TIM CARD

Tim Hortons has launched its preloaded “Tim Card” offering customers a
card solution that requires no minimum balance, service charges or expiry
dates. The card is being offered in Canada, with plans for United States
expansion in 2008, and can be loaded with any amount up to $200.
Online registration is available along with automatic reloading from a
credit or debit card. Tim Hortons has 2,733 restaurants in Canada and 345 in the
United States.

Details

CAPAZOO CASH CARD

Capazoo has launched a social networking website, Capazoo.com, that
operates on a unique model which adheres to the philosophy, “nothing is
free.” Unlike most other social networking sites, whereas users are used
as “puppets” for the advertising campaigns of big business, Capazoo.com
users are rewarded for their virtual work through its system of “Tipping”
and friend referral. Capazoo’s tipping system grants users points on a cash
card, which can then be converted to cash, for providing “tips” on fellow
users’ videos photos, music, profiles and blogs. These reward points,
“Zoops”, are redeemed from a portion of the websites advertising funds and
are in response to the greedy websites whom capitalize on the same token.
“Tipping” consists of users acknowledging one another for whatever
material is posted on their site and can earn up to 1,000 “Zoops” daily to
their card with no other limit. Regarding the referral program, those whom
invite others to join will earn “Zoops” for up to four generations of
members
that upgrade, also with no other limitations. Capazoo.com hails itself
as the
first of its kind with its own Member-driven economy.

Details

Monthly Payment Rates Slip a Bit in Sept

Monthly payment rates continued to remain healthy despite a challenged economy. MPR, or the amount that cardholders pay on their credit card debt each month, slipped to nearly 18.86% in September. The higher payment rates were driven by new minimum payment standards. According to CardData, the MPR declined to 18.30% in July, compared to 18.40% in the prior month and 20.46% one-year ago. While the dip historically has been seasonal, it appears that many borrowers are increasingly pressured by current economic factors. The combination of higher interest rates and a cooling off of the real estate market diminished the attractiveness of “cash out” refinancing activity in which many borrowers reduced their more expensive credit card debt by drawing on the equity in their home — either by refinancing their mortgages or by accessing their home equity lines of credit.

MONTHLY PAYMENT RATES
Sep 06: 20.02%
Oct 06: 20.83%
Nov 06: 20.01%
Dec 06: 19.70%
Jan 07: 19.88%
Feb 07: 18.79%
Mar 07: 18.21%
Apr 07: 18.04%
May 07: 19.01%
Jun 07: 18.40%
Jul 07: 18.30%
Aug 07: 18.99%
Sep 07: 18.86%
Source: CardData (www.carddata.com)

Details

Verizon Business Implements PCI DSS

Verizon Business has successfully implemented the “Payment Card Industry Data Security Standard” into its two U.S. managed hosting smart centers and achieved compliance with the VISA “CISP” for its transaction services network. Verizon Business combines a protected network, managed hosting centers and professional services to help businesses to comply with the “PCI DSS” for storing, processing and transmitting credit card information. With the July acquisition of Cybertrust, Verizon Business complemented its existing capabilities in the retail and financial services space with a full suite of PCI-related services and products. The “Verizon Online Compliance Program for Payment Card Industry” tool offers multiple views that are customized for retailers, payment service providers and acquiring banks.

Details

Credit Card Charge-Offs Set a New 07 High

Charge-offs headed north, hitting 4.81% in September to a new record for this year. This is the fourth consecutive month that credit card charge-offs have increased. There has been concerns that the mortgage meltdown may have spilled over into the general consumer finance market. During the third quarter Citi reported that charge-offs for bankcard and private label cards declined to 4.41% compared to 4.55% in the prior quarter and 4.26% one-year ago. BofA posted third quarter charge-offs of 4.86%, compared to 5.20% in the prior quarter and 4.18% one-year ago. Capital One reported that the net charge-off rate for U.S. credit cards was 4.13% for the third quarter, compared to 3.73% for the second quarter and 3.39% one-year ago.

CHARGE-OFFS
Jan 07: 4.33%
Feb 07: 4.39%
Mar 07: 4.44%
Apr 07: 4.60%
May 07: 4.65%
Jun 07: 4.60%
Jul 07: 4.62%
Aug 07: 4.77%
Sep 07: 4.81%
Source: CardData (www.carddata.com)

Details

GE Money Inks Wood-Mizer for the Cutting Edge Program

GE Money and IN-based Wood-Mizer have announced a multi-year agreement to provide revolving and installment financing through the “Cutting Edge” program, managed by GE Money’s Sales Finance unit. The financing programs will be offered for Wood-Mizer’s line of sawmills and Lastec articulating rotary mowers at more than 75 dealers nationwide. Both credit options provide a simple application and sales process with competitive rates and promotions and no prepayment penalties. Wood-Mizer is a manufacturer of portable band sawmills and offers an extensive line of mills covering a wide range of cutting capabilities.

Details

Advanta’s Q3 Biz Card Outstandings Rise 34%

Business credit card specialist Advanta posted a 34% rise in managed outstandings during the third quarter to $6.21 billion. During the third quarter, the issuer opened more than 74,000 new business card accounts and ended the quarter with a record 1,294,273 gross accounts. Advanta’s Business Card unit earned net income of $22.1 million as compared to $22.2 million in the prior quarter. Transaction volume increased 16% to $3.6 billion during the third quarter. Charge-offs, on averaged managed receivables, increased from 3.48% in the second quarter to 3.87% for the third quarter and are higher than 3Q/06’s 3.41% figure. Over 30-day delinquencies on managed receivables rose 42 basis points to 3.15% from the prior quarter. Over 90-day delinquencies on managed receivables also rose by four basis points to 1.41%, compared to the second quarter of 2007. For complete details on Advanta’s third quarter performance, visit CardData ([www.carddata.com][1]).

ADVANTA’S CARD PORTFOLIO SNAPSHOT
Period Card Loans
3Q/06: $4.65 billion
4Q/06: $5.21 billion
1Q/07: $5.59 billion
2Q/07: $5.99 billion
3Q/07: $6.21 billion
Source: CardData (www.carddata.com)

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

Details