Cap One’s U.S. Card Profits Rise 32%

Capital One’s first quarter U.S. credit card profits increased 32% year-over-year and more than doubled sequentially thanks to improvement in credit trends following the fall bankruptcy surge. Purchase volume in the U.S. was up 15% to $18 billion while U.S. managed card outstandings increased slightly from the year-ago quarter. The number of U.S. card accounts dropped by about 400,000 during the quarter to 37.3 million compared to 37.6 million in the prior quarter and 38.2 million one-year ago. U.S. card net income was $602.8 million, compared to $237.0 million in the prior quarter and $458.2 million for 1Q/05. U.S. managed card outstandings were $47.1 billion for 1Q/06 compared to $46.6 billion one-year ago and $49.5 billion in the previous quarter. The managed delinquency rate (30+ days) for U.S. credit cards was 3.31% for the first quarter, compared to 3.44% for 4Q/05 and 3.66% for the first quarter of 2005. The net charge-off rate for U.S. credit cards was 2.93% for the first quarter, compared to 5.70% for the fourth quarter and 4.73% one-year ago. For complete details on Capital One’s first quarter performance, visit CardData ([www.carddata.com][1]).

COF U.S. CARD NET INCOME
1Q/05: $458.2 million
2Q/05: $432.4 million
3Q/05: $481.8 million
4Q/05: $237.0 million
1Q/06: $602.8 million
Source: CardData (www.carddata.com)

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

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RDM Introduces RDM SYNERGY Terminal

Ontario-based RDM Corporation announced the availability of additional “RDM SYNERGY” connectivity options. “RDM SYNERGY” is an all-in-one POS payment solution. In addition to the currently available
standard Modem data connection, “RDM SYNERGY” units can now be ordered
with Ethernet (10 BaseT) connectivity as an option either in place of
the existing Modem or in addition to the Modem data connection. “RDM
SYNERGY” can be used for Electronic Check Conversion and Check 21
transactions, as well as credit, debit, EBT and loyalty cards and
features the “EC6000i/EC7000i” Series that includes a proprietary
Progressive MICR Method, bi-directional document drive, OCR MICR assist,
franking acknowledgment and a thermal printer. RDM develops specialized
software and hardware products for electronic payment processing.

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Schram to Become Deluxe’s New CEO

NCR’s SVP of Retail Solutions, Lee Schram will become Deluxe Corporation’s new CEO on May 1st. Schram has 22 years of experience with NCR, having held a variety of positions of increasing responsibility, including general manager of its Payment and Imaging Division, and his most recent role as leader of the Retail Solutions DivisionSchram was an industry technology representative called to testify before the House Finance Sub- Committee in support of the pending Check 21 legislation. In his most recent position, Schram completed several acquisitions that extended the core retail store automation business into exciting growth opportunities in new self- service segments and Radio Frequency Identification. He has a Master of Business Administration degree from the University of Dayton.

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GPN Credit Services Opens its Card Business

Global Payments Credit Services has registered with the Russian State
Register of Credit Bureaus to provide credit bureau services in the
Russian Federation and also announced agreements with VimpelCom, a
telecommunications firm operating in Russia under the brand name Beeline
and INVESTSBERBANK, a private Russian bank. GPCS currently has contracts
with nearly 40 Russian financial institutions. Global Payments Credit
Services LLC is a joint venture between Global Payments Europe, a.s.
and Home Credit & Finance Bank of Russia.

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First Data’s Profit Stays Flat in Q1

First Data reported this morning that first quarter net income was flat year-on-year even though total revenues increased 10% to more than $2.7 billion. Western Union generated revenue of $1.1 billion, a 16% increase from 1Q/05 and an operating profit of $337 million, up 13% year-over-year. Commercial Services reported Q1 revenue of $934 million, up 9%, and an operating profit of $214 million. Financial Institution Services revenue was $445 million, down 5% and operating profit was $84 million, down 4%. First Data International generated revenue of $264 million, up 24% and operating profit was $29 million, up 35%. Integrated Payment Systems revenue was down 8% to $30.3 million and operating profit was down 59% to $4.4 million. As of March 31st, accounts on file were 425.7 million domestic and 46.8 million international. Of the card 472.5 million accounts on file, 93.7 million were bank card accounts, 264.4 million were retail accounts and 114.4 million were debit accounts. For complete details on FDC’s first quarter performance, visit CardData ([www.carddata.com][1]).

