Advanta Biz Cards Top 1MM; Loans Up 29%

Business credit card specialist Advanta posted a 29% rise in managed outstandings during the third quarter to $4.65 billion. During the third quarter, the issuer opened 85,392 business card accounts and ended the quarter with a record 1,037,161 gross accounts. Advanta’s Business Card unit earned net income of $20.7 million as compared to $16.2 million for 3Q/05. Transaction volume increased 23% to $3.1 billion during the third quarter. Charge-offs, on averaged managed receivables, increased from 3.24% in the second quarter to 3.41% for the third quarter, but, well below 3Q/05’s 5.15% figure. Over 30 day delinquencies on managed receivables rose 4 basis points to 2.70% from the prior quarter. However, over 90 day delinquencies on managed receivables declined eight basis points to 1.23%, compared to the second quarter of 2006. Advanta says new bankruptcy filings remained lower than anticipated, and the Company is increasing its guidance for 2006 full year earnings from continuing operations to a range of $2.78 to $2.83 per share. For complete details on Advanta’s third quarter performance, visit CardData ([www.carddata.com][1]).

ADVANTA’S CARD PORTFOLIO SNAPSHOT
Period Card Loans
3Q/05: $3.60 billion
4Q/05: $3.76 billion
1Q/06: $3.89 billion
2Q/06: $4.39 billion
3Q/06: $4.65 billion
Source: CardData (www.carddata.com)

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

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INSIDE Launches microread to Boost NFC Deployments

INSIDE Contactless announced “microread,” the world’s most advanced single integrated circuit for sending and receiving NFC data between two electronic devices. “microread” establishes secure connections between devices, and helps to facilitate mobile payments, transport ticketing, access control, and numerous other transactions from mobile phones or PDAs. “microread”-enabled mobile devices are able to complete transactions with other mobile phones, or with millions of contactless reader terminals already installed worldwide. “microread” supports all of the NFC standard which enables it to behave as both a reader and a card, in order to execute secure contactless transactions. Furthermore, it enables RFID transactions commonly used for Access control applications.

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CO-OP Financial Services Adds a New Director

Patsy Van Ouwerkerk, CEO of Travis Credit Union, has been appointed to the Board of Directors of CO-OP Financial Services. In 2002, Van Ouwerkerk was named President/CEO of Travis Credit Union, which serves the military and civilian personnel on Travis Air Force Base, as well as members who live or work in 12 Northern California counties. The credit union now has more than $1.5 billion in assets and serves approximately 140,000 members at 14 branch locations. CO-OP Financial Services is the nation’s largest credit union service organization.

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MBNA Canada Bank Names a New President

Bank of America has named Debra Armstrong as president of MBNA Canada Bank. Armstrong joined MBNA in 1999 to start up the legal department and later assumed responsibility for administration including law, personnel, facilities, security, community relations, quality assurance and communications. MBNA Canada Bank is a subsidiary
of Bank of America. MBNA Canada credit cards and related products and services are endorsed by nearly 500 Canadian organizations. In Canada, Bank of America has had a presence since the late 1950s and operates in four provinces with about 271 employees.

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MasterCard Publishes U.S. Interchange Rates

As promised last month MasterCard has posted its interchange rates that apply to U.S. merchants on its Web site. VISA USA posted its interchange rates on its Web site on October 17th. However, MasterCard went a step further to provide comprehensive information that merchants need to understand the rates and how they apply. The 72-page document, “MasterCard Worldwide U.S. and Interregional Interchange Rates,” and VISA’s 5-page document “Visa U.S.A. Interchange Reimbursement Fees” clearly explain that interchange fees are one component of the “Merchant Discount Rate” established by acquirers, which is paid by merchants to acquirers in consideration for card acceptance services. Beyond interchange rates, MasterCard offers, since last June, its operating rules to any merchant who wants to access them without restrictions. VISA’s operating regulations are available to all merchants who currently accept VISA and have a valid contractual agreement with an acquirer if they agree to sign a non-disclosure agreement. (CF Library 6/03/05; 10/05/05; 11/05/05; 9/6/06; 10/18/06)

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SEPT DEBT

After declining for four months, credit card outstandings edged up slightly in September by GBP 100 million. The GBP 55.6 billion figure remains well below December’s peak of GBP 59.0 billion. Year-on-year credit card outstandings (not seasonally adjusted) were down 4%. According to the The Bank of England, the increase in total net lending to individuals in September was higher than the increase in August, but in line with the previous six month average. The twelve-month growth rate and the three-month annualized growth rate fell by 10 basis points, to 10.3% and 10.0% respectively. However, the increase in consumer credit was higher than in August. The annual growth rate of consumer credit continued to fall, to 6.3% in September, but the three-month annualized growth rate increased by 30 percentage points to 5.3%.

