume
2000: $1243 billion
2001: $1330 billion
2002: $1427 billion
2003: $1525 billion
2004: $1673 billion
2005: $1838 billion
2006: $2031 billion
2007: $2187 billion
Source: CardData (www.carddata.com)

[1]: http://www.carddata.com

Details

POST OFFICE ATMS

At its Rotherham branch, the Post Office has installed its landmark,
1000th “free-to-use” ATM. ATM transactions have increased from less than
140 per week to over 1600 since the introduction of this ATM solution. For
2007, ATM users have withdrawn GBP 1.2 billion from the Post Office ATMs,
conducted 20 million transactions and have saved nearly GBP 21million in
fees. With its partner, the Bank of Ireland, the Post Office has sights
set on further deployment over the coming months.

Details

FleetCor MasterCard and TrimWeb Integrated

CA-based Trimble has introduced its “FuelGuard” reporting feature, a suite of fuel management reports that combines FleetCor MasterCard fuel purchase information with Trimble’s “TrimWeb” fleet productivity service for improved Mobile Resource Management. The new feature enables operators to more easily identify the fueling of unauthorized vehicles on company-issued fuel cards and allows fleet operators to measure the return of fuel reduction efforts such as optimizing miles driven, reducing engine idle time, and reducing vehicle speeding. Fleet owners will be able to determine which fleet activities most impact actual fuel consumption and make data-driven decisions to maximize fuel reduction programs. FleetCor is a provider of fuel card processing serving over 650,000 business fleets with 3.5 million active cardholder.

Details

EXPATRIATED & WEB

Alliance & Leicester International research shows that, among expatriated
Britons, Internet use is a way of life. For example, 83% use the Internet
to shop, 63% use it for correspondence with loved ones, 69% use it for
news and 22% use it for sports and weather. Experts however conclude
that keeping up on finances is of the most fundamental importance for
those surveyed, with 47% checking their bank balance online at least once
a week. Other statistics show that 70% log on to the Internet daily with
25% online every hour. Alliance & Leicester International provides
customers with solutions to allow authorizations and account management
online with its “eSaver Offshore” service.

Details

Consensus Builds for a Weak 2008 Economy

U.S. financial professionals believe the U.S. economy will weaken over the next 12 months but will not slip into recession in 2008. Meanwhile, The Conference Board reported that the U.S. leading index decreased 0.4% in November. The index has decreased sharply for the second consecutive month, and it has been down in four of the last six months. Most of the leading indicators contributed negatively to the index in November, led by large declines in stock prices, initial claims for unemployment insurance, the index of consumer expectations, and real money supply. According to results of a new survey conducted in early December by the Association for Financial Professionals more than a third of the survey respondents expect their organizations to expand their U.S. workforce in the coming year. Financial professionals expect gross domestic product to grow modestly in 2008, with the median prediction at 2.5%. Only 4% expect the economy to contract in 2008. Top concerns of financial professionals are the decline in the U.S. dollar, rising energy prices, and the housing market. Eighty-two percent of financial professionals are paying closer attention to the declining value of the U.S. dollar; 63% of respondents believe the U.S. dollar will continue to decline against the Euro, while 54% expect the dollar to decline against the yen.

Details

Money Centers Completes Triple DES Conversion

Money Centers of America has completed the conversion of its ATM terminal network to VISA’s Triple Data Encryption Standard. Compliance with Visa’s PIN Security Program minimizes the risk of PIN compromise and reflects Money Centers of America’s commitment to security, network integrity, and consumer protection. Money Centers of America, Inc. provides cash access, transaction management system, and financial networks to the gaming industry.

Details

Fiserv’s CheckFree Hires a Top Sales Exec

CheckFree has hired Peter T. Crenier, previously with DST Output, as SVP of the CheckFree Investment Services sales team. Crenier is an accomplished senior-level, sales professional with more than 25 years of experience in the industry. Most recently, he was vice president national accounts for DST Output managing sales for the company’s $200 million financial services, insurance and health vertical markets. Before taking that role, Crenier was responsible for sales for DST Output’s $123 million dollar mutual fund vertical market. Prior to joining DST Output, he designed, developed and managed the first sales operations organization for Lycos, a leading provider of publishing, media and search services.

Details

CANADIAN CONSUMER

Environics Research Group research, conducted on behalf of Mastercard
Canada, has shown that with less than 7 days until Christmas many Canadian
consumers have yet to complete their holiday shopping. Moreover, 19% have
yet to begin their holiday shopping, 67% of whom are Canadian men. In
response to these findings, Mastercard recommends to these shoppers to
decide in advance what needs purchasing, avoid crowds by shopping during
off-hours, buy gifts for multiple recipients at once, maintain all
receipts to compare with card statements and to shop online if possible.

Details

Intuit Takes a 2nd Stab at ECHO Acquisition

Intuit has inked an agreement to acquire Electronic Clearing House for about $131 million. Intuit had previously signed a deal to acquire ECHO in December 2006, but the parties mutually terminated the arrangement in March after ECHO encountered a government probe of its Internet wallet merchant business. ECHO reported this week that third quarter revenue declined 4.5% to $18.5 million. However, bankcard and transaction processing revenue grew 6% to $15.5 million, while bankcard processing volume increased 7% to $484.5 million. ECHO currently expects total revenue for fiscal year 2008 will increase by 10% from total revenue of $76.9 million for fiscal year 2007. Intuit says the combination will be able to round out its payment offering with check services. (CF Library 12/17/07)

Details

SmartCard Marketing & PDS Ink a Deal

Prepaid card provider SmartCard Marketing Systems has entered into an ISO agreement with TX-based Payment Data Systems to market payment processing services. This agreement is an expansion from the initial private label, open-loop debit card agreement between the two companies signed in March 2007. The first card program, a corporate promotion card for incentives, premiums and loyalty reward distribution, was successfully launched in September 2007. Payment Data Systems is an integrated payment solutions provider to merchants and billers.

Details