Capital One’s Q3 Card Profits Climb 21.5%

Capital One’s third quarter U.S. credit card profits increased nearly 22% year-on-year and about 4% sequentially due to revenue growth and reductions in non-interest expenses. Purchase volume in the U.S. was flat while U.S. managed card outstandings decreased 3% from the year-ago quarter. The number of U.S. card accounts declined by about 100,000 during the quarter, and remained down from the year-on-year figure of 37.5 million accounts. U.S. card net income was $560.8 million, compared to $538.3 million in the prior quarter and $461.6 million for 3Q/06. U.S. managed card outstandings were $49.6 billion for 3Q/07 compared to $51.1 billion one-year ago and $50.0 billion in the previous quarter. Cap One says loan growth was affected by a reduction in marketing of prime customers and teaser rate offers, and a $600 million portfolio sale in the first quarter. Purchase volume hit $21.5 billion for 3Q/07, compared to $21.8 billion for 2Q/07 and $21.4 billion for 3Q/06. The managed delinquency rate (30+ days) for U.S. credit cards was 4.46% for the third quarter, compared to 3.41% for 2Q/07 and 3.53% for the third quarter of 2006. 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. For complete details on Capital One’s third quarter performance, visit CardData ([www.carddata.com][1]).

COF U.S. CARD NET INCOME
3Q/06: $461.6 million
4Q/06: $337.2 million
1Q/07: $495.3 million
2Q/07: $538.3 million
3Q/07: $560.8 million
Source: CardData (www.carddata.com)

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

Details

CyberSource 3Q/07 Revenue Soars by 53%

CyberSource reported that third quarter revenue rose 53% to $26.5 million. CyberSource’s total customer count increased to approximately 22,000 at the end of September. Customers added during the quarter include Beach Camera, Diane Von Furstenberg, Magellan Navigation, Perry Ellis, Silversea Cruises, Tibco Software, and Underwriters Laboratories. BidPay has acquired approximately 483,000 customers since its launch in June of 2006, up from 410,000 at the end of the second quarter. Approximately 150 customers selected CyberSource for global acquiring services during the period. CyberSource now has over 1,800 global acquiring customers, now supports over 25 international payment types and processed transactions in over 65 different currencies in the third quarter. CyberSource’s European operations contributed a record 55.1 million transactions in the third quarter, approximately 19% of total transaction volume. For the fourth quarter, total revenue is expected to be $31.5 million. For complete details on CyberSource’s latest results visit CardData ([www.carddata.com][1]).

CYBERSOURCE REVENUES
3Q/06: $17.4 million
4Q/06: $20.9 million
1Q/07: $20.7 million
2Q/07: $22.9 million
3Q/07: $26.5 million
Source: CardData (www.carddata.com)

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

Details

AT&T Powers PSCU Financial Services

AT&T announced a contract with PSCU Financial Services to provide communications equipment and services to enhance the reach and reliability of the CUSO’s network services. The new contract with AT&T establishes an Ethernet private line between PSCU’s St. Petersburg headquarters and the company’s Phoenix-area data center. This communications link facilitates data replication for business-critical information between St. Petersburg and Phoenix. The instantaneous mirroring of data across the network further establishes needed redundancy to secure company information and maintain active lines of communication. PSCU Financial Services serves more than 1,100 financial institutions nationwide and is owned by more than 500 member credit unions representing over 11 million cardholder accounts and more than 500,000 online bill payment subscribers

Details

Affluent Travelers More Active Than Ever

AmEx’s “Platinum Travel Service” team of specialists reports that a growing number of affluent travelers are seeking private, luxurious getaways, booking more private yachts, villas and jets than ever before. Platinum Travel Service villa specialists report that the requests for private villas are at an all-time high, especially from multi-generational families or groups of friends looking for privacy, space and a “home away from home” with additional comforts. Specialists report that Italy, France and the Caribbean – particularly St. Barts – are among the most popular destinations for private villa vacations, which, like private yachts, are often six-night/seven-day vacations booked six to nine months in advance .Private jets are becoming central to the vacation itself, especially for families. Jet specialists are increasingly booking private jet charters for customers to hop from city to city within European countries and Asia.

Details

MobiCash Sets Up U.S. Operations in San Jose

South Korea-based Mobilians International fraud management is implementing its mobile online payment method in the U.S. The new “MobiCash” online payment method enables consumers to purchase retail items and services with the use of a mobile phone over a secure platform that does not require the transmission of any personal account information, such as card or account numbers. Mobilians executive team includes seasoned executives from Sprint Nextel, CyberCash, CyberSource, Transaction Network Services, and Mobilians of South Korea. The company expects to commence active payment transactions with online merchants using its core systems in first quarter of 2008.