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Intersections Revenue Up 30% for 3Q/06

VA-based Intersections, a major provider of branded and fully customized identity management solutions, reported third quarter revenue of $55.3 million, compared to $42.6 million for the year ago quarter. Net income for the quarter was $2.6 million, compared to $3.5 million for 3Q/05. Total subscribers increased to approximately 4.33 million as of September 30th, compared to approximately 3.66 million as of December 31, 2005, an increase of 18.2 percent. Subscriber additions in the third quarter were approximately 1.2 million. Intersections safeguards more than 5 million customers, who are primarily received through marketing partnerships and consumer-direct marketing of the company’s “Identity Guard” brand. For complete details on Intersection’s third quarter performance, visit CardData ([www.carddata.com][1]).

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

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Tarjetas Cuscatlan Signs a Deal with First Data

Tarjetas Cuscatlan has signed an agreement with First Data International. Processing Center (PROCESA), a First Data company offering payment processing solutions customized for its clients in Latin America and the Caribbean, will provide card issuing processing services to Tarjetas Cuscatlan de Guatemala to support the launch of several new card products. This agreement builds on PROCESA’s already established relationship with UBC International providing full service support to its Panama affiliate, Banco Cuscatlan de Panama. PROCESA, located in Panama City, Panama, offers payment processing support for credit, prepaid, gift and corporate cards.

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VASCO Q3 Revenues Increase 41% over Q3

VASCO Data Security International reported that revenues for the third quarter increased 41% to $18.7 million. Net income rose 88% to $3.3 million. The Company also reports that Approximately 2.9 million “Digipasses” were shipped in the third quarter, an increase of 60% from 3Q/05. VASCO also won 381 new customers in the quarter including 29 U.S. banks. The Company also launched “Digipass Smart Pack” and became the first company to receive full Belgian “EPCI Certification for Digipass 810.” The firm says revenue growth of 35% to 45% for the full-year 2006 over full-year 2005 is reaffirmed and remains unchanged from prior guidance. VASCO has delivered over 28 million “Digipass” worldwide. For complete details on VASCO’s third quarter performance visit CardData (www.carddata.com).

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Card Debt a Big Factor Towards Serious Debt

The “Debt Counselors Annual U.K. Debt Survey” reveals that credit card debt is the biggest contributory factor towards serious debt in the country. According to the survey, more than 91% of people seeking help for their debt problems owe money on credit cards. Store cards also take the blame, contributing to 41% of serious debt cases. Credit Action reports that total credit card debt in the U.K. stood at GBP 55.4 billion in August, and according to the British Bankers Association the proportion of credit card balances bearing interest in July was 74.6%.

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Subpostmasters Join RBS/NatWest ATM Program

The National Federation of SubPostmasters has joined with RBS and NatWest to install free-to-use cash machines in the UK’s poorest
communities. The Federation is approaching subpostmasters in deprived
areas to see if they would agree to have a free-to-use RBS or NatWest
machine installed. The RBS Group, which includes NatWest, has initially
earmarked 100 cash machines for sub post offices out of 300 planned in
total. The RBS Group is already the largest provider of free-to-use cash
machines in the UK, with a network of more than 6,500.

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eFunds to Power Links’ Faster Payments Service

eFunds International is working with LINK Interchange Network to provide the core functionality for the new “Faster Payments Service,” that will deliver real-time funds transfer from one bank account to another. Due for completion in 2007, the “Faster Payments” implementation is being overseen by APACS, the UK payments association, which has been developing the specification in response to the Office of Fair Trading Payments Systems Task Force. LINK is developing the core infrastructure in partnership with Voca.

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