A new survey shows that a large number of banked consumers are using prepaid cards as business accounts while the unbanked are using prepaid cards for everyday purchases. The latest “Prepaid Index” from PA-based prepaid specialist Ecount reveals that 40% of its banked cardholders use prepaid cards as business accounts while the remaining 60% of utilization is broken up between luxury purchases and daily purchases. The primary unbanked spending categories include grocery stores(11%); restaurants (11%); gas stations (7%); discount stores (3%) and fast food restaurants (3%). Ecount found that big ticket items abound in the banked spending. The average expense at electronics stores for banked consumers is more than $200, compared to $74 for unbanked consumers. Travel expenses account for more than 8% of banked spending, compared to less than 1% for the unbanked.Details
Las Vegas-based Global Cash Acces has signed contracts to serve ten gaming establishments with its “Casino Cash Plus 3-in-1” ATM and “3-in-1 Enabled QuikJack Plus”. GCA offers a number of products and services, including ATM technology, cashless gaming products and marketing services that help casino patrons access cash, help gaming establishments better understand their patrons, and enhance gaming establishments’ patron marketing activities. Las Vegas-based Global Cash Access, Inc., a wholly-owned subsidiary of Global Cash Access Holdings, Inc. (NYSE: GCA), is a leading provider of cash access products and related services to approximately 1,060 gaming properties and other clients in the United States, Continental Europe, the United Kingdom, Canada and the Caribbean.Details
Seattle-based Washington Mutual reported that its cross-selling of credit cards to existing customers is working as the issuer signed-up 274,000 WaMu retail customers for cards out of a total of 771,000 new card accounts during the second quarter. The issuer also added $1 billion in outstandings for the second quarter compared to the prior quarter. Managed card receivables were $21.1 billion at mid-year compared to $20.0 billion at year-end 2005. However, net income for the quarter was $183 million, compared to $225.3 million for 2Q/05. WaMu says credit quality continues to be favorable. At 5.23% of total managed receivables, the 30+ day delinquency rate was up slightly from the prior quarter’s 5.18% and the fourth quarter’s 5.07%. As expected, managed net credit losses were also up slightly from the first quarter but still remain low compared with historical levels. Charge-offs hit 5.99% compared to 5.79% in the first quarter. For complete details on WaMu’s latest performance, visit CardData ([www.carddata.com]).
WaMu/Providian Net Income Track Record
2Q/05: $225.3 million
3Q/05: $188.1 million*
4Q/05: $166.0 million
1Q/06: $210.0 million
2Q/06: $183.2 million
* not publicly disclosed
Source: CardData (www.carddata.com)
Givex and ABM have successfully integrated gift card
transaction processing into the “MARKET POS” application. Givex’s complete line of gift card services, including card activation,
redemption, increment, cancel, and balance inquiry, have all been
interfaced to the “MARKET POS” application. The integration is entirely seamless and requires no additional equipment In addition to real-time
transaction processing, Givex customers have access to 24/7 support,
online reporting, program administration, card marketing, card
production and more.
Retriever Payment Systems has named Hypercom as a key core provider of card payment solutions. Retriever is offering its customers a full line of Hypercom solutions, soon to include the 32-bit “Optimum T4100” payment terminal, now undergoing final tests for Class A certification. Retriever processes transactions for approximately 100,000 merchant sites, served by more than 600 affiliated sales groups and 3,500 banks.Details
National Bank of Oman is adding Oman Air’s recently launched
frequent flyer program to its co-branded MasterCard credit card with the airline. The new “Sindbad” program offers cardholders access to special privileges based on card activity and miles flown. NBO currently offers “Money Back” points on its credit cards which can now be converted into Oman Air “Frequent Flyer” points. All co-branded cardholders will automatically become entitled to the “Sindbad” membership, which starts with the entry level called “Green” and has benefits like extra baggage allowance, duty free discounts, advanced seat and meal selection,
personalized membership card and baggage tags. The next highest level is “Gold” which entitles the cardholder to VIP service. NBO and Oman Air began issuing their co-branded MasterCard in 2003.
