US Dataworks Q2 Revenues Climb 20%

Houston-based US Dataworks reported that second quarter revenues increased 20% to $1.2 million. Operating loss for the first quarter was $1,103,219 compared to an operating loss of $939,962 for the first quarter ended June 30, 2005. Net loss for the first quarter was $1,600,370 or $(0.05) per share, compared to a net loss of $778,499 or $(0.03) per share, for the corresponding period in the prior year. US Dataworks is a developer of payment processing solutions, focused on the Financial Services market, Federal, State and local governments, billers and retailers.

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Charge-Offs & Delinquencies Head South

Performance among more than $350 billion in credit card asset-backed securities for June show that charge-offs and delinquency both dropped 10 basis points from the prior month to 3.5%. Also, during June, the payment rate increased by 30 basis points remaining above 20%. According to Standard & Poor’s Ratings Services’ “Bank Card Credit Card Quality Index,” charge-offs have been steadily rising this year but reversed course in June. Delinquencies remained level over the past four months at 3.6% before dropping in June. Standard & Poor’s noted that the Capital One Master Trust has replaced the First USA Credit Card Master Trust as the third-largest trust within the context of the “CCQI.”

ABS MONTHLY METRICS
Charge-Offs Delinquency
Feb 3.0% 3.6%
Mar 3.2% 3.6%
Apr 3.6% 3.6%
May 3.6% 3.6%
Jun 3.5% 3.5%
Source: Standard & Poor’s Ratings Service

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Unibanco’s Credit Card Portfolio Rises 43% in Q2

Unibanco reports that its loan portfolio increased 5.7% from the first quarter. Over the past year credit operations grew
19.3%, despite a 7.9% U.S. currency devaluation against the
Brazilian Real. In the individuals credit operations, the highlight was
the evolution of the credit card portfolio, which posted a 42.9%
growth over the past 12 months. The Retail loan portfolio reached R$23,438 million, a 18.5% growth over the past 12 months, positively affected by SMEs transactions, and consumer financing, mainly by loans from credit card operations. Total fees reached R$901 million in 2Q06, up 15.1% from the same period in 2005, mainly due to a 19.5% increase in revenues from credit cards. For complete details on Unibanco’s second quarter performance visit CardData (www.carddata.com).

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Westpac Signs 163K for E-Statements

Westpac says it is extending its e-statements initiative after more than 160,000 customers signed-up for the new option. The bank began the program for savings and transaction accounts in June 2005. Westpac is the only major bank in Australia to allow our customers to opt-out of
receiving paper statements. The bank also recently increased the online statement history to seven years. Westpac estimates that program has saved about 400 trees or 30 tons of paper.

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APACS Releases a Credit Bureau Guide

APACS, the U.K. payments association, has released a new guide on “Checking your Credit Record.” The guide is available from www.choosingandusing.com. Research from Experian’s “CreditExpert” monitoring service shows that just one in twenty people with credit cards in the U.K. have requested to see their credit report
and one in five people admit they have no idea whether
they have a good or bad credit score.

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U.S. Credit Card PDV May Hit $1.3T in 2006

Purchase dollar volume on VISA and MasterCard U.S. credit cards continues to hover at an annual growth rate of 12%, compared to the 18% annual growth rate on debit cards. Among the two card associations, VISA credit card PDV is growing at a 13% annual rate compared to MasterCard’s 10% clip. VISA posted $190.2 billion in consumer credit card PDV, a 12.9% increase over 2Q/05. VISA had $152.9 billion in consumer credit card PDV and $37.3 billion in commercial credit card PDV. MasterCard had $129.0 billion in second quarter credit card PDV, compared to $117.6 billion for 2Q/05. Over the past three years VISA and MasterCard quarterly PDV has grown 38% from $231.5 billion. Based on the current growth rate, credit card purchase volume for VISA and MasterCard should exceed $1294 billion for full-year 2006, according to CardData ([www.carddata.com][1]).

U.S. V/MC CREDIT CARD HISTORICAL
(Purchase Volume Only)
2Q/03: $231.5 billion
3Q/03: $243.5 billion
4Q/03: $259.6 billion
1Q/04: $237.3 billion
2Q/04: $257.8 billion
3Q/04: $266.3 billion
4Q/04: $283.8 billion
1Q/05: $254.3 billion
2Q/05: $286.1 billion
3Q/05: $298.6 billion
4Q/05: $315.6 billion
1Q/06: $285.2 billion
2Q/06: $319.2 billion
Source: CardData (www.carddata.com)

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

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CTFS 2Q/06

Canadian Tire Financial Services reported that its net managed credit card receivables for the second quarter increased 11% year-over-year to $3.4 billion. The average credit card balance in the first quarter hit $1829, up 10% from one-year ago, largely driven by the rollout of the “Gas Advantage MasterCard” in Ontario and the increase in the personal loan portfolio. For the prior quarter, the average credit card balance came in at $1832. The average number of accounts with a balance during the quarter was 1.846 million. Financial Services’ pre-tax earnings of $44.5 million were up 3% from the second quarter of 2005. Canadian Tire’s MasterCard receivables represent approximately 92% of CTFS’ total managed portfolio. CTFS’ retail credit card and personal loan receivables make up the remaining portfolio. For complete details on Canadian Tire Financial Services’ second quarter performance, visit CardData (www.carddata.com).

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MTV Debit MasterCard Targets Vietnam Youth

Vietnam’s Vietcombank has teamed with MTV Asia to launch a debit card targeted at the youth market according to this week’s issue of CardFlash International. The “Vietcombank-MTV MasterCard” offers special discounts at music retailers, resorts, electronics stores and other youth oriented retailers. The bank said the new card is part of the State Bank of Vietnam’s plan to promote cashless payments throughout Vietnam. The card was introduced in a ceremony last week featuring the “Double Trouble” twins from Malaysia.

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CrossCheck and FPN Partner for Checks

CA-based CrossCheck has teamed with the Franchise Payments Network to provide check services including guarantee and conversion to FPN clients. FPN, an electronic payments company dedicated to the franchise segment, will add CrossCheck’s Standard Guarantee, ChecksByNet, Check Conversion Plus(SM) and Business Office Conversion Plus(SM) to its payment service offerings. Franchise Payments Network (www.franchisepayments.net), is the only payment processing company that focuses entirely on the franchise industry. CrossCheck, Inc. (www.cross-check.com) provides check approval and guarantee for a variety of merchants nationwide.

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