Advanta Outstandings Rise 36%; Profits Fall 3%

Advanta Corp. reported second quarter 2007 net income from continuing operations of $0.51 per diluted share for Class A and Class B shares combined. This is $0.03 per share higher than the first quarter. It includes a $0.01 per share asset valuation gain associated with the Company’s venture capital portfolio.

“The powerful dynamics we have described in the business are once again demonstrated by the performance in the quarter,” said Dennis Alter, Chairman and CEO.

Ending managed receivables grew to $6.0 billion at quarter end with ending owned receivables totaling $1.1 billion. During the quarter, 103,000 new customers were added and transaction volume increased to $3.7 billion. The managed net credit loss rate was 3.48% and the owned net credit loss rate was 3.06%.

About Advanta

Advanta is one of the nation’s largest credit card issuers (through Advanta Bank Corp.) in the small business market today. Advanta’s exclusive focus on this market, as well as its size, experience and commitment to developing meaningful product offerings and a high level of service tailored to the needs of small businesses, differentiate the company from other issuers. Founded in 1951, Advanta has long been an innovator in developing and introducing many of the marketing techniques that are common in the financial services industry today. Learn more about Advanta at

For complete details on Advanta’s latest performance visit CardData ([][1]).



Identity Theft is a Real Ouch Point

A new study has found that 54% of consumers cited identity theft and fraud as their biggest personal financial concerns. The findings from Opinion Research’s monthly “Ouch Point Series” suggest that financial institutions still have to pay attention to the basics of the customer experience as nearly 20% of consumers polled said that rude tellers or unhelpful service centers make their “blood boil. The survey also found that consumer’s top personal finance “Ouch Points” were fraud or identity theft (54%); over the limit bank charges (12%); unhelpful service centers (10%); unhelpful or rude tellers (9%); bureaucracy (8%); and expensive ATM charges (6%).


Most Consumers Protect Their Identities

MA-based IdentityTruth released a survey that shows 85% of the respondents believe that they are taking some measures to protect their identities by shredding documents, securing sensitive information at home and using caution when responding to emails requesting information. The survey also disclosed that 75% of those respondents are most concerned with credit card fraud. IdentityTruth’s survey of 8,500 consumers found that 89% of consumers say that they worry about identity theft; and 80% expressed interested in a service that would notify them of security-related problems. A 2006 report published by the FTC, shows that out of the $5 billion in identity fraud, only 25% was based on credit card fraud and of that, only 12% were new accounts fraud.


Profitable Pay Card Rolls-Out

Las Vegas-based Cubis Financial has introduced its “Profitable Pay Card.” The new prepaid debit card provides all the elements necessary for rapid deployment and program success with virtually no changes to existing ACH direct deposit payroll procedures. The solution provides customized card design and printing; a full-time compliance department; a Website that allows employers to track and manage direct deposit activity; a user Website that enables employees to check their balance, pay bills, and access other benefits 24 hours a day; marketing collateral for use in educating and promoting the program to employees; ongoing technical and customer service support; and it offers employees nationwide access to over 32,000 Allpoint surcharge-free ATMs.



VISA International and the Beijing Tourism Administration have
launched the “Best Merchants in Beijing” program for the promotion of
merchant acceptance of international payment cards in time for the 2008
Olympic Games. Throughout Beijing, the program will focus on 9 tourist
locations and expects nearly 1,000 merchants to join. As incentive, VISA
will provide the merchants with free training and will select ten merchants
every month to be awarded with a ticket to the Games. For the event, it is
expected that nearly 7,000,000 people will flood the area, 500,000 of whom
are expected to come from overseas. Following the VISA Merchant
acceptance expansion for the Olympic Games, nearly 10,000 more merchants
are expected to join the initiative by 2008. Visa connects 1.59 billion
cardholders and more than 26 million merchants and financial institutions
through a global electronic payments network.


Payment Rates Drop 61 Basis Points in June

Monthly payment rates continued to spiral downward during June, falling to its lowest level in two years. The MPR, or the amount that cardholders pay on their credit card debt each month, peaked in October of last year, reaching almost 21%. The higher payment rates were driven by new minimum payment standards. According to CardData, the MPR declined to 18.40% in June, compared to 19.01% in the prior month and 19.99% 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.

Jun 06: 19.99%
Jul 06: 20.46%
Aug 06: 20.20%
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%
Source: CardData (



TSYS Card Tech will provide Tinkoff Credit Systems with card management
and authorization. This development will allow the Moscow Bank to expand its
portfolio and minimize cost using the TSYS solution, “PRIME” 3.0. Tinkoff
processes nearly 10 million card transactions daily and is soon to be
the first
credit card monoliner in the country. TSYS Card Tech is a subsidiary of TSYS
and serves over 300 clients in more than 75 countries with 13 offices
the world.