Affluent Spending Rises 9% in 2Q/07

Affluent consumers went on a spending spree for luxuries in the second quarter. The typical luxury consumer spent $15,283 buying luxury goods and services during the second quarter, 9% more than the average expenditure of $14,024 in the first quarter. This according to the results of Unity Marketing’s “Luxury Tracking” survey of 1,000 affluent consumers conducted at the close of the second quarter (average income $155,500 and average age 44.3 years). Luxury dining rose 23%, entertainment 53%, and travel 21%, according to Unity Marketing.

Details

JUNE DEBT

Credit card outstandings declined during June by GBP 300 million to GBP 53.5 billion. This is the fifth straight monthly drop and remains well below the December 2005 peak of GBP 59.0 billion. Year-on-year credit card outstandings (not seasonally adjusted) are running about 5% lower than one-year ago. According to the The Bank of England, the three-month annualized growth rate in net lending to individuals fell by 0.1 percentage points to 9.2%.

Details

500 Internet Retailers Add the PaidByCash Option

Retail Expansion Network announced that more than 500 Internet retailers have added PaidByCash to their sites. PaidByCash enables consumers to easily use cash to make purchases online by obtaining a virtual prepaid MasterCard card account. Shoppers may load a PaidByCash card account with an exact amount for a one-time online purchase or load up to $350 and make multiple online purchases. Any online retailer that accepts Debit MasterCard can accept PaidByCash. The PaidByCash Virtual Prepaid MasterCard account is issued by First Bank of Delaware.

Details

Pay By Touch Hires a New CFO

Pay By Touch announced that Robert M. Sigler, Co-Founder and President of the Global Trust Ventures private equity fund, joins the company as CFO. Sigler has over 20 years of experience in accounting, finance, investment banking, mergers, acquisitions, capital markets, private equity, divestitures, venture strategy and management at leading companies such as Sanford Bernstein, Credit Suisse, Price Waterhouse and the Financial Accounting Foundation. He has served as Founder, CEO and/or CFO of a number of private companies and is the Co-Founder and President of the Global Trust Ventures private equity fund, a significant investor in Pay By Touch.

Details

Pentagroup Financial Gets LIFT From First Data

Pentagroup Financial has adopted “Call Manager”, a First Data LIFT analytic solution, which is powered by Intelligent Results. Pentagroup’s collection platform assists creditors in achieving higher profitability and improving cash flow by utilizing deep industry expertise, next-generation intuitive technology and a performance-driven collections team. Pentagroup will deploy LIFT in a hosted environment, which will enable the company to capture a time-to-market advantage. First Data Solutions, the data analytics services business unit of First Data, will host the service. Pentagroup Financial provides accounts receivable management. The Intelligent Results analytics platform allows companies to better understand and predict customer behavior.

Details

Card Debt Slides Down Again in the U.K.

Credit card outstandings declined during June in the UK by GBP 300 million to GBP 53.5 billion. This is the fifth straight monthly drop and remains well below the December 2005 peak of GBP 59.0 billion. Year-on-year credit card outstandings (not seasonally adjusted) are running about 5% lower than one-year ago. According to the The Bank of England, the three-month annualized growth rate in net lending to individuals fell by 0.1 percentage points to 9.2%.

U.K. CREDIT CARD OUTSTANDINGS
(Not Seasonally Adjusted)
(GBP Billions)
Jun 06: 56.1
Jul 06: 56.0
Aug 06: 55.5
Sep 06: 55.6
Oct 06: 55.4
Nov 06: 55.6
Dec 06: 55.9
Jan 07: 54.3
Feb 07: 54.5
Mar 07: 54.3
Apr 07: 54.0
May 07: 53.8
Jun 07: 53.5
NOTE: Chart does not include about GBP10 billion from
specialist lenders, retailers, and insurance companies.
SOURCE: Bank of England

Details

TNB Card Services Hits 130 Card Portfolios

Dallas-based TNB Card Services reports that credit unions, in three states, have sold their credit card portfolios to the firm and have pushed its total number of portfolios owned to 130. The latest TNB purchases include Baker FCU of New Jersey; Citizens CU and Good Shepherd CU, both of Michigan; and First Trust CU of Indiana. This series of purchases moved more than $8.8 million in outstanding balances and 6,400 card accounts under TNB’s ownership. TNB Card Services serves more than 500 financial institutions and manages more than 1.8 million cards.

Details

Credit Card Charge-Offs Ease Up in June

Charge-offs headed south, hitting 4.60% in June after peaking at the highest rate since February 2006 in May. However, it interrupted the seventh consecutive monthly increase according to CardData ([www.carddata.com][1]). During the second quarter Citi reported that charge-offs for bankcard and private label cards declined to 4.55% compared to 4.63% in the prior quarter and 4.11% one-year ago. Overall delinquency (90+ days) declined slightly from 1.57% for 1Q/07 to 1.47% for the second quarter 2007. BofA posted second quarter credit card charge-offs of 5.20%, compared to 4.81% in the prior quarter and 3.55% one year ago. The managed 30+ day delinquency declined to 5.24%, compared to 5.44% in the first quarter and 4.73% for 2Q/06. Capital One reported that the managed delinquency rate (30+ days) for U.S. credit cards was 3.41% for the second quarter, compared to 3.48% for 1Q/07 and 3.30% for the second quarter of 2006. The net charge-off rate for U.S. credit cards was 3.73% for the second quarter, compared to 3.99% for the first quarter and 3.29% one-year ago. (CF Library 7/19/07; 7/20/07)

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%
Source: CardData (www.carddata.com)

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

Details

3PEA International Inks a Major Prepaid Card Deal

Payment solution company 3PEA International announced it has signed a three year agreement with Monterey County Bank for card issuance sponsorship and has commenced issuance of over three million six hundred thousand prepaid debit cards. Under the agreement, Monterey County Bank will be the issuing bank for select 3PEA International prepaid card programs running on various networks including NYCE and Pulse. 3PEA will work closely with MCB on the implementation of existing, and the development of future card programs. 3PEA is providing issuing services utilizing a 3PEA BIN, 3PEA card management system and data processing services for multiple prepaid card programs, including several in the Pharmaceutical industry. 3PEA International is a transaction-based solutions provider.

Details

ACI Proactive Risk Manager Signs 18 in 2007

ACI Worldwide has signed 18 new license agreements for its fraud detection solution in the last 12 months, bringing the total number of ACI Proactive Risk Manager customers to more than 120 worldwide. The company also introduced today a quick and simple online fraud reduction calculator, “www.aciworldwide.com/prmcalculator”, much like a mortgage calculator, that allows financial institutions to determine the effectiveness of their current fraud prevention system.According to Gartner Research, 15 million Americans were victims of identity fraud during a recent 12-month period, while the average identity fraud loss more than doubled in 2006 to $3,257 from $1,408 the year before. The four key crimes that lead to identity theft include Internet fraud (hoax emails that trick users into providing personal data), data compromise (hacks into corporate and government databases that include consumer data), ATM fraud and card skimming. All of these crimes include the theft of consumersâ™ credit and debit card numbers.

Details