Details

Austin Logistics Names a New COO

TX-based Austin Logistics has hired David Diehl, formerly with Fair Isaac, as COO. At Fair Isaac as Vice President, Global Fraud Solutions, he led that organization’s payment card fraud detection, identify theft and telecommunications fraud and risk management efforts. Prior to that, he was vice president, Product Engineering, where he directed a team of 150-plus scientists and software engineering professionals. In addition to his tenure at Fair Isaac, Diehl has held a series of increasing responsible positions at a number of software companies serving the financial services market, where he helped develop credit card processing, consumer lending and consumer financing systems. Austin Logistics is a leading provider of event based analytic solutions.

Details

Western Alliance Net Income Up 40% from Q2

NV-based Western Alliance Bancorporation reported third quarter net income of $11.1 million, up 39.5% from 2Q/07, but down 4.2% from 3Q/06. The Bank also announced that Kenneth Vecchione has been elected a Director. He is the former Vice Chairman and CFO of MBNA with prior work experience at AT&T Universal Card, First Data Corp and Citicorp Credit Card Services. He will commence his new responsibilities as CFO of Apollo Global Management on October 29th. Western Alliance Bancorporation is the parent company of Bank of Nevada, First Independent Bank of Nevada, Alliance Bank of Arizona, Torrey Pines Bank, Alta Alliance Bank, Miller/Russell & Associates, Shine Investment Advisory Services, Premier Trust, and PartnersFirst. For complete details on Western Alliance’s third quarter performance visit CardData ([www.carddata.com][1]).

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

Details

Cellular South Completes WirelessWallet Pilot

San Diego-based Kyocera Wireless reports the successful field-testing of handsets used in a “WirelessWallet” consumer trial by Cellular South. Cellular South conducted the three-month trial in Jackson, Miss. and Memphis, Tenn. with partners Bank of America, ViVOtech and Mpact, Inc. A post-trial survey found that 87% of “WirelessWallet” testers are interested in using the mobile payment technology when it becomes commercially available. The survey, conducted by Insights Research Group, also revealed that more than 75% of testers were satisfied with their “WirelessWallet” transactions.

Details

NAUTILUS & CPSB

For its 32,000 bank branches, China Postal Savings Bank (CPSB) has
signed agreements with Nautilus Hyosung for the deployment of
“NH 5050” ATMs. Nautilus Hyosung plans to deploy 3,000
“NH 5050” ATMs this year which have been recognized at the China
International Exhibition on Financial Banking Technology & Equipment in
2006. Despite the company’s late 1997 market debut, Nautilus Hyosung
has been able to succeed with innovative designs and are intent on
expanding their presence in the financial industry.

Details

First Data Acquires Canada’s POSTNET

First Data has announced its acquisition of POSTNET, which provides merchant acquiring and payment processing for all forms of payment across Canada. POSTNET provides merchants with POS solutions, Internet payments, emerging payments, authorization, settlement, reconciliation, chargeback administration, fraud prevention, reporting management and customer service. First Data also has a merchant acquiring business in Argentina and Uruguay named POSNET.

Details

U.S. Bank Purchases AIMS Logistics

U.S. Bank has purchased AIMS Logistics to operate as part of the “PowerTrack Payment Network” within its Corporate Payment Systems division. Under the purchase agreement, AIMS Logistics will operate as part of the PowerTrack Payment Network within the Corporate Payment Systems division of U.S. Bank. Terms of the purchase, which closed on October 1, were not disclosed. AIMS Logistics is a provider of freight audit and payment services. PowerTrack provides trusted commercial payment solutions for payables, receivables, freight, telecom, utilities, and global trade payments.

Details

ChoicePay and IPP Integrate Payment Solutions

ChoicePay and IPP of America have teamed to integrate IPP’s “Payment Settlement Network” with ChoicePay’s self-service capabilities. IPP’s Payment Settlement Network will be integrated into ChoicePay’s self-service capabilities. IPP will offer ChoicePay’s full suite of electronic payment and presentment services to clients, including multiple online and phone payment options. ChoicePay will include IPP’s walk-in payment solutions as part of their current bill payment offering as well as leverage IPP’s authorized national biller relationships on the Vcom and ChoicePay kiosk networks – increasing ChoicePay’s same-day payment capabilities to national billers. Vcom is the nation’s largest multi-biller payment kiosk network located in over 1,000 select 7-Eleven store locations while the ChoicePay kiosk network is available at strategic sites. IPP of America Inc. is a provider of electronic payment services.

Details