CWT & MASTERCARD

Carlson Wagonlit Travel (CWT) has joined with Mastercard to launch a data
program to provide consistent, accurate data on travel and entertainment
for customer-tailored products. The data solution will provide an
integrated,
card-based global network to allow MasterCard issuers to provide access,
analysis and complete data related to a company’s travel program and savings
for CWT clients with MasterCard corporate cards. MasterCard Worldwide
processes over 16 billion transactions annually and serves customers in
more
than 210 countries and territories with its Maestro, Cirrus and MasterCard
products. Carlson Wagonlit Travel (CWT) is present in more than 150 countries
and serves companies by providing service and assistance to travelers. The
company employs 22,000 and had a 2006 sales volume US$20.5 billion.

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First Data to Offer MC’s Payment Gateway

First Data has agreed to make the new “MasterCard Payment Gateway” available to its network of 3.5 million U.S. merchant locations. The new gateway is an enterprise-wide payment processing platform for routing commercial payments between buyers, suppliers and their financial institutions. The new “MasterCard Payment Gateway” can manage multiple payment types, including card and EFT and is part of MasterCard’s continuing effort to improve the payments process for businesses of all sizes, and revolutionize an industry traditionally dominated by check payments and wire transfers. Other features include: single interface for all payment processing needs; user interface/Web portal for payment status reporting; end-user integration; payment rules engine; supplier directory, and enhanced remittance information regardless of payment type.

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GEMALTO & SEB GERMANY

Gemalto digital security is supplying SEB Germany with their
Internet credit card personalization solution, “CardLikeMe”, allowing
customers to personalize their credit cards with any picture and
illustration they choose. The website solution will also allow customers
to choose from a range of standard images. SEB Germany serves
400,000 corporate customers and institutions and 5 million private
customers, 1 million of which are German, with financial products.
Gemalto digital security had 2006 annual revenues of EUR1.7 billion
and employs nearly 10,000 through its 85 offices in over 40 countries.

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NYC Taxi Drivers Launch a 2nd Strike

About 10,000 New York City taxi drivers are striking again today over new rules that require them to install credit card readers and GPS technology in their medallion cabs by October 1st. The New York Taxi Workers Alliance says the new card readers are unreliable and the card fees as well as lost fares may reduce their income by at least $1,000 per year. They also say the GPS system is unfair. Beginning October 1st, upon their next scheduled inspection all New York taxis are mandated to have technology-based customer service improvements that will include credit/debit card acceptance and an interactive electronic passenger map and information screen. The Taxi Workers Alliance has about 8,000 to 9,000 members. There are about 45,000 licensed drivers registered with the Taxi and Limousine Commission.

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TNB Expands its Texas Bay Area CU Contract

Texas Bay Area Credit Union is consolidating all card processing, from credit cards to PIN debit and ATM transactions, to TNB Card Services. The Pasadena, Texas-based credit union has been using TNB for its credit card processing and signature debit for more than 30 years, and recently decided to move its PIN debit and ATM processing. Texas Bay Area Credit Union serves the communities of Pasadena, Deer Park, La Porte, and the North Channel area near Houston with more than 24,000 members and assets in excess of $189 million.

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PayPal Data Services Opens in Austin

PayPal announced the official grand opening of its new technology center in Austin, Texas. PayPal is the safer, easier way to pay and get paid online. The service allows anyone to pay without sharing financial information and gives consumers the flexibility to pay in any way they prefer, including through credit cards, bank accounts or account balances. PayPal Data Services, Inc. is a wholly-owned subsidiary of PayPal with more than 164 million accounts in 190 markets and 17 currencies around the world, PayPal enables global ecommerce. PayPal is an eBay company.

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Washington Trust Renews NYCE for PIN Debit

NYCE announced RI-based, Washington Trust Company has agreed to a long-term NYCE Network participation renewal, which names NYCE as its sole provider of retail PIN debit and domestic ATM card access. Washington Trust has16 branch offices located in Rhode Island and southeastern Connecticut. The NYCE Network provides consumers with secure, real-time access to their money connecting the accounts of more than 74 million cards with 280,000 ATMs and 1.5 million point-of-sale locations nationwide.

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FTC Adds PPI Services to its MPI Lawsuit

The FTC has expanded the number of defendants in its pending case against Merchant Processing, Inc. Last week the FTC added Karely McCarthy and PPI Services Inc. as defendants in the case. The original complaint in this case, announced in April, alleged the defendants used deceptive tactics to sell credit- and debit-card processing services to thousands of small businesses across the county. The FTC says MPI’s sales representatives promised small businesses savings of hundreds to thousands of dollars a year in processing fees by offering lower rates than the merchants’ current credit card processing service. The FTC said they told merchants that the credit card swipe equipment they currently are using is outdated or incompatible with their systems, or that the merchants will need to replace their systems in order to get the special low rate. (CF Library 4/16/07)

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Wells Fargo Mobile Adds Text-Messaging

Wells Fargo is now offering text-based account access or “SMS” as part of its “Wells Fargo Mobile” service. Wells was the first financial institution to introduce access to banking accounts on the Internet in 1995. The new “SMS” service enables customers to connect to their Wells accounts from a mobile phone through text messaging. Customers first enroll online to activate the text banking service and then simply send a text message to a Wells Fargo-specific short code number, 93557. After sending one of the “Wells Fargo Mobile” text banking shortcut commands, they will then receive a reply with the requested information. Account numbers are never displayed via text banking, but are represented by the mobile account nicknames that a customer specifies during enrollment.

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Republic Bancorp to Issue Humana VISA

KY-based Humana has teamed with Republic Bancorp to launch a new health care card to be issued to a select set of Humana’s employer group customers beginning this month. The “HumanaAdvance VISA” can be used only at hospitals, doctor and dentist offices, drug stores and other locations that sell and provide health related products and services. The card features a fixed 0% APR on all purchases, which are automatically paid back over six months. The card’s payroll deduction option is made possible by E-Duction, and allows a consumer to have access to a low cost and interest free credit line for health care expenses. Humana has approximately 11.3 million medical members.

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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

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