New Jersey’s largest credit union, the $1.3 billion Affinity Federal Credit Union, has joined the Allpoint surcharge-free ATM network, gaining access to 905 surcharge-free ATMs across New Jersey and 32,000 surcharge-free ATMs nationwide. Affinity FCU has more than 116,000 members from more than 800 businesses and organizations and total assets in excess of $1.3 billion.Details
Credit card delinquencies, based on total dollars outstanding, dipped to its lowest level in more than fifteen years for a fourth quarter period. Sequentially, delinquent dollars slipped 53 basis points largely due to the recent change in the bankruptcy law. The number of past-due credit card accounts also dropped. According to the American Bankers Association’s “Consumer Credit Delinquency Bulletin,” delinquencies based on total dollars outstanding for 4Q/05 were 3.21%, compared to 3.74% in the third quarter and 4.19% for 4Q/04. Based on the number of accounts past-due, the figures were 4.27% for 4Q/05, 4.74% for 3Q/05, and 4.20% one-year ago. The ABA says the Oct 12th deadline for filing bankruptcy under the old system had a close-out sale effect on filings, wiping clean credit card debt that would normally have been reported as delinquent in the fourth quarter.
4Q CREDIT CARD DELINQUENCY HISTORY
(based on total dollars outstanding)
Source: ABA Delinquency Bulletin
ICICI Bank has chosen Card Tech Limited to upgrade its bankcard
management system to manage its extensive card portfolio including 60,000 merchants. With over four million cards converted, CTL has achieved one of the largest credit card conversions outside of the U.S. to date. CTL’s project design and planning team methodology for systems integration and migration resulted in a smooth transition for the bank and since going live, “PRIME 3.0” has helped ICICI Bank to achieve secure, high-volume transaction processing. Using “PRIME”, the bank now offers over 80 innovative card products, manages 100,000 merchants, and supports its rapidly increasing credit card portfolio of over four million cards.
A new study has found that 51% of men 50+ and women 35-49 who have loyalty cards prefer a discount as opposed to accumulating points. Baltimore-based Vertis said the results of its grocery study also showed that 42% of Hispanic consumers prefer to accumulate points for a larger reward or payoff, compared to 34% of total adults. More than half of “Baby Boomers” prefer immediate discounts on specific products or services, compared to 45% of “Generation X” consumers. The Vertis research revealed that if a store offered a frequent buyer or loyalty card program, 51% of professional/white collar adults would prefer a discount on specific products during each visit, compared to 46% of blue collar adults surveyed.Details
FreeStar Technology Corp announced that it terminated the previously
announced private placement with a European finance group led by Soren
Moberg and reached terms with new investors, lead by Olympia Holding AS,
for $9.2 million in financing on the same terms as the terminated
financing. In addition, FreeStar Technology reported that the first
payment of $4.6 million had been received from the new investors. The
terms agreed to with Olympia and the new investors provide for the
purchase of 46 million newly issued shares under Regulations S of
restricted common stock at $0.20 per share and two-year warrants to
purchase 14 million shares at a strike price of $1.50, as well as an
additional 36 million warrants at a strike prices ranging from $2.50 to
Chennai-based Indian Bank has launched the Bharat Credit Card for the less privileged consumer. The new credit card would be targeted at those persons who have a monthly income of Rs.3000. Indian Bank also offers the “Artisan Card,” and the “Kisan Card.” The bank has 233 ATMs.Details
Kazkommertsbank has chosen Welcome “XLS” to launch their
new “GO!Card” credit card. The “GO!Card” is designed to stimulate
spending with the use of enhanced payment features such as bonus points
accumulated instantly on the card’s chip, which can then be spent at any
participating merchant location. The amount of bonuses provided differs
from merchant to merchant and could be up to 20% of the total purchase
amount at some locations. In 2005, the “GO!Card” was launched in
Astana and Alamaty. The launch in other regions of Kazakhstan is
scheduled this year. Welcome is a provider of payment software that
utilizes the full capabilities of EMV standard chip credit and debit
cards. Kazkommertsbank is the largest private, full-service bank in
Kazakhstan with total assets of 8.9 billion at year end 2005.
Aix En Provence-based INSIDE Contactless has moved its Chairman into the CEO spot with the departure of its founder. Remy de Tonnac will replace Jacek Kowalski who founded and managed the Company since 1995.
Kowalski says he wants to explore other opportunities within the contactless and near field communication space. As a Partner of the VERTEX Management funds in Europe, Remy sits on the board of several technology and services companies of the VERTEX portfolio, including the chairmanship of INSIDE Contactless. Prior to joining VERTEX in 2001, Remy was with GEMPLUS.
Payment Processing Incorporated and Tyler Technologies have teamed to offer an integrated payment processing solution for its “EDEN” software developed exclusively for government agencies and municipalities. PPI will provide a complete integrated payment solution for credit card support for EDEN cashiering, e-commerce web portal and Interactive Voice Response. Government agencies use these solutions for billing and payment of permits, taxes, utilities, and licenses. Payment Processing provides integrated payment processing solutions.Details
A new report from VISA Asia Pacific indicates that India is the
fastest-growing Asia Pacific market for international tourist spending.
Tourists to India spent US$372 million during the fourth quarter of
2005, a 25% increase over the same period in 2004. Overall,
international travelers to and within the region spent $6.5 billion on
their VISA cards in the final quarter of 2005, representing a 12% increase
over the same period in 2004 and a 14% increase over the third quarter
in 2005 [$5.8 billion]. Tourists from the US, UK, Japan, Australia and
Hong Kong were the biggest spenders in
the Asia Pacific, accounting for 54% of total spending on VISA
cards between October and December 2005. In all, international tourists
made over 42 million VISA transactions in the region between October and
the end of December 2005 and withdrew $1.4 billion in cash at ATMs and
VISA International reports that debit and prepaid card sales volume has
risen sharply in the Latin America and Caribbean region. Also, the
number of debit and prepaid cards crossed the 150 million card milestone
in 2005. VISA has 63 million credit cards in the region. Debit and
prepaid card sales volume rose 50% during 2005, while credit card sales
volume rose 39%. Total volume at the POS was $83 billion with more than
2.6 billion transactions.
After much wrangling among creditors, LG Card is finally going on the selling block. Korea Development Bank , working with JP Morgan, says the bidding will start on April 12th and will end on April 19th. The creditors are looking to sell at least 51% of South Korea’s largest card issuer. The deal is expected to fetch at least US$4 billion. Woori Financial, Hana Financial, HSBC, and Citibank are rumored to be interested in the portfolio. LG Card has posted four consecutive quarters of solid profitability. In the third quarter of 2004, the issuer reported a 46.8 billion won loss. Since then, LG Card has earned 1.47 trillion won. In the first quarter of this year, the issuer earned 479.8 billion won.Details