World Web Technologies and Shift4 have entered into a preferred partnership. The companies now offer a seamless, fully integrated payment process for all properties in the hospitality industry looking for a hosted solution. “WebRezPro” is a web-based property management system created by World Web Technologies. “$$$ ON THE NET” is the real-time electronic payment gateway system from Shift4. By creating an interface to Shift4’s “$$$ ON THE NET,” “WebRezPro” is able to offer its users high-speed connections to any processor, including direct processing to American Express.Details
The latest “Personal Credit Index” shows that 64% of consumers say that the rising cost of energy has forced them to cut back on their personal discretionary spending. Seventy-five percent of families with incomes of less than $40,000 a year and 68% of households making $40,000 a year but less than $75,000 annually say they have had to curtail other spending due to the high cost of gas and energy prices. Close to half of families earning $75,000 or more also have cut back on their spending. The Experian-Gallup poll for the second quarter also showed that 16% of families with incomes of less than $40,000 a year and 21% of households making $40,000 a year but less than $75,000 annually say they have increased their credit card spending as a result of the rising energy costs. Only 13% of families earning $75,000 or more have cut increased their credit card use. Overall, 16% of consumers have increased their credit card spending in the second quarter due to rising energy costs.Details
TSYS reported that second quarter profits rose 13% year-on-year to $57.4 million. Revenues for the quarter increased 5% to $429.2 million, compared to 2Q/05. Accounts on file increased to 366.5 million as of June 30th, down 5% from one-year ago. TSYS also reports that stored value accounts rose 31% to 29.3 million. Total consumer accounts on file at the end of the second quarter rose 5% to 241.2 million. TSYS recently reached a long-term agreement with Wachovia to provide core-processing and other related services in support of their re-entry into the consumer credit-card line of business. The processor also reached agreements through TSYS Acquiring Solutions with Delta Payment Solutions and New England Bankcard Association to provide merchant processing services. Additionally, TSYS renewed a long term relationship through TSYS Acquiring Solutions with Heartland Payment Systems. TSYS says it expects total revenues for 2006 to increase between 6% and 8%. Also, that accounts on file at the end of the year will be approximately 395 million to 405 million. For complete details on TSYS second quarter performance, visit CardData ([www.carddata.com]).
TSYS REVENUE HISTORICAL
2Q/05: $410.2 million
3Q/05: $422.0 million
4Q/05: $420.7 million
1Q/06: $412.3 million
2Q/06: $429.2 million
Source: CardData (www.carddata.com
Bank of America reported that revenue for its global card services unit rose 18% to $5.47 billion. Net income of $1.6 billion was more than double the year ago period. Managed card loans at the end of the second quarter increased 7% year-on-year to $190.1 billion. Second quarter credit card services charge-offs were 3.59%, compared to 2.89% in the prior quarter and 5.20% one year ago. The managed 30+ day delinquency was 4.56%, compared to 4.37% in the first quarter and 4.37% for 2Q/05. BofA also reported that its merchant acquiring business handled $97.2 billion in processing volume during the second quarter from total transactions of 2.0 billion. (BofA now includes consumer finance, international card operations and merchant services in reporting Card Services.) BofA also reported that debit card income grew more than 20% from the second quarter of 2005, as higher checking account volume and the “Keep the Change” program increased usage of debit cards at retail locations. Debit card purchase volume topped a record $42 billion in the quarter, an increase of 22% from the second quarter of last year. For complete details on Bank of America’s 2Q/06 performance, visit CardData ([www.carddata.com]).
BOFA/MBNA EOP CARD LOAN HISTORICAL
2Q/05: $176.9 billion
3Q/05: $182.9 billion
4Q/05: $189.4 billion
1Q/06: $184.9 billion
2Q/06: $190.1 billion
Source: CardData (www.carddata.com)
Customers of Citibank Chile are now able to use the ATM’s
of Falabella Bank, called Redf, while Falabella Bank customers can use
the ATM’s of Citibank connected to Redbanc. Customers from both banks will be able to perform the usual ATM transactions: cash withdrawals, balance queries, etc., from their current accounts and/or credit cards.