FDC NET INCOME
1Q/05: $374.5 million
2Q/05: $391.9 million
3Q/05: $421.5 million
4Q/05: $397.9 million
1Q/06: $373.7 million
Source: CardData (www.carddata.com)

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

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Austin Logistics Expands Into UK and Europe

Austin Logistics is increasing its presence in the UK and Europe as global markets and market trends in risk, collections and retention increase demand for the company’s predictive decisioning solutions worldwide. As part of the move to capture rapidly emerging opportunity and to provide in-market sales, service and help desk support, the company announced it is partnering with TDX Group, Nexcom Solutions and Geomant to sell, distribute and deploy its full line of predictive analytic-based solutions throughout the UK and Europe.

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CTL Powers the New RAKBANK Titanium MasterCard

RAKBANK has launched its new “RAKBANK Titanium
MasterCard” using Card Tech Limited technology. The card carries a
no-fee guarantee that provides its holders with multiple benefits
including a cash back incentive of up to 2% on all purchases made.
The cards are linked with extensive discount programs for healthcare
facilities, travel agents and restaurants. In 2000, RAKBANK in conjunction with CTL, launched a MasterCard and a VISA credit card linked with extensive discount programs for healthcare facilities, travel agents and restaurants. Card Tech Limited provides
payment association certified solutions. RAKBANK is the National Bank
of Ras Al-Khaimah.

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CyberSource’s TX Volume Up 43% in Q1

CyberSource reported that revenue in the first quarter increased 40% to $15.6 million compared to the same period last year. However, net income for the quarter was down slightly from 1Q/05 to $900,000. Transaction volumes increased to a record 196.4 million during the quarter, a 43% increase over the 137.7 million transactions processed in the same period last year. The company also added about 1,600 new customers in the first quarter. The company’s total customer count is now more than 14,000. During the quarter, the company announced the acquisition of BidPay.com, Inc. from First Data Corporation for $1.8 million in cash. For the second quarter the company projects total revenue to be $16.0 million. For complete details on CyberSource’s lates results visit CardData ([www.carddata.com][1]).

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

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FEB 06 DEBT

Credit card debt took a strong upturn in February, hitting a new high of nearly A$35 billion. During the past twelve months, credit card debt has increased 15% while credit card volume rose 10%. For February, credit card balances increased to A$34.7 billion following a record high of A$34.3 billion in December. One-year ago credit card debt stood at A$30.3 billion. Gross dollar volume on credit card and charge cards in February was A$14.2 billion, compared to A$12.9 billion one-year ago. Card credit limits reached A$93.6 billion at the end of February, compared to A$83.0 billion for February 2005. There are currently 12.7 million credit card and charge card accounts in Australia, compared to 11.7 million one-year ago.

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ACI Introduces SEPA Wholesale Payments

ACI Worldwide has introduced the “ACI Wholesale Payments System” for SEPA, a global payments processing engine. The SEPA project not only aims to improve the efficiency of cross-border payments but also aims to develop common instruments, standards, procedures and infrastructures to foster substantial economies of scale. As the back office processing engine, the “Wholesale Payments System” supports payment capture, enrichment, routing and settlement of bulk and individual real-time payments in a variety of configurations.

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Comerica and Elan Launch a Card Suite

Detroit-based Comerica Bank, in association with Elan Financial Services, has launched seven new credit cards including the “VISA Platinum,” “Select Rewards VISA Platinum,” “Cash Rewards VISA Platinum,” “Travel Rewards VISA Platinum,” “College Rewards/Young Adult VISA,” “VISA Signature,” and “MasterCard Small Business Credit Card” Comerica Bank is a subsidiary of Comerica Incorporated and reported total assets of $56.4 billion at March 31, 2006.

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